Flashcards About MKTG Test 3
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A(n) _____ has tangible attributes that a consumer's five senses can perceive. concept service function idea good
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good
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Which of the following statements is true of services? Services are thoughts that lead to products. Services are benefits that an organization provides for free. Services have tangible attributes. Services are intangible activities that an organization provides for money. Services are divided into tangible and nontangible services.
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Services are intangible activities that an organization provides for money.
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Which of the following statements is true of the different types of products? Ideas are thoughts that lead to products or actions. Services are usually provided free of cost by organizations. Good have tangible attributes consisting of their warranties and deliveries. Services have tangible attributes. Services are divided into tangible and nontangible services.
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Ideas are thoughts that lead to products or actions.
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_____ are products that organizations buy and which assist in providing other products for resale. Unsought products Business products Shopping products Convenience products Speciality products
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Business products
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_____ are items used to assist in producing other products and services. Support products Unsought products Convenience products Shopping products Components
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Support products
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_____ are a type of business product. Convenience products Speciality products Shopping products Support products Unsought products
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Support products
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_____ is an element of a service that refers to the variation in quality with each person's capabilities and day-to-day job performance. Inconsistency Discontinuous innovation Open innovation Inseparability Intangibility
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Inconsistency
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A _____ consists of all of the product lines offered by an organization. product item product division product mix product category product form
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product mix
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Laundry detergents, toothpastes, bar soaps, deodorants, and shampoos constitute P&G's _____. regional rollouts product items product mix market segment prototypes
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product mix
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From an organization's perspective, which of the following represents the lowest level of product newness and innovation? A radical invention A product line extension A brand extension A substantial innovation A discontinuous innovation
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A product line extension
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The newness from the consumer's perspective approach classifies new products according to the degree of learning required by a consumer. number of positive reviews they receive on social media. extent to which they satisfy consumer needs. degree of product line extension involved. number of opinion leaders who endorse them.
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degree of learning required by a consumer.
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A _____ is the highest level of product newness and innovation from an organization's perspective. brand extension product line extension substantial innovation continuous innovation radical invention
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radical invention
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Which of the following is a marketing reason for the failure of a new product? Skipping stages in product process Not learning critical takeaway lessons from past failures Not satisfying customer needs on critical factors Avoiding the "NIH problem" Encountering "groupthink" in task force and committee meetings
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Not satisfying customer needs on critical factors
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Which of the following is an organizational reason for the failure of a new product? Too little market attractiveness Encountering groupthink in task force and committee meetings Not satisfying customer needs on critical factors Poor execution of the marketing mix Bad timing
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Encountering groupthink in task force and committee meetings
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Ideally, a new product or service needs a precise protocol that specifies when to release the product. doesn't divide markets into target segments. specifies the advertising budget and promotion plan of a product. identifies what the product will be and do to satisfy consumers. identifies the optimum price for the product.
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identifies what the product will be and do to satisfy consumers.
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new product process
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new product strategy development idea generation screening and evaluation business analysis development market testing commercialization
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Consumers cannot hold, touch, or see a LA Galaxy soccer game before the purchase decision (the decision to purchase a ticket). The fact that the consumers cannot hold, touch or see what they are purchasing before they commit to the purchase exemplifies the ____________ of services. intangibility inseparability inventory irrationality inconsistency
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intangibility
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When the LA Galaxy played soccer in a stadium that seated 80,000-90,000 fans, many of the available tickets to each game went unsold and the stadium looked empty. With the larger stadium, the Galaxy had an issue with idle production capacity, an example of which of the 4 I's of services? Intangibility Irrationality Inconsistency Inventory Inseparability
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Inventory
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The LA Galaxy understands the importance of attracting big name soccer stars like Beckham, Keane and Donovan to the team. For the consumer, the value of the game is created by players on the field. In other words, the creators of the service (the players) and the service itself (the game) are one in the same. This is an example of the ________ of services. inconsistency intangibility irrationality inseparability inventory
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inseparability
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The LA Galaxy wants to ensure that its employees are as passionate as the fans are about their team because the interaction between employees and customers is critical to the consumer's perception of the overall service experience. Therefore, the LA Galaxy invests significantly in _________. public relations sponsor relationships external marketing internal marketing publicity
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internal marketing
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Assume that the pricing manager discovered that more seats went unsold for Tuesday night games than for any other night of the week, indicating a lower demand for soccer tickets on Tuesdays. The LA Galaxy could lower the ticket price for future Tuesday night games thereby utilizing _________. price bundling fixed pricing skimming pricing quantity discounting off-peak pricing
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off-peak pricing
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When Hope Springs Water Co. was looking to complete the _________ phase, the company could have leveraged internal research, requested customer input, conducted a competitive analysis or sought collaboration with another organization. idea generation screening and evaluation commercialization market testing development
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idea generation
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If Ju Li used a(n) ___________ approach to screening and evaluation, she would have employees evaluate the technical feasibility of selling the additive in addition to its bottled water products. external strengths analysis potential threats customer-driven internal
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internal
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When Hope Springs develops its flavored water additive and uses the college town where Gabbie and Justin are students to gauge if there is ample product interest, the company is engaged in a _______. simulated test market segmented test market controlled test market geographic test market standard test market
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standard test market
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_____________ is the new-product development phase where Hope Springs decides that the flavor additive has enough market interest and the company will launch full-scale production and sales. Market testing Commercialization Screening and evaluation Development Idea generation
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Commercialization
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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) ware product object market merchandise item
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product
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Which of the following is considered a durable good? a lamp flour gasoline an airplane ticket a massage
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a lamp
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Services are marketing actions that provide quality products in a timely matter to satisfy customers' needs. intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. tangible attributes that consumers' five senses can perceive. tangible product attributes that an organization provides to satisfy consumers' needs in exchange for money or something else of value. thoughts that lead to marketing actions.
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intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
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Consumer products are classified based on the: (1) attributes used in making the purchase decision; (2) frequency of purchase; and (3) amount of money the customer is willing to spend. number of competing products or product substitutes. demographics of the consumer. effort the consumer spends on the decision. consumer psychographics.
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effort the consumer spends on the decision.
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Which of the following is the best example of a shopping product? Reebok running shoes a Ferrari sports car cash from an ATM Roget's Thesaurus Chobani Greek yogurt
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Reebok running shoes
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Products that the consumer does not know about or knows about but does not initially want are referred to as shopping products. convenience products. specialty products. unsought products. support products.
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unsought products.
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As consumers demand for Ford cars increases, Ford may increase its demand for paint spraying equipment, which for the latter is an example of __________. sequential demand concurrent demand derived demand secondary demand primary demand
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derived demand
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Intel Core processors are purchased by Toshiba for its laptops, and are thus considered what type of business product? support products components supplies derived products installations
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components
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Inconsistency in services refers to the fact that there is no regulation of service industries in terms of basic standards of quality. the quality of service provided by a firm is often inconsistent with its image. services depend upon the people who provide them, and the quality of that performance may vary from day to day or employee to employee. training and standardization of service delivery procedures cannot be accomplished. there too much idle production capacity.
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services depend upon the people who provide them, and the quality of that performance may vary from day to day or employee to employee.
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Keith liked how the dry cleaner down the street washed and pressed his clothes, but he found the repeated phone calls from staff about his finished laundry annoying. He began to think of the whole place as annoying, which is a function of the __________ aspect of services. inventory inseparability imperfection intangibility impressionability
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inseparability
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When a manager at Target announced to customers, "There is no wait in checkout lanes 2 and 5," he recognized a need to manage his off-peak convenience. idle production capacity. selective demand. intangibility. inconsistency.
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idle production capacity.
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Annie's Organic Shells ; White Cheddar, an organic macaroni and cheese, is an example of a product item. product unit. product line. product mix. product class.
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product item.
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Which of the following products at the time of their introduction was the best example of a continuous innovation? pocket calculator cigarette lighter personal computer automatic dishwasher Blu-Ray player
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Blu-Ray player A continuous innovation requires no changes in behavior to use the product. Since a Blu-Ray player is very similar to a DVD player, it is an example of a continuous innovation. All of the other products were examples of discontinuous innovations at the time of their launch.
