Flashcards on Marketing Test 2 ch 7-11
Unlock all answers in this set
Unlock answersquestion
Marketing research is the process of defining a marketing problem and opportunity, _______, and recommending actions. A) systematically collecting and analyzing information. B) creating a new budget and financial plan. C) tracking the actions of competitors. D) assembling a task force to identify applicable trends E) adopting a global market perspective
answer
A
question
When following the five-step marketing research approach, developing the research plan is the _____ step. A) fifth B) second C) first D) fourth E) third
answer
B
question
In marketing research, the research objectives are the ____ goals of the decision maker. A) casual and actionable B) virtual and interactive C) actionable and inferential D) interdisciplinary and precise E) specific and measurable
answer
E
question
Measures of success are A) the goals the decision-maker seeks to achieve in solving a problem. B) the approaches that can be used to collect data or solve the problem. C) very difficult to quantify. D) also called consumer differentiators. E) the criteria or standards used in evaluating proposed solutions to a problem.
answer
E
question
In a marketing decision, _____ are likely to be restrictions on the time and money available to solve the problem. A) dependent variables B) limitations C) risks D)constraints E) objectives
answer
D
question
Determining how to collect data, including selecting the appropriate methods, is done during which stage of the research process? A) define the problem B) develop the research plan C) collect relevant information D) develop findings and recommendations E) take marketing actions
answer
B
question
Two special methods vital to marketing researchers are _____ and _____. A) sampling; statistical interference B) actuarial models; data extrapolation C) statistical inference; experiments D) hypotheses; conjectures E) virtual visualization; interactive data exchange
answer
A
question
When a marketing researcher uses a collection of reports, customer letters, financial statements, and surveys from different departments within her firm, she is using A) primary data. B) business data. C) external secondary data. D) sensitivity analysis. E) internal secondary data.
answer
E
question
Representatives from Kraft spent several months with consumers in their kitchens, attempting to understand what they wanted in ready-to-serve meals prior to the launch of Kraft Deli Creations. The observational approach Kraft used is called __________ research. A) secondary B) neuromarketing C) experimental D) ethnographic E) questionnaire
answer
D
question
In eight small group sessions with customers, 3M heard them complain that standard steel wool pads scratched their expensive cookware. The findings from this research lead to the development of 3M's internationally successful Scotch-Brite Never Scratch soap pads. The research method 3M used was A) surveys of knowledgable opinion. B) panels. C) focus groups. D) experiments E) in-depth interview.
answer
C
question
What type of question is the simplest form of a fixed alternative question that allows only a "yes" or "no" response? A) open-ended B) Likert scale C) dichotomous D) single response E) semantic differential scale
answer
C
question
What kind of question is the following? "Place an 'X' in the space that describes your feelings about the economy." ." Excellent __ __ __ __ __ Poor A) Likert scale B) dichotomous question C) open-ended question D) sensitivity analysis question E) semantic differential scale
answer
E
question
An advantage of using a panel for marketing research is A) the discussion leader can help change negative panel responses into positive ones. B) panel members often help each other by bringing up ideas for discussion that others didn't initially think of, but that were important to them. C) there will usually be one panel member who dominates the discussion to help keep the conversation focused. D) researchers can take successive measurements of consumers to determine if they change their purchasing behaviors over time. E) the panel's continuity and representativeness of the population are unchanged when individual members drop out.
answer
D
question
All of the following are independent variables a market researcher may use in a marketing experiment EXCEPT: A) price. B) distribution outlet. C) free samples. D) unit sales. E) product color.
answer
D
question
In marketing experiments, the dependent variable is the __________ and the independent variable is the __________. A) element that never changes; the element that always changes B) result; factor beyond the experimenter's control C) result of an action; cause of an action D) cause of an action; result of an action E) element that always changes; element that never changes
answer
C
question
If a marketing manager queries a marketing information system to determine what the influence of a change in the price of a new product is on sales, she is using __________. A) action analysis B) an environmental scan C) situational analysis D) sensitivity analysis E) problem search
answer
D
question
A forecast that involves estimating the value to be forecast and making decisions without any intervening steps is referred to as a A) trend extrapolation. B) direct forecast. C) lost-horse forecast. D) linear trend forecast. E) survey of buyers' intentions.
