MKTG Exam 2
What is the best situation in the Circles for a Successful Value Proposition framework?
The firm's offering overlaps with customer needs/wants but not with competitors' offerings.
When conducting exploratory concept testing for her firm's new Internet antipiracy software, which is the most important question that Dee should ask?
Will respondents purchase the software if it becomes available?
Brands can be owned by
any firm in the supply chain.
What type of interview contains a small group of participants and a trained moderator that guides the conversation?
focus group
Tyree is concerned about a competitor's new line of outdoor barbeque grills that provide most of the same features as his products. Tyree might consider using __________ to gather qualitative information from consumers about the competitor's offerings.
focus groups
Marketers often create a special marketing mix for loyalty segments because these segments are
generally profitable.
Let's Dish is a meal-preparation service operating in three states. Customers visit a Let's Dish store to select and partially prepare their meals, which are then packaged for the freezer. At home, the customer can pull a meal out of the freezer and warm it in the oven or microwave. If Let's Dish wanted to expand into new areas of the United States, what segmentation method would probably be most useful in choosing new locations?
geodemographic segmentation
The decision to delete a product is never taken lightly because, generally, manufacturers
have made substantial investments in product development and manufacturing
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
Food preparation, lawn maintenance, and housecleaning services are all examples of
household maintenance activities that people increasingly pay others to perform.
During the introduction stage of a product's life cycle, typical consumers are
innovators.
When a product is successful in the introductory stage of the product life cycle,
it may start to see profits toward the end of this stage
For luxury carmakers, the lowest-end models in their product lines often represent only a small portion of their sales. Yet these models are critically important when it comes to attracting new customers and, potentially, establishing their lifelong
loyalty to the brand.
Frequent buyer/user award programs are used to
maintain contact with loyal customers.
In the United States, most consumer packaged goods found in grocery and discount stores are already in the __________ stage of the product life cycle.
maturity
The marketing research process follows five steps, and researchers
may not always go through them in the exact sequence if the situation changes or new information is discovered.
Adidas, Pepsi, Kitchen-Aid, and Sony are considered famous ________ brands because they are owned and managed by the manufacturer.
national
Where on a product's packaging would one most likely find nutrient content and country of origin?
on the label
Qualtrics, SurveyMonkey, and Zoomerang are examples of
online survey software.
A restaurant chain is working on improving the quality of its food and service. To track its progress it recruits customers who agree to respond to customer satisfaction surveys once every three months over the next two years. What kind of data is the restaurant chain collecting?
panel data
The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States. Eiger Labs was a(n) __________ in the MP3 player market.
pioneer
The __________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix.
product launch
For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university's product mix.
product lines
All of the following are considered part of the "actual product" level of the product offer except
product warranty.
A university using benefit segmentation and targeting students who want to get a degree quickly while still working full-time would most likely focus on
providing classes at convenient times and offering online courses
Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also heavily motivated by self-fulfillment, which creates the possibility of __________ segmentation.
psychographic
Social media monitoring, in-depth interviews, and focus groups are all __________
qualitative
Social media monitoring, in-depth interviews, and focus groups are all __________ research methods.
qualitative
Once a marketing researcher is ready to move beyond preliminary insights to specific, informed questions, the researcher is ready to conduct
quantitative research.
Ryan wants to sell personal website services to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war zone, Ryan may have trouble with this segment not being
reachable.
Some products may stay comfortably in the maturity phase of the product life cycle until a new product emerges to replace them. An example of such a mature product is
refrigerators.
Company sales invoices, census data, and trade association statistics are examples of
secondary data.
Which service gap is the Ritz-Carlton Hotel trying to address when it takes time and spends up to $1,700 to train a new employee?
standards gap
Omar is responsible for marketing and marketing research for a midsized manufacturer of assemblies for the housing market. His boss has asked him to cut back expenses, especially in marketing research: "Why can't you just use information off the Internet? There's plenty out there." What is Omar's best response to try to get his boss to change his mind?
"Those are secondary data, and they may not be as timely, accurate, and relevant as what we need."
When Walmart communicates to consumers that, for any given group of often-purchased items, its prices will tend to be lower than that of any other competitor, Walmart is exhibiting what type of pricing strategy?
EDLP
__________ 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
_________ is the process by which ideas are transformed into new products and services that will help firms grow.
Innovation
__________ is the process by which ideas are transformed into new products and services that will help firms grow.
Innovation
Why is brand extension a popular marketing strategy?
It allows the firm to spend less on creating brand awareness and associations.
What is the difference between a coupon and a rebate?
The retailer handles coupons while manufacturers handle most rebates.
What is the problem associated with service quality standards such as "be nice" or "do what the customers want"?
They are not specific.
How did consumers respond when Chobani reduced the size of its Greek yogurt containers by 12 percent?
They used social media to complain about the change.
A(n) __________ is a 13-digit code retailers can use to track inventory.
UPC
Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing. Which is the most important question that Kristina should ask?
Will retailers purchase the swimwear if it becomes available?
Mary's Bakery is trying to determine what price to charge for its cookies, so Mary places a low price on them and raises it each week, keeping track of how many she sells. Then she determines what her cost was for the cookies and determines which price was the most profitable. What form of research was Mary conducting?
an experiment
The pricing method that considers what consumers may be willing to pay for a particular product based on the value received over the product's entire lifetime is the _______ pricing method.
cost of ownership
Compared with other methods used to set prices, _______ pricing is relatively simple.
cost-based
Yvonne estimates the average cost of her floral arrangements is $14 regardless of whether she is making 5 or 20 arrangements that day. She adds a standard markup to the $14 estimate to determine her price. Yvonne is using a(n) _______ pricing method.
cost-based
Before deciding on a new promotional campaign, Jeffrey's Muffins looked at its customers' buying patterns over a 15-year period as determined by their use of a loyalty card. What method did Jeffrey's use to make sense of the data that were available?
data mining
Sophie made pies and sold them from her food truck to local businesses. This is an example of a(n)
direct marketing channel.
All of the following are activities carried on in a distribution center except
distributing paychecks and paystubs for retail employees.
A ________ is a facility for the receipt, storage, and redistribution of goods to company stores.
distribution center
The break-even point is estimated by
dividing fixed costs by contribution per unit.
Using technology and __________ are two ways a delivery gap can be reduced in size.
empowering employees
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.
Empowerment is when __________ are authorized to make decisions to help their customers and, as a result, service quality generally improves.
frontline employees
A(n) _______ is used in the shipment of products directly to customers.
fulfillment center
Golden Years Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using __________ segmentation.
geodemographic
Retail store chains often use __________ data to tailor each store's assortment to the preferences of the local community.
geodemographic
Differences in weather and climate create opportunities for
geographic segmentation.
In determining the price of his company's new small-business accounting software, Richard is assessing how much better his company's software is as compared to alternative products available in the market. Richard is using _______ pricing.
improvement value
Nadia stood outside the mall and asked people which stores they visited and if they bought anything. If they said yes, she asked them what they bought and how they came to the decision to buy that item. What form of research was Nadia most likely conducting?
in-depth interviews
When the detailed opinions of a few industry experts or experienced consumers are needed, __________ is(are) often the best qualitative research method.
in-depth interviews
One important purpose of a brand is to
increase consumer recognition and awareness of product offerings.
Barnes & Noble bookstores have computers available for associates to use to search for books requested by customers and to place special orders. These computers are an example of
instrumental support.
