MKTG 431 Midterm

Question 1

Customers control the features that are available in the products they buy.

True
False

Answer 1

False

Question 2

Which of these is NOT a key to success for a company adopting a market orientation?

a. Identifying and targeting specific market segments.
b. These are all keys to success for a company adopting a market orientation.
c. Insuring every customer transaction is profitable for both the customer and for the company.
d. An organization-wide focus on the customer.
e. Creating long-term customer value.

Answer 2

Insuring every customer transaction is profitable for both the customer and for the company.

Question 3

What did your instructor mean when he mentioned the concept of cognitive miserliness?

a. That people naturally seek the lowest cost alternative.
b. That people carefully evaluate all of the information available in order to make the best decision.
c. That people are unwilling to share information when they have discovered a real bargain.
d. That many consumers who spend money freely actually perceive themselves to be misers.
e. That people do as little ‘thinking’ as possible when making a decision.

Answer 3

That people do as little ‘thinking’ as possible when making a decision.

Question 4

What do marketers mean when they speak of involvement as it relates to the consumer buying process?

a. The amount of time the person is likely to spend making the decision
b. When a person chooses to shop in person for a product rather than shopping online or choosing from a catalog.
c. The number of friends a person will ask for advice before making a purchase
d. The financial, social and physical risk of the purchase to the person
e. Once a person has begun the consumer buying process, that person is committed to making a purchase.

Answer 4

The financial, social and physical risk of the purchase to the person

Question 5

Niles is the marketing manager for Hang Five, a manufacturer of half-price surfboards. He just learned that the largest supplier of surfboard blanks has just declared bankruptcy and that in 30 days the supplier would no longer be able to provide surfboard blanks for Hang Five. Niles is likely to rely on the ___________ feature of the company’s marketing information system to help solve this problem?

a. Data mining
b. Acquired databases/internet
c. Legacy systems
d. Decision Support System
e. Exceptions reporting

Answer 5

Decision Support System

Question 6

BruceCo is a company that makes products for the coffee industry. Each summer, they hire a research intern from San Francisco State University to develop an industry forecast using information published by the US Department of Commerce and other government agencies. This is an example of _____________ in a marketing information system?

a. Internal information
b. Decision makers
c. Acquired databases/internet
d. Marketing intelligence
e. Computer hardware and software

Answer 6

Acquired databases/internet

Question 7

Which of the following statements about the bin theory or memory is FALSE?

a. We remember things in categories
b. All of these statements about the bin theory of memory are true.
c. Over time, one item becomes the category label
d. Repetition keeps you near the top of the category
e. Memories are stored in chronological order

Answer 7

All of these statements about the bin theory of memory are true.

Question 8

When a customer actually purchases a new product for the first time, we can say that person has adopted the product.

True
False

Answer 8

False

Question 9

One common strategy to extend the life of a product in the maturity stage of the product life cycle is to ____________?

a. Divest the product.
b. Go back to market testing.
c. Skim the product.
d. Reposition the product to appeal to a new market segment
e. Use subliminal advertising.

Answer 9

Reposition the product to appeal to a new market segment

Question 10

_________ affects the amount of time and effort a buyer invests in the consumer buying process.

a. Cognitive Dissonance
b. Market potential
c. The legal/political environment
d. Involvement
e. Decision making

Answer 10

Involvement

Question 11

________________ consists of the relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests and behavior can be grouped.

a. Social class
b. Target market
c. Reference group
d. Culture
e. Market segment

Answer 11

Social class

Question 12

Yuli is the California regional manager for a suntan lotion company. Currently the company does not have a distributor in San Francisco. Yuli will use the company’s marketing information system to decide whether or not to add a distributor in Northern California. This is an example of a(n) ___________ decision?

a. Data mining
b. Ad-hoc
c. Executive
d. Routine
e. Knee-jerk

Answer 12

Ad-hoc

Question 13

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company identify feasible ideas and turn them into product concepts?

a. New-product strategy
b. Commercialization
c. Business analysis
d. Technical development
e. Market Testing
f. Screening and evaluation
g. Idea generation

Answer 13

Screening and evaluation

Question 14

Bruce decided to add Apple Pay as an option for the customers who regularly buy coffee at his coffee shop. From a levels of the product perspective, this would be an example of…?

a. add-on service
b. the augmented product
c. a product extension
d. the actual product
e. the core benefit

Answer 14

the augmented product

Question 15

Frodo was a massage therapist. He was very good at dealing with lower back pain. In his waiting room, he had a framed photograph of Sylvester Stallone along with a letter from the celebrity saying that Frodo was the best massage therapist in the world. Sylvester Stallone appeared in all of Frodo’s print and radio advertisements as well. Frodo was using the ___________ approach to making his service seem ‘real’?

a. Word of mouth
b. Documentation
c. Association.
d. Physical representation
e. Visualization

Answer 15

Association

Question 16

Which of the following scenarios would probably be considered to be deceptive reference pricing?

a. Putting a brand new product in a store and marking it at 30% off manufacturer’s suggested retail price.
b. These could all be considered to be deceptive reference pricing.
c. Buying merchandise at 50% lower than usual and putting it on sale for 30% off comparable prices as a special purchase.
d. Taking merchandise that hasn’t sold as well as hoped and putting it on sale at 30% off regular prices.
e. Putting a brand new product in a store and marking it at 30% off regular prices.