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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 clear marketing plan clear financial goals and expectations a well-defined target market a comprehensive SWOT analysis a precise budget of how much can be spent for a new offering's marketing program
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a well-defined target market
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Research shows that __________ is the single most important factor for a new product to defeat competitive ones—having superior characteristics that deliver unique benefits to the user. market attractiveness a distinctive point of difference good execution of the marketing mix a complete market and product protocol economical access to buyers
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a distinctive point of difference
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A benefit of performing a SWOT analysis and an environmental scan during the new-product strategy development process is that they allow the firm to forecast potential sales and form their marketing budget based upon those projections. help identify which organizational members have an interest or stake in the product's success. can help identify the strategic role the new product might serve in the firm's portfolio. narrow the task to a single product rather than a number of product concepts. allow a firm to expand its objectives to include new ways of thinking.
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can help identify the strategic role the new product might serve in the firm's portfolio.
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Casey 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, so she held a series of focus groups to generate ideas from potential customers. This is an example of bootleg innovation. ideation outsourcing. extended collaboration. idea groupthink. open innovation.
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open innovation.
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In the new-product development process, the __________ stage involves specifying the product features and marketing strategy along with making financial projections needed to bring it to market. idea generation screening and evaluation business analysis development commercialization
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business analysis
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Capacity management is especially important for __________. manufacturers of large one-of-a-kind items producers of perishable nondurable goods governmental contracts services shopping products where people are willing to purchase other brands
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services Text term definition—capacity management. Most services are perishable and have a limited capacity due to the inseparability of the service from its provider. Therefore, a service provider must manage the availability of the offering so that demand matches capacity over the duration of the demand cycle (one day, a week, and so on).
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Google's driverless car is an extreme example of the complexity of which step of the new-product process? business analysis idea generation screening and evaluation development commercialization
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development
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Which of the following is true of the maturity stage of the product life cycle? Competition and aggressive pricing results in peak profits during the maturity stage. Product sales are mainly due to customers who are trying the product for the first time. Harvesting is a strategy that is widely used by companies during the maturity stage. A high initial price may be used in the maturity stage as part of a skimming strategy. Sales increase at a decreasing rate as fewer new buyers enter the market.
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sales increase at a decreasing rate as fewer new buyers enter the market.
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Sales for a _____ product begin immediately after introduction because the benefits of purchase are readily understood by consumers. fad fashion low-learning high-learning technological
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low-learning
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Sarah loves shopping. She keeps herself updated about the latest apparels and technology-based products, and is always among the first few people to purchase and use such newly-introduced products. Which of the following consumer groups is Sarah most likely a part of? Late majority Innovators Laggards Early majority Early adopters
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Innovators
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Product _____ involves altering one or more of a product's characteristics, such as its quality, performance, or appearance, to increase the product's value to customers and increase sales. lining churning bundling sabotage modification
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modification
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Market modification is a marketing strategy in which: a company begins to gradually withdraw a failing product from a market. the number of features, quality, or price of a product is reduced. the package contents of a product are reduced while the product price is increased. additional features or higher-quality materials are added to a product. companies try to create new use situations for their existing products.
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companies try to create new use situations for their existing products.
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Pure Forever Inc. is a milk processing and packaging company. The company charges $2 for a 500 ml flavored-milk pouch in the market. Due to an increase in the cost of certain milk processing machinery, the company decides to reduce the quantity of flavored milk in a pouch from 500 ml to 300 ml for the same price. Which of the following strategies is being illustrated in the given scenario? Downsizing Predatory pricing Product sabotage Price skimming Product proliferation
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Downsizing
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Brand _____ is the added value a brand name gives to a product beyond the functional benefits provided. equity awareness personality design extension
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equity
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The final step in the brand-equity building process involves: establishing a brand's meaning in the minds of consumers. developing positive brand awareness. eliciting proper consumer responses to a brand's identity. creating a consumer-brand connection. placing attention on how consumers think and feel about a brand.
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creating a consumer-brand connection.
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Teddy Times Inc. is a popular toy-manufacturing brand. It sells its products under its own brand name at various department stores. The company also sells a few of its product lines through a popular retail chain using the retail chain's label. Which of the following branding strategies does Teddy Times use? Brandjacking strategy Private branding strategy Multibranding strategy Multiproduct branding strategy Mixed branding strategy
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Mixed branding strategy
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A label refers to: an association of a brand in consumers' minds that gives the brand an identity. any word or device used in business contexts to distinguish a seller's goods or services. any container in which a product is offered for sale and on which information is conveyed. the added value a brand name gives to a product beyond the functional benefits provided. the information on a package regarding a product, such as package contents and ingredients.
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the information on a package regarding a product, such as package contents and ingredients.
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Which of the following is true of packaging and labeling? Packaging and labeling help in building a brand's equity. Labeling often fails to satisfy the legal requirements of product disclosure. An advantage of packaging is the low cost required for the process. Labeling provides no benefits to manufacturers, but several benefits to consumers. A disadvantage of packaging is that it fails to convey a brand's positioning.
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Packaging and labeling help in building a brand's equity.
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Which of the following is a benefit of the packaging and labeling processes in the U.S.? Legal requirements ensure that packaging materials are healthy and safe. Packaging procedures give rise to few environmental concerns. The low costs of packaging materials enable marketers to lower product prices. Consumer protection is an important function of packaging. Coming up with packaging designs and strategies is easy and requires very little time.
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Consumer protection is an important function of packaging.
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Snackers' Kingdom is a highly popular bakery chain that sells freshly-baked pastries and fried snacks. The prices of all the items in the store are increased by two dollars during the weekends. During public holidays, the prices of almost all the products are increased by two to five dollars. Which of the following pricing strategies does the bakery use? Transfer pricing Off-peak pricing Psychological pricing Price skimming Penetration pricing
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Off-peak pricing
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Which of the following is true of services marketing? Capacity management is unaffected by the price of a service. Packaging is one of the seven P's of services marketing. Capacity management uses assets in ways that minimize a firm's ROI. Physical environments seldom influence consumers' perceptions of services. A service is inseparable from its producer.
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A service is inseparable from its producer.
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_____ refers to integrating the service component of the marketing mix with efforts to influence consumer demand. Societal marketing Product churning Multi-level marketing Capacity management Network monitoring
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Capacity management
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Compared to 10 years ago, BMW sells a greater share of its cars to females, African Americans, Hispanics, Asian Americans, and younger customers. Which market modification strategy does this represent? Product adaptation Finding new customers Changing the value offered Creating new use situations Increasing a product's use
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finding new customers
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When BMW first introduced the new M series in the United States, which type of product adopter would have been most likely to buy one? Laggards Late majority Innovators None of these Early majority
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Innovators
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Sales for BMW models are often highest in the last model year. By adding versions like a convertible model or features such as an upgraded engine or a more sophisticated suspension system, what is BMW striving to accomplish? Harvest the product line Invert the product life cycle Catch a rising trend Lengthen the product life cycle Shorten the product life cycle
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Lengthen the product life cycle
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The 1 series changes the value offered to consumers by making it smaller, more fuel-efficient and lower-priced than other BMWs. Which tactic is BMW using to change the value offered on the 1 series? Upsizing Bottom up marketing Trading down Trading up Top down marketing
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Trading down
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What type of branding strategy is represented by BMW's alphanumeric naming system for all of its models? Multiproduct branding Reseller branding Mixed branding Private branding Licensing
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Multiproduct branding
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BMW's slogan is "The Ultimate Driving Machine." Referring to the consumer based brand equity pyramid model, what does this slogan best address in the building of brand equity? Consumer-brand connection Brand awareness Brand imagery Consumer feelings Brand performance
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Brand performance
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The first step in developing _________ for the Coffee Collective would be to develop positive brand awareness and an association of the brand in consumers' minds to give the brand an identity. brand imagery brand personality brand-peer development brand equity brand image
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brand equity
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If Martha leveraged a __________ strategy to grow her overall business, she might develop a line of imported flavored teas and sell them at the local College Town Food Cooperative using the College Town name for the new product line. private branding sustainable branding multiproduct branding multibranding mixed branding
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private branding
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If Martha decides to use a __________ strategy to grow the Coffee Collective, she would distribute a series of Coffee Collective branded teas and coffees through the local supermarket. private branding sustainable branding multiproduct branding mixed branding multibranding
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multiproduct branding
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Following the 2010 Deepwater Horizon disaster, BP paid for a series of TV advertisements promoting Gulf Coast tourism, probably helping this area to have a record-setting year. This ad campaign was an attempt to stimulate __________ demand. selective primary derived generic secondary
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primary Primary demand is the desire for the product class rather than for a specific brand. When expenditures are made to increase desire for a product class, such as tourism for a region, this is an example of stimulating primary demand. Selective demand is the preference for a specific brand.
