Econ Chapters 13, 14 and 15 – Flashcards

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question
Andre is a real estate agent who has an idea for a software program that will help perform real estate appraisals more quickly and more accurately. He has worked with a buddy who is good at programming to develop a detailed description of what the software will do and how it differs from existing applications. Now Andre has taken this description and shown it to a number of fellow real estate agents to see if his idea appeals to them. Andre is engaging in:
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Correct Answer: Correct concept testing. Response Feedback: Concept testing involves developing an accurate description of your product and asking people whether or not the concept appeals to them.
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Marcia Baker ships orchids and other perishable flowers from her greenhouses near San Francisco, California to florists thousands of miles away in cities such as New York, Boston, and Philadelphia. Since the flowers must reach the florists as quickly as possible, the best mode of transportation for Marcia to use would be:
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Correct Answer: Correct air. Response Feedback: Airplanes are the fastest of all modes of transportation.
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Virtual Electronics is considering a strategy to charge a very high introductory price for their automobile video theater. After identifying that their rival firms did not carry this new product, they chose this pricing strategy to achieve maximum profits. Virtual Electronics has chosen a ________ strategy.
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Correct Answer: Correct skimming Response Feedback: A skimming price strategy is one where the product is priced high to make optimum profit while there is little competition.
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LoRider Wheels sells high quality bicycles and accessories. The store is known for a pleasant environment, friendly salespeople and an excellent service department. All of these elements are part of the ___________ offered by LoRider.
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Correct Answer: Correct total product offer Response Feedback: A total product offer consists of everything that consumers evaluate when deciding whether to buy something.
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Which of the following describes a word, letter, or group of words or letters that differentiate the goods and services of a seller from those of competitors?
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brand name
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Suits for Success is a men's clothing store in a large suburban shopping mall. The managers of the store know that their customers usually comparison shop, looking carefully at quality and price before deciding to buy. Armed with this information, Suits for Success carries quality clothing, offers competitive pricing, and friendly, helpful service. The target customers apparently view men's suits as a:
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Correct Answer: Correct shopping good. Response Feedback: Shopping goods and services are those products that the consumer buys only after comparing value, quality, and price from a variety of sellers.
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The most likely type of utility that's provided by convenience stores is:
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place.
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Kumquat Computers is a major computer manufacturer that also owns all of the organizations in the channel of distribution for its computers, including a chain of Kumquat Direct retail stores. Kumquat is using a:
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Correct Answer: Correct corporate distribution system. Response Feedback: In a corporate distribution system, the producer owns all of the organizations in the channel of distribution.
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Which of the following would be considered part of a firm's marketing mix
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Correct Answer: Correct determining the best pricing strategy for a product Response Feedback: The marketing mix involves: (1) designing a want satisfying product, (2) setting an appropriate price for the product, (3) distributing the product, and (4) promoting the product. It does not directly involve financing, production, or employment decisions.
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Sales of cell phones in the United States are still increasing, but the rate of growth has slowed. Sales are expected to peak somewhat soon in the U.S. Based on this information, cellular phones are in what stage of the product life cycle in the U.S.?
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Correct Answer: Correct maturity Response Feedback: During the maturity stage of the product life cycle, sales volume reaches a peak, while profits decline.
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Rita Sauer stocks several local supermarkets and discount stores with Luminaire Cosmetics. She sets up displays of various cosmetic products carrying the Luminaire brand name, and sells the goods on consignment, sharing any profits on the sales with the retailer. Rita is a:
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Correct Answer: Correct rack jobber. Response Feedback: A rack jobber is a wholesaler that furnishes racks or shelves of merchandise to retailers, handles the display, and splits the profits with the retailer.
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Producers of snack foods (such as candy bars or potato chips) are most likely to use a(n) _____________ distribution strategy for their products.
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Correct Answer: Correct intensive Response Feedback: An intensive distribution strategy tries to make the product available in as many locations as possible. Firms that produce convenience goods such as candy bars and other snacks typically want to use an intensive strategy.
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All-Star Collectibles focuses its marketing efforts on high-income buyers of unique collectible items. The firm realizes that the number of buyers in this segment of the collectible market is small. However, they are confident that this approach will be profitable since these buyers will pay premium prices for their unique products and superior customer service. All-Star's approach is an example of:
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Correct Answer: Correct niche marketing. Response Feedback: Niche marketing is the marketing strategy of focusing on small but profitable market segments and offering these groups custom-designed goods and services.
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Lazario Motor Car Company produces some of the most luxurious and expensive cars in the world. The company typically authorizes only a single dealership to sell its cars in certain major metropolitan areas. In less populous areas, Lazario authorizes a single dealer for an entire state or region. The manufacturer of Lazario automobiles is using a(n) ___________ distribution strategy for its product.
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Correct Answer: Correct exclusive Response Feedback: Exclusive distribution is the use of only one retail outlet in a given geographic area.