Answer 16

Putting a brand new product in a store and marking it at 30% off regular prices.

Question 17

Sergio is the head designer for ‘Robertson House’ a high-fashion clothing company. Each year, Sergio completely changes the colors of the clothes he designs so that it will be obvious to anyone who has fashion sense that last years colors are out of date. This “planned obsolescence” tends to affect consumers at the _________ stage of the consumer buying process.

a. Decision
b. Problem recognition
c. Internal motivation
d. Problem solving
e. Point of purchase

Answer 17

Problem recognition

Question 18

Sameer does not smoke. Every day he walks past a billboard advertising Camel cigarettes. In class, the instructor was talking about how much cigarette advertising is around us and described the billboard advertising Camel cigarettes as an example. Sameer was surprised by this. He had walked by the billboard every day, yet he had never noticed that it was an advertisement for cigarettes. This is an example of _____________?

a. Selective service
b. Selective interpretation
c. Selective retention
d. Selective attention
e. Selective memory

Answer 18

Selective attention

Question 19

Huyen wanted to answer the research question, “What causes students to be unhappy with Marketing 431”?” Although no one had conducted research on marketing 431, there were hundreds of studies that had been done about why students are unhappy with college classes. Huyen was able to take advantage of this __________ data to answer her research question?

a. Primary
b. Random
c. Pseudo
d. Secondary
e. Experimental

Answer 19

Secondary

Question 20

One common strategy to extend the life of a product in the maturity stage of the product life cycle is to ____________?

a. Introduce incremental innovations
b. Skim the product.
c. Divest the product.
d. Stop advertising the product.
e. Harvest the product

Answer 20

Introduce incremental innovations

Question 21

Intel corporation created the Intel Inside campaign to make consumers aware that an important component of any computer is the quality of the microprocessor (computer chip) that makes the machine work. They negotiated with computer manufacturers to include a sticker on the outside of the computer - regardless of the brand - showing that there was an Intel chip inside. This is a classic example of _____________?

a. Thinking outside of the box.
b. Joint venture branding
c. Licensing.
d. Co-branding
e. Cannibalization

Answer 21

Co-branding

Question 22

A ______________ or _______________ is usually the property of the retailer that distributes and/or sells a product?

a. Generic brand, no-name brand
b. Distributor’s brand, Private-label brand
c. Manufacturer’s Brand, producer brand
d. Trade name, trademark
e. Brand name, service mark.

Answer 22

Distributor’s brand, Private-label brand

Question 23

_____________ are factors that limit the range of prices a firm may set for its products?

a. price/value continuum
b. social responsibilities
c. pricing objectives
d. organizational constraints
e. price heuristics

Answer 23

organizational constraints

Question 24

Under the Robinson-Patman act, it is considered price discrimination to charge different customers different prices for the same product in consumer markets.

True
False

Answer 24

False

Question 25

Bruce is a fan of the Minnesota Vikings Football team. He was watching a game between the Minnesota Vikings and the San Francisco Fortyniners on San Francisco television station. He expected that the announcers would favor the local team and it appeared that he was right. Even though a national media agency gave the local announcers an award for the most unbiased coverage ever in a televised football game, Bruce remained convinced that the announcers had favored the local team. This is an example of ______________?

a. Selective attention
b. Selective memory
c. Selective interpretation
d. Selective selection
e. Selective retention

Answer 25

Selective interpretation

Question 26

The fact that people different people might use the same product for different reasons is a problem when it comes to segmentation based on buyer behavior.

True
False

Answer 26

False

Question 27

In the three circles positioning framework presented in class, which area represents the area for creating an attractive new position in the marketplace?

a. The “bar”
b. Their unique position
c. Opportunity to strengthen position
d. All of these are areas for creating an attractive new position in the marketplace.
e. Your unique position

Answer 27

Opportunity to strengthen position

Question 28

Which of these theories explains how individuals decide to adopt new products?

a. New product development
b. Diffusion of innovations
c. Consumer buying process
d. New product adoption
e. Special relativity

Answer 28

New product adoption

Question 29

The Boston Consulting Group matrix is a 2x2 matrix with ___________ on one axis and ___________ on the other axis. This creates four positions: cash cows, stars, problem children (or question marks) and dogs.

a. market attractiveness, relative market share
b. product lines, prices
c. market growth rate, inflation
d. market attractiveness, competitive position
e. Product growth rate, market growth rate

Answer 29

market attractiveness, relative market share

Question 30

Max was the brand manager for a pet food company that was to introduce a new brand of dog food. Through research, they had discovered that many dogs do not get enough exercise and this new dog food had stimulants added to give these sedate dogs energy. He thought of the brand name “Jump Start Your Fat, Lazy, Puppy” and asked your opinion. You said?

a. It is a good brand name because it is true.
b. It is not a good brand name because it is too long.
c. It is a good brand name because it is catchy and has lots of words.
d. It is not a good brand name because it doesn’t suggest a product benefit.
e. It is not a good brand name because it is easy to pronounce.

Answer 30

It is not a good brand name because it is too long.