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Skimming or penetration pricing are appropriate pricing strategies during the __________ stage of a product's life cycle. growth commercialization launch introduction awareness
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introduction
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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? growth commercialization expansion introduction maturity
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growth
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DVD players would most likely be in the __________ stage of the product life cycle. introduction growth maturity decline resurgence
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maturity
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Harvesting is an option for a product in the __________ stage of its product life cycle. growth decline diversification maturity contraction
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decline
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An extended introduction stage of the product life cycle occurs for which type of product? high learning low learning fashion fad primary
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high learning
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Which of the following products is the best example of a product that might experience an introduction, a decline, and then a resurgent reintroduction as part of its normal product life cycle? riding boots laundry detergents tax accounting dog toys colored markers
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riding boots
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__________ begins with new-product purchases first by innovators, and then by early adopters. The consumer decision process The innovation adoption continuum The offering adoption model Diffusion of innovation The market-product life cycle
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Diffusion of innovation
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If a customer is reluctant to try a new product because she's afraid of what her friends might think, the company is most likely facing a(n) __________ barrier. usage risk value emotional psychological
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psychological
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The Upjohn Company first targeted men for its Rogaine topical solution, a drug to restore hair growth, but later marketed this product to women. In this example, the Upjohn Company is using which of the following market modification strategies? creating new use situations increasing use by existing customers finding new users modifying the product reacting to competitors' positions
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finding new users
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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? increasing the product's use changing the value offered creating new use situations finding new users catching a rising trend
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catching a rising trend
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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. product extension. rebranding. trading up. downsizing.
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trading up.
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When a brand name cannot be spoken, it is considered a __________. copyright brandmark trademark trade registry logo
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logo
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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; (5) __________; and (6) have favorable phonetic and semantic associations in other languages. be simple and emotional suggest an air of mystery be humorous be easy to spell and pronounce contain no hidden meanings
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be simple and emotional
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All products sold by the Tabasco Company use the Tabasco brand. This is an example of __________. private branding multibranding co-branding generic branding multiproduct branding
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multiproduct branding
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Dentyne gum introduced a Split2Fit pack, which is compact package design intended to be separated into two halves to better fit into a pocket or a small purse, or two keep two halves in separate places.This is an example of which type of benefit that packaging can provide? communication benefits usage benefits functional benefits perceptual benefits financial benefits
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functional benefits
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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 people, process, and productivity. personality, performance, and process. productivity, performance, and profitability. personality, procedure, and performance. people, physical environment, and process.
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people, physical environment, and process.
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Which of the following statements concerning the pricing of services is most accurate? Consumers generally find the pricing of consumer services more realistic than the pricing of consumer products. Service pricing is generally subjective and not based on formulas or break-even points. Service pricing is relatively insensitive to consumer service quality perceptions. Service pricing plays a role in balancing consumer demand for services. Service pricing only considers monetary costs to deliver the service.
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Service pricing plays a role in balancing consumer demand for services.
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Nonprofit service organizations use them, but public service announcements (PSAs) tie up a very large a percentage of the advertising budget. are boring and rarely well designed; consumers usually tune them out. are under the control of the medium where aired, not the organization. have a very limited reach and frequency. are an ineffective form of advertising.
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are under the control of the medium where aired, not the organization.
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The acronym CEM in services marketing stands for __________. capacity evaluation management customer experience management consumer experience marketing consumer encounter marketing customer evaluation measurement
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customer experience management
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From a marketing viewpoint, which of the following statements is true of price? It is the ratio of total cost to total revenue. It is the product of value and perceived benefits. It is anything that is exchanged for the ownership or use of a product. It does not affect a firm's profits. It is the difference between total revenue and total cost.
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It is anything that is exchanged for the ownership or use of a product.
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Which of the following is a cost-oriented approach to pricing? Yield management pricing Target profit pricing Skimming pricing Penetration pricing Standard markup pricing
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Standard markup pricing
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Which of the following is a competition-oriented pricing approach? Bundle pricing Customary pricing Odd-even pricing Target profit pricing Prestige pricing
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Customary pricing
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Price elasticity of demand is defined as the percentage change in quantity demanded relative to a percentage change in price. the total money received from the sale of a product. the difference between the total revenue and the total cost of a product. the number of products that enter a market in a specific product category in a given year. the percentage change in quantity demanded relative to a percentage change in supply.
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the percentage change in quantity demanded relative to a percentage change in price.
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A product is said to have an elastic demand if a slight decrease in its price does not significantly affect its demand. a slight increase in its price does not significantly affect its demand. a slight increase in its price results in a relatively large increase in its demand. a slight decrease in its price results in a relatively large increase in its demand. a slight decrease in its price results in a relatively large decrease in its demand.
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a slight decrease in its price results in a relatively large increase in its demand.
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Which of the following sentences best defines total revenue? It is the total cost multiplied by variable cost. It is the ratio of perceived benefits to price. It is the percentage change in quantity demanded relative to a percentage change in price. It is the unit price of a product multiplied by the quantity sold. It is the difference between fixed cost and variable cost.
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It is the unit price of a product multiplied by the quantity sold.
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_____ is the sum of all the expenses incurred by a firm in producing and marketing a product. Limited cost Total cost Unit variable cost Variable cost Fixed cost
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Total cost
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_____ is a technique that studies the relationship between total revenue and total cost to determine profitability at various levels of output. Price elasticity of demand Target profit pricing Break-even analysis Job costing Demand-curve analysis
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Break-even analysis
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The break-even point is the quantity at which total revenue is equal to total cost. variable cost is equal to fixed cost. total revenue is lower than total cost. total revenue is lower than fixed cost. total cost is lower than variable cost.
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total revenue is equal to total cost.
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Which of the following is a pricing objective? Social responsibility High cost of producing a product Newness of a product Legal considerations Brand personality
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Social responsibility
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Which of the following statements is true of pricing objectives? Demand for a brand is a pricing objective. They are the factors that limit the range of prices a firm may set. Cost of producing a product is a pricing objective. They specify the role of price in a firm's marketing plans. Legal and ethical considerations are pricing objectives.
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They specify the role of price in a firm's marketing plans.
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Which of the following is a pricing constraint? Market share Unit volume Sales Social responsibility Competitor's price
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Competitor's price
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Which of the following actions occurs in the first step of setting a final price for a product or service? The list or quoted price is set. The price is analyzed in terms of cost, volume, and profit relationships. Seasonal discounts are announced. Special adjustments are made to the list or quoted price. A seller decides whether to follow a one-price or flexible-price policy.
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The price is analyzed in terms of cost, volume, and profit relationships.
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Which of the following actions occurs in the second step of setting a final price for a product or service? A seller decides whether to follow a one-price or flexible-price policy. Marketing managers consider pricing objectives and constraints. A general pricing approach is selected to arrive at an approximate price level. The price is analyzed in terms of cost, volume, and profit relationships. Special adjustments are made to the list or quoted price.
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A seller decides whether to follow a one-price or flexible-price policy.