Colin has been directed by his boss to determine if the company is meeting customers' service quality expectations. One of Colin's problems is that services are __________, making evaluation of service quality difficult.
intangible
Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation
is a more expensive method for identifying potential customers.
One of the limitations associated with break-even analysis is that
it assumes that there is only one price.
Parents of young children have been known to drive out of their way so their kids will not see McDonald's Golden Arches and plead with their parents to stop. For McDonald's, the Golden Arches reduce marketing costs because people (including young children)
know what the Golden Arches brand symbol means
A __________ gap reflects the difference between customers' expectations and the firm's perception of those customer expectations.
knowledge
David's marketing research returned the finding that customers were staying away from his bookstore because of a lack of services like gift cards, return policies, and special orders. David was shocked. "Nobody ever asks about that stuff! If it were that important, people would ask about it." David is likely suffering from a(n) ________ gap.
knowledge
Demographic segmentation is segmentation based on all of the following except
lifestyle.
Because customers have different needs and expectations, the key to distributive fairness in service recovery is to
listen to the customer.
Service employees at the airlines' flight cancellation desks frequently encounter travelers who get emotional about canceled or delayed flights. The first thing these employees should do is to
listen to the customer.
All of the following are common business-to-business pricing tactics except
loss-leader pricing.
Bianca's discount home furnishings store is in a strip mall. She wants to know what other businesses in the strip mall her customers visit when they come to her store. To collect information for this objective, Bianca will most likely use
observation.
Adidas Group owns Reebok and Rockport—both of which offer different types of shoes. Having a variety of brands allows adidas to use a differentiated targeting strategy to
obtain a bigger share of the shoe market.
Felicia had just taken over her family's business after spending ten years in the marketing department of a large corporation. She met with a representative from one of her firm's biggest customers, who told her, "We should think about how we can make the pie bigger rather than fighting over the size of the slices." She had expected a more cutthroat approach rather than this call for a
partnering relationship.
Relatively few consumers like to go to the dentist. Dental insurance plans that pay for regular checkups increase the __________ of dental care by reducing the cost to the consumer.
perceived value
Cross-price elasticity is the
percentage change in quantity demanded of Product A compared to the percentage change in price of Product B.
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.
French luxury goods manufacturer and retailer Hermès is known for making expensive leather goods. But paying $300,168 for a handbag at auction, which is over the standard retail price of $280,000, is extraordinary, and not for the casual shopper. The handbag is considered a
prestige product.
A demand curve shows the relationship between _______ during a specific period of time.
price and demand
Cosmetic manufacturers that sell shampoo and conditioner together as one package at a lower price rather than selling each item separately are using
price bundling.
Zappos is a successful online shoe company. One of the difficulties in running a shoe company is the need to have significant __________, a large number of items in each product line.
product line depth
A university that has separate graduate and undergraduate admission offices recognizes that these are distinct
product lines.
The complete set of all products offered by a firm is called its
product mix.
Service providers often encounter rude and unreasonable consumers. Services marketing managers can reduce the delivery gap, even for these customers, by
providing support and incentives for their employees.
VALS is the most widely used __________ segmentation tool.
psychographic
Marketers advertising an artificially high "regular price" are unethically attempting to influence consumers' __________ perceptions.
reference price
After defining objectives and research needs, the next step in the marketing research process involves
research design.
Price reductions offered on products and services to stimulate demand during off-peak seasons are referred to as
seasonal discounts.
Fees paid to retailers simply to get new products into stores or to gain more or better shelf space for their products are called _______ allowances.
slotting
Which of the following markets is most likely to be characterized by oligopolistic competition in the United States?
smartphone service providers
Firms that are engaged in sentiment mining are analyzing data collected from
social media sites.
Which of the following is most likely to be characterized by pure competition in the United States?
soybeans
If there is a difference between the firm's perceptions of customers' expectations and the service standards the firm has set, a __________ gap exists.
standards
Commercial research firms such as IRI, the National Purchase Diary Panel, and Nielsen are sources of
syndicated data.
Gerald's Tire Service provides each employee with a clean, sharp-looking uniform. It also instructs employees to put all tools back where they belong and keep the work area clean and uncluttered. Gerald's Tire Service emphasizes __________ in the five service quality dimensions.
tangibles
Earl was known for driving 30 miles just to save a dollar on the price of his favorite beverage. Earl perceived price as _______ for a good or service, while most consumers recognize price as the _______ made to acquire a good or service.
the money paid; overall sacrifice
The more substitutes that exist in a market,
the more sensitive consumers will be to changes in the price of a particular product.
Zappos.com, an online shoe store, offers an easy, no-hassle return procedure. This relates to the _______ of its products.
trialability
When consumers are __________, observation becomes particularly useful in understanding consumers' preferences.
unable to articulate their experiences
When a salesperson calls you to sell a cemetery plot, this is most likely what type of product?
unsought product
Microsoft's Windows operating system continues to dominate the market, even though it has been around for over 20 years. Windows will likely remain in the maturity stage of the product life cycle
until a superior product comes along to replace it.
Consider a bakery like Entenmann's: The majority of the ___________ costs are the cost of the ingredients, primarily flour.
variable
The local auto supply store gets merchandise delivered to it by its manufacturers as soon as it has a need, reducing stockouts with minimal inventory. This demonstrates the concept of
vendor-managed inventory.
The Stanley company wants Home Depot to carry all its tools but not the tools of its competitors so that Stanley can maximize its sales. But Home Depot carries a mix of tool brands so it can maximize the sales in its tool category. This misalignment of goals will likely lead to a ________ channel conflict.
vertical
When members of the marketing channel collude to control the prices passed on to consumers, they are engaging in
vertical price fixing.
A ___________ program is a promotional strategy that encourages people to pass along a marketing message to other potential consumers.
virtual marketing
A systematic ____________ program collects customer inputs and integrates them into managerial decisions.
voice-of-customer
Bank of America uses a complex polling system coupled with a customer response measurement system to assess consumers' responses to new products and services. Bank of America is using a(n) __________ program to improve service quality and service offerings.
voice-of-customer
At the end of a brainstorming session, participants are often asked to
vote on the best ideas.
When automobile manufacturers introduced SUVs, they distributed and promoted them in the United States, but not in Europe where gasoline is heavily taxed and roads are much smaller. Car manufacturers recognized that this new line of cars
were not compatible with European market conditions.
Marco was assigned to help create a positioning strategy for his employer's products based on product attributes. He should consider
what the target market would consider the most important features
While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do not help marketers determine
what their customers need.
Political consultants have been using marketing research for decades to help their candidates understand
who makes up the voting public and how to reach them.
Beverly is assessing the results of a new product launch of a series of e-books for her bookstore. When evaluating the results, Beverly will likely consider all of the following except
why it took her so long to consider the new product line.
Cost-based pricing assumes that costs
will not vary much for different levels of production.
Which of the following is an unstructured question?
"What are the most important characteristics for choosing a brand of shampoo?"
In one year, the Hotel by the Shore incurred $100,000 in fixed costs. Because the hotel booked 10,000 room nights, its total variable cost is $100,000 (10,000 room nights × $10 per room). Thus, its total cost is
$200,000.
Fiona is looking to expand her pet grooming business and wants to evaluate the profitability of a potential new market. The area she is looking at has 2,000 homes and Fiona estimates that 20 percent of them would be likely to use her service. She charges $45 per grooming and on average customers groom their pets six times a year. Fiona estimates her variable costs to expand her business will be $10 per grooming and her fixed costs are $10,000. How much profit would Fiona make on this new segment?