Question 31

Which of the following is NOT a functional benefit of packaging?

a. Meeting intermediary needs.
b. Allowing the retailer to display the product on store shelves
c. Protecting the product
d. Keeping the product dry.
e. Acting as a silent salesperson

Answer 31

Acting as a silent salesperson

Question 32

The concept of ___________ recognizes that before an organization can effectively take care of customers’ needs, it must focus on its employee’s needs?

a. Internal rate of return
b. Component branding
c. Empathy
d. Internal marketing
e. Positioning

Answer 32

Internal marketing

Question 33

Which of the following is NOT one of the levels of attributes customers use to evaluate service quality?

a. Credence attributes
b. Intangible attributes
c. These are all dimensions of service quality.
d. Experience attributes
e. Search attributes

Answer 33

Intangible attributes

Question 34

_______________ is used in situations where the final cost of a good or service may not be available at the time the agreement is reached?

a. Price floor pricing
b. Standard markup pricing
c. Price ceiling pricing
d. Cost plus pricing
e. Flexible pricing.

Answer 34

Cost plus pricing

Question 35

BruceCo is a company that makes products for the coffee industry. They subscribe to a clipping service that monitors newspapers in major cities around the world for articles related to the coffee industry. This is an example of _____________ in a marketing information system?

a. Internal information
b. Acquired databases/internet
c. Marketing intelligence
d. Computer hardware and software
e. Decision makers

Answer 35

Marketing intelligence

Question 36

Jiwon is thinking of developing a candy specifically for college students. She thinks that college students would buy candy if it had caffeine in it. Before she invests a lot of money in candy making equipment, she conducts ___________ research to find out if there is a relationship between caffeine and candy sales for college students?

a. Experimental
b. Exploratory
c. Descriptive
d. Pseudo
e. Causal

Answer 36

Descriptive

Question 37

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company identify feasible ideas and turn them into product concepts?

a. Commercialization
b. Business analysis
c. Screening and evaluation
d. Technical development
e. New-product strategy
f. Market Testing
g. Idea generation

Answer 37

Screening and evaluation

Question 38

The central level of the levels of the product concept consists of:

a. These are all related to the central layer of the layers of the product concept.
b. The consumer’s internal motivation for purchasing a product
c. The core benefit that a consumer will get from the product.
d. The tangible component of the product offering.
e. The bundle of tangible and intangible attributes that satisfy a consumer’s need

Answer 38

The core benefit that a consumer will get from the product.

Question 39

In the three circles positioning framework presented in class, which area represents the area for creating an attractive new position in the marketplace?

a. Opportunity to strengthen position
b. The “bar”
c. Your unique position
d. All of these are areas for creating an attractive new position in the marketplace.
e. Their unique position

Answer 39

Opportunity to strengthen position

Question 40

In the three circles positioning framework presented in class, what does “the bar” represent?

a. Areas that are more important to your customers than to your competitors’ customers
b. Areas where you need to be competitive, but will not give you a competitive advantage
c. Opportunities to differentiate your product based on industry standards
d. A place to go to overhear conversations about your competitors’ products.
e. Products you do not need to carry because there are plenty of businesses who will provide them

Answer 40

Areas where you need to be competitive, but will not give you a competitive advantage

Question 41

In the three circles positioning framework presented in class, what area of the chart indicates how you are currently differentiated in the marketplace?

a. Your unique position
b. Your products
c. Competitor unique position
d. Customers’ needs
e. The “bar”

Answer 41

Your unique position

Question 42

A major disadvantage to introducing a new product that represents a continuous innovation is that?

a. It is difficult to gain a sustainable competitive advantage with incremental changes.
b. The customer may not understand how to use the product anymore.
c. It more difficult to modify an existing product than it is to come up with an entirely new product.
d. These are all disadvantages of continuous innovations.
e. You can only use continuous innovation when a competitor copies your existing product.

Answer 42

It is difficult to gain a sustainable competitive advantage with incremental changes.

Question 43

When a customer actually purchases a new product for the first time, we can say that person has adopted the product.

True
False

Answer 43

False

Question 44

The two components of quality are?

a. Reliability, warranty
b. Features, benefits.
c. Benefits received, consistency.
d. Price, benefits received.
e. Cost of obtaining the benefit, benefits received.

Answer 44

Benefits received, consistency.

Question 45

Consumers might put significant effort into purchasing a _____________?

a. Shopping product
b. Unsought product
c. Specialty product
d. Unobtainable product
e. Convenience product

Answer 45

Shopping product

Question 46

Value is a function of ___________ and ___________?

a. Observed benefits, perceived cost
b. Output, input
c. perceived benefits, perceived cost
d. perceived benefits, actual cost
e. Benefits, cost

Answer 46

perceived benefits, perceived cost

Question 47

For prestige products - products that are consumed socially and confer status on their owners?

a. Demand increases when consumer income decreases
b. Value can be increased by reducing price.
c. An increase in price will increase unit sales and decrease average revenue.
d. Unit sales of the product can decrease if prices are lowered.
e. Demand elasticity is inverted.

Answer 47

Unit sales of the product can decrease if prices are lowered.

