MSOM 303 test II
____________ of ________________ is the process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters.
Diffusion, Innovation
The retail category that has experienced sustained growth due to the aging population is:
Drugstores
The category of consumers who begin to use a product or service immediately following the innovators
Early adopters
The value of a brand is often calculated by assessing the:
Earning potential of the brand over the next 12 months
Effective service recovery entails all of the following:
Effective service recovery includes listening to the customer, providing a fair solution, and resolving the problem quickly
A continuing dilemma for marketers of services is to understand buyer's __________________, which means to understand in advance what they think will be delivered
Expectations
__________ offer general merchandise at lower prices and are often found in lower-income urban and rural areas.
Extreme value retailers
In marketing terms, a small group of people (usually 8-12) gathered together for an intensive discussion about a particular topic is called a:
Focus Group
A research technique in which a small group of persons (usually 8 to 12) comes together for an intensive discussion about a particular topic, with the conversation guided by a trained moderator using an unstructured method of inquiry.
Focus group interview
A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.
Franchising
During the ______________ stage of the product life cycle, sales and profits increase due to the economies of scale associated wit manufacturing and marketing costs.
Growth
Stage of the product life cycle when the product gains acceptance, demand and sales increase, and competitors emerge in the product category.
Growth stage
A type of channel conflict in which members at the same level of a marketing channel, for example, two competing retailers or two competing manufacturers, are in disagreement or discord, such as when they are in a price war.
Horizontal channel conflict (horizontal supply chain conflict)
What type of pricing tactic is being used when several airlines agree to charge the same fare for a single route?
Horizontal price fixing
____________________ occurs when competitors that produce and sell competing products or services collude or work together to control prices.
Horizontal price fixing
f the Amador County Pest Control Association got together and all members agreed to charge 3 percent of the value of a home for a termite inspection letter, the association members would be engaging in:
Horizontal price fixing
Brands owned by retialers (such as Costco's Kirkland products) are:
House brands
In a competitive market, perceived value is determined by consumers mostly:
In relationship to the value of competitor's offerings
Randall wants to do an online survey of college professors about the factors that influence their textbook selection. He would like to use a structured questionnaire but is not sure what responses to include for each question. Randall could use __________ to help him develop his questionnaire.
In-depth interviews
The set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption; consists of all the institutions and marketing activities in the marketing process.
Marketing channel
Firms with upscale brands like Rolex and Gucci often have to protect their brand assets from:
counterfeits
If you walk into a _________________, you will likely find a broad variety of merchandise, deep assortment, and customer service, with everything divided into what appears to be a collection of specialty shops
department store
A group of products from the same manufacturer which all meet the same consumer need are referred to as:
A marketing line
A supply chain system in which there is no common ownership and no contractual relationships, but the dominant channel member controls the channel relationship.
Administered vertical marketing system
An attempt by the firm to determine whether a product will perform according to its design and whether it satisfies the need for which it was intended; occurs in the firm's research and development (R&D) department.
Alpha testing
If you're a manufacturer, and you want to showcase your product in a store that has a narrow but deep selection of merchandise and where sales associates can assist customers with their selections, you'd likely choose:
A category specialist
What aspect of the product is being described when a used car sales person explains that each car comes with a one-year extended warranty and a two-year maintenance plan? correct
Associated services
________________________ are the nonphysical aspects of the product such as product warranties.
Associated services
Ron is opening a new Internet-based marketing business. He finds a wealth of data on a web design company's site. This site describes the tremendous sales potential for Internet-based marketing companies. Ron should:
Be cautious, because the data may be more promotional than trustworthy
A firm uses potential consumers who examine the product prototype in a real use setting to determine its functionality, performance, potential problems, and other issues specific to its use.
Beta testing
Having potential consumers examine a product prototype in a real-use setting to determine its functionality, performance, potential problems, and other issues specific to its use.
Beta testing
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 have greater brand awareness.
Brand extension
A series of Apple Computer Company ads aired between 2006 and 2010 featured a young, casually-dressed, friendly person as an Apple computer type, while the Microsoft computer person was portrayed as stiff, geeky, and awkward. Apple was trying to create comparative:
Brand personalities
Assumes that all products are sold at a single price (or an average price).
Break-even analysis
Which of the following is NOT one of the typical outlets used by retailers?
Business requests for proposals (RFPs)
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:
Census data
A postlaunch review is conducted to determine if:
Changes to the marketing mix are needed, additional resources are needed, and the launch was a success or failure.
Which of these is NOT one of the important differences between business-to-business (B2B) marketing and consumer marketing?
Close contact between buyer and seller in business marketing reduces the potential for ethical problems
the difference between promised and actual service.
Communication gap
For many Americans, the daily ritual of having a coffee is almost automatic and assumed. The same can be said for the Chinese but with tea. For a firm that is marketing a product, this example serves as a reminder to consider the _________ of your product and its intended target market.
Compatibility
The 5 Cs of Pricing are?
