University Of Arizona - MKTG 361Exam 3 quiz. Graded A.

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After a year in business, Tyrone hired a market research company to analyze his sales data and tell him which groups of customers were the most profitable to his firm. Tyrone will probably use the res... ults of this research to: • Change product offerings. • Adjust prices • Adjust positioning strategies. • Define market segments. • All of the above Political consultants have been using market research for decades to help their candidates understand: Joe is reviewing secondary data his company collected about seasonal variation in consumer spending. The advantages of using this data include that: Marketers spend billions of dollars annually attempting to build effective brands. The basic benefit of a brand is that it: For a brand to be effective, it needs to be: When consumers associate a brand with a certain level of quality and familiar attributes allowing consumers to make quick decisions, the brand; 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): Firms with well-known brands can spend relatively less on marketing costs than firms with little-known brands because: Firms with upscale brands like Rolex and Gucci often have to protect their brand assets from: A __________ package is the one a consumer uses. A __________ package is used by retailers to display and sell the product. Which of the following is NOT one of the important functions of labels on products and packages? Innovators are a critical group of new product adopters because they: In the diffusion of innovation process, innovators enjoy taking risks and are regarded as highly knowledgeable. Marketers want to identify innovators because: The __________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them. 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. The growth phase of the product life cycle is always dynamic. Which of the following does NOT occur in this phase? Profits increase as economies of scale are attained. For many professionals offering intangible services, an ethical marketing dilemma exists. The dilemma centers on: 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. The old restaurant saying "You are only as good as the last meal served" reflects the fact that services are: When marketers state that services are __________, they are referring to the fact that services cannot be stored for use in the future. Because services like cruises and car rentals are perishable, many marketers use: Which of the following is NOT one of the five dimensions used by consumers to determine overall service quality? a) Reliability b) Assurance c) Acceptability d) Responsiveness e) Empathy Because services are intangible, it is often difficult for customers to determine how a service meets their expectations, which marketers call __________ 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. Collecting information at the point of sale is a straightforward and inexpensive way to assess service quality, but this approach will NOT be useful if: a)decision-making managers do not get the results of the feedback b)customers are rushed and don't take the time to assess the service c) customers cannot assess service quality, as in the case of oil change or maintenance check d) the person who rendered poor service is the same person collecting the information e) all of these The new hotel manager asked the chef, "Are you sure you know how to cook a Beef Wellington?" Which of the building blocks of service quality was the hotel manager expressing concern about? a) Responsiveness b) Reliability c) Assurance d) Tangibles e) Empathy A(n) ___________ is any intangible offering that involves a deed, performance, or effort that cannot be physically possessed. Along the service-product continuum, which of the following would be considered the most service dominant? a) Apparel specialty store b) bookstore c) doctor's office d) restaurant e) grocery store In countries like the United States, services: d) account for an increasing share of jobs An excellent, inexpensive, and readily accessible method for assessing customers' service expectations is: The process by which the use of a new product or service spreads throughout a market group is referred to as: For new product marketers, early adopters are important because they tend to be: If the __________ diffusion of innovation group is relatively small, the number of people who ultimately adopt the innovation likely will also be small Bob and George both live in the U.S. Bob recently asked for George's cell phone number, but George said he didn't have one. George would probably be considered a(n) __________ in the diffusion of innovation process When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage: Which of the following is NOT a characteristic of products in the maturity stage of the product life cycle? a) To increase the customer base, firms consider entry into new markets and new market segments b) Price competition is intense c) The market may become saturated because nearly all potential customers have adopted the product d) Laggards are a major focus of marketing efforts e) Marketing costs increase as firms defend their market share The _____________ stage, the first stage of the product life cycle, is marked by low sales and small or negative profits. Innovators are the typical buyers During the __________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense The CEO of David's firm just came back from a business seminar, and he called David into his office. "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: a) the idea has been discredited by recent research b) the product life cycle is not a useful concept c) the product life cycle is not helpful in companies like his that pay attention to diffusion of innovation d) it is often impossible to identify with precision where a product is in the product life cycle e) all of these f) none of these It is almost impossible to watch a sporting event on television without seeing Nike's "swoosh" check mark, which is Nike's: The primary purpose of a brand is to: a) meet government regulations b) minimize product line depth needed to be effective c) distinctly identify one seller's goods or services from competitors' offerings d) protect product packaging e) none of these One key feature of the value of a brand is that: a) it often protects the firm from competition and price competition b) if it becomes a generic name, the brand is worth even more c) competitors will frequently abandon a sector altogether rather than compete d) it cannot be successfully imitated by a retailer's own brand e) it no longer needs to be supported by advertising and promotion Secondary