answer
B
question
Boeing has only a few hundred customers worldwide for its large airplanes, so it can contact these customers and conduct __________, which is an effective method to develop its sales forecasts and production schedules. A) trend extrapolation B) direct forecasting C) lost-horse forecasting D) linear trend forecasting E) a survey of buyers' intentions
answer
E
question
Asking the firm's salespeople to estimate sales during a coming period is referred to as A) tend extrapolation. B) in-house forecasting. C) a lost-horse forecast. D) a salesforce survey forecast. E) a survey of buyers' intentions.
answer
D
question
Linear trend extrapolation is a type of trend extrapolation in which A) the pattern changes from year-to-year, quarter-to-quarter, etc. B) slope of the line is always positive (upward-sloping). C) pattern is always a straight line. D) shape of the pattern is hyperbolic (u-shaped). E) pattern follows an "S"-shaped curve.
answer
C
question
Market segmentation involves aggregating prospective buyers into groups that have common needs and will A) have access to the products. B) possess the same attitudes. C) be open to marketing research. D) match well with the firm's proposed product differentiation strategies. E) respond similarly to a marketing action.
answer
E
question
Sensodyne ProNamel toothpaste is formulated to re-harden acid softened tooth enamel to increase protection for users' teeth, and this attribute sets it apart from competitors. Sensodyne's advertising promotes this product benefit and is an example of A) product positioning. B) mass customization. C) product differentiation. D) segments of one and mass customization. E) repositioning.
answer
C
question
Which of the following is an example of a single product with multiple market segments?A) Reebok makes tennis shoes, running shoes, walking shoes, and Weeboks. B) Reach Toothbrush is available in a soft, medium, and hard bristle for adults and kids. C) Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women. D) Kellogg's and Post both make bran cereals with raisins to reach health-conscious consumers. E) Quaker Oats oatmeal sells both its hot cereals and cold cereals to people of all ages.
answer
C
question
__________ is the increased customer value achieved through performing organizational functions, such as marketing, production, and operations, more efficiently. A) Aggregation B) Organizational synergy C) Segmentation D) Differentiation E) Valuation
answer
B
question
__________ is the third step in the five step process of segmenting and targeting markets. A) Grouping potential buyers into segments B) Taking marketing actions to reach target markets C) Grouping product to be sold into categories D) Selecting target markets E) Developing a market-product grid
answer
E
question
Potential buyers within a market segment should be A) similar to those from different segments. B) familiar with the product but not yet brand loyal customers. C) similar in terms of the advertising media used. D) cannibalized from competitors' customers. E) able to provide significant product synergies.
answer
C
question
Which of the following is a variable that could be used for demographic segmentation of consumer markets? A) household size B) city size C) NAICS code D) personality E) usage rate
answer
A
question
Though the percentages are not always the same, a general rule in business says that the large majority of a firm's revenues come from what percent of its customers? A) 5% B) 20% C) 35% D) 50% E) 80%
answer
B
question
Which segmentation base do organizations use most according to a recent study by the Aberdeen Group? A) behavioral B) geographic C) psychographic D) demographic E) attitudinal
answer
B
question
The nearly 14 percent of adult Americans who do not go to fast-food restaurants in a typical month and who are never likely to become users would be referred to as A) cold leads. B) nonqualified prospects. C) undefined prospects. D) nonprospects. E) laggards
answer
D
question
U.S. organizational markets use three main segmentation bases, which are A) geographic, demographic, and psychographic. B) cognitive, behavioral, and attitudinal. C) demographic, geographic, and behavioral. D) regional, national, and global. E) governmental, nonprofit, and for profit.
answer
C
question
Kitchen World has put its offerings in store locations based upon the cooking activity—the way consumers prepare and present various meals. Everything for baking is in one spot, while food preparation utensils are in another, and table settings are in yet another. This strategy uses A) product clusters. B)product groupings. C) segment groupings. D) lifestyle merchandising. E) psychographic merchandising.
answer
B
question
An important part of creating a market-product grid is to A) develop marketing actions for each market segment. B) identify company strengths and weaknesses. C) estimate the size of the markets. D) compare, in two dimensions, a firm's position relative to its competitors. E) plot the market growth rate and relative market share of a firm's offering.
answer
C
question
Which of the following is a criterion used to select a target market segment? A) measurements of customer perceptions B) similarity of needs of potential buyers within a segment C) difference of needs of buyers among segments D) potential of a marketing action to reach a segment E) expected growth of a segment
answer
E
question
Running horizontally across a market-product grid, each row represents an opportunity for efficiency in terms of A) a product grouping. B) a market segment. C) sustainable synergies. D) supplier synergies. E) competitor synergies.
