question

Ultimate Consumers

answer

end users

question

Organizations buyers

answer

businesses that buy products for organizational use or for resale

question

Market Orientation

answer

focuses efforts on continuously collecting information about customers' needs, sharing this info across departments, and using it to create customer value

question

Utility

answer

benefits or customer value received by users of product

question

Environmental Forces in marketing decision

answer

social, economic, technological, competitive, and regulatory

question

4(5)P's

answer

Product = Customer benefits place= convenience price=costs promotion=communication, **participation=connection**

question

Gross Income

answer

amount of money made by a person, household, or family unit

question

Disposable Income

answer

Income after taxes are paid, available for necessities

question

Discretionary Income

answer

money a consumer has left after paying for necessities

question

Consumerism

answer

an increase in influence, power, and rights of consumers in dealing with institutions

question

JFK's Bill of Rights:

answer

Rights to: safety be informed choose be heard

question

Economic Espionage

answer

clandestine collection of trade secrets or proprietary information about a company's competitors

question

Triple-Bottom Line

answer

recognition of the need for organization to improve the state of the PEOPLE, PLANET, and PROFIT simultaneously to ensure long term, sustainable growth

question

Cause Marketing

answer

When charitable contributions of a firm are directly tied to the consumer revenues produced through the promotion of one of its products.

question

Utilitarianism

answer

"the greatest good for the greatest number of people"

question

Three Concepts of Responsibility

answer

profit responsibility stakeholder responsibility societal responsibility

question

Purchase Decision Process

answer

1) Problem recognition 2) Information search 3) alternative evaluation 4) purchase decision 5) post purchase behavior

question

Situational influences on purchase decision process

answer

1) the purchase task 2) social surroundings 3) physical surroundings 4) temporal effects 5) antecedent states

question

Consumer Learning*

answer

1) behavioral- developing an automatic response through repeat exposure 2) cognitive- observing the outcomes of others' behaviors

question

Cognitive dissonance

answer

post purchase psychological tension or anxiety

question

Personality

answer

a person's consistent behaviors or responses to recurring situations

question

Attitude

answer

a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way

question

Opinion Leaders

answer

individuals who exert direct or indirect social influence over others

question

Word of mouth

answer

influencing people during conversations

question

Reference Groups

answer

people whom an individual looks to as a basis for self-appraisal or set of standards.

question

Marketing research

answer

the process of defining a problem and opportunity, systemically collecting and analyzing information, and recommending actions

question

Marketing research approach

answer

1) Define the problem 2) Develop research plan 3) Collect relevant information 4) Develop findings 5) Take marketing actions

question

3 types of marketing research

answer

exploratory research- provides ideas about a relatively vague problem descriptive research- generally involves trying to find the frequency that something occurs or the extent of a relationship between two factors casual research- (most sophisticated) tries to determine the extent to which the change in one factor changes another one.

question

Primary Data

answer

facts and figures that are newly collected for the project

question

Secondary Data

answer

facts and figures that have been recorded before the project at hand

question

individual interview

answer

when the researcher is flexible enough to ask probing questions or watch their reactions to visual materials. It involves a single researcher asking questions of one respondent (very expensive).

question

depth interviews

answer

researchers ask lengthy, free-flowing kinds or questions to probe for underlying ideas and feelings.

question

focus groups

answer

informal sessions of 6-10 past, present, or prospective customers in which a moderator asks questions about how they respond to the product.

question

open-eneded questions

answer

allows respondents to express opinions, ideas, or behaviors in their own words

question

close-ended questions (fixed alternative)

answer

require respondents to select one or more response options from a set of predetermined choices

question

dichotomous question

answer

fixed alternative questions that allows only a yes or no response

question

scale

answer

a fixed alternative questions with three or more choices

question

Semantic differentail scale

answer

five point scale in which the opposite ends have one or two word adjective that have opposite meanings

question

Likert scale

answer

when responded indicated the extend to which he or she agrees or disagrees with a statement

question

Market segmentation

answer

aggregating prospective buyers into groups that have common needs and that respond similar to a marketing action

question

Market segments

answer

relatively homogeneous groups of prospective buyers that result for them market segmentation process

question

product differentiation

answer

using a different marketing mix, such as product features and advertising, to help consumers perceive the product as being different and better than competing products

question

Cannibalization

answer

when new products or new chain is stealing customers and sales from the older existing ones within the same firm