Competition, Costs, Company objectives, Customers, and Channel Members
In _______________ testing, a statement is presented to potential buyers or users to obtain their reactions.
Concept
What are the fundamental determinants of price?
Cost to the seller and demand
One of the assigned articles describes a company that has successfully bested Walmart in the retail segment where high-end products meet deep-discount prices. This company is:
Costco
Concept testing can be as simple as a brief written description of the product that should include:
Customer needs it satisfies and visual images
Price advertisements should never:
Deceive customers to the point of doing harm
Stage of the product life cycle when sales decline and the product eventually exits the market.
Decline Stage
The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle's keeps that promise. But one morning, customers were frustrated when the staff behind the counter was more interested in gossiping about their social lives than in waiting on customers. Marielle's shop is suffering from a:
Deliver gap
In our class discussion of retail marketing, I argued that an A-level marketer is one that:
Delivers that shopping experience the customer expects
_________________ evaluate how changes in price effect demand for the product.
Demand curves
The linkage between consumers' demand for a company's output and its purchase of necessary inputs to manufacture or assemble that particular output.
Derived Demand
The process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters.
Diffusion of innovation
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 commented, "Even more importantly, working the way you did to correct the error could result in __________."
Increased customer purchases and positive word of mouth
A loose coalition of several independently owned and operated supply chain members—a manufacturer, a wholesaler, and a retailer—all attempting to satisfy their own objectives and maximize their own profits, often at the expense of the other members.
Independent (conventional) supply chain
______________ are buyers of a product or service who are the first ones to adopt it.
Innovators
One difference between products and services is demonstrated by a hair salon, where the stylist delivers the service at the same time the customer receives it.
Inseparability
Hospitals, schools, and religious organizations are examples of ________________ buyers.
Institutional
Key characteristics of the maturity stage are:
Intense competition on price, marketing costs increase
A short-term price discount to encourage new product trial.
Introductory price promotion
One of the limitations associated with break-even analysis is that:
It assumes that there is only one price
The major advantage of primary data collection is that:
It can be tailored to meet he spricif research needs.
If a firm promises more than it can deliver:
It creates a communication gap
The many incidents of identity theft and scams falsely presented to consumers as market research surveys have made:
It more difficult for market researchers to gain cooperation from respondents
branding includes:
Jingles, naming, slogans, logos
Inventory management systems designed to deliver less merchandise on a more frequent basis than traditional inventory systems; the firm gets the merchandise "just in time" for it to be used in the manufacture of another product, in the case of parts or components, or for sale when the customer wants it, in the case of consumer goods; also known as quick response (QR) systems in retailing.
Just-in-time inventory systems
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 McDonalds, the Golden Arches reduce marketing costs because people (including young children):
Know what the Golden Arches brand symbol means
Physicians regularly overstate the expected recovery time from surgery, knowing that managing patients' expectations will reduce the __________ gap associated with their service.
Knowledge
Consumers who like to avoid change and rely on traditional products until they are no longer available.
Laggards
Today, __________ dominate supply chains.
Large retailers
Today, _____________________ dominate their supply chains.
Large retailers
A firm buying the rights to use the technology or ideas from other research-intensive firms.
Licensing
Aaron has designed innovative accessories for hard-core bicycling enthusiasts. He knows where and how he will make them, and he needs to turn his attention to the getting the products to the customers. As he chooses retail partners, which of the following should he do?
Look at the channel structure. Determine where the target customers will expect to find this kind of product. Consider the characteristics of the channel members. Consider distribution intensity
Frequent buyer/user award programs are used to:
Maintain contact with loyal customers
The price that manufacturers suggest retailers use to sell their merchandise.
Manufacturer's suggested retail price (MSRP)
In the past, ______________________ dominated supply chains.
Manufacturers
Product pricing strategy which focuses on selling at a low price in order to gain market share as quickly as possible.
Market penetration
Stage of the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them.
Maturity stage
Conducting consumer research, brainstorming within the firm, communicating with a firm's R&D department, and researching competitors' products and services.
Methods that could be considered acceptable for generating ideas
The complete set of all products offered by a firm is called its product?
Mix
Refers to when the buyer has purchased a similar product in the past but has decided to change some specifications, such as the desired price, quality level, customer service level, options, or so forth.
Modified Rebuy
Paul subscribes to an Internet service that alerts him whenever other firms in his industry are quoted in the media. Paul is using this type of market research primarily to:
Monitor his competitors
Compared to the B2C Process, the information search and alternative evaluation steps in the B2B process are:
More formal and structured
When products have distinct logos or other symbols that are easily seen and communicated to others on their products, this helps to speed new product adoption because it improves:
Observability
Reflects the set of values, traditions, and customs that guide a firm's employees' behavior.
Organizational culture
From the customer's perspective, the relationship between a product's or service's benefits and its cost is called:
Perceived Value
Because services like airline flights and hotel beds are __________, many marketers attempt to match demand with supply using pricing strategies.
