RCSC 400 Exam #2 Chapter 6 quizzes – Flashcards
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The phrase "Unused service capacity is lost forever" refers to which major challenge associated with the marketing of services?
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perishability
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Why is the demand for most services—such as popular restaurants—extremely time-and-place dependent?
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Because customers must be present for service to be delivered.
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Which pricing objective is associated with the phrase "charging what the market will bear"?
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market demand
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Which of the following is the best example of an unsought product?
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insurance
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Why would a firm offer a deep assortment of products in its product portfolio?
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To attract a wide range of customers and market segments.
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Which of the following statements is TRUE with respect to the relationship between price and revenue?
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Price cuts must be offset by an increase in sales volume to keep the same level of revenue.
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Unlike tangible goods, virtually all services are susceptible to inconsistency and variations in quality. Why is this so?
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Because services depend on people for their delivery.
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Why are firms so interested in the pricing element of the marketing mix?
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Because the firm's pricing has a direct bearing on its ability to increase revenue.
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Although break-even analysis and cost-plus pricing are important tools in setting prices based on the firm's cost structure, they should never be the driving force behind pricing strategy. Why?
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Because different firms have different cost structures.
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Why would a firm offer a wide variety of products in its product portfolio?
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To diversify its risk
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Most firms today compete in mature markets characterized by commoditization. In these cases, the __________ typically becomes incapable of differentiating the product offering from those of the competition.
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core product
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Which of the following IS NOT an important benefit of offering a large product portfolio?
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package differentiation
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Mallory is an avid collector of antiques. In fact, she spends practically every weekend traveling to small towns and antique shops in search of unique antique treasures. For Mallory, antiques are a perfect example of a:
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specialty product
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For laptop computers, processor chips, memory chips, and hard drives are examples of __________ because they are finished items that become a part of the computer after assembly.
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component parts
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Firestone carefully watches the automotive market to ascertain the demand for cars, SUVs, and trucks. Firestone does this because the demand for its products is dependent on the demand for automobiles. This situation describes __________.
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derived demand
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__________ is defined as a customer's subjective evaluation of benefits relative to costs to determine the worth of a firm's product offering relative to other product offerings.
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value
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__________ refers to the strategic combination of the four basic marketing mix elements.
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The marketing program
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Although the product is at the heart of the marketing program, it is important to remember that product offerings in and of themselves have little value to customers. An offering's real value comes from:
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its ability to deliver benefits that solve a customer's problems.
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Assume Kia has developed a new product idea to launch a midsize pickup. Currently, Kia is developing a prototype and working on projected costs, revenues, and profit potential. Kia is currently at what stage of the new product development process?
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screening and evaluation
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Which pricing objective is associated with the phrase "charging what the market will bear"?
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market demand
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Although break-even analysis and cost-plus pricing are important tools in setting prices based on the firm's cost structure, they should never be the driving force behind pricing strategy. Why?
answer
Because different firms have different cost structures.
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Mallory is an avid collector of antiques. In fact, she spends practically every weekend traveling to small towns and antique shops in search of unique antique treasures. For Mallory, antiques are a perfect example of a
answer
specialty product
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__________ is defined as a customer's subjective evaluation of benefits relative to costs to determine the worth of a firm's product offering relative to other product offerings.
answer
value
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Which pricing objective is associated with the phrase "charging what the market will bear"?
answer
market demand
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To compete in the fast-growing hybrid segment, Honda introduced the Civic Hybrid with unique styling and great fuel economy. The Civic Hybrid was based on the traditional Honda Civic. Which product development strategy has Honda implemented?
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product line extension