answer
B
question
Two major types of product positioning are A)competitive; consumer. B) head-to-head; perceptual. C) behavioral; psychological. D) head-to-head; differentiation. E) differentiation; segmentation.
answer
D
question
Which type of product positioning would be used to compete directly with competitors on similar product attributes in the same target market? A) perceptual positioning B) competitive positioning C) repositioning D) differentiation positioning E) head-to-head positioning
answer
E
question
Which type of product positioning would be needed for two or more brands from the same company in order to minimize cannibalization? A) behavioral positioning B) competitive positioning C) repositioning D) differentiation positioning E) head-to-head positioning
answer
D
question
A key to positioning a product or brand effectively is to discover the perceptions in the minds of potential customers. This involves taking four steps, one of which includes A) deciding whether to keep or delete a product group or item. B) deciding which of your competitors would be the most effective partner in a corporate merger. C) developing a new marketing program that conforms to your leading competitor's offering. D) identifying market niches that were not previously discovered during the market segmentation process. E) discovering where the company's product or brand is on the relevant attributes in the minds of potential customers.
answer
E
question
A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand, is referred to as a __________. A) crosstabulation B) perceptual map C) market-product grid D) growth-share matrix E) product differentiation chart
answer
B
question
A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value is referred to as a(n) A) ware B) product C) object D) market E) merchandise item
answer
B
question
Among consumer products, personal selling is especially important for A) convenience goods. B) unsought products. C) costly durable goods. D) support products. E) nondurable goods.
answer
C
question
Services are A) marketing actions that provide quality products in a timely matter to satisfy customers' needs. B) intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. C) tangible attributes that consumers' five senses can perceive. D) tangible product attributes that an organization provides to satisfy consumers' needs in exchange for money or something else of value. E) thoughts that lead to marketing actions.
answer
B
question
Consumer products are classified based on the: (1) attributes used in making the purchase decision; (2) frequency of purchase; and (3) A) amount of money the customer is willing to spend. B) number of competing products or product substitutes. C) demographics of the consumer. D) effort the consumer spends on the decision. E) consumer psychographics.
answer
D
question
Inexpensive products with widespread availability are considered to be A) industrial goods. B) shopping products. C) specialty products. D) convenience products. E) unsought products.
answer
D
question
Which of the following is the best example of a specialty product? A) a Ferretti yacht B) a Sony Blu-Ray player C) cash from an ATM D) a Merriam-Webster dictionary E) Dial hand soap
answer
A
question
As consumers demand for Ford cars increases, Ford may increase its demand for paint spraying equipment, which in an example of __________ for the latter. A) sequential demand B) concurrent demand C) derived demand D) secondary demand E) primary demand
answer
C
question
The camera lens module for Apple's iPhone is manufacturers by Largan Precision and its touch panel comes from TPK. These are considered __________ for Apple's product. A) support products B) components C) supplies D) derived products E) installations
answer
B
question
Teachers, optometrists, and social workers are service workers that could be classified as A) unskilled. B) semi-skilled labor. C) skilled labor. D) professionals. E) public servants.
answer
D
question
Equipment-based services do not have the marketing concerns of inconsistency because A) equipment comes with warranties. B) equipment can be easily serviced if something goes wrong. C) employees do not have direct contact when providing services to consumers. D) equipment-based services generally deal more with industrial firms than ultimate consumers. E) equipment-based services are not really services at all but highly specialized tangible products.
answer
C
question
A student who is inadequately helped by someone in career services and whose phone calls to the librarian remain unanswered may start to have a negative perception of her school, despite the fact that she has learned a lot in her classes. This is a function of the __________ aspect of services. A) inventory B) inseparability C) imperfection D) intangibility E) impressionability
answer
B
question
Idle production capacity can be reduced by A) using a straight salary compensation plan. B) hiring additional full-time personnel. C) allowing personnel to work overtime. D) increasing the number of workdays per week as well as increasing the hours per day for employees. E) cutting a part-time worker's hours during slow periods.
answer
E
question
The willingness to help customers and provide prompt service is referred to as A) reliability. B) responsiveness. C) competence. D) courtesy. E) empathy.
answer
B
question
Annie's Organic Shells & White Cheddar, an organic macaroni and cheese, is an example of a A) product item. B) product unit. C) product line. D) product mix. E) product class.