$72,240
Jason rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20. His fixed costs are $100,000 and his target profit is $20,000. For Jason, to earn his target profit, he will need to rent out ________ rooms.
1,500
_________ segmentation is the segmentation method most directly related to value creation for consumers.
Benefit
A tablet programmed with key customers' birthdates, wine preferences, and food allergies is a(n) __________ tool.
CRM
What situation is occurring if a 1 percent decrease in price results in more than a 1 percent increase in quantity demand?
Demand is price elastic.
________ means allowing employees to make decisions about how service is provided to customers.
Empowerment
What U.S. government agency has the primary responsibility in reviewing food and package labels to ensure claims made by the manufacturer about the product are true?
Food and Drug Administration
Assuming that a marketing research study will answer important questions and reduce uncertainty associated with the proposed project, a major question that needs to be addressed before starting the study is
Is top management committed to the project and willing to abide by the results of the research?
What makes a high/low pricing strategy appealing to sellers?
It attracts two distinct market segments.
Which of the following is true about quantitative research?
It confirms insights and hypotheses generated via qualitative research.
Which of the following is true regarding the ticketing and marking process?
It is more efficient for a retailer to perform these activities at a distribution center than in its stores.
__________ pricing tactics lower the price of a product below the store's cost.
Loss-leader
In a retail supply chain, the ________ records the purchase information and electronically sends it to the corporate office.
POS terminal
_________ fairness refers to the perceived fairness of the process with which a firm handles customer complaints.
Procedural
Which of the following statements best describes secondary data?
Secondary data are pieces of information that have been collected prior to the start of the focal research project.
All of the following are guidelines for developing a marketing research questionnaire except
Sensitive questions should be asked first.
Imagine that you currently operate a clothing boutique, and you want to add another boutique in a new location. You need to obtain data to determine the size of your potential market. Which data source would you use?
U.S. Bureau of the Census
Caroline needs to find information about income and age distribution in Orange County, California. The best source of secondary research of use to Caroline is likely to be
U.S. Census data.
Assume the demand for electricity, a necessity with few substitutes, is −0.2. If the electric company raised its rates by 10 percent, we would expect
a 2 percent decrease in quantity demanded.
When a company launches a new product line with an existing brand name, this is known as
a brand extension.
For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting its marketing mix variables in order to give customers
a clear, distinctive, and desirable understanding of their products relative to competing products.
When CarMax promises a "no-haggle" pricing structure, it exhibits _________ because it provides additional value to potential used car buyers by making the process simple and easy.
a customer orientation
Customers must see value in a product or service before they are willing to exchange time or money to obtain it, but not all customers see the same value in a product. To analyze how many units will be sold at any given price point, marketers draw on
a demand curve.
A pricing strategy is
a long-term approach to setting prices in a companywide integrated effort.
Yurgen is opening a financial consulting service for high-income retirees in his area. This target market is used to paying for quality and associates high quality with high prices. In this instance, Yurgen should probably not use a market penetration pricing strategy because
a low price might signal low quality.
The saying "leaving money on the table" is associated with
a market penetration strategy when there is an opportunity for price skimming.
For which of the following is demand likely to be most sensitive to price increases?
a specific brand of soft drink
All of the following are included in the five dimensions used by consumers to determine overall service quality except
acceptability.
In countries like the United States, services
account for an increasing share of jobs.
Because of its size and relative power, Walmart can easily impose controls on small manufacturers, such as PenAgain, but with large, powerful suppliers such as P&G, the control is more balanced between parties. Walmart's various marketing channel relationships offer examples of different forms of a(n) ______________ marketing system.
administered vertical
Roland has just received notification from a vendor that his clothing merchandise order has been processed and dispatched. Roland has just received a(n)
advanced shipping notice.
Especially in the fashion industry where styles and trends change rapidly, a quick response system can
align deliveries more closely with actual sales.
Frank's Heating and Air Conditioning Company specializes in electric heat pumps. Frank keeps track of the price of natural gas, knowing that
an increase in the price of natural gas will increase demand for his electrical heating systems.
Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as
an indicator of quality.
A product is __________ that can be offered through a voluntary marketing exchange.
anything of value to consumers
In questionnaire design, a question such as "Do you like Wendy's hamburgers and fries?"
asks two questions at once.
What aspect of the product is being described when a used-car salesperson explains that each car comes with a one-year extended warranty and a two-year maintenance plan?
associated services
Students regularly seek out Professor Guillory to advise them. She has an exceptional manner, and students are confident in her and trust her advice. For these students, __________ is the most important of the five service quality dimensions.
assurance
When conducting a survey about choosing vacation destinations, Hillary will need to __________ in order to get reluctant respondents to provide honest information.
assure consumers that their individual responses will be kept confidential
Jim wants to position his firm against his competitors. In doing so he should
avoid looking too much like the competitor so as not to confuse the target segment.
One of the reasons service failures need to be addressed quickly is to
avoid negative word of mouth from upset customers.
Bill 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. Bill found out later that Marcelo had the same experience at the store a few weeks earlier. It's quite possible that both Bill and Marcelo had become the victim of a deceptive pricing tactic known as
bait and switch.
In a __________ pricing tactic, sellers advertise very low prices and then aggressively pressure customers to purchase higher-priced versions of the product advertised with the low price.
bait-and-switch
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
Wanda and Jim are working on a research project to anticipate customer attitudes toward a proposed new product line for their company. They have worked with the marketing manager to determine the answers that are needed and have created a detailed design of the project. Their next logical step will be to
begin to collect data.
Toothpastes sold in supermarkets and pharmacies promise various results, such as whiter teeth, protection against gum disease, tartar control, or fresh breath. Toothpaste marketers are using __________ segmentation.
benefit
Social networking sites that compete directly with Facebook have a difficult time surviving; however, LinkedIn has survived by focusing on the needs of business professionals, who seek to network with colleagues, share their expertise, post online résumés, and look for new jobs. What segmentation method is LinkedIn using?
benefit segmentation
One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Using the cars in a real-use setting provides an opportunity for _______ the product.
beta testing
1f a few of Nintendo's customers are asked to try out a new video game that has not yet been released on the market, this is an example of
beta testing.
The term _______ refers to the enormous amount of information that firms now have access to but cannot handle using conventional data management and data mining software.
big data
Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to generate ideas for names for a new beach resort. You are engaged in __________, a form of new idea generation.
brainstorming
The XYZ car manufacturing company is advertising its new hybrid vehicle. It understands that its competition, Toyota's hybrid car, the Prius, is known for being economical, a good value, stylish, and good for the environment. Toyota has the advantage of
brand associations
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
Jake developed a toothpaste using only natural ingredients, and he has been quite successful selling the product in health food stores and some grocery stores. He has recently developed a toothbrush using bamboo and natural components. Jake 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.
When a restaurant chain, Big Burgers, launches its own brand of frozen meals, this is an example of a
brand extension.
Jenna always buys Stacy's brand pita chips. She does not even consider alternatives. Jenna is a __________ customer
brand-loyal
The basic reason manufacturers spend time and money building their own brands is to
build brand equity.
If a firm has demographic and purchasing information about its customers, the firm can use data mining techniques to
build separate marketing programs for different demographic segments.
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
In many cases, pioneers lose their market lead and initial market share to imitators who
capitalize on the pioneers' weaknesses.
Variable costs change with
changes in the quantity being produced.