question

Five-Step Process for Segmenting a Market

answer

1) Group Potential buyers into segments 2) Group products to be sold into categories 3) Develop a market-product grid and estimate the size of the markets 4) Select target markets 5) Take marketing actions to reach target markets

question

4 Ways to Segment Consumer Markets

answer

Geographical - Where customers live/work Demographical - based on objective physical (gender, race), measurable (age,income), or other classification attribute of prospective customers Psychographic- based on some subjective mental or emotional attributes (personality), aspirations (lifestyle), or the needs of prospective customers. Behavioral- based on some observable actions or attitudes by prospective customers- such as where they buy, what benefits they seek, how frequently they buy, and when they buy.

question

Product Positioning

answer

The place a product occupies in consumers' minds on important attributes relative to competitive products

question

Product Repositioning

answer

changing the place a product occupies in a consumer's mind relative to competitive products

question

Segmentation and targeting are the link between the buyer's needs and the organization's marketing program

answer

Segmentation and targeting are the link between the buyer's needs and the organization's marketing program

question

Targeting (selecting target segments)

answer

a) market size b) expected growth c) competitive position d) cost of reaching segment e) compatibility with the organization's objectives and resources

question

Consumer products

answer

products purchased by the ultimate consumer

question

Business products

answer

products organizations buy that assist in providing other products for resale

question

convenience products

answer

items that the consumer purchases frequently, conveniently, with minimum shopping effort

question

shopping products

answer

items for which the consumer compares several alternatives on criteria such as price, quality, or style

question

specialty products

answer

items that the consumer makes a special effort to search out and buy

question

New-Product strategy development

answer

The stage of a new-product process that defines the roll for a new product in terms of the firm's overall objectives Use SWOT analysis and environmental scanning to assess its strengths and weaknesses relative to the trends it identifies as opportunities or threats.

question

New-Product Process

answer

1) New product strategy development 2) idea generation 3) screening and evaluation 4) business analysis 5) development 6) market testing 7) commercialization

question

Primary Demand

answer

the desire for the product class rather than for a specific brand, since there are few competitors with the same product

question

Selective demand

answer

the preference for a specific brand

question

Skimming strategy

answer

helps the company recover the costs of cost and development by capitalizing on the price insensitivity of early buyers. 3M (Hit fast, price high, and get the heck out when me-too products pour in.)

question

Penetration pricing

answer

to discourage competitive entry, a company can price low

question

Price Setting Steps

answer

1) Identify pricing objectives ad constraints 2) Estimate demand and revenue 3) Determine cost, volume, and profit relationships 4) Select an approximate price level 5) set list or quoted price 6) make special adjustments or quoted price

question

Skimming pricing

answer

Setting highest initial price that consumers really desiring the product are willing to pay. These customers aren't very price sensitive.

question

Price Lining

answer

selling not just a single product but a line of products at a number of different specific pricing points

question

odd-even pricing

answer

setting prices a few dollars or cents under an even number

question

Target pricing

answer

results in the manufacturer deliberately adjusting the composition of features of a product to achieve the target price to consumers

question

Bundle-pricing

answer

the market of two or more products in a single package price (vacation packages with air, hotel, and car)

question

Loss-leader pricing

answer

selling aa product below its customary price to attract attention to it

question

One-price policy (fixed pricing)

answer

setting one price for all buyers of a product or service

question

Flexible-pricing policy (dynamic pricing)

answer

involves setting different prices for products and services depending on individual buyers and purchase situations

question

Product-line pricing

answer

charging a very low price for a product with the intent of driving competitors out of business.

question

Promotional mix

answer

combination of communication tools, such as: advertising, personal selling, sales promotion, public relations, and direct marketing

question

Integrated Marketing Communications (IMC)*

answer

communication programs that coordinate all activities in the promotional mix. IMC is a key element in a company's customer experience management strategy.

question

Communication Elements

answer

1) Source- may be a company or a person who has information to convey 2) Message- information sent by the source 3) Channel of communication- the way of conveying the message (Ex. Salesperson) 4) Receivers- Consumers who receive the message 5) Encoding- Process of the sender transforming an idea into a set of symbols 6) Decoding- process of having the receiver take a set of symbols and transform them back into the idea

question

Noise

answer

extraneous factors that work against effective communication by distorting a message or feedback received.