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Which of the following actions occur in the third step of setting the final price for a product or service? A general pricing approach is selected to arrive at an approximate price level. The price is analyzed in terms of cost, volume, and profit relationships. Marketing managers consider pricing objectives and constraints. Special adjustments are made to the list or quoted price. A seller decides whether to follow a one-price or flexible-price policy.
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Special adjustments are made to the list or quoted price.
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If Washburn Guitars were to lower the price of the Maya Pro DD75 to $2,499 from $2,699, sales of the guitar would increase 30%. This illustrates a product with elastic demand. a product with inelastic demand. a shift in the demand curve. an increase in the unit variable cost.
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a product with elastic demand.
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Washburn Guitars makes signature series guitars to enhance the credibility of the Washburn brand. Creating signature series guitars would have a positive effect on all of the following EXCEPT: unit variable cost. demand. brand loyalty. brand awareness.
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unit variable cost.
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If the mass-produced guitar sells 100,000 units annually at $175 per guitar, what is the total revenue? $6,175,000 $17,500,000 $1,750,000 $175,000
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$17,500,000
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Washburn has 4 distinct price points for its guitar lines: entry, intermediate, professional, and collectors. Washburn has implemented a _______ pricing objective. social responsibility market share survival unit volume
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unit volume
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Washburn's fixed costs for producing mass-produced guitars are $500,000. Its variable costs are $150 per guitar. If it prices these guitars at $250, what is the break-even quantity for this line? 1,000 guitars 1,500 guitars 5,000 guitars 2,500 guitars
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5,000 guitars
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With the typical downward sloping demand curve like the one shown for Washburn, as price per unit falls, demand increases. remains unchanged. decreases. is minimized.
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increases.
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Most new Carmex products are priced between $0.99 and $2.99, well within reach of the price sensitive mass consumer market. Carmex is utilizing a _________ strategy with its lip balm products. Price lining Prestige pricing Penetration pricing Skimming pricing
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Penetration pricing
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Because consumers respond more favorably to Carmex when priced at $0.99 versus $1.00, many Carmex product prices end with a 9. This demand-oriented approach is known as ________. target pricing bundle pricing odd-even pricing price lining
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odd-even pricing
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Carmex Moisture Plus is priced between $2.49 and $2.99, a high price compared the $0.99 Carmex tube. Carmex managers estimated that female consumers would be willing to pay more for the sleek packaging, benefits and additional ingredients found in the Moisture Plus line and set the price accordingly. Which demand-oriented approach is best reflected in the price of the Moisture Plus line? Yield management pricing Target pricing Bundle pricing Price setting Quantity pricing
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Target pricing
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The number of silver sticks ordered for the Moisture Plus product is much lower than the number of yellow tubes ordered for the original Carmex product. With a lower purchase volume, Carmex does not receive a significant discount on the silver tubes from its suppliers. Carmex managers will use a ______ pricing approach to incorporate the price of the packaging into Moisture Plus' final price. competition-oriented demand-oriented value-oriented cost-oriented
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cost-oriented
question
A high-low retailer like Walgreens might temporarily cut the price of Carmex tubes to $0.49, well below its customary price to attract attention to the product and customers to the store. This temporary price reduction is an example of__________. customary pricing skimming pricing Standard markup pricing loss-leader pricing
answer
loss-leader pricing
question
From a marketing viewpoint, price is __________ exchanged for the ownership or use of a product or service. the money or other tangible goods the money or other considerations (including other products and services) the money (coin or currency) what is recognized as barter within a particular culture anything of value to the buyer but not necessarily of value to the seller
answer
the money or other considerations (including other products and services)
question
All of the following are all examples of a price EXCEPT: a fare. wages. a salary. dues. a tax.
answer
a tax.
question
College students pay tuition, fees, and other charges each year to attend their educational institution. Using the price equation, what is the final price or cost to attend college for a typical semester based on the following data for an in-state student: Tuition = $4,000; technology fee = $25; healthcare insurance = $50; student activity fee = $25; room ; board = $5,000; books = $500; transportation ; parking = $400; financial aid from work study (10 hours per week at $10 per hour wage) = $100; scholarships = $500; and a discount of $400 for taking 15 credit hours? $1,000 $4,000 $6,000 $9,000 $10,000
answer
$9,000
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? $5,400 $6,000 $11,400 $12,600 $24,000
answer
$12,600
question
Pebble used a skimming pricing strategy to introduce its new Pebble Smartwatch. Which of the following conditions would argue AGAINST using a skimming pricing strategy when introducing this new wearable computing device? A large potential market exists, even at a high price. Technological problems still exist for competitors, prohibiting their entry into the market for at least six months. Increasing volume substantially reduces production costs. Consumers perceive a price-quality relationship. The product is relatively price insensitive (price inelastic).
answer
Increasing volume substantially reduces production costs.
question
What is prestige pricing? charging different prices to different buyers for goods of like grade and quality setting a high initial price on a new product to appeal immediately to the mass market setting an above-market price for the product or product class oriented on a subjective feel for competitors' prices or market price as the benchmark setting prices a few dollars or cents above an even number to indicate quality setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it
answer
setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it
question
Jane Westerlund owns a picture-framing store, The Caplow Co. Her price must cover 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 monthly volume of 1,000 picture frames sold to expand the number of stores. What price should Westerlund charge for a picture frame? rev: 07_24_2015_QC_CS-20119 $12 $30 $55 $120 $150
answer
$120
question
The prices of products sold in vending machines are a good example of which type of competition-oriented pricing? customary pricing at-market pricing loss-leader pricing penetration pricing bundle pricing
answer
customary pricing
question
__________ represents the vertical axis of a demand curve graph. Price per unit Quantity sold Consumer income Potential profit in dollars Quantity demanded
answer
Price per unit
question
Price elasticity of demand refers to the range of product features that can be altered without losing customers. the ease and speed at which prices can be changed without costs exceeding revenues. the percentage change in quantity demanded relative to the percentage change in price. the percentage change in quantity demanded relative to the percentage change in units sold. the additional profits larger organizations "bank" to prevent losses due to sudden changes in consumer demand.
answer
the percentage change in quantity demanded relative to the percentage change in price.
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? 200,000 pairs 500,000 pairs 666,667 pairs 1,000,000 pairs 2,000,000 pairs
answer
1,000,000 pairs
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 is the total cost for sales of 500,000 units of the Cordova design? $1,000,000 $2,000,000 $3,650,000 $5,500,000 $7,500,000
answer
$7,500,000
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? an increase in women in targeted demographics the paper and ink for printing the magazine the salary of the publisher's CEO the rent for a parking garage used by employees the cost of a half-page ad in SHAPE
answer
the paper and ink for printing the magazine
question
A __________ visually shows that the total revenue curve and the total cost curve intersect at a point of zero profit. break-even chart Gantt chart sales response function cross tabulation demand curve
answer
break-even chart
question
Which of the following statements about profit objectives is most accurate? Managers in the United States have long been praised for their insistence on managing for long-run profits. Profit objectives are measured in terms of return on investment or return on assets. Firms that are interested in strategic planning always establish a maximize current profit objective. An organization's chief marketing officer (CMO) usually establishes a target return on expense objective. Market share and unit volume are two types of profit objectives.
answer
Profit objectives are measured in terms of return on investment or return on assets.
question
Which of the following is NOT a pricing constraint? demand for the product class cost of producing and marketing the product social responsibility impact of the product on society newness of the product or stage in its product life cycle competitors' prices
answer
social responsibility impact of the product on society
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. customary pricing standard-price one-price dynamic-price flat-rate
answer
one-price
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. target-pricing policy flexible-price policy price-lining policy cost-plus pricing policy above-, at-, or below-market pricing approach
answer
flexible-price policy
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 promotional allowance. cash discount. quantity discount. seasonal discount. functional discount.
answer
quantity discount.
question
To enable manufacturers to smooth out manufacturing peaks and troughs and thereby contribute to more efficient production, manufacturers offer noncumulative discounts. cumulative discounts. seasonal discounts. trade discounts. functional discounts.