packaging: a) is important to the retailer in terms of convenience in handling b) can allow for cost efficiencies due to larger order and shipment sizes c) can provide information to consumers not found on the primary packaging d) can be an important positioning tool by helping to convey the brand image e) all of these Leonard just bought his first bagel franchise. As part of the franchising agreement, Leonard receives a monthly report detailing the actions and results of other franchisees. Leonard can use this market research report to: a) monitor the marketplace b) help him understand the needs of his customers c) provide a link between him and his environment d) decrease the uncertainty associated with decision making e) all of these What U.S., government agency reviews food and package labels to ensure claims made by the manufacturer about the product are true? Robin recently bought Voice Over Internet protocol (VOIP) phone service (phone service delivered over the Internet). A few of Robin's friends bought VOIP before she did, but many other friends were interested in Robin's opinions of the new phone service. Robin is a(n) __________ in this product category. As soon as she saw one, Hillary wanted a flat-screen television, but she was worried about making the wrong choice. She waited until there were many alternatives in the market with lower prices and improved quality. Hillary is part of the __________ diffusion of innovation group. Early majority (Hillary has waited for a more competitive market with lower prices; this occurs when the early majority is adopting the product) The diffusion of innovation theory is useful to marketers in helping them: a) predict which types of customers will buy their product immediately and later b) avoid the cost of concept testing c) adjust to the performance life cycle d) predict how long it will take for a new product to gain market acceptance e) forecast sales for a new product Microsoft's Windows operating system continues to dominate the market, even though it has been around for over twenty years. Windows will likely remain in the mature stage of the product life cycle: a) indefinitely b) until a superior product comes along to replace it c) until it rules the world d) unless Microsoft repositions Windows as an introductory stage product e) all of these Lisa was extremely disappointed when, in her first marketing job, she was assigned to work on a product in the mature phase of the product life cycle. Her work in school had focused on new products, which seemed much more exciting. Once she started working with the product team, she became more enthusiastic as she discovered that: a) simple product redesign could reinvigorate the product. b) taking the product to international markets would stimulate growth c) changes in consumers' preferences were opening up new market segments d) she could take the product into a new market segment to stimulate new growth e) all of these 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. Late maturity (BMW and Mercedes delayed entry into the mini-SUV market, with the result that they did not enter until this market was already mature) By providing good customer service, firms __________ their products or services. a) reduce the empowerment cost associated with b) add value to c) reduce the zone of tolerance for d) increase the perishability of e) eliminate the communication gap for Which service gap is the Ritz-Carlton Hotel trying to address when it spends up to $1700 to train a new employee? a) Communication gap b) Performance gap c) Knowledge gap d) Standards gap e) all of these Cheryl will only let Martiné cut her hair. She has tried other hairdressers, but she knows from experience that Martiné cuts her hair well every time. Cheryl has found that Martiné does an excellent job with __________, one of the service quality dimensions. Reliability (Martiné cuts Cheryl's hair right every time. She might have other weaknesses--perhaps she is rude, or always runs behind schedule, or perhaps she doesn't do a good job of keeping her station neat, but she gives good haircuts. Reliability is the service quality dimension that refers to doing the job correctly Gerald's Tire Service provides each employee with a clean, sharp-looking uniform. They also instruct 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. 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 she noticed stained carpet in the lobby. Which of the service quality building blocks caused Monique to select an alternative venue? For many years, General Electric's corporate strategy was to be 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. Marketers need to think about the product offer on three levels. Which of the following levels includes associated services such as warranties, financing, support, and after-sale service? Firms spend millions of dollars annually to build brand equity, that recognizing brand equity contributes to Toothpaste, toothbrush, floss, and whitening products are all ______within Colgate Palmolive’s Oral Care product line. a) Product categories b) Primary packaging parts c) Product breadth d) Product assortment e) Private label brands When all products are sold under one , the individual brands benefit from the overall brand awareness associated with that family name. a) Large brand b) Brand extension c) Product line brand d) Corporate brand e) None of the above Manufacturer brands, also known as _______, are owned and managed by the manufacturer. Some famous ones include Nike, Coca-Cola, and Marriot. a) Exclusive brands b) National brands c) Premium brands d) Generic brands e) Copycat brands Which of these is a reason to DECREASE mix breadth in a product line? A) Capture a new market B) Meet internal strategic priorities C) Increase sales D) Compete in new venues The complete set of all products offered by a firm is known as... A) Product lines B) Product mix C) Product labeling D) Product assortment ______ imitate the manufacturer’s brand in appearance and packaging, generally are perceived as lower quality, and are offered at lower prices. a) Premium brands b) Generic brands c) Copycat brands d) Exclusive brands Which of the following is not a category of private brands? a) premium b) Product c) Copycat d) generic e) Exclusive cobrands Abercrombie and Fitch changing its focus from selling high-quality sporting goods and outfitting equipment to producing and selling more attractive clothes and cologne for teens and young adults is an example of ________? a) Brand repositioning b) Cobranding c) Brand licensing d) Brand extension Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of: ________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents. A firm's product mix breadth is its: Ryan wants to sell personal Web site 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: Google and other search engines allow marketers to bid to have their ads shown when consumers search on keywords related to the firm's products. These marketers are attempting to create value through _____. A university that has separate graduate and undergraduate admission offices recognizes that these are distinct: Zappos, an online shoe company, knows shoes are typically a ___________good, with consumer’s often spending time comparing alternatives. They overcome that aspect of consumers' search process by offering a free, no questions asked return policy. What type of event exposes retailers to large numbers of new products in a concentrated location? Sean had moved to take a new job, and when he was feeling really 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 _________________. 