question

Five Promotional Alternatives

answer

1) Advertising 2) Personal Selling 3) Public Relations 4) Sales Promotion 5) Direct Marketing

question

Advertising (Promotional Alternative)

answer

any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor

question

Personal Selling (Promotion Alternative)

answer

the two-way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision

question

Public Relations (Promotion Alternative)

answer

A form of communication management that seeks to influence the feelings, opinions, and beliefs held by customers, potential customers, stockholders, suppliers, employees, and other publics about a company and its products or services. MOST CREDIBLE TO CONSUMERS

question

Sales Promotion (Promotion Alternative)

answer

A short-term inducement of value offered to arouse interest in buying a product or service.

question

Direct Marketing (Promotion Alternative)

answer

Uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet

question

Push Strategy

answer

Dewalt sells to home depot who markets to construction workers.

question

Pull Strategy

answer

Dealt markets to construction workers who go to home depot to buy.

question

All-you-can-afford-budgeting

answer

money is allocated to promotion only after all other budget items are covered.

question

Percentage of sales budgeting

answer

funds are allocated to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold

question

Direct orders

answer

the result of offers that contain all the info necessary for a prospective buyer to make a decision to purchase and complete the transaction

question

Customer decision making process

answer

1) Need recognition 2) information search 3) evaluate alternatives 4) purchase decision 5) post purchase evaluation

question

Type of advertisements

answer

Pioneering (informational)- Tells people what product is and what it can do Competitive (persuasive)- Tells people to select their company rather than their competitors Reminder- used to reinforce previous knowledge of a product.

question

Reach

answer

the number of different people or households exposed to an advertisement

question

Rating

answer

the percentage of households in a market that are tuned to a particular TV show or radio station.

question

Frequency

answer

the average number of times a person in the target audience is exposed to a message or advertisement

question

Adaption process percentages

answer

Innovators (2.5%) Early Adopters (13.5%) Early Majority (34%) Late Majority (34%) laggards (16%)

question

Business Eras

answer

Production Era (1840-1930)- Minimal choice in products Sales Era (1920-1970)- Salespeople used to sell Marketing Era (1950-1999)- Use Advertisements to sell Social Marketing Era (1990-present)- Use social media and other online resources to fit ads to people

question

All of the following are commonly held values in the United States except

answer

Belief in fate (fatalism)

question

There are five stages in the consumer purchase decision process. The second stage is:

answer

Information Search

question

Which of the following global trends has significant implications to global marketers

answer

The size of the markets in India and China

question

Which of the following statements regarding baby boomers is most accurate

answer

baby boomers are an important consumer market segment because of their relatively high wealth and workforce population

question

The owners of Old School Brand Authentic Antique Foods researched Civil War Records to come up with recipes used in the old-fashioned cookies the company produces and markets. This statement deals with which part of the marketing mix

answer

Product-consumer needs

question

You have just purchased a Samsung tablet. As you head home from the store, you brood about whether your choice was right or whether you should have bought an Apple iPad 2 after seeing an ad for it on TV. This is most likely an example of

answer

Cognitive dissonance

question

In a recent survey, consumers were asked the following question: Who should take the lead in addressing environmental issues? The results said ___ should.

answer

Businesses

question

Which of the following organizations engage in marketing

answer

Every Organization or individual can engage in marketing

question

Most people know that Tums contains calcium. Today, tums antacid stresses both the benefits of antacid and the fact that Tums can be a calcium supplement. The new promotion involves changing the consumers attitudes towards Tums by:

answer

Changing Beliefs about the extent to which Tums has a specific attribute

question

Pepsi Cola made freshness an important attribute when they stamped freshness dates on its cans. Before doing so, few consumers considered freshness an issue. The new promotion involves changing the consumers attitudes towards Cola by:

answer

Changing the perceived importance of attributes

question

Colgate-Palmolive invluded a new antibacterial ingredient, tricloson, in its Colgate Total Toothpaste and spent $100 million marketing the brand. The new promotion involves changing the consumers attitudes towards toothpaste by:

answer

Adding new attributes to the product

question

Which of the following information sources is considered the least credible

answer

marketer-dominated sources

question

Which of the following statements defines consumer needs and wants

answer

Needs occur when a person feels deprived of basic necessities such as food, clothing, and shelter while wants are determined by a person's knowledge, culture, or personality.

question

Which of the following trends identified in an environmental scan is an economic trend?

answer

The U.S., Japan, China, and the EU will increase investments in a sustainable living infrastructure.