Yesterday, Lorinda overheard a surprisingly unpleasant encounter between the manager of the hardware store where she works and a sales rep who sells a well-known line of tools. The rep insisted that his tools should be more prominently displayed and that a better assortment would mean more sales. The manager had other plans and told him so, and the conversation turned into a loud argument. What Lorinda observed was an example of
channel conflict.
Ted is glad his company finally converted to an RFID system. Now, he no longer needs to go through all the new goods to make sure what they ordered was what they received. Ted is responsible for __________ in his company.
checking
The number of participants who discontinue their use of a service divided by the average number of total participants is called
churn.
All of the following are included in the five Cs of pricing except
collaboration.
The __________ gap can be reduced by managing consumers' expectations and promising only what can be delivered or possibly even a little less.
communication
Laptop computers, personal digital assistants, and cellular phones were all readily accepted and diffused in U.S. markets where business and personal lifestyles tend to be faster-paced, compared to many other areas in the world. These products offered __________ with consumers' needs and priorities.
compatibility
Firms using a(n) _______ pricing method set their prices relative to what other firms are charging.
competition-based
When Greenbelt Construction Company began building houses in a large subdivision with many other builders, the company priced its homes slightly higher than its competitors and promoted the added quality features found in Greenbelt's homes. Greenbelt was using a(n) _______ pricing strategy.
competition-based
When Ursula decides how to price new products in her gift store, she measures the value of her product offerings against those of the other stores in her area. Ursula uses a _______ pricing strategy.
competitor-oriented
Diane owns a bakery where she sells cupcakes. Two blocks down there is another bakery, CC's Bakery, that sells cupcakes for $1 less than Diane. Diane decides to lower her price and match CC's Bakery prices. What type of pricing strategy is Diane implementing?
competitor-oriented pricing
Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies.
concentrated
When Penguin Catering Services first opened, the owner decided to target only events at resorts in its geographic region. Penguin Catering was using a(n) __________ targeting
concentrated
The perceptions of __________ are being measured in a perceptual map.
consumers
In general, prices should not be based on costs because
consumers make their purchase decisions based on perceived value.
Marketers selling milk, bread, and other consumer staples know that most customers do not spend much time searching or comparing alternatives. For most consumers, these are _____________ goods.
convenience
In a(n) __________ marketing channel, none of the participants have any control over the others.
conventional
In determining the price for his company's new photo printer, Raymond is assessing the total cost of owning his printer as compared to alternative products available in the market. Raymond is using _______ pricing.
cost of ownership
Many stores now e-mail codes to their customers that can be used on their websites or printed and brought into the store to receive discounts for products purchased. In this instance, the customer is using a _______ to receive the discount.
coupon
In a __________ distribution center, merchandise moves from vendors' trucks to retailers' delivery trucks in a matter of hours.
cross-docking
An excellent, inexpensive, and readily accessible method for assessing customers' service expectations is
customer complaints.
Imagine that you are the marketing manager of a hotel chain that wants to implement a customer reward and loyalty program. You research the firm Sabre Hospitality Solutions, which offers its services to global and boutique hotel chains to develop and execute these types of programs. Sabre Hospitality Solutions is a company that focuses on
customer relationship management. building brand awareness. building brand associations. increasing perceived value. increasing brand equity.
The Service Gaps Model is designed to highlight those areas where
customers believe they are getting less or poorer service than they should.
All of the following are advantages of using a distribution center except
customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center.
In addition to merchandise and payments, information flows throughout a supply chain. All of the following statements are a good characterization of the flow of information in a supply chain except
customers will send and receive information from stores and manufacturers.
Marketers can take advantage of the variable nature of services by
customizing services to meet customers' needs exactly.
Price advertisements should never
deceive customers to the point of doing harm.
During the ___________ stage of the product life cycle, firms either position themselves for a niche segment of diehard consumers or they completely exit the market.
decline
Paul listens to music on his iPod and iPhone, but he still buys vinyl records at his local music store on occasion, although they are getting harder to find. Vinyl records are in the __________ stage of the product life cycle.
decline
Managers of Wendy's fast-food restaurants keep track of prices at competitors such as McDonald's, Burger King, and Arby's, knowing that a decrease in the prices at these other fast-food restaurants will
decrease demand for Wendy's products.
If the price for a product increases, the demand for the complementary product will
decrease.
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
Saltdust Grill is known as the premier restaurant in town. With its elegant dining area, extensive wine list, and gourmet chef, residents and tourists flock to the restaurant. Recently, Trey took a large group to the Saltdust Grill and almost every diner sent their entrée back to the kitchen. The Saltdust Grill was experiencing a(n) __________ gap in service quality.
delivery
Beer marketers know that high-school educated, working-class males from the ages of 25 to 40 make an attractive market for their products. This is a __________ segment of the beer market.
demographic
Talbots, an upscale women's clothing store, targets college-educated women between 35 and 55 years old with average household income of $75,000 or more. This is a form of __________ segmentation.
demographic
Television advertising has recently expanded to include "mini-ads," which are short ads lasting five to ten seconds. These ads are most useful in advertising to men, since men are more likely than women to channel surf during commercial breaks. Given this fact, this type of advertising will be more useful to marketers engaged in __________ segmentation.
demographic
How can a company find its way out of a market characterized by pure competition?
differentiate the product in some way, even by packaging, so customers will see it as distinct
The process by which the use of a new product or service spreads throughout a market group is referred to as
diffusion of innovation.
Having no intermediaries between the buyer and seller is a defining characteristic of a(n) _______ marketing channel.
direct
Trisha makes purses out of old blue jeans and sells them to customers at local craft fairs. What type of marketing channel does this represent?
direct
When travelers are bumped from overbooked flights, they are frequently offered vouchers good for future travel. The dollar value of the voucher is the airline's estimate of
distributive fairness.
Along the service-product continuum, which of the following would be considered the most service dominant?
doctor's office
The Coffee Express company is located in a business district with few customers on the weekend. To attract customers on Saturday and Sundays, it reduces its prices on these two days. This is an example of
dynamic pricing.
Marketing channels and supply chains comprise various buying entities that form relationships with one another. The basic motivating factor in these interactions is
each party wants something from the others.
As it pertains to the diffusion of innovation, if the __________ group is relatively small, the number of people who ultimately adopt the innovation likely will also be small.
early adopter
The __________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them.
early majority
After assessing the market growth potential and market competitiveness in Mexico for his company's baby products, Harmon wanted to evaluate market access. To do this, Harmon would consider
ease of accessing or developing distribution channels and brand familiarity.
For a brand name to be effective, it needs to be
easy for consumers to recognize and remember.
When it comes to measuring consumers' price sensitivity, products are viewed as either
elastic or inelastic.
The price elasticity of demand for a teeth-whitening kit is −1. The market for this product is considered
elastic.
After installing a(n) _______ in its JIT system, Chocolate Tree (a retail chocolate store) was able to reduce lead time for merchandise orders.
electronic data interchange system
Flora is frustrated with her company's supply chain management information system. She wants to be able to receive sales data, initiate purchase orders, send and receive invoices, and receive returned merchandise documentation. Flora needs a(n)
electronic data interchange system.
The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. Employees are instructed to always address a guest by name, if possible. To accomplish this, employees are trained to listen and observe carefully to determine a guest's name. Which service characteristic is this an example of?
empathy
Empowerment of employees helps address the delivery gap because
employees directly involved with the customer can respond effectively at the moment the problem occurs.