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In an effort to increase customer loyalty, management at Phat International has worked to create a personal dialogue with their customers. This dialogue will enable Phat to offer products that exactly meet their customers' needs and provide personalized service before and after the sale. Phat International's new strategy illustrates:
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Correct Answer: Correct relationship marketing. Response Feedback: Relationship marketing emphasizes pleasing customers by producing high quality products that exactly meet their requirements. This approach to marketing also emphasizes retaining customers by offering fantastic service and special programs to reward long-time customers.
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Roberto Martinez is a marketing manager for Friendly Financial Services. He has been looking at a variety of factors, such as technological, socio-cultural and economic trends as well as competitive conditions. Martinez is confident that these factors will impact Friendly's future marketing success. His efforts are an example of:
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Correct Answer: Correct environmental scanning. Response Feedback: Environmental scanning is the process of identifying factors that can affect marketing success. These factors would include global, technological, social, competitive, and economic elements of the firm's business environment.
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Which of the following is a part of the marketing concept?
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Correct Answer: Correct a consumer orientation Response Feedback: The marketing concept has three basic components. They are (1) consumer orientation, (2) total organizational effort towards consumer satisfaction, and (3) profit orientation.
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What does a break-even point of 100 units mean to a firm?
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Correct Answer: Correct If the firm sells 100 units, its total revenues will equal its total costs. Response Feedback: The break-even point is the sales volume where revenues from sales equal all costs.
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Nature's Sun, a company that designs and manufactures clothing for active people, focuses their marketing efforts on people who participate in strenuous outdoor activities such as running and mountain climbing. For example, the firm advertises heavily in magazines for runners. Nature's Sun is using _________ factors to segment its market.
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Correct Answer: Correct psychographic Response Feedback: Nature's Sun is basing its segmentation on the interests and lifestyle of its customers. This approach is known as psychographic segmentation.
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The Procter & Gamble Company is a major producer of bar soaps. In fact, Procter & Gamble produces Ivory, Camay, Lava, Safeguard, Zest, and Coast bar soaps that all claim a variety of benefits. These products are part of Procter & Gamble's __________ in bar soaps.
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Correct Answer: Correct product line Response Feedback: A product line is a group of products that are physically similar or are intended for a similar market.
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Cool People Publications focuses their marketing efforts on reaching African-American teenage girls. The firm believes that they are positioned to profitably serve this group of consumers. Cool People utilizes the strategy of:
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Correct Answer: Correct target marketing. Response Feedback: A target market is a group of customers with similar characteristics (a market segment) that a firm believes it can profitably serve.
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Anheuser-Busch/In Bev Company, Inc. has been given the exclusive right to the name Budweiser and is legally protected from others using this name by the __________ they hold.
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Correct Answer: Correct trademark Response Feedback: A trademark is a brand that has been given legal protection from use by competitors or others in the market.
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Roosevelt Community College has experienced declining enrollment for the past three years. In the past the college has relied strictly on enrollment from newly graduated high school students. In order to identify other potential markets, Roosevelt Community College would benefit from:
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Correct Answer: Correct marketing research. Response Feedback: Marketing research is the analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions such as how to reach other target markets.
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Borden, Inc. makes pasta, dairy items, and adhesives. These different types of products are referred to as Borden's:
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Correct Answer: Correct product mix. Response Feedback: Product mix is the term used to describe the combination of product lines offered by a manufacturer.
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Some businesses use nostalgic ads to rekindle the memories and emotions of consumers to an earlier time and place. This technique of linking a brand name to a pleasant memory or favorable image is the goal of brand:
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Correct Answer: Correct association. Response Feedback: Brand association is the linking of a brand to other favorable images, such as a popular celebrity, a particular geographic region, or other similar factors.
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Robbie Veath brings together buyers and sellers of used heavy construction equipment, and helps them negotiate the terms of the sale. However, Robbie never actually takes title to any of the equipment himself, nor does he provide any financing for the buyer. Robbie is acting as a:
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Correct Answer: Correct broker. Response Feedback: A broker is a marketing intermediary who brings together buyers and sellers and helps negotiate exchanges. Brokers typically do not own the goods, offer credit, or assume risk.
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Green Giant Green Beans, Chevy Corvette, Coca Cola, Dole Pineapple, and Peter Pan Peanut Butter are all examples of:
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Correct Answer: Correct manufacturers' brands. Response Feedback: Manufacturer's brands are the brand names of national manufacturers and are generally well known among the buying public.
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Nina Corby owns a card shop in a small shopping center where she sells cards produced by a national company. Nina sells to final customers, so she is a:
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Correct Answer: Correct retailer. Response Feedback: A retailer is an intermediary who sells to the final users of a product.
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Comstock Coal Distributors does not mine coal itself. In fact, the firm does not even store or handle coal. Instead, Comstock solicits orders for low sulfur coal from other firms, then purchases the required amount from suppliers and directs them to ship the coal to its customers. Comstock is a:
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Correct Answer: Correct drop shipper. Response Feedback: A drop shipper is a wholesaler that solicits orders from other firms and arranges for the goods to be shipped from the producer to the buyer. Drop shippers take title to the goods they distribute, but do not handle, store, or deliver these goods.
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