question

Which of the following statements about the marketing concept era is most accurate?

answer

During the marketing concept era, companies tried to satisfy the needs of consumers while also achieving their goals.

question

Which of the following statements about stakeholders is most accurate

answer

The organization, suppliers, shareholders, employees, and consumers are all stakeholders of an organization and should all benefit from the organization's marketing activities

question

Which of the following statements about social class is most accurate

answer

Social class is relatively permanent and homogeneous

question

The purpose of the Robinson-Patman act is to

answer

Outlaw price discrimination for purchasers of the same product.

question

The name given to the group of consumers who are described as self-reliant, supportive of racial and ethnic diversity, and better educated than the previous generations is

answer

Generation X

question

Retailers can reduce problems associated with selective retention by

answer

Providing brochures for consumers to take home

question

As discussed in class, which statement about the marketing mix is false

answer

The concept of the marketing mix was originally developed in the 1980s and has remained virtually unchanged since then in textbooks

question

Mountain Dew used potential customers to help develop new flavors including suggesting flavors, taste testing, naming, and developing promotion ideas. This demonstrates which combination of marketing mix elements?

answer

Participation-connection

question

Is it predicted that the number of people in the United States over the age of 65 will

answer

Almost double

question

Which of the following statements accurately distinguishes between laws and ethics?

answer

Ethics deal with personal and moral principles whereas laws are society's values that enforceable in the courts.

question

Gross income refers to

answer

The total amount of money made in one year by a person, household, of family unit

question

Which of the following statements about environmental forces is most accurate?

answer

Some environmental force can actually enhance a firm's marketing opportunities

question

Scanning your memory for previous experience with products or brands occurs during which stage of the consumer purchase decision process

answer

Information search

question

Ultimately ethical choices are based on

answer

the personal moral philosophy of the decision maker

question

The Red Cross created a series of ads to encourage blood donations. After viewing the ad, Amanda went to donate blood. She returned home feeling happy because she did a good deed. Was this an exchange in a marketing sense?

answer

Yes, because the donated blood was exchanged for a feeling of satisfaction.

question

For high-involvement purchases consumers typically do all of the following except

answer

Consider few sellers

question

The US army used a video game to recruit new members. The creator wanted to provide a sense of training and teamwork one could find in the military. The game is designed for boys 14+, which represent the Army's

answer

Target market

question

List the hierarchy of needs in its correct order from bottom to top on the pyramid

answer

Physiological, Safety, Social, Personal, and Self-actualization

question

The consumer bill of right codified the ethics of exchange it was outlined by ___ in ___.

answer

JFK, 1962

question

____ of all products fail within three years

answer

Over 90%

question

Which of the following statements about subliminal perception is most accurate?

answer

About half of US consumers think that subliminal messages can cause them to buy things they don't want.

question

Paul Avery is a salesperson at Ford in Wisconsin. There are no other Fords but there are other car brands in his town. Paul works hard to keep his customers happy to make sure they don't go to those other brands. This is an example of:

answer

Monopolistic Competition

question

Which of the following trends identified in an environmental scan is a regulatory trend?

answer

Health consciousness will lead to more smoke-free areas

question

Which of the following statements about marketing is most accurate

answer

Marketing involves more than simply selling and advertising

question

Kroger has small aisles and puts product displays at ends of aisles to gain attention while shoppers wait for others to pass. This situation is most closely related to which of the following situational influences?

answer

Physical Surroundings

question

In the 19th Century, the belief was that production creates its own demand. In the 20th century, more products than demands, so companies hired more salespeople to find new buyers. This describes the

answer

Sales era

question

If you wanted a new pair of shoes during the civil war, you gave an outline of your foot to a shoemaker. You bought them regardless of if they were a perfect fit. This is an example of the:

answer

Production Era

question

Public opinion surveys show that 58% of US adults rate the ethical standards of business executives as

answer

Fair or Poor

question

In the US, copying is frowned upon. Yet, in china, it does not carry a stigma. The difference between the two countries shows that _____ affects the view of ethical behavior held in each country

answer

Societal culture and norms

question

The groups primarily served by a firm exhibiting profit responsibility include

answer

Owners and stockholders

question

All of the following are true about perceived value except:

answer

Satisfaction is more important than perceived value since satisfaction drives product choice.