Perishable
When marketers state services are __________________, they are referring to the fact that services cannot be stored for use in the future.
Perishable
________________ or breakthrough products are brand new products that establish a completely new market or radically change both the rules of competition and consumer preferences in a market.
Pioneer
Testing conducted before a product or service is brought to market to determine how many customers will try and then continue to use it.
Premarket tests
Charging very high prices for a new product in an attempt to recoup development costs is called:
Price Skimming
A demand curve shows the relationship between __________ in a period of time.
Price and demand
After reviewing the existing data on seasonal spending by his company's customers, Marvin decided he needed new information collected to address his research questions. Marvin will need __________ data to address the questions in his market research study. correct
Primary
Personal selling is particularly important for retailers selling:
Products that are complicated or expensive
Key characteristics of the introduction stage are that:
Profits are low, and few or no competitors exist.
During intense competition, a firm continually needs product ________ and continual innovation to protect its market share.
Proliferation
Marketers spend billions of dollars annually attempting to build effective brands. The basic benefit of a brand is that it:
Provides a way for a firm to differentiate its product offerings from those of its competitors.
According to one of the assigned articles, Match.com has become the nation's largest online dating service by:
Reaching out to singles over 50 and divorcees.
A process through which buying organizations invite alternative suppliers to bid on supplying their required components.
Request for proposals (RFP)
Private-label brands like Gap and Victoria's Secret have increased in importance along with the increased power of __________ in the supply chain.
Retailers
Involves taking apart a competitor's product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist.
Reverse engineering
When firms measure the success of a new product, their assessment includes two interrelated factors:
Satisfaction of firm's financial requirements and satisfaction of technical requirements such as performance.
A marketing research project often begins with a review of the relevant __________ data.
Secondary
Retailers with strong brand names of their own might operate outlet stores to:
Sell excess inventory that might have to be sold at markdown prices in regular stores
What is the primary cause of a delivery gap in service delivery?
Service employees sometimes do not deliver according to standards
Which of the following is not a recommended strategy for service recovery?
Silencing an irate customer before the individual makes any angry outbursts
Product pricing strategy which focuses on selling at a high price to the Innovators and Early Adopters on the diffusion of innovation curve; a
Skimming
When Apple Computer Company 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. Apple was probably pursuing a __________ pricing strategy.
Skimming
Fees firms pay to retailers simply to get new products into stores or to gain more or better shelf space for their products.
Slotting allowance
Retailers may not only need to make a profit on each sale, but they may also receive a _______________________ as an encouragement to give better shelf psace to new products.
Slotting allowance
___________________ products/services are those such as an Apple iPod, a Harley-Davidson motorcycle, or a Starbucks latte for which the consumer shows a fairly strong preference and loyalty and will go out of the way to find that specific brand.
Specialty
Refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, as well as to minimize systemwide costs while satisfying the service levels their customers require.
Supply chain management
The best marketing research tool to use when making statements about large populations is:
Surveys
The most important pricing objective for any organization is:
Survival of the firm
During World War II, makers of boxed cake mixes made their products more successful by:
Taking out the eggs
Focus groups are often used to gather:
The feelings or opinions of a group of individuals when you do not need in-depth responses from each individual.
Most customers want to achieve a fair solution following a service failure. Which of the following is NOT a factor that affects a person's perceptions of "fairness" in these kinds of situations?
The firm's policy on service recovery
A reference price might be considered deceptive if:
The reference point has been inflated or is fictitious
During the research design step of the marketing research process, researchers identify the type of data needed and:
The type of research necessary to collect the data
One product strategy used by retailers to differentiate themselves from competitors is:
The use of private label brands
The key factor distinguishing retailers from other members of supply chain is:
They sell to customers for their personal use.
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
When launching a new product, manufacturers often use promotions to generate consumer demand and motivate
Trial
Generally, the larger and more sophisticated the channel member, the less likely that it will:
Use intermediaries
A type of channel conflict in which members of the same marketing channel, for example, manufacturers, wholesalers, and retailers, are in disagreement or discord.
Vertical channel conflict (vertical supply chain conflict)
A manufacturer must work with retailers to ensure that a new product will be delivered and available for sale:
Where a customer expects to find it, when a customer wants it, and in sufficient quantities to meet demand
Knowing what customers expect is essential. Retailers need to know which manufacturers their customers prefer, while manufacturers need to know:
Where their target customers expect to find their products
Those firms engaged in buying, taking title to, often storing, and physically handling goods in large quantities, then reselling the goods (usually in smaller quantities) to retailers or industrial or business users.
Wholesaler
During test marketing, the potential elements of the marketing mix that may be used include:
advertising and coupons
Dan is especially price sensitive. He has been known to line up on "Black Friday" (the day after Thanksgiving) at 4 a.m. in order to be among the first to buy sale items. Dan would likely respond to a __________ pricing strategy.
high/low