Question 48

Which of the following research techniques is most likely to be used in Causal research?

a. Controlled experiment
b. Ethnography
c. Focus groups
d. Case studies.
e. Video observation

Answer 48

Controlled experiment

Question 49

_____________ looks at how new products are adopted by entire populations.

a. Cognitive dissonance
b. Adoption process
c. Trickle across theory
d. New product development process
e. Diffusion of innovations

Answer 49

Diffusion of innovations

Question 50

The augmented product in the levels of the product concept refers to:

a. The core feature set as determined by the manufacturer.
b. The intangible attributes that along with the tangible attributes deliver the core benefit to the consumer.
c. The actual product along with other features such as a service guarantee and cool packaging that enhance the value of the core benefit delivered to the customer.
d. The core benefit disguised by fancy packaging because the customer may not be aware of what the core benefit really is.

Answer 50

The actual product along with other features such as a service guarantee and cool packaging that enhance the value of the core benefit delivered to the customer.

Question 51

A(n) _____________ specifically excludes things, such as damage caused by the customer, from warranty coverage?

a. lack of accountability
b. limited warranty
c. implied warranty
d. express warranty
e. liability

Answer 51

limited warranty

Question 52

Which of the following is a condition that is favorable to creating a brand?

a. There is limited availability of the product.
b. Consumers are unwilling to pay premium prices for similar products.
c. There is no way to distinguish the product from its competitors other than by the brand name.
d. The product is a similar to competitive products.
e. Quality and value are easy to maintain consistently.

Answer 52

Quality and value are easy to maintain consistently.

Question 53

A(n) ______________ is an organization created to provide a public or mutual benefit other than the pursuit or accumulation of profits for investors.

a. Service provider
b. Not-so-smart
c. Not-for-profit
d. Informal organization
e. Small business

Answer 53

Not-for-profit

Question 54

Not-for-profit organizations need to use complementary positioning because…?

a. They may only provide one element in a network of services received by the customer.
b. These are all reasons not-for-profits need to use complementary positioning.
c. Not-for-profits don’t compete against each other.
d. Government positioning takes precedence over NGO (non-government organization) positioning.
e. Not-for-profit organizations may not be allowed to segment.

Answer 54

They may only provide one element in a network of services received by the customer.

Question 55

When it comes to managing services, some people find it helpful to think of it as a service encounter with roles for both the service provider and for the customer. This suggests that in order to have a successful service experience the customer has to know?

a. What his or her rights are in case something goes wrong.
b. How much the service will cost.
c. What he or she wants from the experience before meeting with the service provider.
d. What he or she is expected to do in order to create the service.
e. The difference between options standard features.

Answer 55

What he or she is expected to do in order to create the service.

Question 56

Because price can be considered a ___________ attribute, it can be used to position your offering relative to those of your competitors?

a. experiential
b. credence
c. search
d. tangible
e. feature

Answer 56

search

Question 57

What is an attribute?

a. A quality or characteristic inherent in or ascribed to someone or something.
b. A speech in praise of a person or an event.
c. The perception a person has about a feature of a product.
d. An evaluation of a product.
e. A product that has made it through the alternative identification stage, but has not yet been evaluated.

Answer 57

A quality or characteristic inherent in or ascribed to someone or something.

Question 58

The “look and feel” or design of an e-commerce website is especially important during the Problem recognition stage of the consumer buying process.

True
False

Answer 58

False

Question 59

Which of the following research techniques is most likely to be used in exploratory research?

a. Qualitative data collection
b. Mail survey
c. Quasi-experiment
d. Longitudinal research.
e. Survey questionnaire

Answer 59

Qualitative data collection

Question 60

Which of the following is a condition that must be met before you can consider a group of people to be a market segment?

a. They must like each other.
b. They must be similar to each other, at least with respect to you product.
c. They must be able to communicate with each other.
d. They must be different from each other in every way that is not related to your product.
e. They must be similar to each other in age.

Answer 60

They must be similar to each other, at least with respect to your product.

Question 61

Bruce was writing test questions for his marketing class. It was getting very late in the afternoon and he was tired. So he went over to the student union and bought a big bowl of ice cream. In terms of product classification, ice cream could best be described as a(n) for Bruce?

a. durable good.
b. Business good.
c. High calorie product
d. Impulsive product
e. non-durable good

Answer 61

non-durable good

Question 62

Typically, ______________ is done by the retailer of a product rather than by the manufacturer.

a. Family branding
b. Individual product branding
c. Private-label branding.
d. Generic branding
e. Excessive branding.

Answer 62

Private-label branding

Question 63

Price elasticity is the slope of the demand curve. When price elasticity is LOW?

a. You can increase revenues by cutting prices.
b. You can increase revenues by increasing prices
c. You can decrease revenues by increasing prices
d. You can decrease profits by decreasing prices
e. You can increase profits by cutting prices

Answer 63

You can increase revenues by increasing prices

Question 64

Last year, BruceCo sold 1000 coffee cups for $10 each. If the cost for each cup was $4.70, what was the average revenue for BruceCo?

a. $5.30
b. $5,300
c. $10,000
d. $10
e. $4,700

Answer 64

$10

Question 65

In the context of “big data,” we would expect marketing analytics to include all of the following EXCEPT…

a. Results to be available in real time.
b. Multiple sources of data.
c. Automatic implementation of recommendations.
d. In the context of “big data,” we would expect marketing analytics to include all of these.
e. Data sets too large to be handled by traditional database programs.