When Dr. Horton checked in at the Ritz-Carlton, it was 3 a.m. He had been traveling for over 12 hours and was exhausted. His suit, which he needed for a speech that morning, looked like he had slept in it. Karen, the night clerk, offered to find a 24-hour dry cleaner and have the suit cleaned while Dr. Horton got a few hours of sleep. Karen's actions are an example of
empowerment of employees to meet customers' needs
Marketing expenditures allocated carefully can result in greater brand recognition, awareness, perceived value, and consumer loyalty for the brand, which all enhance the brand's
equity.
The first step in the STP process is to
establish the overall strategy or objectives.
Break-even analysis is useful because it allows managers to
estimate the quantity they will need to sell at a given price to break even.
All of the following are stages in the product life cycle except
evaluation.
Academic researchers often jump at the opportunity to conduct a research study, curious to learn more and address unanswered questions for the sake of general knowledge. Businesspeople tend to be more cautious before embarking on a marketing research study, recognizing that research is often
expensive and time-consuming.
Production of the DeLorean car, made famous in the film Back to the Future, never got above 25,000 units during its lifetime. Automobile industry analysts estimate that production of this car needed to reach around 300,000 units to achieve the __________, which refers to a decrease in unit cost as product volume increases.
experience curve effect
All of the following are considered qualitative research except
experiments.
When consumers associate a brand with a certain level of quality and familiar attributes, allowing consumers to make quick decisions, the brand
facilitates purchasing.
All of the following are reasons for the high failure rate of new products except
failing to introduce lower-priced alternatives.
Charles wants to survey recent customers about the quality of service they received at his small auto service dealership. He has customers' mailing and e-mail addresses. Charles will likely use an online survey primarily because it offers
fast responses at a lower cost.
Colin has just received a delivery from the company's distribution center. He opens the containers and finds the popcorn and snacks are all bar-coded and priced and the package includes an end-of-the-aisle display rack. Colin has received a(n) __________ shipment.
floor-ready
Some retailers require their suppliers to ship merchandise ___________, thus eliminating the time and expense associated with ticketing and marking.
floor-ready
When Cynthia's Boutique receives dresses, they already have price tags and are on hangers. Cynthia's Boutique receives __________ merchandise.
floor-ready
Martin has hired a marketing research company to bring together a small group of soft drink consumers and get feedback on the three new advertising slogans his firm is considering. The marketing research firm might conduct a(n) __________ to provide the information Martin has requested.
focus group
Frederica manages an upscale women's clothing store. She wants more information about her customers' general feelings about upcoming fall fashions. Frederica will most likely use __________ to gather this type of data.
focus group interviews
The Tapestry™ Segmentation system divides and sorts small geographic areas into categories using 60 or more demographic and lifestyle characteristics. This market research tool is an example of __________ segmentation.
geodemographic
Today, almost every sales rep can immediately check the company's inventory and production schedule electronically. This allows sales reps to sell what is available and make promises to customers that they can keep. This technology has improved service delivery through
greater ability to obtain information.
During the __________ stage of the product life cycle, there are few but an increasing number of competitors.
growth
When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the __________ stage of the product life cycle.
growth
Each time a politician or celebrity writes a book, bookstores can expect at least some customers to want the book, but whether or not it will become a best-seller is less certain. The bookstore's primary inventory management challenge is
having enough books to satisfy customer demands versus the cost of having the inventory.
Every month, Dr. Combahee takes her staff to lunch and asks them to share patients' comments and concerns. Dr. Combahee uses the lunches as an informal marketing research effort intended primarily to
help her understand the needs of her customers.
Innovators are a critical group of new product adopters because they
help the product gain market acceptance.
Which of the following refers to variability in a service's quality?
heterogeneity
In a(n) _______ pricing strategy, marketers rely on the promotion of sales, during which prices are temporarily reduced to encourage purchases.
high/low
A recent innovation by Amazon, the Vendor Flex program, seeks to lower overall transportation costs but also creates new forms of channel conflict with competitors. As a partner in the Vendor Flex program, P&G agreed to allow Amazon to build fulfillment centers within P&G's own warehouses, thus helping to eliminate some of the costs of transporting P&G's products to Amazon's fulfillment centers. Believing that the program was giving its competitor Amazon an unfair advantage, Target reacted vigorously, moving all P&G products from prominent end-cap positions in its stores to less prestigious and less visible locations. Target also stopped using P&G as its primary source of advice for planning merchandising strategies within each category. This is an example of ____________ channel conflict.
horizontal
Several airlines have agreed to charge the same fare for a single route. The airlines are using
horizontal price fixing.
Which of the following is the most logical example of complementary products?
hot dogs and hot dog buns
If values provide an end goal, and self-concept is the way one sees oneself in the context of that goal, lifestyles are
how we live our lives to achieve our goals.
Carlos has identified four potential market segments for his Rent-A-Nurse service. He will now compare the segments to see if they are distinct from each other. Carlos is evaluating whether or not each segment is
identifiable.
Which of the following research methods would be best in helping a marketer understand how people feel about a product or service on an individual, detailed level?
in-depth interviews
Tess is the marketing manager for a fast-food restaurant chain. She uses a target return pricing strategy because her firm's primary objective is to
increase profits.
Sam was called in to meet with his boss, Tricia. He was afraid he was going to be fired for the mistake he had made dealing with an important customer of the store. Instead, Tricia explained that he had handled the situation well, listening to the customer and finding a fair solution. Tricia told him that, even more important, working the way he did to correct the error could result in
increased customer purchases and positive word of mouth.
Effective service recovery efforts can lead to all of the following excep
increased dependence on technology to prevent future service failures.
Effective service recovery efforts can lead to all of the following except
increased dependence on technology to prevent future service failures.
In a(n) __________ marketing channel, several independent members each attempt to satisfy their own objectives and maximize their profits, often at the expense of the other members.
independent
A local furniture store buys furniture from various manufacturers and resells the furniture to its customers. What type of marketing channel does this represent?
indirect
In a(n) _______ marketing channel, one or more intermediaries work with manufacturers to provide goods and services to customers.
indirect
Consumers might not realize that Old Spice health and wellness products and Iams pet nutrition products are made by the same company—Procter & Gamble. Old Spice and Iams are known as
individual brands.
A study found that, among addicted smokers, a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded. For these consumers, cigarettes have a(n) _______ price elasticity demand.
inelastic
Because Walmart has vast information about the consumer goods market, it might exert ___________ power over P&G by providing or withholding important market information.
information
Which of the following is the correct sequence of new product adopters in the diffusion of innovation curve?
innovators, early adopters, early majority, late majority, laggards
Price skimming focuses on selling products to __________ and __________ in the consumer adoption process model.
innovators; early adopters
Sean relocated to take a new job, and when he got sick he needed to find a doctor. He discovered during the visit that he didn't like the one he had chosen, and he knew he'd never go back to that doctor. From a marketing perspective, his situation highlights one of the key differences between products and services, known as
inseparability.
In questionnaire design, a question such as "Do anti-lock braking systems reduce car accidents?"
is a question that respondents cannot easily or accurately answer.
In questionnaire design, a question such as "When was the first time you went to a dentist?"
is a question that respondents cannot easily or accurately answer.
A differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market; this strategy
is likely more costly than an undifferentiated strategy.
Firms use a differentiated targeting strategy because
it helps obtain a bigger share of the market.
The manager of a company selling cellular phones in rural U.S. markets asks you to conduct survey research into the question, What percentage of people in Kansas live in communities of less than 10,000 people? The problem with this research objective is that
it is already known and available from the U.S. Census Bureau.