question

Which of the following represents the majority of your purchases

answer

Limited problem solving

question

Marketing seeks to discover the needs and wants of prospective customers and satisfy them. Essential to this process is the idea of exchange, which requires

answer

The trade of things of value between buyer and seller so that each is better off after the trade.

question

Sophisticated firms have learned the marketing lesson that

answer

the buying experience, customer satisfaction, and retention can increase firm profits

question

Reference groups refer to

answer

People to whom an individual looks to as a basis for self-appraisal or as a source of personal standards

question

Which of the following statements regarding Geek Squad is MOST accurate

answer

The need for the geek squad was the result of many environmental factors, not simply a need for technological knowledge

question

Which of the following statements concerning marketing research is most accurate

answer

When collecting marketing research, people may or may not be willing to tell you what you want to know if it is potentially embarrassing

question

Which of the following regarding maturity stage of product life cycle is most accurate

answer

Marketing attention is directed toward holding marketshare through further product differentiation and finding new buyers

question

As product adopters, member of the late majority

answer

are skeptical and have below average social status

question

All of the following are criterion used for selecting target market segments except

answer

Simplicity and cost of assigning potential buyers to segments

question

The first step in segmenting and targeting markets that link customer needs to marketing actions is to

answer

Group potential buyers into segments

question

In terms of the business product classification categories, the clicker used to forward slides on a ppt would be a ____ product and the batteries in the clicker would be a ___ product

answer

Accessory equipment; supplies

question

The relationship between a product line and product mix is

answer

Product mixes include product lines

question

Development refers to the stage of the new-product process

answer

That turns and idea on paper into a prototype

question

More than half of US households only have one or two people, so Aunt Jemima packages meals with only 1 serving. Aunt Jemima is using ____ as a basis to segment its market

answer

Demographic characteristics

question

Based on our in class analysis given the segmentation data for the fast food market we reviewed about usage, which statement is most accurate?

answer

Wendy's could potentially be more successful by being the "best second alternative" by focusing on customers who might typically choose McDonald's as their first choice, but who sometimes want something different.

question

As product adopters, innovators

answer

Are venturesome, highly educated, and use multiple information sources

question

Which of the following is most likely to be an example of an unsought product

answer

Life Insurance

question

Breyer's introduced new ice cream on a limited scale to determine customer reactions. It was in the ____ stage of the new-product process

answer

Market testing

question

Until 1996, US car makers made little right hand drive cars to japan while Germans made many. American car manufacturers could blame their failure to a great degree on

answer

Not satisfying customer needs on critical factors

question

Setting research objectives and identifying possible marketing actions would take place during which stage of research approach?

answer

Define the problem

question

A product refers to

answer

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.

question

Product positioning refers to

answer

The place a product offering occupies in consumers' minds on important attributes.

question

Which of the following is an example of an effective positioning statement?

answer

We provide small businesses under 10 employees with a cheaper way to do their payroll than hiring a full-service accounting firm.

question

Which of the following statements about market segmentation for organizational markets is most accurate?

answer

Both consumer markets and organizational markets use demographic, geographic, and behavioral bases to segment markets.

question

A perceptual map refers to

answer

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

question

The third step of the marketing research approach is to

answer

Collect relevant information

question

With respect to price, which of the following type of consumer product would most likely be very expensive

answer

Specialty product

question

Which of the following statements regarding market segmentation is most accurate

answer

If a business firm goes to the trouble and expense of segmenting its markets it expects to increase its sales, profits, and return on investment.

question

Research that involves trying to find the frequency that something occurs or the extent of a relationship between two factors is referred to as

answer

Descriptive research

question

According to our discussion about RFID technology and marketing, which of the following is FALSE

answer

It is not clear whether or not RFID will eventually be implemented as there are too many problems, and it is not clear if the benefits for marketing will outweigh the costs of the technology

question

A general rule of thumb among marketing researchers is to use _____ first then collect _____

answer

Secondary data, primary data

question

The correct ordering for the steps in the new product development process is

answer

New-product development, idea generation, screening and evaluation, business analysis, development, market testing, and commercialization.

question

In terms of brand loyalty, consumers are very brand loyal and will not accept substitutes for which type of consumer product

answer

specialty product

question

Which of the following statements regarding segmentation bases is most accurate?

answer

The identification of demographic variables is more objective than the identification of psychographic variables, which is more subjective.