Answer 65

Automatic implementation of recommendations.

Question 66

During the idea generation stage of the new product development process, it is important to evaluate new product ideas as they come in to avoid being overloaded with unusable ideas.

True
False

Answer 66

False

Question 67

If you are the first to use a brand name in business you have the right to use that name even if another company later trademarks the same brand name.

True
False

Answer 67

True

Question 68

A successful brand adds value to a product because…?

a. it increases the value of a company’s common stock.
b. it is a barrier to entry for competitive products.
c. of increased customer loyalty.
d. customers are willing to pay a premium price for the product.
e. These are all expressions of the value of brand equity.

Answer 68

These are all expressions of the value of brand equity.

Question 69

One of the biggest differences between a for-profit service company and a not-for-profit service company is that?

a. Not-for-profit companies are expected to lose money while for-profit companies are expected to make money.
b. These are all differences between not-for-profit companies and for-profit companies.
c. Not-for-profit companies satisfy a need in society while for-profit companies do not satisfy societal needs.
d. Not-for-profit companies receive tax dollars from the government while for-profit companies pay taxes to the government.
e. Not-for-profit companies have multiple constituencies that could be considered to be customers.

Answer 69

Not-for-profit companies have multiple constituencies that could be considered to be customers.

Question 70

For a store using ______________, many items will go on sale each week?

a. Price discrimination
b. High-low pricing
c. Odd-even pricing
d. Flexible pricing
e. Dynamic pricing

Answer 70

High-low pricing

Question 71

The ____________ approach to new product pricing sets prices high in order to recover development costs more quickly?

a. new and improved
b. Variable price
c. Trial pricing
d. Skimming
e. Penetration

Answer 71

Skimming

Question 72

Which of the following is one of the three typical uses for information in a marketing information system as described in class?

a. These are all uses for information in a typical marketing information system.
b. To serve as a resource for investors
c. To make ad-hoc changes in the competitive environment
d. To generate routine reports showing progress toward meeting marketing goals.
e. To create jobs for information technology professionals

Answer 72

To generate routine reports showing progress toward meeting marketing goals.

Question 73

Jiwon is thinking of developing a candy specifically for college students. Before she begins manufacturing, she has decided to conduct some research to determine whether or not she should include caffeine in the candy. If the results show students prefer caffeine, she will market it as a caffeine product. If the results show students don’t care about caffeine, she will market it as an energy product. Jiwon is probably in the __________ stage of the market research process?

a. Answer specific questions
b. Define the problem
c. Set research objectives
d. Take action based on the findings
e. Develop the research plan

Answer 73

Define the problem

Question 74

Bruce is considering adding dinosaur slippers to his novelty sleepware line. But first, he needs to determine if there is adequate market potential to justify the expense. Bruce is in the _________ stage of the new product development process.

a. Idea generation
b. New product strategy
c. Business analysis
d. Market testing
e. Commercialization

Answer 74

Business analysis

Question 75

The goal at the ______________ stage of the product life cycle is to maximize profit without investing a lot of resources in the product.

a. Maturity
b. Growth
c. Decline
d. Introductory
e. Rebirth

Answer 75

Decline

Question 76

Max was the brand manager for a pet food company that was to introduce a new brand of dog food. Through research, they had discovered that many dogs do not get enough exercise and this new dog food had stimulants added to give these sedate dogs energy. He thought of the brand name “Playful Puppy” and asked your opinion. You said?

a. It is a good brand name because it suggests a product benefit.
b. It is a good brand name because it is simple and easy to pronounce.
c. It is not a good brand name because it isn’t clear that it is about dog food.
d. It is a good brand name because it is memorable.
e. You said all of these things, and meant them.

Answer 76

You said all of these things, and meant them.

Question 77

Hermione was the office manager for a small business in the city. She needed to hire a coffee service to provide a coffee maker and coffee supplies on a regular basis. Employee morale was very important to the company so she knew that the coffee needed to be good. She went online and searched for several coffee services. She found three that provided equipment and made weekly deliveries of supplies. She called all three and asked them to come in and put on a demonstration so that the employees could decide which coffee they liked best. The winner of the taste test would get the contract Hermione used ____________ to evaluate the quality of the service?

a. Comparatives
b. Intangibles
c. Search attributes
d. Experiential attributes
e. Credence attributes

Answer 77

Experiential attributes

Question 78

When goods and services are exchanged for other goods and services, rather than for money, it is referred to as __________?

a. B2B
b. Barter
c. Off-book.
d. Trade
e. Non-revenue

Answer 78

Barter

Question 79

Up until 2006, it was legal for manufacturers to dictate the prices at which retailers can sell their products.

True
False

Answer 79

False

Question 80

The four ‘P’s are?

a. A formula for creating successful new products.
b. The final phase of the marketing concept
c. All of these.
d. The marketing mix variables we use to create need-satisfying offerings.
e. A tool marketers use to create exciting advertising campaigns.

Answer 80

The marketing mix variables we use to create need-satisfying offerings.