Marketers with successful brands sometimes hesitate to expand their brands because
it is costly to maintain many product lines, and it might weaken the brand's meaning.
One reason marketers of new, innovative products often start out with a price skimming strategy rather than a market penetration strategy is that
it is easier to lower prices than to raise them.
The CEO of David's firm just came back from a business seminar. He called David 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." David needs to think fast for a good answer because he knows that
it is often impossible to identify with precision where a product is in the product life cycle.
A major advantage of primary data collection is
it offers behavioral insights generally not available from secondary research.
A major disadvantage of primary data collection is
it requires more sophisticated training and experience to design the study and collect data
After a product has been launched, marketers must undertake a critical postlaunch review to determine whether the product and its launch were a success or failure and what additional resources or changes to the marketing mix are needed, if any. For a product that does move on, the firms can measure the success of the new product by interrelated factors that include all of the following except
its satisfaction of the firm's manufacturing requirements.
At the BMW plant in Spartanburg, South Carolina, rather than use a typical order-to-delivery process, it has suppliers deliver parts every four hours when the plant is in operation. BMW uses a ______ inventory control system.
just-in-time (JIT)
Forever 21 has adopted an inventory system that reduces the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller's store, available for sale. This increases product availability and lowers inventory investment. These benefits are attributed to the _______ system.
just-in-time (JIT)
For years, the Mogul Sheraton, a four-star hotel overlooking the Taj Mahal in India, offered free elephant and camel rides to hotel visitors. Few customers took advantage of this service. This is an example of a __________ gap in services marketing.
knowledge
When Marcia booked a room at the Pleasant Valley Hotel, she expected that her room would be ready when she got there, the swimming pool would be heated, the advertised singer would be able to sing, and the breakfast would be fresh. When she arrived, she had to wait for her room, found the swimming pool to be 50 degrees, realized the singer could not carry a tune, and the free continental breakfast was stale. The Pleasant Valley Hotel was experiencing a severe ___________ gap.
knowledge
Manufacturers trying to implement a just-in-time delivery system need to start with
knowledge of customer demand
When John began helping his favorite uncle Burton with his finances, he discovered his uncle was still renting a rotary-dial telephone from the phone company. Uncle Burton had paid thousands of dollars in rental fees over the previous 40 years. Uncle Burton is a(n) __________ in the diffusion of innovation process for telephones.
laggard
When the sequel to Star Wars: The Force Awakens eventually shows up on their regular television networks, this group might watch it.
laggards
By the time BMW got into the mini-SUV market, sales had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the __________ diffusion of innovation group.
late majority
Which of the following adopter categories refers to the last large group of buyers to enter a new product market?
late majority
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.
After installing an electronic data interchange, Carmella's gift shop was able to reduce _______, the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise.
lead time
The amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller's store to be available for sale is referred to as
lead time.
Ron 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
In questionnaire design, a question such as "Marketing is the best part of the business program, isn't it?"
leads respondents to a particular response.
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
For marketers, one of the benefits of having achieved brand loyalty is
lower marketing costs associated with reaching loyal customers.
One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and
lower overall risk.
For marketers using a price skimming strategy, once the initial demand is met for new and innovative products, they will likely
lower the price to capture the next most sensitive market segment.
When Ron complained to his bank about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests. The branch management included Ron in its __________ segmentation.
loyalty
When airlines created frequent-flyer programs, they were among the first retailers to embrace
loyalty segmentation.
Whether they like them or not, most U.S. automobile customers are familiar with and have an opinion about American-made cars. This familiarity makes it easier for consumers to
make purchase decisions
With a __________ pricing strategy, marketers set a low initial price for the introduction of a new product or service.
market penetration
By the time BMW and Mercedes-Benz entered the mini-SUV market, there were many competitors, sales had peaked, and profits were declining. These firms entered the market during the __________ stage of the product life cycle.
maturity
During the __________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense.
maturity
A _______ strategy involves accurately measuring all the factors needed to predict sales and profits at various price levels, so that the price level that produces the highest return can be chosen.
maximizing profits
Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order shoes with custom color combinations. This is a form of
micromarketing.
When Mr. How, a Pennsylvania-based discount lumber and hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in
misguided geographic segmentation.
In a market with _______ there are many firms providing differentiated products.
monopolistic competition
In a vertical marketing system, if the system is _______, the less likely conflict will occur.
more formal
With more frequent shipments associated with quick response (QR) systems, a retailer is
more likely to have what customers want.
In the diffusion of innovation process, innovators enjoy taking risks and are regarded as highly knowledgeable. Marketers want to identify innovators because
other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals.
Each time you go to the grocery store and have your purchases scanned while using a loyalty or bonus reward card, you are contributing to a database that can help marketers determine all of the following except
other stores where you buy similar products.
Yolanda manages a Best Sleep Inn along an interstate highway. She knows from experience that 5 to 10 last-minute customers will call after 8 p.m. each evening looking for a room and asking the price. Yolanda has empowered her staff to offer discounts when the motel is largely vacant, and to quote the standard price when the motel is close to full. She knows her service is __________, meaning that if no one stays in the room, it generates no revenue that evening.
perishable
Which element of the marketing mix specifically deals with supply chain management?
place
A major airline sells an aggressively low-priced ticket compared to a new low-fare airline which is trying to enter the market. The airline may be accused of engaging in the unethical practice of
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.
Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the products. The national consumer panel Lorraine is part of is engaged in
premarket testing.
Sharon knew that her established customers liked her product much better than her competitor's. She was planning to expand into new markets, and she was considering pricing. She was leaning toward charging a higher price than competitors to help demonstrate that hers was a high-quality product. Sharon was considering
premium pricing.
For which of the following is demand likely to be least sensitive to price increases?
prescription drugs
The Clayton Act and the Robinson-Patman Act forbid certain types of
price discrimination.
When a firm colludes with other firms to control prices, it is engaging in
price fixing.
Barry customizes Harley-Davidson motorcycles. No two cycles are alike. He notices that very few customers even ask the price of his motorcycles before they decide to purchase them. Demand for his motorcycles is probably
price inelastic.
If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is
price inelastic.
When Toyota introduced its Scion line of cars, the lowest-price model was listed for $15,000 while the highest-priced model was listed for $21,000, with two other list prices in between. Each price point represented distinct differences in the features and quality of the cars. Toyota used a ______ pricing approach.
price lining
The contribution per unit is
price minus variable cost per unit.
When Apple introduced the iPhone—a combination phone, MP3 player, and Internet access device—in 2007, it was priced at $499, considerably higher than either the iPod or competing cell phones. Hoping to attract innovators and early adopters, Apple was most likely pursuing a __________ pricing strategy.
price skimming
Because there are only a few firms in markets with oligopolistic competition,
price wars may occur.
Generally, a _______ represents either a short-term response to a competitive threat or a broadly accepted method of calculating a final price for the customer that is short term in nature.
pricing tactic
When a research team has gathered data for specific research needs, this is known as
primary data.
A __________ package is the one a consumer uses. A __________ package is used by retailers to display and sell the product.
primary; secondary
Suppose that Walgreens (a major drug store chain) wants to introduce its own brand of cough medicine that is similar in contents and packaging to a national brand, but at a lower cost. What kind of brand would Walgreens be introducing?
private-label brand
One afternoon, the clerk at the customer service desk of a large retail store got bored and started stating different return policies to each customer. Customers waiting in line and overhearing the different policies would probably feel that the store's handling of returns lacked
procedural fairness.