question

Items for which the consumer compares several alternatives on several criteria such as price, quality, or style are referred to as

answer

Shopping products

question

At which stage in the product life cycle do industry profits usually peak

answer

end of growth

question

Estimates are that for every 3000 ideas, ____ actually end up as commercially successful new product(s).

answer

1

question

Marketers pay slotting fees to grocers in payment for space, or slots, on their retail shelves. Such slotting fees significantly increase the cost of which stage of the new-product process?

answer

Commercialization

question

Philips spent millions on advertising before TVs were available for sale in order to gain interest and acceptance. Phillips was trying to create _____ in the demand.

answer

Primary Demand

question

In terms of the diffusion of innovation, early adopters account for ____ of product adopters.

answer

13.5%

question

Making action recommendations, implementing action recommendations, and evaluating results take place during which stage of the five-step marketing research approach

answer

Take marketing actions

question

Which of the following is NOT a disadvantage of online surveys

answer

The cost

question

Which of the following statements best illustrates geographic segmentation?

answer

In China, KFC sells a spicier chicken the farther away its restaurants are from the costal areas.

question

Which of the following is NOT considered a product given the definition we used in class?

answer

Biodegradable fishing lures, monster buster spray, etc., are ALL actually products

question

Two important disadvantages of secondary data are that it is ____ and ____

answer

Not up to date; not specific enough for the project

question

The 80/20 rules is most closely related to which consumer segmentation variable?

answer

Usage rate

question

Recently, US dairies tried to change the way adults thought about milk. The dairies wanted to _____ chocolate milk in the minds of adult consumers.

answer

reposition

question

What is the marketing objective for the growth stage of the product life cycle?

answer

differentiation

question

Napster was the first software for exchanging MP3 music files. When it was introduced, Napster would have been an example of a

answer

discontinuous innovation

question

Imagine that a new battery is developed, but the production process cannot be patented, so competitors could enter the market within a year. Which of the following would be the LEAST sound marketing program decision?

answer

Select a skimming pricing strategy to position the product as "premium" Penetration strategy would be best in order to discourage competition with a low price.

question

Which of the following are data collected from consumers to develop a perceptual map for a particular product?

answer

The important attributes for a product or brand class.

question

Market segmentation referes to

answer

Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action

question

In terms of promotion, which of the following types of products would stress price, availability, and awareness?

answer

Convenience

question

Which of the following statements about the introduction stage of the product life cycle is most accurate?

answer

Because of the large initial investment costs, industry profits often must go negative to positive.

question

Criteria for forming segments involve both similarities and differences. Which of the following statements is most accurate

answer

Within a segment, the needs of potential buyers should be similar; between segments, the needs of buyers should be different

question

Which of the following statements about the product life cycle as a pricing constraint is most accurate?

answer

The newer a product is, the higher the price that can usually be charged.

question

Instead of everyday low prices (EDLP), supermarkets prefer a ____ approach based on frequent specials.

answer

Hi-Lo pricing

question

Going to get food or drinks during commercials instead of watching commercials is an example of

answer

Noise

question

Setting the highest intitial price that consumers who want a product are willing to pay when introducing a new product is

answer

Skimming Strategy

question

Disney uses and integrated marketing communications program to promote travel to its theme parks because

answer

Its strategy includes using all type of promotional activities that deliver a consistent message.

question

If Sony splits the cost of an ad with Home Depot for Home Depot to feature Sony products in the ad it is

answer

cooperative advertising

question

"To persuade" is the promotional objective of which stage of the product life cycle

answer

Growth

question

Calculate a firm's total profit given that unit price = $40, quantity is $2000, fixed costs is $50,000, and variable cost per unit is $30.

answer

$150,000

question

In some cases, penetration pricing my follow skimming pricing. The skimming pricing would help ____ and the penetration pricing would help ____.

answer

Recoup initial research and development costs; increase market share

question

In the prepurchase stage of the consumer purchase decision process

answer

Advertising is more helpful than personal selling

question

You can buy a GE dishwasher for $399 or a Bosch for $989. The Bosch is using ____ pricing.

answer

Prestige

question

A manager offers a $20 off each item sale that costs $1000 to promote. If normal selling price is $40 and variable cost per unit is $15, how many additional units must result for the promotion to break even

answer

200 units

question

Which of the following is the best approach to promotion budgeting

answer

Objective and task budgeting

question

Jan estimates 100 customers will rent Jet Skis. She pays $2000 in rent and another $2000 in equipment expenses. If she charges $60 per rental, how much profit or loss will she make?