answer
A
question
Which of the following products at the time of their introduction was the best example of a continuous innovation? A) pocket calculator B) Blu-Ray player C) cigarette lighter D) personal computer E) automatic dishwasher
answer
B
question
Ideally, before a new product is developed, a firm should have a precise protocol, which is a statement that identifies: (1) what the product will be and do to satisfy consumers; (2) specific customers' needs, wants, and preferences; and (3) __________. A) a clear marketing plan B) clear financial goals and expectations C) a well-defined target market D) a comprehensive SWOT analysis E) a precise budget of how much can be spent for a new offering's marketing program
answer
C
question
There are eight marketing reasons why a new product can fail. One of these is __________. A) having an insignificant point of difference B) not listening to the "voice of the consumer" C) not learning critical "takeaway" lessons from past failures D) encountering "groupthink" in product development meetings E) pushing a poorly conceived offering into the market to generate quick sales and profits
answer
A
question
There are six organizational problems that can cause new-product disasters. One of them is __________. A) failing to generate intense brand recognition B) avoiding the "NIH problem" C) thinking too much "out-of-the-box" D) receiving too much input from different departments within the firm E) not satisfying customers on critical factors
answer
B
question
Which stage in the new-product process results in the definition of the new product protocol and identifies the role it might serve in the firm's business portfolio? A) new-product strategy development B) idea generation C) screening and evaluation D) business analysis E) development
answer
A
question
Amanda is the owner of a company called Piquant (which means having a pleasantly sharp taste or appetizing flavor). She was looking for a new product to go with her company's line of food condiments when a customer suggested creating a spicy mayonnaise. This is an example of A) "bootleg" innovation. B) ideation outsourcing. C) extended collaboration. D) idea "groupthink." E) open innovation.
answer
E
question
During the introduction stage of the product life cycle, the place element of the marketing mix is highly involved with A) convincing channel intermediaries to carry the product. B) eliminating some distribution outlets to reduce costs. C) guaranteeing there is adequate primary demand if a skimming pricing strategy is used. D) building storage warehouses and distribution centers. E) using an intermodal logistics system.
answer
A
question
Domino's ran an advertisement saying that in a taste test its oven-baked sandwiches beat Subway 2-to-1. With this ad, Domino's was attempting to stimulate __________ demand. A) selective B) primary C) derived D) generic E) secondary
answer
A
question
Profit margins often peak as competitors enter the market, and aggressive pricing strategies take hold. This happens during which stage of the product life cycle? A) growth B) commercialization C) expansion D) introduction E) maturity
answer
A
question
DVD players would MOST LIKELY be in the __________ stage of the product life cycle. A) introduction B) growth C) maturity D) decline E) resurgence
answer
C
question
Harvesting is an option for a product in the __________ stage of its product life cycle. A) growth B) decline C) diversification D) maturity E) contraction
answer
B
question
An extended introduction stage of the product life cycle occurs for which type of product? A) high learning B) low learning C) fashion D) fad E) primary
answer
A
question
__________ begins with new-product purchases first by innovators, and then by early adopters. A) The consumer purchase adoption process B) The innovation adoption continuum C) The offering adoption model D) Diffusion of innovation E) The market-product life cycle
answer
D
question
The person responsible for managing the marketing efforts for a close-knit family of products or brands is called the __________ or __________. A) CEO; brand manager B) brand manager; product promoter C) product manager; brand manager D) advertising manager; promotion manager E) sales manager; director of marketing
answer
C
question
The Florida Orange Growers Association advocates drinking orange juice throughout the day rather than for breakfast only. It is primarily using which of the following market modification strategies? A) finding new users B) creating new use situations C) increasing use by existing customers D) modifying the product's characteristics E) creating a product bundle
answer
C
question
Which of the following triggers a product repositioning action? A) increasing the product's use B) reacting to a competitor C) creating new use situations D) finding new users E) compressing the product life cycle
answer
B
question
Quaker Oats makes the FDA-approved claim that oatmeal, as part of a low-saturated-fat, low-cholesterol diet, may reduce the risk of heart disease. It is primarily using which of the following product repositioning strategies for this product? A) increasing the product's use B) changing the value offered C) creating new use situations D) finding new users E) catching a rising trend
answer
E
question
Michelin has added a "run-flat" feature to its higher-priced tire lines so that they can travel up to 50 miles at 55 miles per hour after suffering total air loss. The marketing strategy Michelin used is called market modification. A) product extension. B) rebranding. C) trading up. D) downsizing.