Question 81

_____________ are business customers who purchase products primarily to run the organization.

a. Institutions
b. Resellers
c. Facilitators
d. Manufacturers
e. Industrial markets

Answer 81

Institutions

Question 82

One of the main ADVANTAGES of observational data collection is?

a. People frequently are unaware or unable to say what their true motivation is.
b. Observational data is less expensive than questionnaire data
c. The data collection is done by machines such as a video camera or tape recorder.
d. It is easy to interpret observational data.
e. You have the ability to ask follow up questions.

Answer 82

People frequently are unaware or unable to say what their true motivation is.

Question 83

Roxanne has completed her positioning analysis and believes she understands why her adult milk beverage has been performing so badly. Her product was the first product to use aseptic packaging, which allows milk to be stored at room temperature for long periods of time. Introduced in 1999, the product was positioned as a survival food because everybody was worrying about Y2K problems at the turn of the century. Today people are more concerned about nutrition and her aseptic milk is very low in fat. To take advantage of this, she changes her advertising slogan from “It will keep you alive in the next century” to “A healthy beverage, ready and waiting”. Roxanne is trying to?

a. Reduce her production costs
b. Reposition her product against the competition
c. She is trying to do all of these things.
d. Make people believe that the market leader is selling an unhealthy drink
e. Reposition her product against itself

Answer 83

Reposition her product against itself

Question 84

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company typically determine the relative importance of new product development to the overall goals of the organization?

a. Commercialization
b. Screening and evaluation
c. Market Testing
d. Idea generation
e. New-product strategy
f. Business analysis
g. Technical development

Answer 84

New-product strategy

Question 85

During the _____________ stage of the fashion cycle, new styles are sought by trendsetters?

a. distinctiveness
b. emulation
c. economic
d. excitement

Answer 85

distinctiveness

Question 86

Warranties can be either expressed or implied. An expressed warranty means that?

a. A company will not be responsible for a product deficiency unless you complain in writing.
b. A company will not be responsible for a product deficiency unless you complain in person.
c. A company may be responsible for a product defect whether there is anything in writing or not.
d. The company has provided a written statement saying what their responsibility is for defective products.
e. You can resolve a claim very quickly if your product has six defects or less.

Answer 86

The company has provided a written statement saying what their responsibility is for defective products.

Question 87

The basic issue when you are dealing with the __________ characteristic of services is that the time or capacity to provide services is limited and fixed?

a. Perishability
b. Insufferability
c. Intangibility
d. Variability
e. Invisibility

Answer 87

Perishability

Question 88

Price elasticity is the slope of the demand curve. When price elasticity is HIGH?

a. You can increase profits by cutting prices
b. You can increase revenues by cutting prices.
c. You can decrease profits by decreasing prices
d. You can decrease revenues by cutting prices
e. You can increase revenue by increasing prices

Answer 88

You can increase revenues by cutting prices.

Question 89

The __________ to setting prices weighs consumer tastes and preferences more heavily than costs and profits.

a. Qualitative approach
b. Competition based approach
c. Demand-based approach
d. Cost-based approach
e. Subjective-approach

Answer 89

Demand-based approach

Question 90

Which of the following is tactics is most likely to encourage customers to pay your asking price for a product.

a. A professionally printed price tag with the price crossed out and a lower price written in.
b. A Professionally printed price tag with the actual price hand-written in a blank provided for the price.
c. A price tag that says no reasonable offer refused.
d. A handwritten price tag with the price and the date that the tag was written on it.
e. A price tag that looks like it was professionally printed.

Answer 90

A price tag that looks like it was professionally printed.

Question 91

The consumer buying process deals with how human beings __________?

a. May not act rationally in the classic ‘economic’ sense.
b. The consumer buying process deals with all of these.
c. Solve problems
d. Make decisions
e. Buy products

Answer 91

The consumer buying process deals with all of these.

Question 92

_________ is the usefulness or the benefit that a customer receives when they use your product.

a. Exchange
b. Satisfaction
c. Need
d. Utility
e. Cost

Answer 92

Utility

Question 93

__________ is a function of benefits received and their cost

a. Feature
b. Value
c. Satisfaction
d. Marriage
e. Price

Answer 93

Value

Question 94

Bruce has always wanted to own a Ferrari automobile. For him it will always be a dream because he will never be able to afford to buy one unless gets a better job and saves his money for several years. Is Bruce part of the potential market for Ferrari automobiles?

a. Yes, because he believes the Ferrari is a great luxury car even though he feels luxury cars are a waste of money.
b. No because if he really perceived benefit of owning a Ferrari, he would find the money to buy it.
c. Yes because he sees the benefit of owning a Ferrari.
d. No because he does not have the authority to buy a Ferrari.
e. No because he does not have the money to buy a Ferrari.

Answer 94

No because he does not have the money to buy a Ferrari.

Question 95

The first stage of the consumer buying process is:

a. Where a consumer realizes that there is something he or she lacks.
b. Where a consumer regrets having made the purchase after it is over with.
c. Where a consumer weighs the pros and cons of different products.
d. Where the consumer finds the resources to be able to make a purchase.
e. Where a consumer looks for different ways to solve a problem.

Answer 95

Where a consumer realizes that there is something he or she lacks.