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 forty years. Uncle Burton is a(n) ______________ in the diffusion of innovation process for telephones. The building block of service quality called ________ refers to the ability of the firm's employees to convey trust and confidence. Which of the following is the best way to build a sustainable competitive advantage using product excellence? After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision making situation, all parties relevant to the decision should engage in 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: A ________gap exists when a firm knows what they need to do to meet customers' service expectations but sometimes fails to do it. For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university's product mix. Ella had been using an imported brand of shampoo for several years, but she could no longer find it anywhere. As she was considering what kind of shampoo to try, she was surprised to see ads for Procter & Gamble's Head and Shoulders, which was being promoted as a glamorous health-oriented product. She had always thought of Head and Shoulders as an anti-dandruff shampoo. The new ads suggest that Head & Shoulders has been: An excellent, inexpensive, and readily accessible method for assessing customers' service expectations is: Sometimes brand names become synonymous with a product itself. If that happens, the firm: Which of the following best describes when Johnson & Johnson introduces a travel sized package for its existing baby oil product? Private-label brands like Gap and Victoria's Secret have increased in importance along with the increased power of _____________ in the supply chain. 3M involves its customers in the process of developing new products. In this way, it can benefit from current customers' insights and develop new products that will meet these customers' needs. 3M is pursuing a ______ growth strategy. Jackson manages an upscale French restaurant in the Washington, D. C. area. His restaurant offers a few specials each evening in addition to its regular menu. Jackson has trained his waiters and waitresses to report comments and requests for items that have previously only been offered as specials. Jackson uses this information to reduce the _______________ gap in services marketing. 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. Brian was working on the floor of a chain electronics store trying to help a confused customer. The customer said, "The television sets look the same, but the model numbers are different and this one is more expensive." Brian explained it was made specifically for his store. This is an example of a specific type of private-label brand, called a: 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 _____________. When Procter & Gamble added teeth whitening products under the Crest brand, the firm was engaged in: Motorola was a pioneer in developing cell phone technology, but their early phones weighed several pounds and required frequent recharging. As a pioneer, Motorola: Early personal computer users remember the cumbersome, user-unfriendly "DOS" system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their: Between concept testing and market testing, a firm should engage in which stage of the product development process? Biotechnology companies often conduct internal R&D efforts but do not bring new products to market. Instead, new biotechnology products come to market through: When McDonalds comes up with a new drink or sandwich for its fast food stores, they often market it in a dozen or so of their outlets. When they do this, they are engaged in: The Gaps Model is designed to highlight those areas where: 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. The concept of ______________ refers to the area between customers' expectations regarding desired service and their minimum levels of acceptable service. 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: Martha had several unpleasant experiences trying to find the merchandise she needed at a large lumber yard and hardware store. The employees—when she could find them—rarely seemed to know where anything was outside of their own departments. But on her most recent visit, she was pleasantly surprised to find that the store had installed kiosks where she could get directions quickly and accurately. The store had found a technological solution to the services marketing issue of David's marketing research returned finding customers were staying away from his books store. David is likely suffering from a_____ gap 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 showed more interest in gossiping about their social lives than in waiting on customers. Marielle's shop is suffering from a 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. Yolanda manages a Best Sleep Inn along an interstate highway. She knows from experience that five to ten 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. 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 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. When confronted with an angry and emotional customer, the best first step toward service recovery is to Because of __________, many companies have altered their "no questions asked" return policies to include time limits, restocking fees, and store-credit-only refunds. For years, the Mogul Sheraton, a four-star hotel overlooking the Taj Mahal in India, offered free elephant and camel rides to hotel visitor. Few customers took advantage of this service. This is an example of a _____ gap is services marketing Colin has been directed by his boss to determine whether their company is meeting customers' service quality expectations. One of Colin’s problems is that services are _____, making evaluation of services difficult Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers _______ Customers have a defined ________ when it comes to waiting in line at a retail checkout counter. The amount of time consumers are willing to wait varies with the type of store When corporate headquarters announced new services quality standards for pizza franchise owners, Roland knew he would have trouble gaining employees support because... When John checked into his Orlando hotel the front desk clerk informed John that his room will not be ready for another 20 minutes Barnes and Noble bookstores have computers available for associates to search for book requests 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. 