answer
seasonal discounts.
question
Which of the following is a transactional function of intermediaries? Contacting potential customers, promoting products, and seeking orders Creating product assortments from several sources to serve customers Purchasing in large quantities and breaking into smaller amounts desired by customers Inspecting, testing, or judging products and assigning them quality grades Providing marketing information to customers and suppliers
answer
Contacting potential customers, promoting products, and seeking orders
question
Which of the following is a facilitating function of intermediaries? Purchasing products for resale or acting as an agent for the supply of a product Physically moving a product to customers Extending credit to customers Contacting potential customers, promoting products, and seeking orders Assembling products at a convenient location to offer better customer service
answer
Extending credit to customers
question
_____ utility involves enhancing a product or service to make it more appealing to buyers. Time Form Possession Place Product
answer
Form
question
A strategic channel alliance is defined as an arrangement whereby consumers can buy products without a face-to-face meeting with a salesperson. channel conflicts are resolved by a channel captain. a firm tries to place its products in as many retail outlets as possible. one firm's marketing channel is used to sell another firm's products. a firm maintains its own salesforce and performs all channel functions by itself.
answer
one firm's marketing channel is used to sell another firm's products.
question
Which of the following is true of vertical marketing systems? Retailers own manufacturers in all corporate vertical marketing systems. Wholesaler-sponsored voluntary chains are contractual vertical marketing systems. Franchising is an example of an administered vertical marketing arrangement. Forward integration is a practice followed in contractual vertical marketing systems. Producers own retailers in all corporate vertical marketing systems.
answer
Wholesaler-sponsored voluntary chains are contractual vertical marketing systems.
question
A local soft-drink manufacturer stocks it products in as many stores as possible in the state where it operates. It has an internal team to ensure good relationships with the different retailers who sell its product, and also constantly tries to get more retailers to sell its product. In this case, which of the following does the company use to cover its target market? Intensive distribution Selective distribution Backward integration Exclusive distribution Forward integration
answer
Intensive distribution
question
A horizontal conflict is most likely to occur in a marketing channel if intermediaries fail to give adequate attention to a manufacturer's products. a channel member bypasses another channel member in the same marketing channel. a manufacturer increases its distribution coverage in a geographical area. different types of retailers carry different brands. disagreements arise over distribution of profit margins among channel members.
answer
a manufacturer increases its distribution coverage in a geographical area.
question
A channel captain is defined as a channel member that coordinates, directs, and supports other channel members. has the weakest financial position in a marketing channel. holds a franchise agreement with another member in the channel. owns a member at the next level down in the channel. competes with other members at the same level for influence or profits.
answer
coordinates, directs, and supports other channel members.
question
Which of the following is the first step in choosing a supply chain configuration? Understanding the customer Understanding the supply chain Resolving conflicts in a supply chain Harmonizing the supply chain with a marketing strategy Determining the intermediaries in a distribution channel
answer
Understanding the customer
question
The objective of logistics management in a supply chain is to minimize total logistics costs while selectively distributing goods and services. delivering the appropriate level of customer service. effectively managing the practice of forward integration. exclusively distributing goods and services. intensively distributing goods and services.
answer
delivering the appropriate level of customer service.
question
_____ is a process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal. Reverse logistics Inventory control Selective distribution Yield management Exclusive distribution
answer
Reverse logistics
question
The ______________ function represents the role that Hope Spring's distributors have in storing, sorting and transporting bottled water to the Coffee Collective. organizational facilitating enhancement logistical transactional
answer
logistical
question
A ____________ is an intermediary who sells Hope Springs' bottled water to retailers such as the Coffee Collective. retailer wholesaler distributor broker dealer
answer
wholesaler
question
By satisfying the customer service factor of ___________, the distributor will ensure that deliveries of Hope Springs' bottled water to the Coffee Collective are consistent in lead-time, will arrive safely, and are complete. dependability convenience communication time warehousing
answer
dependability
question
Given Hope Springs' focus on the environment, it actively practices __________ to support retailers water bottle recycling initiatives by collecting their used water bottles and reusing or disposing the plastic whenever possible. horizontal channel management reverse logistics green supply management disintermediation logistics management
answer
reverse logistics
question
A marketing channel refers to the direct line from manufacturer to retailer without any intermediaries. the link between all suppliers providing raw materials to the manufacturer in order to create the final product. the specific form of transportation used to get the product from the manufacturer to the ultimate consumer. individuals and firms involved in the process of making a good or service available for use or consumption by consumers or industrial users. the sequence of transportation forms (cargo ship, train, truck, etc.) that allow a product to flow easily from a manufacturer to a distributor, to a retailer, and ultimately to the consumer.
answer
individuals and firms involved in the process of making a good or service available for use or consumption by consumers or industrial users.
question
A channel intermediary that acts on behalf of the seller but does not take title to products is called a(n) facilitator. wholesaler. retailer. distributor. agent or broker.
answer
agent or broker.
question
Sysco is a global leader in distributing food products and supplies to restaurants, healthcare and educational facilities, and the hospitality industry. The company makes a weekly delivery to the student union on your college campus. Which type of function did this channel intermediary perform in this instance? transactional logistical facilitating distribution risk taking
answer
logistical
question
Having a Chevron gas station located on a long stretch of lonely highway is an example of __________ utility. form time place possession location
answer
place
question
Adding a wholesaler to the marketing channel for consumer products is most common for low-cost, high-unit value items. high-cost, low-unit value items. high-cost, high-unit value items. any item regardless of cost as long as there is sufficient product variety. low-cost, low-unit value items.
answer
low-cost, low-unit value items.
question
Which of the following statements regarding electronic marketing channels is most accurate? Internet marketing channels perform facilitating functions at only a slightly higher cost than traditional marketing channels. Internet marketing channels do not look a lot like common marketing channels since there is no need for warehousing products. Internet intermediaries can perform all logistical functions effectively. Internet marketing channels employ the Internet to make products and services available for consumption or use by consumers or organizational buyers. Internet marketing channels use combinations of mail and telephone to conduct business with ultimate consumers.
answer
Internet marketing channels employ the Internet to make products and services available for consumption or use by consumers or organizational buyers.
question
Most of Lands' End's revenues come through catalog and Internet sales, but it also operates several retail stores and factory outlets. This makes Lands' End an example of a(n) __________ marketer. multichannel wholesale industrial channel dual distribution channel exclusive distribution
answer
multichannel
question
The channel strategy demonstrated when a greeting card company sells its cards through self-standing racks in drugstores and also online is referred to as __________. a strategic channel alliance multichannel distribution parallel distribution dual distribution multibrand distribution
answer
dual distribution
question
Meyers, Inc. is an American company that manufactures and distributes coffee products in the U.S. Because of the popularity of its products, Meyers Inc. wants to enter new global markets. As a result, the firm decided to develop an international distribution network as soon as possible. The most efficient distribution arrangement in terms of cost and time for Meyers, Inc. would be to use __________. multichannel distribution direct marketing cooperative distribution a strategic channel alliance a dual distribution agreement
answer
a strategic channel alliance
question
The three major types of vertical marketing systems are administered, contractual, and __________. integrated cooperative corporate delegated strategic channel alliance
answer
corporate
question
Kroger supermarkets operate manufacturing facilities that produce everything from aspirin to cottage cheese for sale under the Kroger label. This example shows that Kroger uses dual distribution. forward integration. backward integration. horizontal integration. strategic channel alliances.
answer
backward integration.
question
Which of the following is the most popular type of vertical marketing system? corporate vertical marketing systems cooperative vertical marketing systems contractual vertical marketing systems administered vertical marketing systems wholesaler-sponsored voluntary systems
answer
contractual vertical marketing systems
question
Marketing executives typically consider three questions when choosing a marketing channel and intermediaries. These include: (1) which channel and intermediaries will provide the best coverage of the target market; (2) which channel and intermediaries will best satisfy the buying requirements of the target market; and (3) which channel and intermediaries will be the most profitable. easiest to work with. riskiest to engage with. most concerned about avoiding channel conflict. most concerned with avoiding cannibalization.