answer

$2000 profit

question

When Cadillac uses advertising to promote specific features of its Escalade hybrid, it is using which type of product advertisement

answer

Competitive

question

Which of the following statements about comparative advertising is true?

answer

Comparative advertisements from a legal definition include both a specific competitor brand name and a specific feature that can be measured.

question

Airlines lowered prices to match a competitor to run them out of business, and subsequently raised them once they were successful. This is an example of

answer

predatory pricing

question

A company has fixed costs of $6 million and unit variable costs of $5. Company wants profit to equal $2 million. How many pairs must they sell at a price of $15?

answer

800,000

question

Market share is the ration of the ____ to those of the industry, including the firm itself.

answer

Firm's sales revenues or unit sales

question

When a firm offers a very low price on a product to attract customers to a store, and once in the store, they persuade them to purchase a higher-priced item, it is referred to as

answer

Bait and Switch

question

When dell sells various laptops, it also installs MS Office and other software at a discount. This is an example of

answer

Bundle pricing

question

The manufacturers of drugs encourage patients to learn more about the drugs and ask for them by name from a doctor. This is a _____ promotion strategy

answer

Pull

question

Cost per thousand impressions is a measure of advertising _____

answer

Efficiency

question

After watching the 30-minute infomercial on Oxy-Clean, Sarah was certain the cleaning product would work for her stain. In terms of communication process, Sarah was _____ the message from Oxy-Clean

answer

Decoding

question

Inelastic demand exists when

answer

The quantity demanded remains virtually the same regardless of price changes

question

The most commonly used pricing method for consumer products is _____

answer

Cost-plus pricing

question

The first decision in developing an advertising program is to

answer

Identify the target audience.

question

Which of the following is an important guideline provided in the text for using a fear appeal?

answer

Don't make the appeal so strong that the consumers will want to "tune out" the ad.

question

Which of the following types of promotion uses customized interaction?

answer

Direct marketing

question

Which promotion tool has the highest credibility with customers

answer

Public relations

question

If a retailer sells and item for $80 and paid $36 for it, what is the markup?

answer

55%

question

Reminder ads are especially effective for products in which stage of their product life cycle

answer

Mature

question

If a company uses prices that in in $9, it uses

answer

Odd-even pricing.

question

Which of the following is an inherent strength of advertising?

answer

Advertising is an efficient means for reaching large numbers of people

question

After the release of the movie E.T., sales of Reese's Pieces soared. This is an example of _____

answer

Product placement

question

The owners of a small bookstore want to run an ad in their local newspaper. The objective is to create awareness of their bookstore. Which of the following measures should be used to compare the number of different people exposed to the ad?

answer

Reach

question

Ads such as "Retail Value $100, Our Price $85" is deceptive if

answer

A verified and substantial number of stores in the area did not price the item at $100.

question

If a wholesaler buys a DVD player from Sony for $40 and sells it to Walmart for $100, what is the contribution margin?

answer

60%

question

A 50-cents-off coupon for Crest toothpaste is an example of ____

answer

Sales promotion

question

In 1990, a 30-second ad during the Super Bowl cost $700,000. By 2011, it cost $3 Mil. Most likely reason is _____

answer

The number of TV viewers for the Super Bowl is growing

question

If the selling price is $25/item, variable cost is $15/item, ad expense is $60,000/year and sales expense is $20,000/year, what is the break-even quantity?

answer

8000

question

A firm's profit equation demonstrates that profit equals

answer

Total revenue - total cost

question

Which of the following would be least likely to be used for mass selling?

answer

Personal Selling

question

Deliberately selling a product below its customary price to attract customers' attention in hopes they will buy other products as well is referred to as

answer

Loss-leader pricing

question

Which of the following promotional elements requires expensive database management and often experiences declining response rates?

answer

Direct marketing

question

Pioneering ads would most likely be used during which stage of the product life cycle?

answer

Introductory

question

Which of the following is an inherent strength of personal selling?

answer

Personal selling can provide the target audience with complex information

question

Which of the following is a typical example of a marketing variable cost?

answer

Sales commissions

question

Which of the following statements regarding the promotional mix is most accurate?

answer

The promotional mix can be influence by the product's life-cycle, characteristics of the product, purchase decision stage of the buyer, and the channel of distribution

question

Amazon was changing prices based on buyer, rather than offering one price to all consumers for the same product. This is

answer

Price discrimination

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