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. Dopson's Hardware was in bad financial shape. They owed so much money that vendors put the store on a cash-only delivery basis. As a result, the store had a dwindling inventory of goods to sell. Whenever a customer asked about an unavailable item, the owner directed the sales staff to say that it was on back order and would be in stock next week. When the customer returned, the item was still unavailable. The owner's policy created a __________ gap. Kala is the new manager of a resort hotel. She knows from reviewing customer complaints that service quality at the hotel is not consistently meeting customers' expectations, and she believes that the biggest problem is that her employees are not sure what is expected of them. To improve service quality, Kala will: Saltdust Grill is known as the premier restaurant in town. With their 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 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 __________." Jackson manages an upscale French restaurant in the Washington, D.C. area. His restaurant offers a few specials each evening in addition to its regular menu. Jackson has trained his waiters and waitresses to report comments and requests for items that have previously only been offered as specials. Jackson uses this information to learn more about diners' food preferences, which helps to reduce the __________ gap in services marketing. When microwaves were new, they often cost over $300, were huge, and full of numerous settings and options. Brenda and Bart waited, concerned about potential health hazards and wishing for more choices in the market. By the time they purchased a microwave, sales had leveled off and prices had declined significantly. Brenda and Bart were part of the __________ diffusion of innovation group. Golf ball manufacturers use "Iron Mike," a machine that swings a golf club at a constant velocity, to test the distance for new golf ball designs. When using Iron Mike, the manufacturers are engaged in: Earl was known for driving 30 miles to save a dollar on the price for his favorite beverage. Earl perceived price as ____, while most consumers recognize price as the ___made to acquire a good or service. Dean runs a woodworking business specializing in kitchen cabinets. He knows there are other firms with top-of-the-line machinery that make better quality cabinets, but he does well and has a constant flow of business. Dean obviously has: Gerald has a number of customers for his lawn care service who never question his bill but expect their lawns to be perfect. These customers do not want low prices, they want: Marketers can deliver high value through high or low prices, depending on Unlike product, promotion, or place, price is the only part of the marketing mix Chet knows the pro shops selling his golf photography will "keystone" his products. He also knows sales will decline significantly if the retail price is greater than $200. The maximum wholesale price Chet can charge is Patricia and D'Wayne were working on pricing their line of handcrafted office furniture. D'Wayne said, "I think we've got all the main components that affect us and our products, but let's go over the list once again. We've got the stores that will carry our products, our firm's objectives, how customers will respond, and the costs." Which of the following is missing from Patricia and D'Wayne's list of the components? 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: Gary is the marketing manager for an automobile dealership. His boss tells him the firm's primary goal is to increase their local market share from 15 to 30 percent. Gary's pricing strategy will focus on: 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 pricing 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? Health clubs often use a low, introductory offer price to get people to join their club. These low prices represent a ___pricing strategy. Many years ago Honda's Accord and Ford's Taurus were the top two 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. 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: Sharon knew that her established customers liked her product much better than the competitors. 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: 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. 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. When firms set prices similar to those of competitors, they are following a strategy of: In many high-end resort markets, Westin hotels compete directly with Crown Plaza hotels. Each firm weighs the comparative advantages and disadvantages of their offerings to determine whether to price above, equal to, or below the other hotel. In these markets, the hotels are using a ____pricing strategy. A "no haggle" pricing policy is a type of ______pricing strategy. Julia's is an upscale women's clothing store. Prices are based on customers' beliefs about the value of the clothing. The store focuses on a limited target market and provides excellent customer service. Julia's is using a ______pricing strategy There is an old saying, "If you have to ask the price of a yacht, you cannot afford it." Products like yachts are most likely to be associated with: 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. Near the end of the summer season, Sergio still has a large inventory of bathing suits. He needs to sell them rather than holding them over till next season, because colors and styles often change. He plans to offer them at 30 percent off the retail price. Sergio hopes that demand for bathing suits at the end of the season is 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 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: Ferrari and Lamborghini are manufacturers of very expensive automobiles. Their limited edition cars often sell for $300,000 or more. For most consumers, these are prestige products, and demand is likely to be: The food and beverage manager at an upscale country club once offered a two-for-one happy hour price for all alcoholic beverages, only to see a very little response