Question 96

What do marketers mean when they speak of a “consideration set”?

a. The subset of the alternatives identified during the search phase that the consumer evaluates before making a decision.
b. The set of criteria used to evaluate alternatives.
c. Fashion-forward thinkers who people ask for advice when purchasing socially consumed goods.
d. The amount of time a consumer spends evaluating each alternative in the ‘awareness set’
e. The feelings of remorse a consumer may have following a major purchase involving multiple items.

Answer 96

The subset of the alternatives identified during the search phase that the consumer evaluates before making a decision.

Question 97

In order to understand a customer’s wants, a marketer must understand __________?

a. Psychographics
b. The cultural and social environment in which a customer makes purchasing decisions.
c. Demographics
d. The four P’s of the marketing mix.
e. The customer’s education and employment history.

Answer 97

The cultural and social environment in which a customer makes purchasing decisions.

Question 98

Sergio is the head designer for ‘Robertson House’ a high-fashion clothing company. Each year, Sergio completely changes the colors of the clothes he designs so that it will be obvious to anyone who has fashion sense that last years colors are out of date. This “planned obsolescence” tends to affect consumers at the _________ stage of the consumer buying process.

a. Internal motivation
b. Point of purchase
c. Decision
d. Need recognition
e. Problem solving

Answer 98

Need recognition

Question 99

Grocery stores frequently put items such as candy bars or chewing gum next to the check-out lines. The reason is that simply seeing the candy display may make a consumer hungry for a candy bar. This tactic tends to affect consumers at the ________ stage of the consumer buying process.

a. External motivation
b. Time-sensitive
c. Need recognition
d. Internal motivation
e. Postpurchase behavior

Answer 99

Need recognition

Question 100

What do we mean when speak of an organization’s stakeholders?

a. Individuals or organizations who monitor blogs (web logs) about new products for an industry.
b. Individuals or organizations who have expressed interest in buying a particular company’s stock when it is undervalued in the marketplace.
c. Any individual or organization that makes money when a particular company introduces a successful new product.
d. Any individual or organization that is affected by a company’s marketing activity.
e. Individuals or organizations who are not currently customers of a company.

Answer 100

Any individual or organization that is affected by a company’s marketing activity.

Question 101

People have two decisions to make when they use products to solve a problem. One of them is?

a. What is the limit on the number of alternatives to consider?
b. Do I like the product well enough to buy it?
c. How many units of the product will I need?
d. Which alternative is best?
e. Does the product come with a guarantee?

Answer 101

Which alternative is best?

Question 102

Rafael is applying to graduate schools for admission to the MBA program. If he goes part time, it will take four years and cost several thousand dollars. Rafael believes that he needs the advanced degree to get a promotion at his job. Rafael is likely to engage in _________ problem solving as he makes this decision?

a. Consumer
b. Extensive
c. Low effort
d. Routine
e. Limited

Answer 102

Extensive

Question 103

Which of the following is an expected outcome of the consumer buying process?

a. A consumer recognizes a need, identifies several alternative ways to satisfy the need, evaluates the different choices, makes a purchase, and goes through cognitive dissonance after making the purchase.
b. All of these are expected outcomes of the consumer buying process.
c. A consumer recognizes a need and makes a purchase.
d. A consumer recognizes a need, identifies several alternative ways to satisfy the need, evaluates the different choices and makes a purchase.
e. A consumer recognizes a need but decides not to do anything about it.

Answer 103

All of these are expected outcomes of the consumer buying process.

Question 104

_________ utility exists when a product is readily accessible where potential customers need it

a. Form
b. Possession
c. Place
d. Image
e. Time

Answer 104

Place

Question 105

What is the market for a specific product?

a. A physical space for conducting transactions.
b. All of the people who live in the geographic area served by the product’s manufacturer.
c. All of the people with the ability to purchase a product.
d. All of these.
e. All of the potential customers for the product.

Answer 105

All of the potential customers for the product.

Question 106

People have two decisions to make when they use products to solve a problem. One of them is?

a. Whether or not to make a purchase?
b. Do I like the product well enough to buy it?
c. What is the limit on the number of alternatives to consider?
d. Does the product come with a guarantee?
e. Is the problem serious enough to require extensive problem solving?

Answer 106

Whether or not to make a purchase?

Question 107

Which of the following statements about value is FALSE?

a. Value is entirely based on the customer’s perceptions
b. In order to have value, the benefits must outweigh the cost of acquiring them
c. Customers who fail to perceive the benefit a manufacturer designed into a product may have an incorrect perception of its value to them.
d. One can increase value by reducing the cost of acquiring a benefit
e. No two people will value the same product in exactly the same way.

Answer 107

Customers who fail to perceive the benefit a manufacturer designed into a product may have an incorrect perception of its value to them.

Question 108

All (or most) customers are consumers

True
False

Answer 108

False

Question 109

The second stage of the consumer buying process is?

a. The information search
b. The creation of the ‘awareness set’
c. Where the consumer tries to identify different ways to satisfy the need.
d. All of these are part of the second stage of the consumer buying process.
e. Affected by the cost of acquiring new information

Answer 109

All of these are part of the second stage of the consumer buying process.