answer
most profitable.
question
A firm can become a channel captain because it is typically the channel member with the ability to influence the behavior of other members. Influence can take four forms: economic influence; expertise; identification with a particular channel member; and social interactions with the community at large. familial ties to other channel members. longevity in the industry. geographic proximity to the manufacturing plant. the legitimate right of one channel member to direct the behavior of other members.
answer
the legitimate right of one channel member to direct the behavior of other members.
question
How is customer service related to logistics management? A firm must drive down logistics costs as long as it can still satisfy customer requirements. Meeting customer needs is the sole responsibility of the manufacturer. Every channel member should have input in regards to product design if it affects the way a product is used by the ultimate consumer. Customers should dictate how, when, and where products are distributed regardless of cost to the manufacturer or its intermediaries. The responsibility to satisfy customers' needs applies equally to all members of a supply chain.
answer
A firm must drive down logistics costs as long as it can still satisfy customer requirements.
question
Customers currently link to Cisco's website to configure, price, and order its networking equipment. Cisco then sends orders back out across the Internet to producers and assemblers including Celestica, Flextronics, and Solectron. Products are built and tested to Cisco standards, sometimes with procedures run remotely by Cisco. Most are then drop-shipped to buyers, untouched by human hands on Cisco's payroll. The individuals who monitor these transactions and make sure each is performed in a cost-effective and timely fashion are engaged in __________. supply chain management total distribution cost management logistics just-in-time management materials handling
answer
supply chain management
question
The driving force behind an efficient supply chain is __________. reducing costs expanding revenues increasing the speed of delivery maximizing the breadth and depth of product lines offered achieving a competitive advantage
answer
reducing costs
question
Total logistic cost factors in a supply chain include transportation, order processing, stockout, inventory, returns, and __________. communication between buyer and seller problem resolution warehousing and materials handling order cycle time product promotion
answer
warehousing and materials handling
question
The ability of a logistics system to satisfy users in terms of time, dependability, communications, and convenience is referred to as __________. product replenishment distribution management order processing customer service total logistics management
answer
customer service
question
GNB Technologies manufactures lead-acid batteries, and enlists UPS for assistance with its supply chain. UPS also helps the company to obtain used products that are then recycled, which has resulted in reclaiming 90% of the lead from GNB's batteries. This is an example of vendor managed inventory. efficient consumer response delivery systems. disintermediation. reverse logistics. exclusive distribution.
answer
reverse logistics.
question
Which of the following statements is true of the communication process? A response is the impact a message has had on a sender's knowledge. While encoding, a receiver transforms a set of symbols into an idea. Consumers who read, see, or hear a message constitute the source. Feedback is a sender's interpretation of a response. While decoding, a sender transforms a set of ideas into symbols.
answer
Feedback is a sender's interpretation of a response.
question
Encoding is the process in which a sender interprets a response from a receiver. a receiver sends a response to a sender. a sender transforms an idea into a set of symbols. receivers of a message align their frame of reference with that of a sender. a receiver transforms symbols back to an idea.
answer
a sender transforms an idea into a set of symbols.
question
in a communication process, _____ consists of extraneous factors that can work against effective communication by distorting a message. a feedback loop a field of experience feedback noise a response
answer
noise
question
Which of the following elements of the promotional mix is a form of customized interaction? Advertising on television Direct marketing Sales promotion Public relations Advertising on the radio
answer
Direct marketing
question
Which of the following is an advantage of advertising? It facilitates customized interaction. It can reach large numbers of people. Feedback can be received immediately. It contains no absolute costs. Messages can be developed and adapted quickly.
answer
It can reach large numbers of people.
question
Which of the following is a disadvantage of personal selling? It is very expensive. The feedback is delayed. One cannot control to whom a presentation is made. It cannot be used to give complex information. It is not very persuasive.
answer
It is very expensive.
question
Which of the following is true of a firm's promotional mix? Coordinating a consistent promotional effort is necessary. A target audience does not affect the balance of elements in the promotional mix. The composition of the promotional mix remains constant across the product life cycle. A lot of money is spent in the promotional mix in the decline stage of a product. The promotional mix is independent of the channel strategies for a product.
answer
Coordinating a consistent promotional effort is necessary.
question
Informing consumers in an effort to increase their level of awareness is the primary promotional objective in the _____ stage of the product life cycle. maturity introduction decline end growth
answer
introduction
question
Which of the following is true of channel strategies? In a push strategy, the flow of demand stimulation is from consumers to manufacturers. A pull strategy encourages consumers to ask retailers for a product. A pull strategy directs the promotional mix to channel members. A push strategy directs the promotional mix at ultimate consumers. In a pull strategy, the flow of demand stimulation is from manufacturers to consumers.
answer
A pull strategy encourages consumers to ask retailers for a product.
question
Which of the following steps occurs in the implementation stage of the promotion decision process? Pretesting the promotion Identifying the target audience Selecting the right promotional tools Designing a promotion Setting the budget for a promotion
answer
Pretesting the promotion
question
Which of the following is the best approach for setting a promotion budget? The percentage-of-sales budgeting approach Objective and task budgeting Trail budgeting Competitive parity budgeting The all-you-can-afford budgeting method
answer
Objective and task budgeting
question
Which of the following steps occurs in the evaluation stage of the promotion decision process? Making needed changes to a promotion Identifying the target audience for a promotion Pretesting a promotion Scheduling a promotion Specifying the objectives for a promotion
answer
Making needed changes to a promotion
question
_____ are the result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction. Lead magnets Prospects Quotations Leads Direct orders
answer
Direct orders
question
_____ is the result of an offer designed to generate interest in a product or service and a request for additional information. Lead generation A direct order Traffic generation A limited order
answer
Lead generation
question
Which of the following is true of direct marketing? There are no privacy concerns in direct marketing. Databases are the results of organizations' efforts to create employee profiles. Information technology has greatly influenced direct marketing. The effect of direct marketing is similar in all countries. Most marketers want the ability to generalize communication efforts.
answer
Information technology has greatly influenced direct marketing.
question
decision process
answer
planning implementation evaluation
question
To accomplish a successful repositioning of the brand, Taco Bell needed to inform its consumers that Taco Bell food should be thought of as an experience rather than as just fuel. In the communication process, Taco Bell would be the ______ and the consumer would be the ________. source, receiver encoder, receiver encoder, decoder source, decoder message, receiver
answer
source, receiver
question
During the creative process, Taco Bell considered a number of different slogans, finally setting on Live Mas! The Live Mas! campaign reinforces Taco Bell's position as a dynamic brand whose customers enjoy experiencing the world and trying things first. Live Mas! is Taco Bell's _______ in the communication process. noise channel of communication message feedback response
answer
message
question
When communicating with its target audience, Taco Bell considered each of its _________ including social media channels, packaging, point of purchase displays, and advertising. These places of contact between a firm and its customers are critical elements for building an integrated marketing communication plan. sources products touch points traffic generators noises
answer
touch points
question
As part of its integrated marketing communication strategy, Taco Bell utilized commercials aired during the Super Bowl. This form of _________ has an extremely large reach and hefty price tag. public relations personal selling sales promotion advertising direct marketing
answer
advertising
question
To give consumers an incentive to try its new Doritos Locos Tacos, Taco Bell gave out free samples of the new tacos to its customers. The free Doritos Locos tacos giveaway is an example of ________. public relations sales promotion personal selling advertising direct marketing
answer
sales promotion
question
Taco Bell allocates its promotional budget to 70% traditional media, which includes television advertising; 20% to digital media, which includes website development; and 10% to new media channels. The fact that the message consumers receive is the same regardless of which channel delivers it reflects Taco Bell's dedication to ___________. push strategies lead generation hierarchy of effects promotional budgeting integrated marketing communications
answer
integrated marketing communications
question
Twitter, Facebook, Vine, Instagram and Snapchat were all utilized to engage customers during the Doritos Locos Tacos introduction as part of the _________ element of the campaign. personal selling promotional mix direct selling sales promotion social media
answer
social media
question
The promotional mix consists of communication tools that include advertising, personal selling, sales promotion, direct marketing, and __________. multicultural marketing social media public relations target marketing online marketing
answer
public relations
question
Integrated marketing communications (IMC) is the process of conveying a message to others. the two-way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision. a form of communication management that seeks to influence the feelings, opinions, or beliefs held by stakeholders about an organization and its products or services. the concept of designing marketing communications programs that coordinates all promotional activities to provide a consistent message across all audiences. is any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.