to the special. For these consumers, demand for alcoholic beverages is: Sales of national brands of orange juice tend to increase when the economy is doing well, while sales of generic orange juice increase when the economy is not doing well. Among industry members this is called the "orange juice indicator." This is an example of how ____________ impacts demand for products 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. Brad always buys and uses Nike brand golf balls. If he finds a Titlelist or Callaway ball in the rough, he gives it away. Brand loyal golfers like Brad allow Nike to charge a higher price and not lose many sales. By building a strong brand, Nike has effectively: 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: Bill is a yacht broker in the southeastern United States. For years he has had difficulty selling large yachts locally because there were few places to dock these boats. Yachts and spaces to dock them are an example of: Frank's Heating and Air Conditioning Company specializes in electric heat pumps. Frank keeps track of the price of natural gas, knowing that: 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: Internet comparison shopping sites like Shopping.com and Pricegrabber.com allow consumers to compare prices of substitute products much more easily than is possible without the Internet. These sites have: Liz and Sarah watched the prices of all the ingredients in their line of specialty sauces go up and up. Now, transportation costs were going through the roof. Liz suggested they could raise prices to cover these expenses because customers would understand. Which of these is the most important factor Liz and Sarah should consider before raising prices? Labor, materials, and energy are typically __________ costs David manages a Shoney's restaurant. He is considering staying open later in the evening. For David, the variable costs associated with staying open longer hours will include all of the following EXCEPT Variable costs, primarily labor and materials, are those costs that vary with: Often, at the beginning of a semester, professors are encouraged or directed to allow students to be added to a class after the course has started. For the university, the variable cost of adding another student to a class: Raymond estimates that the fixed costs associated with opening a new bank branch are $500,000. He expects the branch to attract 1,000 new customer accounts in the first year, each of which will cost $50 per year to service. He also expects to generate $100,000 per year in revenue. For Raymond, the total cost of opening the new branch and remaining open for one year will be: . The break-even point is estimated by: If the fixed costs of manufacturing a new cell phone are $10,000, the sales price is $60, and variable cost per unit is $20, the break-even point is: Jacob rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service and utilities. His fixed costs are $100,000 and his profit last year was $20,000. For Jacob, the contribution per unit is: 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. Which of the following markets is most likely to be characterized by oligopolistic competition in the United States? Because there are only a few firms in markets with oligopolistic competition: Which of the following is most likely to be characterized by pure competition in the United States? In __, many firms provide similar products that are considered substitutes for each other. Because there are many firms in monopolistic competition markets If a firm in a purely competitive market can differentiate its product or service, it becomes part of a ______ market. Gray markets can be a challenge to marketers because: Darcy is the marketing director for a small chain of jewelry stores. She was interested in opportunities for the store to use eBay for some aspects of its business. Which of the following would be good strategies for doing this? The fact that more consumers are buying prestige items like Rolex watches and Mercedes-Benz cars and are, at the same time, shopping more at low-priced discount stores is called Marketers can use eBay as a part of the marketing strategy. It is important to consider how to achieve profitable prices by observing all the following EXCEPT: 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? Cindy went shopping for a new outfit. She bought a low-priced shirt at a discount store, and combined it with an expensive designer skirt. Which of the following terms best describes Cindy's actions? Thanh owns a shoe store. In this market, there are many firms competing for the same customers, but the products offered differ by quality and price. Out of the four levels of competition, which one does this market represent? Winston's Ice Cream Shop has been in the same location for two decades. Last week, a new ice cream shop opened up just one block down the street. Winston's decides to sell ice cream below cost in order to drive the new shop out of business. What kind of pricing is Winston's using? When you place an item up for bid on eBay, you have the option to stipulate the lowest bid you will accept for the item. This is known as the: A major hotel chain found that if they were to reduce the cost of the ice cream they currently served they would be able to save over 400 employees jobs. Therefore, they switched from a high priced brand of ice cream to a more moderate priced ice cream. This is known as the: Your spice company's pricing is set according to the laws of supply and demand. Therefore, when selling your spices you depend on the market to establish the price at which you will sell your spices. Which type of market are you operating in? The commercial airline industry is considered what type of market? Students of marketing often overlook or underestimate the importance of Place in the marketing mix simply because Dawn works for a firm that buys products directly from the manufacturer and sells them to retailers, who then sell the products to consumers. Dawn works for a: Stores like Home Depot and Costco act as wholesalers when they When Megan purchased several bottles of Pepsi beverages and snacks to bring to her family's holiday celebration, it represented the purchase of _____. Brian never spends a lot of time or thought picking up lunch when he is at work. For him, lunch items would be considered to be _____. In response to increased consumer demand for healthful beverages, companies like Coca Cola and Pepsi introduced new product lines like fruit juice to _____ their product mix. Companies like Tiffany's go to great lengths to protect themselves through the use of trademarks and copyrights, corresponding to which of the following advantages of branding? The fact