answer
C
question
When a brand name cannot be spoken, it is considered a __________. A) copyright B) brandmark C) trademark D) trade registry E) logo
answer
E
question
When selecting a brand name, it should: (1) suggest product features; (2) be memorable, distinctive and positive; (3) fit the company or product image; (4) have no legal or regulatory restrictions; and (5) __________. A) be simple and emotional B) suggest an air of mystery C) be humorous D) be easy to spell and pronounce E) contain no hidden meanings
answer
A
question
All products sold by the Tabasco Company use the Tabasco brand. This is an example of __________. A) private branding B) multibranding C) co-branding D) generic branding E) multiproduct branding
answer
E
question
The seven Ps of services refer to an expanded marketing mix for services that includes the four Ps (product, price, place, and promotion) as well as A) people, process, and productivity. B) personality, performance, and process. C) productivity, performance, and profitability. D) personality, procedure, and performance. E) people, physical environment, and process.
answer
E
question
Which of the following statements concerning the pricing of services is most accurate? A) Consumers generally find the pricing of consumer services more realistic than the pricing of consumer products. B) Service pricing is generally subjective and not based on formulas or break-even points. C) Service pricing is relatively insensitive to consumer service quality perceptions. D) Service pricing only considers monetary costs to deliver the service. E) Service pricing plays a role in balancing consumer demand for services.
answer
E
question
Off-peak pricing refers to A) charging different prices to different customers based upon their ability to pay. B) charging lower prices when demand is high and higher prices when demand is low to stabilize revenue and profits during fluctuations. C) charging different prices during different times of the day or during different days of the week to reflect variations in demand for the service. D) charging different prices based on the different levels of service quality offered. E) charging one price to first-time customers and reduced rates for repeat or loyal customers.
answer
C
question
Nonprofit service organizations use them, but public service announcements (PSAs) A) tie up a very large a percentage of the advertising budget. B) are boring and not well designed; as a result, consumers "tune them out." C) are under the control of the medium where aired, not the organization. D) have a very limited reach and frequency. E) are an ineffective form of advertising.
answer
C
question
The acronym CEM in services marketing stands for __________. A) capacity experience management B) customer experience management C) consumer experience marketing D) consumer encounter marketing E) customer experience measurement
answer
B
question
From a marketing viewpoint, price is __________ exchanged for the ownership or use of a product or service. A) the money or other tangible goods B) the money or other considerations (including other products and services) C) the money (coin or currency) D) what is recognized as barter within a particular culture E) anything of value to the buyer but not necessarily of value to the seller
answer
B
question
Gem Cakes sells designer cupcakes for $4 each. Each cupcake costs $1 for the ingredients and wrapper. Monthly expenses for the shop include the following: rent is $1,000; utilities are $200; an advertisement in the local paper is $200; and wages are $4,000 per month. How much monthly profit would be expected if the business sells 6,000 cupcakes each month? A) $5,400 B) $6,000 C) $11,400 D) $12,600 E) $24,000
answer
D
question
Which of the four pricing approaches would a new-product manager be using if he or she is deciding whether to adopt a penetration or a skimming pricing strategy? A) cost-oriented pricing approach B) demand-oriented pricing approach C) profit-oriented pricing approach D) competition-oriented pricing approach E) value-pricing approach
answer
B
question
Bijan's in New York City offers a five-piece set of crocodile luggage for $55,000. This is MOST LIKELY an example of __________ pricing. A) penetration B) prestige C) skimming D) predatory E) loss-leader
answer
B
question
What is target pricing? A) estimating the price that ultimate consumers would be willing to pay for a product and then working backward through markups taken by retailers and wholesalers to determine what price they can charge wholesalers for the product B) setting an annual target of a specific unit volume of sales C) summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price D) alternating and then narrowing the setting prices a few dollars or cents above or under an even or odd number until profit is maximized E) setting an annual target of a specific dollar volume of profit
answer
A
question
Jane Westerlund owns a picture-framing shop, The Caplow Co. Her price must cover her costs for a typical framed picture, which consists of $8 for glass, $2 for matting, $15 for the frame, and $35 for the labor involved. She must also cover monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $300 for advertising, and $3,500 for her salary. The Caplow Co. wants a target profit of $55,000 based on a volume of 1,000 picture frames sold so it can expand the number of stores. What price should Jane Westerlund charge for a picture frame? A) $12 B) $30 C) $55 D) $120 E) $150
answer
D
question
Vending machines are a good example of the application of which type of competition-oriented pricing approach? A) customary pricing B) at-market pricing C) loss-leader pricing D) penetration pricing E) bundle pricing
answer
A
question
Newsweek ran a pricing experiment that involved setting different newsstand prices for its magazine in different cities and recording the number of units sold. After adjusting for factors like the population of the different cities, Newsweek could plot these prices and units sold in a graph called a(n) A) sales response curve. B) unit volume curve. C) consumer tastes curve. D) supply curve. E) demand curve.