answer
the concept of designing marketing communications programs that coordinates all promotional activities to provide a consistent message across all audiences.
question
When Procter ; Gamble bought the Old Spice brand in 1990, it planned to transform the old, stagnating brand into a men's "personal-care powerhouse." The ads that P&G developed shed the older-man image and the message is now targeted at the 18 to 34 year old age group. In terms of the communication process, the __________ would encode the message. older-men market segment Old Spice marketers younger-men market segment vehicle used for advertising, like television the fields of experience
answer
Old Spice marketers
question
For a message to be communicated effectively, the sender and receiver must have a mutually shared __________. lifestyle set of cultural values channel of communication feedback loop field of experience
answer
field of experience
question
Which of the following is NOT a factor that would be considered noise in the communication process? A wrong image is used in a newspaper ad. The message is considered too ordinary. A printing mistake in a press release. A prospect for a firm's product cannot understand the salesperson during a presentation because of her accent. A radio advertisement uses slang.
answer
The message is considered too ordinary.
question
Mass selling refers to the creation of unique products based upon the needs and wants of individual consumers. the translation of a company's message into multiple languages for use in advertising in different countries or regions. the use of different images (such as on the cover of Sports Illustrated) to create a more intimate relationship between buyer and seller. advertising, sales promotions, and public relations activities that are used with groups of prospective buyers. the production and sales of a single item that contains no variation of product benefits.
answer
advertising, sales promotions, and public relations activities that are used with groups of prospective buyers.
question
Which element of the promotional mix has the inherent weaknesses of high absolute costs and difficulty in receiving good feedback? advertising personal selling sales promotion publicity direct marketing
answer
advertising
question
When a news story covers a terrible disaster and viewers are asked to send donations to the American Red Cross, the organization benefits from __________. advertising cause marketing publicity personal selling a public service announcement
answer
publicity
question
The Publishers Clearinghouse Sweepstakes is an example of which type of promotion? advertising publicity sales promotion personal selling direct marketing
answer
sales promotion
question
At which stage in the product life cycle would a company's promotional objective most likely be to increase the level of consumer awareness? introduction growth maturity decline accelerated development
answer
introduction
question
Cake mix is in the maturity stage of its product life cycle. A manufacturer selling cake mixes would most likely use advertising to create product category awareness. differentiate one type of dessert from another. create selective distribution channels. reposition cake mixes. remind buyers of the marketer's and its brand's existence.
answer
remind buyers of the marketer's and its brand's existence.
question
What is the promotional objective of the decline stage of the product life cycle? inform persuade compare remind phase out
answer
phase out
question
Like many consumer products manufacturers, Hallmark Cards periodically provides its retailers with case discount allowances of 10 percent to induce them to carry its products. In this example, Hallmark uses a __________ strategy. multichannel push direct hook pull
answer
push
question
Which of the following occurs during the planning stage of the promotion decision process? pretest the advertisement state the mission set the budget identify possible advertising or promotional firms posttest the advertisement
answer
set the budget
question
The first step in executing the promotion program is to __________. set the budget state the mission pretest the promotion select the appeal select the media
answer
pretest the promotion
question
In the hierarchy of effects, the stage between interest and trial is known as __________. purchase awareness adoption pilot evaluation
answer
evaluation
question
The __________audit analyzes the internal communication network of the company; identifies key audiences; evaluates customer databases; assesses messages in recent ads, public relations releases, packaging, video news releases, signage, sales promotion pieces, and direct mail; and determines the expertise of company and agency personnel. CBR IMC IMB CMA CMI
answer
IMC
question
After reading the daily newspaper, the restaurant owner of Zefferelli's Tower of Pizza said, "I see that the owner of Fellini's House of Noodles ran a quarter-page ad in today's paper. We'll have to match his efforts by running our own ad the day after tomorrow." Based on this statement, what promotional budgeting technique is the Zefferelli's restaurant owner most likely using? objective and task budgeting all you can afford budgeting competitive parity budgeting comparative budgeting percentage of sales budgeting
answer
competitive parity budgeting
question
Which of the following statements regarding direct marketing is most accurate? Direct selling provides less customer service than direct response marketing. Although direct marketing usually saves customers time, it does not usually save money. Although direct marketing can save consumers time and money, the process is labor intensive and not very much fun. Many customers believe direct marketing saves time, is entertaining, and offers privacy. Direct customers feel that their privacy is more likely to be compromised with direct marketing than with other methods.
answer
Many customers believe direct marketing saves time, is entertaining, and offers privacy.
question
Factors such as the need for improved reliability and security in postal systems and new government regulations represent important challenges for __________ in the global market. direct marketing direct selling personal selling direct response marketing publicity
answer
direct marketing
question
Which of the following types of advertisements tell people what a product is, what it can do, and where it can be found? Reminder advertisements Advocacy advertisements Comparative advertisements Competitive advertisements Pioneering advertisements
answer
Pioneering advertisements
question
Which of the following types of advertisements state the position of a company on an issue? Comparative advertisements Reminder institutional advertisements Competitive institutional advertisements Advocacy advertisements Pioneering institutional advertisements
answer
Advocacy advertisements
question
Which of the following types of advertisements intends to simply bring the company's name to the attention of the target market again? Advocacy advertisements Reminder institutional advertisements Competitive advertisements Comparative institutional advertisements Pioneering institutional advertisements
answer
Reminder institutional advertisements
question
Which of the following steps generally occurs after an advertising program has been developed? The advertisement copy is pretested. The target audience is identified. The advertising medium is selected. The advertisement is scheduled for airing. The advertising budget is prepared.
answer
The advertisement copy is pretested.
question
Which of the following tests is a pretest? An attitude test A sales test An inquiry test A jury test An aided test
answer
A jury test
question
Which of the following steps is carried out to evaluate an advertising program? Designing the advertisement Posttesting the advertisement Setting the advertisement budget Pretesting the advertising copy Scheduling the advertisement
answer
Posttesting the advertisement
question
Which of the following is an advantage of using television as a medium for advertising? It is easy to convey complex material through television. It can help advertisers target a specific audience. The messages on television have long exposure times. It is an inexpensive medium. The messages are imperishable and permanent.
answer
It can help advertisers target a specific audience.
question
Which of the following is a disadvantage of using newspapers for advertising? It takes a long time to place an ad in a newspaper. They have poor reach potential in local markets. The messages on newspapers have a short life span. Consumers usually take a long time to respond to ads in newspapers. It is expensive to place ads in newspapers.
answer
The messages on newspapers have a short life span.
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Which of the following is a disadvantage of outdoor advertising? There are no opportunities for repeat exposure. It has poor visibility. It is expensive. There is a lack of focus on local markets. Advertising copy needs to be short.
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Advertising copy needs to be short.