that Coca-Cola's brand value as an asset is estimated to be nearly $70 billion directly reflects its _____. A number of companies offer green product lines in order to appeal to customers who appreciate the added benefits provided by them, which directly impacts their _____. Betty Crocker innovated its processes and products so that it could offer gluten-free cake, cookie and brownie mixes in order to take advantage of an opportunity in a niche market arising due to _____. People who get Botox treatments consider it to be a private matter, therefore, they do not discuss it with others. This lowers the level of _____, slowing down the diffusion process. In the new product development process, companies have a variety of ways for _____ including outsourcing, brainstorming, and licensing and customer research. Jana's firm is entering new market and she plans to set prices to take sales away from the established market leader even though it will mean profits will suffer. This corresponds to which of the following company objectives? Jack works for a firm in the Northwestern region that is clearly the market leader, and has determined he must implement a region-wide price reduction of all product lines in order to discourage new firms from entering the lucrative market. Which of the following company objectives is involved? Marilyn manages a regional retail chain of men's business apparel, which targets high-level executives who have very little time to shop, but who also highly value exclusive European fashions and individual tailoring services. The use of premium pricing in this situation corresponds most to which of the company objectives? Best Buy will match competitor prices for customers who bring in proof that a particular product is being sold at a lower price by a competitor, thus using _____. In the trucking industry, demand for fuel remains relatively stable even in times when the price of fuel increases, indicating that demand for fuel in this segment is _____. Joy perfume, which advertises its brand as "The costliest perfume in the world" uses which of the following approaches to pricing? Some grocery retailers have invested in their own private brands, charging just slightly lower than national brands to signal the quality of the products is good, involving the use of _____. Jewelers that price their products by adding a standard markup for profit, like doubling the cost of the product in order to determine the selling price to consumers, use a _____ approach Supermarket chains often implement _____, a pricing tactic of selling leading brands of products below their own cost in order to build store traffic. When Sony introduced its new PlayStation 3 game system, buyers who could not get them the first day bid up the price of the systems on eBay and other auction sites. As Sony provided more PlayStation 3 units to the market and early demand was satisfied, prices dropped because: In determining the price for his company's new pocket digital camera, Matt is assessing what consumers consider the regular or original price for similar cameras available in the market. Matt is assessing the influence of _______ on pricing strategy In a ________pricing strategy, marketers rely on the promotion of sales, during which prices are temporarily reduced to encourage purchases. When Burroughs-Welcome introduced the first anti-AIDS drugs, they initially set the price at $10,000 for a year's supply. Burroughs-Welcome was probably pursuing a ________ pricing strategy. One reason marketers of new, innovative products often start out with a price skimming strategy rather than a market penetration strategy is that: Consumers judge the benefits the product delivers against the ______________ necessary to obtain it. If firms price their products too low, it may: Christina owns and operates a shop that sells home furnishings. One of her vendors has just offered her a greatly reduced price for some traditional Christmas decorations, even though it is really too early to be thinking about holiday merchandise. One of the main pricing issues Christina will have to address as she considers the offer is: Unlike product, promotion, or place, price is the only part of the marketing mix: 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: Which of the following is NOT one of the Five Cs of pricing? What could go wrong if a firm's pricing strategy were NOT aligned with company objectives? A. The message and media in a promotional campaign could be inconsistent with the pricing strategy. B. Company growth objectives might not be supported. C. The channels selected might not be appropriate for the pricing levels established. D. Customers might be confused and select a competitor's product. Gary is the marketing manager for an automobile dealership. His boss tells him the firm's primary goal is to 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. When firms set prices similar to those of competitors, they are following a strategy of: Price elasticity of demand is the: Yvonne estimates the average cost of her floral arrangements is $14 regardless of whether she is doing 5 or 20 arrangements that day. She adds a standard markup to the $14 estimate to determine her price. Yvonne is using a ________________ pricing method. Firms using a ____________ pricing method set their prices relative to what other firms are charging. Value-based pricing methods include approaches to setting prices that focus on the overall value of the product offering: Odd prices: Pricing ________________ products is especially challenging because little or nothing is known about consumers' perceptions of value. Charging a relatively high price for new and innovative products to those consumers most willing and able to pay the high price is called price: The major objectives associated with a market penetration pricing strategy are to: The ____________ occurs when unit cost drops as the cumulative quantity sold increases. A pricing strategy is: Which of the following is NOT a common business-to-business pricing tactic? A. Seasonal discounts. B. Slotting allowances. C. Quantity discounts. D. Loss leader pricing. E. Advertising allowances. The primary reasons manufacturers offer seasonal discounts to retailers are to more easily plan production schedules and to: Chris works for a hardware store. His boss directs him to make a list of manufacturers whose brand names were included in the store's recent newspaper ads and to put copies of the ads with the invoices from each manufacturer. Chris's boss is documenting a(n): In determining the price for his company's new personal computer photography printer, Raymond is assessing the total cost of owning his printer as compared to alternative products available in