answer
E
question
Which of the following statements about price elasticity of demand is most accurate? A) Price elasticity with inelastic demand must always be greater than 1. B) The more substitutes a product has, the less likely it is to be price elastic. C) Seasonal demand for a product like a snowblower does not affect its price elasticity. D) Items requiring large cash outlays relative to a consumer's disposable income are price elastic. E) With inelastic demand, reducing price will result in an increase in total revenue, though not necessarily an increase in profit.
answer
D
question
Laura Hillenbrand's book Unbroken, a WWII story of survival and resilience, was a New York Times bestseller in nonfiction for years. During its first year after publication, it often sold 25,000 copies a week in hardcover, at $27 apiece. The publisher's costs were only about $5 a book. What is the total weekly revenue obtained during these weeks? A) $950,000 B) $800,000 C) $750,000 D) $675,000 E) $125,000
answer
D
question
The Precision Writing Instruments Company makes a high-end pen known as the Cordova. Materials cost per pen is $6. Labor cost per pen is $5. Production overhead is $1,000,000. Advertising and promotion is $1,000,000. What are the total costs for sales of 500,000 units of the Cordova design? A) $1,000,000 B) $2,000,000 C) $3,650,000 D) $5,500,000 E) $7,500,000
answer
E
question
Which of the following would be an example of a variable cost for a publication like SHAPE magazine that is targeted to young women seeking a healthier lifestyle? A) an increase in women in targeted demographics B) the salary of the publisher's CEO C) the rent for a parking garage used by employees D) the paper and ink for printing the magazine E) the cost of a half-page ad in SHAPE
answer
D
question
A break-even point refers to A) the point at which profit is at a minimum. B) the point of greatest difference between marginal revenue and marginal cost. C) the point at which total revenue and total cost are equal. D) the point at which total revenue and average revenue converge. E) the point at which profit is at a maximum.
answer
C
question
North Safety Products manufactures butyl gloves that offer permeation resistance to gas or water vapors for workers that use dangerous chemicals like ketones. The company has fixed costs of $10 million for its butyl glove production and unit variable costs of $5 per pair. If the company charges $15 per pair, how many pairs of gloves must it sell to break even? A) 200,000 pairs B) 500,000 pairs C) 666,667 pairs D) 1,000,000 pairs E) 2,000,000 pairs
answer
D
question
Which of the following statements about profit objectives is most accurate? A) Managers in the United States have long been praised for their insistence on managing for long-run profits. B) Profit objectives are often measured in terms of return on investment. C) Firms that are interested in strategic planning always establish a maximizing current profit objective. D) An organization's chief marketing officer (CMO) usually establishes a target return on expense objective. E) Market share and unit volume are two types of profit objectives.
answer
B
question
Low-cost provider Allegiant Air began operations to fly into Long Beach in 2010, and into Bakersfield in 2011. It has since abandoned both efforts because rival carriers responded to its plans with very aggressive price cuts that drove it out of these two markets. The other carriers could be accused of using __________ pricing. A) discriminatory B) deceptive C) skimming D) predatory E) competitive
answer
D
question
Guitar Center recently instituted "no haggle" selling prices, much to the dismay of some musicians who enjoyed bargaining and getting a better deal than a novice. But now, no matter which Guitar Center store a customer visits, that person will be quoted the same price for the same guitar. This is an example of a __________ policy. A) customary pricing B) standard-price C) one-price D) flexible-price E) flat-rate
answer
C
question
A(n) __________ involves setting different prices for products and services depending on individual buyers and purchase situations in light of demand, cost, and competitive factors. A) target-pricing policy B) flexible-price policy C) price-lining policy D) cost-plus pricing policy E) above-, at-, or below-market pricing approach
answer
B
question
If you buy one pair of UVex Clear UVExtreme safety eyewear in the winter, the cost is $7.40. But if you buy 10 pairs in a single purchase, the price per pair is reduced to $6.85, a total savings of $5.50. This is an example of a A) promotional allowance. B) cash discount. C) seasonal discount. D) functional discount. E) quantity discount
answer
E
question
Functional discounts are offered to resellers in the marketing channel on the basis of the marketing activities they are expected to perform in the future and A) the size of the order. B) the frequency of the order. C) where they are in the channel. D) when orders are placed. E) the length of the relationship with the manufacturer.
answer
C