Education marketers know that the primary motivations of most nontraditional college students are self-respect and self-fulfillment, so they craft their marketing message to emphasize the benefits these consumers are looking for in a college education. What type of segmentation method was used to segment this market?
psychographics
In _______ many firms provide similar products that are considered substitutes for each other.
pure competition
In the infamous Coke-New Coke taste test, 54 percent of consumers, using a blind taste test, preferred the New Coke formula to the existing formulation. This is an example of a(n) __________ marketing research method.
quantitative
The purpose of __________ is that it provides information needed to confirm insights and hypotheses generated and helps managers pursue appropriate courses of action.
quantitative research
The major objectives associated with a market penetration pricing strategy are to
quickly build sales and market share.
Historically, prices were
rarely changed except in response to radical shifts in market conditions.
Julia wants her firm's gourmet snacks to be the leading brand in the U.S. market. When adopting a pricing strategy designed to gain market share, she should remember that
rarely is the lowest-price offering the dominant brand in a market.
Gloria is opening an upscale women's clothing store in a growing suburban residential area. Gloria knows her target market is upper-income women living within 20 miles of her store. She can't afford to purchase Tapestry analysis, so she will most likely use __________ as a basis for targeting her market.
real estate values by subdivision
Mary decided to purchase an electronic toothbrush priced at $100 because of a special offer from the manufacturer. By sending proof of purchase and the receipt to the manufacturer, she could receive a $40 check in return, making the final price $60. This pricing tactic is known as a
rebate.
Because manufacturers with JIT systems produce merchandise closer to the time of sale, they can
reduce inventories needed to satisfy retailers' demand.
Marketers spend millions of dollars annually trying to create or reinforce brand loyalty. Brand loyalty changes the demand curve for the firm's products by
reducing the price elasticity of demand.
Everyday low pricing (EDLP) provides value to consumers by
reducing their search costs.
In determining the price for his company's new pocket digital camera, Matt determines what consumers consider the regular or original price for similar cameras available in the market. Matt is assessing the influence of __________ on pricing strategy.
reference prices
Walmart may have _________ power if a supplier desperately wants to be associated with Walmart, because being known as an important Walmart supplier enables that supplier to attract other retailers' business.
referent
For marketers to advertise a price as their __________ price, the Better Business Bureau recommends that at least 50 percent of the sales of a product occur at that price.
regular
Inkjet printers were a big improvement over the dot-matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their
relative advantage.
Cheryl will let only Martiné cut her hair. She has tried other stylists, but she knows from experience that Martiné cuts her hair well every time. For Cheryl, __________ is the most important of the five service quality dimensions.
reliability
When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be __________ to the company's offerings.
responsive
When evaluating the attractiveness of the segment, if a segment is expected to react positively to the firm's offering, we say that the segment is
responsive.
When choosing where to eat lunch, Veronica's major service criterion is speed: being seated promptly and served her meal quickly. For Veronica, __________ is the most important of the five service quality dimensions.
responsiveness
When Costco sells to consumers directly, it acts as a _______; when it sells to other businesses, such as a restaurant owner, it acts as a _______.
retailer; wholesaler
Geodemographic segmentation can be particularly useful for __________, because customers typically patronize stores close to their neighborhood.
retailers
In vendor-managed inventory systems,
retailers send sales information to the manufacturer.
When a global firm turns to its subsidiaries in less developed markets for new product ideas, such as when Coca-Cola developed Minute Maid Pulpy out of its Shanghai research center and then moved the product into other markets around the world, the firm is engaged in
reverse innovation.
Gary is the marketing manager for an automobile dealership. His boss tells him the firm's primary goal is to increase its local market share from 15 to 30 percent. His firm is using a ________ orientation.
sales
Health clubs often use a low introductory offer price to get people to join their club. These low prices represent a _______ pricing strategy.
sales orientation
Many years ago Honda's Accord and Ford's Taurus were the two top-selling cars in the United States. As the year was coming to an end, Ford cut the price of the Taurus, hoping to outsell the Accord and allow Ford to claim that "Taurus is the best-selling car in America." Ford was using a _______ pricing strategy.
sales orientation
Bernard's firm has set corporate direction to become one of the leaders in each of its significant market segments. It was Bernard's job to examine the firm's pricing strategy to determine how to maximize market share, even at the expense of profits in the short run. What kind of company objective would guide Bernard's effort?
sales-oriented
When Betty decided to open up a tea shop in the center of town, she chose a group of customers who represent her customers of interest. This group is called a
sample
The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity to try out their service before purchasing. Many hotels use __________ to overcome the problem of inseparability of services.
satisfaction guarantees
Both major political parties have developed proprietary databases that contain vast information about voters, broken down by demographic and geographic information. This kind of information is
secondary data.
Beverage companies often use television commercials with images of young people laughing and enjoying themselves on a beach or in a club. These images are designed to appeal to consumers' __________, suggesting "be like me."
self-concepts
To develop psychographic segments, the marketer must understand consumers'
self-values, self-concept, and lifestyles.
Overriding desires that drive how we live our lives are called
self-values.
Stores like Home Depot and Costco act as wholesalers when they
sell to contractors or restaurant owners.
McDonald's introduced a Favorites Under 400 Calorie Menu as part of an attempt to reverse the perception that McDonald's sells only unhealthy food. Suppose that McDonald's, as a follow-up, collects and analyzes social media posts from Facebook, Twitter, and similar sites, hoping to understand whether or not consumer perceptions are improving. This would be an example of
sentiment mining.
The old cliché "Service with a smile" recognizes the fact that
service providers need to be pleasant even if the customer is not.
Because services are intangible, it is often difficult for customers to determine how a service meets their expectations, which marketers call
service quality.
Kendra is taking a backpacking trip across Europe. She wants to make sure that the backpack she chooses is the best one for her adventure, so she is spending a considerable amount of time comparing alternatives to make sure she selects the best one. For Kendra, this backpack represents what type of product?
shopping
Zappos, an online shoe company, knows shoes are typically a(n) __________ good, with consumers often spending time comparing alternatives. It overcomes that aspect of consumers' search process by offering a free, no-questions-asked return policy.
shopping
All of the following are recommended strategies for service recovery except
silencing an irate customer before the individual makes any angry outbursts.
The most common form of a quantity discount for consumers is a
size discount.
When Burroughs Wellcome introduced the first anti-AIDS drugs, it initially set the price at $10,000 for a year's supply. Burroughs Wellcome was probably pursuing a(n) __________ pricing strategy.
skimming
Andy likes gourmet popcorn, and will spend time trying to find his favorite brand. His girlfriend, Joanne, loves popcorn but doesn't care about brands. For Andy, popcorn is a __________ good while for Joanne it is a __________ good.
specialty; convenience
Brian is trying to sell a new line of ultrasound imaging equipment. Unlike existing technology, these machines are compact, creating the potential for general practice physicians to have and use them in their offices. Brian is trying to identify innovators in his market, knowing these customers will most likely
spread positive word of mouth to other physicians.
All of the following would be part of the launch of a new product except
starting to make preliminary decisions about the target market.
Ryan gave the manager of his convenience store a set of binoculars so she could see the gasoline prices charged by the other convenience store at that intersection. Ryan told the manager to always match the gasoline prices of the other store. Ryan is using a _______ pricing strategy.
status quo
Steven managed an auto parts store in the 1990s. At that time, stockouts—failure to have the parts auto mechanics needed to do their work that day—increased the likelihood of the mechanics becoming customers of competing auto supply stores. To avoid this problem and keep his business customers, Steven most likely
stockpiled inventory, adding to the cost of providing auto parts.