the market. Raymond is using the _______________ method to pricing strategy. If Hewlett Packard introduced a new home printer system for which consumers could only use HP paper, toner and software, they might logically use a _______pricing strategy for their printer to profit from the sale of paper, toner and software. If the fixed costs of opening an Internet-based, artisan soap business are $2,000, the price is $6 per unit and the variable costs are $2, the break-even point in units is: Rob was complaining to another member of the lawn crew. "I don't know how they expect me to do an adequate job. The mower doesn't work right, the trimmers are so dull they can't cut anything and half the rest of the equipment is so old we can't get parts." Rob's company lacks the ________the crews need to be able to do a good job. Managers of fast food restaurants struggle with a rapid turnover of personnel. Employee turnover rates of 100 to 200 percent annually are common. The work environment is difficult and customers can often be demanding. One of the first steps managers can take to help workers deliver quality service is: Adidas Group owns Reebok, Rockport, and Greg Norman brands. Adidas uses the different brands to pursue a(n) ____________strategy. Some products may stay comfortably in the maturity phase of the product life cycle often until a new product emerges to replace them. An example of such a mature product is: Christina owns and operates a shop that sells home furnishings. One of her vendors has just offered her a greatly reduced price for some traditional Christmas decorations, even though it is really too early to be thinking about holiday merchandise. One of the main pricing issues Christina will have to address as she considers the offer is: 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: Amie Stegaro makes and sells handmade baby quilts for $125 each. She has determined that her fixed costs are $8,000, and her variable costs per quilt are $45. What is her break-even point in units? A boy purchases a wagon for $22.80 and sells it for $38. What is his markup on his selling price? A firm makes shoes for a cost of $20 pair and sells them for a price that earns them a 60% markup on price. What price does the firm sell the shoes for? 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. When Sheila decided to sell her shoe racks on eBay, she stated the price and a shipping rate according to delivery area. Which method of pricing was Sheila using? The Clayton Act and the Robinson-Patman Act forbid certain types of: Mona is selling her artwork at a local festival. Her art is selling well, but t-shirts she had made up with her artwork are not selling. She decides to offer a package price for her art with a t-shirt included. Mona is using: When Greenbelt Construction Company began building houses in a large subdivision with many other builders, they priced their homes slightly higher than their competitors and promoted the added quality features in their homes. Greenbelt was using a ________________ pricing strategy. Introduces a new product or service to a limited geographical area (usually a few cities) prior to a national launch Eric is a sales rep for an established building materials manufacturer. Business is good, but he is concerned that the company has spent little on new product development and has not created a new product in over five years. Without new products, Eric can only market to his current customers or Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of: Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products, because they know that their customers crave the latest and greatest games. They use this information to create new products that primarily provide the benefit of Laura prefers Sony products and will only purchase alternatives when there are no Sony products available. Laura's brand loyalty means she is: Becky was very particular. She always chose designer labels and nationally known brands, even if they were more expensive, with one exception. She always bought the store brand chocolate chip cookies from her grocery store. They were high-end cookies, made with real butter and other fresh ingredients. This type of store brand is known as a: Shell MasterCard, created cooperatively by Shell Oil Company and Master Card, is an example of: Which of the following was NOT a new-to the-world product or service when it was introduced? Ryan told his brother, "I'll never buy any Nike products because of the way they used to treat workers in sweatshops." His brother argued with him about how things have changed, but Ryan wouldn't change his mind. In terms of a marketing issue, Ryan has a very strong ______________. The classic Marlboro Man advertisements portraying Marlboro smokers as rugged, outdoorsmen effectively created a: Frequently, beer manufacturers run television ads showing attractive, young people having fun and, of course, drinking their beer. These ads are designed primarily to create: Whenever Donald considers upgrading his personal computer system, he consults with Jeremy, a knowledgeable friend who always has the latest technology. For Donald, Jeremy is a(n) ___________ in the diffusion of innovation curve. 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 Many former Enron professionals who had nothing to do with the corporate scandal found that listing employment with Enron hurt their chances of being hired elsewhere. For these people, the Enron name has 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 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. Cathy has used Olay beauty products for years, even though there are many competitors on the market. She plans to purchase a recently introduced micro-sculpting cream from Olay's Regenerist line. Olay is in the _________ stage of the product life cycle. 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 In the United States, most consumer packaged goods found in grocery and discount stores are in the __________ stage of the product life cycle. 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. If 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 Reese and Janelle own a boutique in the United States. Recently they took a trip to China and while there, the couple purchased a large quantity of name-brand handbags for a cost significantly lower than what the manufacturer charges for the same product in the United States. Upon their return, the couple sold the handbags in their store for less than any other store in the area. This is an example of what takes place in a(n) _______ market. How can a company find its way out of a market characterized by pure competition? If a firm in a purely competitive market can differentiate its product or service, it becomes part of a(n) _______ market. Which of the following markets is most likely to be characterized by oligopolistic competition in the United States? 