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_____ are a sales promotion tool used to encourage and reward repeat purchases by acknowledging each purchase made by a consumer and offering a premium as purchases accumulate. Loyalty programs Product placements Sweepstakes Deals Contests
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Loyalty programs
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_____ are sales promotions that require participants to submit some kind of entry but are purely games of chance requiring no analytical or creative effort by the consumer. Premiums Product placements Sweepstakes Deals Loyalty programs
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Sweepstakes
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_____ are best defined as advertising programs by which a manufacturer pays a percentage of the retailer's local advertising expense for advertising the manufacturer's products. Institutional advertising Competitive advertising Cooperative advertising Reminder advertising Product advertising
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Cooperative advertising
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_____ are methods of obtaining nonpersonal presentation of an organization, product, or service without direct cost. Sales promotions Trade promotions Publicity tools Cooperative advertising Sales tools
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Publicity tools
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_____ is a form of communication management that seeks to influence the image of an organization and its products and services. Forward buying Cooperative advertising Subcontracting Benchmarking Public relations
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Public relations
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Which of the following is a publicity tool? Cooperative advertisements Contests Sweepstakes Advocacy advertisements News releases
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News releases
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developing advertising program
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identifying target audience specifying the advertising objectives setting the advertising budget designing the advertisement selecting the right media scheduling the advertising
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Advertisers want to have an understanding about the number of different people or households exposed to their advertisement. In other words, they want to know about the ad's ___________. gross margin rating reach frequency
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reach
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The idea of getting the right ad, at the right time, for the right user, in the moment when he or she is most interested in that topic is the key to the success of _____________. radio advertising television commercials search advertising newspaper advertising
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search advertising
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As advertisers manage their interactive marketing communications (IMC) programs, they can compare the effectiveness of the various types of advertising available by calculating _________ which refers to the cost of reaching 1,000 individuals or households with the advertising message in a given medium. cost per medium overall cost cost per thousand cost per click
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cost per thousand
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Google AdWords functions much like direct response marketing because AdWords asks that customers take action by clicking on an advertisement. This response is similar to that required with __________. infomercials newspapers yellow pages magazines
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infomercials
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Online advertising has the unique feature of being interactive; the use of drop-down menus, built-in games or search engines that engage viewers are excellent examples of __________. rich media frequency media flexible media raw media
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rich media
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Comparative advertising is one form of __________ advertising. institutional reinforcement competitive pioneering reminder
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competitive
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The headline of a General Motors advertisement in a recent Reader's Digest magazine read, "I believe these kids will make great engineers. Now I've got to make them believe it." The ad shows an engineer surrounded by seven young people. The ad copy talks about how General Motors believes the more the company puts into the community, the more society will get out of the community. This advertisement is an example of a(n) competitive institutional advertisement. competitive product advertisement. publicity announcement. advocacy institutional advertisement. pioneering institutional advertisement.
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advocacy institutional advertisement.
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Which of the following is a potential problem when using humorous appeals in advertising? Humor tends to wear out quickly, boring the consumer. What adults find humorous, children do not. What children find humorous, adults do not. Most humorous advertisements offend someone. Humorous appeals undercut the image of the product's perceived quality.
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Humor tends to wear out quickly, boring the consumer.
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Reach refers to the geographic region to which an advertising campaign will be directed. the percentage of television sets tuned to a particular program. the number of different people or households exposed to an advertisement. the commonly used reference number that equates the customer likeability rating for an advertisement multiplied by its frequency. the average number of times a person in the target audience is exposed to the advertising message.
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the number of different people or households exposed to an advertisement.
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One of the disadvantages associated with television as an advertising medium is that it cannot target specific audiences. has a perishable message. must use picture, print, sound, and motion for effect. minimizes the likelihood of wasted coverage. is not effective for conveying simple messages.
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has a perishable message.
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Which of the following statements regarding newspaper as an advertising medium is most accurate? There are no newspapers with national distribution; all newspapers are local. Online news services have rekindled an interest in print media news. More cities are increasing the number of newspapers available in kiosks at mass transit stations for commuters. Recycling newsprint has led to dramatic costs reductions in production costs. National ad campaigns for major advertisers like P;G rarely use newspapers unless it is in conjunction with local distributors of their products, such as when they use cooperative advertising.
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National ad campaigns for major advertisers like P;G rarely use newspapers unless it is in conjunction with local distributors of their products, such as when they use cooperative advertising.
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Billboard advertising is most effective for __________ advertising. pioneering reinforcement advocacy comparative competitive
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reinforcement
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Click fraud refers to randomly "clicking" numbers to steal a credit card number in order to pay for items online. using software to run continuous "clicks" in order to give an advantage in playing games or contests to win prizes. having friends "click" an ad simultaneously to overload a website. the deceptive clicking of ads solely to increase the amount advertisers must pay. the practice of going to an advertiser's website to increase the number of "hits" for a product.
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the deceptive clicking of ads solely to increase the amount advertisers must pay.
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Continuous scheduling would most likely be used for advertising __________. snow shovels barbecue grills school supplies chewing gum baseball gloves
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chewing gum
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Which of the following would be conducted before an advertisement was placed in any medium? sales test attitude test aided recall jury test inquiry test
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jury test
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Portfolio tests refer to presenting a panel of consumers with an ad and asking for their reactions concerning the ad's effectiveness, appeal, etc. placing a test ad in a collection with several other ads, asking consumers to read through the them, and then asking them for their impressions of the ads. presenting a panel of consumers with an ad for a limited period of time, then removing the ad and asking the respondents to recall as much pertinent information as possible. presenting consumers with a sample of a product and several different advertisements for the product then asking them to select the one they think is most effective and explain why. using electronic devices to measure viewer response or feelings after viewing an advertisement.
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placing a test ad in a collection with several other ads, asking consumers to read through the them, and then asking them for their impressions of the ads.
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A few years ago, Young and Rubicam, Inc. developed the "Softer Side of Sears" campaign to target middle-income women. This agency provided research about that segment, media choices, and complete production of advertising for Sears. Young and Rubicam is an example of a(n) image consultant. consulting firm. limited-service advertising agency. in-house agency. full-service advertising agency.
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full-service advertising agency.
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A Starch test uses all of the following to score an advertisement EXCEPT: the percentage of those who remember seeing the ad yesterday. the percentage of those who read at least half of the ad. the percentage of those who saw or read any part of the ad. the percentage of those who saw or read any part of the ad identifying the product or brand. the percentage of those who read any part of the ad's copy.
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the percentage of those who remember seeing the ad yesterday.
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Using radio ads in one market and television ads in another and comparing the results is a form of __________. sales test jury test portfolio test experience test theater test
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sales test
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Which of the following statements about attitude tests is most accurate? With attitude tests, product information, product samples, or premiums are offered to an ad's readers or viewers, and ads generating the most inquiries are considered the most effective. With attitude tests, a question such as, "What ads do you remember seeing yesterday?" is asked of respondents without any other prompting. Attitude tests involve studies such as controlled experiments and consumer purchase tests. In an attitude test, respondents are asked questions to measure changes in their attitudes after an advertising campaign. In an attitude test, respondents are first shown an ad and then asked whether their previous exposure to it was through reading, viewing, or listening.
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In an attitude test, respondents are asked questions to measure changes in their attitudes after an advertising campaign.
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Which of the following is NOT a consumer-oriented sales promotion? coupon merchandise allowance loyalty program point-of-purchase display sweepstakes
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merchandise allowance
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Many shoe stores have sales during which they offer 50% off the second pair you purchase when you purchase the first pair at full price. This offer is an example of a __________. rebate premium deal product placement coupon
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deal
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For marketers, the primary objective of a premium is to encourage customers to return frequently or to use more of the product. increase trial and retaliate against competitors' actions. minimize brand-switching behavior. encourage new product trial. generate store traffic.
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encourage customers to return frequently or to use more of the product.
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Three commonly used trade promotions are __________. coupons, rebates, and discounts cooperative advertising, merchandise allowances, and points-of-purchase displays allowances and discounts, cooperative advertising, and training of distributor's salesforces allowances and discounts, consumer promotions, and merchandise allowances allowances and discounts, consumer promotions, and training of distributor's salesforces
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allowances and discounts, cooperative advertising, and training of distributor's salesforces
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National sales meetings sponsored by the manufacturer and field visits to a reseller's location to inform and motivate salespeople to sell the products are considered forms of consumer-oriented sales promotions. public relations. cooperative advertisements. institutional advertisements. salesforce training.
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salesforce training.