Walmart needs P&G to satisfy its customers, and P&G recognizes that if it can keep Walmart happy, it will have more than enough business for years to come. Walmart and P&G recognize that it is in their common interest to be
strategic partners.
When conducting a research study attempting to understand what features were most important to automobile consumers, Gary's Research Company used a questionnaire containing __________ questions, with a predetermined set of response options.
structured
Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Greta is concerned with whether the segment is
substantial.
TT TOYS manufactures toys. The company recently started buying paint for its toys from a Chinese firm. This Chinese company is part of TT Toys'
supply chain.
Malcolm is the campaign manager for a congressional candidate. He wants to know how voters across his district feel about recent sexual harassment scandals involving politicians. Malcolm will most likely use __________ to gather this type of data.
surveys
Quantitative research offers a means to confirm ideas through
surveys or experiments
Returnable packaging, use of 3D printing, and flexible packaging are examples of
sustainable packaging.
It is almost impossible to watch a sporting event on television without seeing Nike's "swoosh" check mark, which is Nike's
symbol.
Jaleel is the marketing manager for a moderately well-known rock band. He wants to know more about industry trends including sales by different musical styles, online downloads, and concert attendance. Jaleel will most likely use __________ to gather this type of data.
syndicated data
Monique was looking for a venue for her wedding reception. When she visited one potential location, she noticed that the landscaping was not complete, and there was stained carpet in the lobby. Which of the service quality building blocks caused Monique to select an alternative venue?
tangibles
Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell. Naomi is using a _______ pricing strategy.
target return
A marketing professor in Ithaca, New York, maintains a museum of failed consumer products. Most new products in this museum failed during the __________ stage of new product development, when they are introduced to a limited geographic area.
test marketing
Many restaurants roll out new ideas first in Orlando, Florida, a location that attracts a vast range of diverse tourists and thus might offer insights into what various consumer groups will like. This is an example of
test marketing.
Unlike product, promotion, or place, price is the only part of the marketing mix
that generates revenue.
All of the following were considered a new-to-the-world product or service when introduced except
the Mercedes mini sport utility vehicle, a smaller version of its larger SUVs.
Paula is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will not specifically help her in this analysis?
the average number of school-age children in families sending a child to the day care center
Because market and operating conditions are different in each target market
the choice of a pricing strategy should be specific to the target market.
To define the zone of tolerance, firms ask a series of questions about each service quality dimension that relate to all of the following except
the desired and expected level of service for each dimension, from high to low.
B2B quantity discounts are legal if
the discounts are available to all customers.
Most customers want to achieve a fair solution following a service failure. All of the following factors affect a person's perceptions of "fairness" in these kinds of situations except
the firm's policy on service recovery.
One of the reasons marketers use loyalty segmentation is
the high cost of finding new customers.
Rodi owns Hallman's auto repair service. He has observed over the years that customers keep their high-mileage cars longer when the economy is doing poorly, creating demand for his maintenance and repair service. Rodi has observed the impact of _______ on demand for his service.
the income effect
Because there are many firms in monopolistic competition markets,
the many competitors will focus on product differentiation.
All of the following statements regarding brand loyalty are true except
the marketing costs of reaching loyal customers are typically very high.
After assessing the market growth potential in Mexico for his company's baby products, Harmon wanted to evaluate market competitiveness. To do this, Harmon would
the number of competitors, entry barriers, and product substitutes.
All of the following are included in the full price of a product or service except
the price of alternative products and services.
All of the following are one of the main components of a value proposition except
the price of the product or service being offered.
Salina is working to create greater brand awareness for her company's new line of fitness trackers. To increase brand awareness, the least important information that should be included in promotions is
the product history.
On the basis of the research it has gathered on consumer perceptions, the tests it has conducted, and competitive considerations, the XYZ firm confirms its target market (or markets) and decides how its product will be positioned. Then the firm finalizes the remaining marketing mix variables for the new product, including the marketing budget for the first year. This process illustrates
the product launch.
A reference price might be considered deceptive if
the reference price has been inflated or is fictitious.
A company has a new concept for a lightweight electric scooter 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.
Just as marketers create value by meeting the needs and wants of consumers, marketing researchers create value if
the results will be used in making management decisions.
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.
There are many options available to consumers when it comes to breakfast cereals. So, if Kellogg's significantly increases the price of Rice Krispies, consumers are more apt to buy alternate cereals instead. This illustrates which concept?
the substitution effect
Although conflict is likely to occur in any marketing channel, it is generally more pronounced when
the the channel members are independent entities.
One of the benefits of EDI is that it can reduce lead time, which is
the time between the decision to place an order and the receipt of the merchandise.
Manufacturers use cash discounts primarily because it allows them to benefit from
the time value of money.
Which of the following defines a value proposition?
the unique value that a product or service provides to customers
Whenever the president of the local public university promotes the institution, he emphasizes the university's price (much lower than neighboring private colleges) and high quality. He is positioning the institution based primarily on
the value proposition.
One problem in relying on price elasticity and demand curves when setting prices is
the way a product or service is marketed can have a profound impact on price elasticity.
Value-based pricing can be difficult to implement because
the way consumers perceive value changes often.
One important reason manufacturers like rebates is that
their redemption rates are low.
In an administered vertical marketing system,
there is no common ownership, and the dominant member has significant power to impose its ideas and objectives.
Services marketing managers have learned that more employees will support a quality-oriented process if
they are involved in setting the goals.
All of the following statements about distribution centers are true except
they enable retailers to carry less merchandise in individual stores.
When corporate headquarters announced new service quality standards for pizza franchise owners, Roland knew he would have trouble gaining employees' support because
they were not involved in setting the goals.
If a market penetration pricing strategy results in lower per-unit cost, competitors might be discouraged from entering the market because
they would likely need to quickly produce a large volume in order to compete.
Getting merchandise floor-ready entails
ticketing and marking.
Radio frequency identification tags are
tiny computer chips that transmit information about a container's contents.
Many product-dominant firms use quality service
to maintain a sustainable competitive advantage.
Shorter lead times allow retailers
to reduce the needed level of inventories.
Leona is the logistics manager for the Barnes & Noble bookstore chain. She is weighing the many benefits of the company's JIT system, but will need to consider that just-in-time inventory management systems increase _______ costs.
transportation
As a promotion technique, samples are often used for new products when __________ will influence the diffusion of the product.
trialability
One of the benefits of offering a size discount to consumers is they will purchase more of a marketer's product and
will be less likely to switch brands.
Clark Manufactured Housing Company charges $500 for deliveries within 50 miles and $800 for deliveries 51 to 100 miles away from their factory. The company is using a _______ pricing tactic.
zone
Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers'__________, the difference between what her customers want and what they will accept before going elsewhere.
zone of tolerance
When Jaime arrived at her hotel room and saw that the bed sheets had not been changed from the last hotel guest and there were cockroaches in the bathroom, she chose to go elsewhere. An undone, bug-infested room was not in Jaime's __________, which is the difference between what she really wants and what she will accept before looking for another hotel.
zone of tolerance
When John checked into his Orlando hotel, the front desk clerk informed John that his room would not be ready for another 20 minutes. John didn't mind waiting; he had arrived well ahead of the standard check-in time and this wait time fell within his __________, the area between his expectations regarding desired service and the minimum level of service he will accept.
zone of tolerance