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 Natalie operates on a pretty tight budget. She is a price-conscious shopper and usually buys store or generic brands to save money. Recently, however, Natalie was given a pretty substantial raise. As such, she has altered her shopping patterns and now regularly buys more expensive, name-brand goods. This is an example of If all three grocery stores in town decide to charge the same price for a gallon of milk, what type of pricing tactic is being used? What type of pricing tactic is being used when several airlines agree to charge the same fare for a single route? __________ price fixing occurs when competitors collude to control prices, and __________ price fixing occurs within a marketing channel to control prices passed on to consumers. B2B quantity discounts are legal if 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 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 had supposedly been 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 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 Manufacturers use cash discounts primarily because it allows them to benefit from When Toro offers its lawn mower dealers an additional discount if they place their orders and receive delivery before April 1, prior to the lawn mowing season, Toro is offering a Which of the following is not a common business-to-business pricing tactic? 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 Supermarkets often offer great deals on milk or eggs to get customers into their stores, knowing that many customers will also purchase items that have higher markups for the store. These supermarkets are using a _______ pricing tactic. One important reason manufacturers like rebates is that 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 When a new product is not being sold at the rate originally forecasted, the retailer may reduce the price in order to reduce the inventory of the product. This reduction is known as a 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 One of the benefits of offering a size discount to consumers is they will purchase more of a marketer's product and 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 The saying "leaving money on the table" is associated with 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 Marlie designs and manufactures specialty furniture. She has a number of unique products but can only produce in limited quantities. Marlie will probably not use a market penetration strategy because 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 Mario is the first retailer in town to sell games for Sony's new PlayStation 4 machine. Mario wants to quickly capture as much of the market for the new games as possible. Mario will likely use a __________ pricing strategy What is one of the drawbacks of using a price skimming strategy? For a price skimming strategy to work, the product or service must 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. Hoping to attract innovators and early adopters, Apple was most likely pursuing a _____ pricing strategy It is important to Joanne to get value for her money, but she does not want to spend time comparison shopping. Joanne will likely respond to _______ pricing, but not to _______ pricing 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? Dan is especially price sensitive. He has been known to line up on "Black Friday" (the day after Thanksgiving) at 4 a.m. to be among the first to buy sale items. Dan would likely respond to a _______ pricing strategy Each generation of cell phones has provided greater clarity, range, security, and multifunctionality. If marketers of cell phones use these features as a basis for pricing, they would be using _______ pricing A weakness associated with cost-based pricing methods is that they Do not recognize the role consumers or competitors' prices play in the marketplace When Meg planned her trip to Australia, she spent months evaluating packages, airfares, and hotel accommodations. Meg's trip is an example of a(n) ________ product A toothpaste tube is an example of a ________ package How did consumers respond when Chobani reduced the size of its Greek yogurt containers from 6 ounces to 5.3 ounces? Which of the following products actually lost market share due to its attempt at sustainable packaging When a salesperson calls you to sell a cemetery plot, this is most likely what type of product Some credit cards provide free liability insurance, funded by the bank issuing the card, when a customer pays for a rental car using the card. This extra insurance is an example of 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? When a restaurant chain, Big Burgers, launches its own brand of frozen meals, this is an example of a When manufacturers try to understand what customers are looking for, they are thinking about the _______ component of the product offer 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? Which of the following is not true regarding secondary packaging? Marco tried a new fruit-flavored beverage and thought it was awful. He was especially disappointed because he had liked the dried fruit snacks marketed under the same brand name. Now he wasn't sure he even wanted to buy the snacks he had liked before. This highlights a problem in branding known as Procter & Gamble is a huge national brand manufacturer. By owning its brands like Tide and Crest, P&G Which of the following is the best example of a family brand Nora is deciding whether to purchase brand-name sneakers or a less expensive store brand. She has purchased other shoes with the same brand name in the past but was only marginally satisfied. In this situation, Nora is likely to purchase the store brand sneakers because they offer Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl? Salina is working to create greater brand awareness for her company's new line of personal digital assistants. To increase brand awareness, the least important information that should be included in promotions is In the case of Band-Aid adhesive bandages, the brand name has 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 The Doritos advertising effort of "Live Mas," which is Spanish for "Live More," is meant to suggest a lifestyle aspiration. If consumers make a connection between the Doritos brand and this promotional effort, then Doritos has created 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 Marketers with successful brands sometimes hesitate to expand their brands because [Show More]

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