Question 110

Which of the following statements about a consumer is FALSE?

a. A consumer receives a personal benefit from the product
b. Consumers have similar tastes
c. All of these statements about consumers are true
d. A consumer purchases things for personal consumption
e. A consumer is a person with unmet needs

Answer 110

Consumers have similar tastes

Question 111

The second stage of the consumer buying process is?

a. Create dissatisfaction with current products
b. identifying potential solutions to the problem.
c. Creation of the ‘consideration set’
d. Where the consumer recognizes there is a problem needing a solution.
e. Postpurchase behavior

Answer 111

identifying potential solutions to the problem.

Question 112

What is a need?

a. all of these are needs
b. a perceived lack of something
c. food and shelter
d. a status product
e. unleaded gasoline

Answer 112

a perceived lack of something

Question 113

_____________ include retail and wholesale businesses.

a. Institutions
b. Governments
c. Resellers
d. Industrial Markets
e. Facilitators

Answer 113

Resellers

Question 114

What is the difference between a business customer and an individual consumer.

a. Mass marketing techniques are usually less cost effective in business marketing than in consumer marketing because there are fewer business customers than individual consumers.
b. Mass marketing techniques are usually more effective in business markets because business buyers watch the same television shows as everybody else.
c. Mass marketing techniques are less effective on business customers because business buyers are professional and are trained to ignore advertising.
d. Price is more important to the business customer than to the individual consumer because business customers buy products in order to make money.
e. Mass marketing techniques are usually less effective in business markets because advertising creates smaller transactions than personal selling.

Answer 114

Mass marketing techniques are usually less cost effective in business marketing than in consumer marketing because there are fewer business customers than individual consumers.

Question 115

Younjin is a purchasing agent for Acme enterprises. Currently, the company makes a line of fire-proof file cabinets that are well regarded by its customers. One of her responsibilities is to purchase brochures explaining the benefits of the Acme file cabinets. She was recently authorized to purchase a computerized document management system for the company at the cost of several million dollars. With this new technology, she may be able to print the brochures in the factory rather than ordering them from a printing company as in the past. Younjin will probably treat this as a ___________ decision?

a. Make or buy
b. Make or break
c. New task buy
d. Straight rebuy
e. Modified rebuy

Answer 115

Make or buy

Question 116

One of the ways that attitudes about a product change over time is through ________________ or experiences with the product after it has been purchased.

a. Experiential learning
b. Observation
c. Word of mouth
d. College learning
e. Conceptual learning

Answer 116

Experiential learning

Question 117

Younjin is a purchasing agent for Acme Enterprises. She is responsible for the company’s copiers. The company makes lots and lots of copies so they spend more than $10 million on copies each year. Younjin is considering replacing all of the company’s copiers with a networked solution that digitizes all documents and prints them on demand at designated workstations. This system will have to be custom designed for the company and will cost several million dollars. Younjin will probably treat this as a __________ decision?

a. New task buy
b. Make or buy
c. Boom or bust
d. Modified rebuy
e. Straight rebuy

Answer 117

New task buy

Question 118

A(n) _____________ is a learned predisposition to respond to an object or a class of objects in a consistently favorable or unfavorable way?

a. Market
b. Attitude
c. Product
d. Motivation
e. Education

Answer 118

Attitude

Question 119

Many complicated products such as computers or automobiles are assembled using many component parts. Once a sales forecast for the main product has been established, it is relatively easy to estimate sales of the component products because of the ____________ characteristic of business markets?

a. Inelastic demand
b. Derived demand
c. Market structure
d. Buying center
e. Acceleration principle

Answer 119

Derived demand

Question 120

People put a lot of effort into routine purchases, even though they would rather not.

True
False

Answer 120

False

Question 121

_____________ are business customers who purchase goods to incorporate them into other products for other businesses to use.

a. Resellers
b. Industrial Markets
c. Governments
d. Institutions
e. Facilitators

Answer 121

Industrial Markets

Question 122

Confirmation bias recognizes that people will be more likely to believe someone who agrees with what they already think than someone who disagrees with what they think. This is the result of:

a. Selective interpretation
b. Natural selection
c. Selective retention
d. Selective attention
e. Selective cognition

Answer 122

Selective interpretation

Question 123

Bruce is very frustrated. He trying to make copies of a handout for his 9:30 principles of marketing class and the copier is jammed. The copier is always jammed. He has complained to the purchasing agent several times, asking them to get a copier that works. Bruce is performing the buying center role of _________?

a. Gatekeeper
b. Buyer
c. Influencer
d. User
e. Decider

Answer 123

User

Question 124

Which of the following buying criteria is a business buyer likely to use and an individual consumer NOT likely to use?

a. Quality and availability
b. Warranty and reputation of selling firm.
c. Price or financial cost of the transaction
d. Financing
e. The impact on the channel of distribution

Answer 124

The impact on the channel of distribution

Question 125

The first source people turn to for information when making a purchase is…?

a. Blogs
b. Social media
c. None of these are the first source people turn to for information when making a purchase.
d. Trusted friends
e. Commercial information provided by marketers

Answer 125

None of these are the first source people turn to for information when making a purchase.

Question 126

Reference groups are important to Marketers because…

a. They are relatively stable over time
b. Aspirational groups tend to have more disposable income
c. Reference groups are important to marketers for all of these reasons.
d. They are an important market segment
e. They serve as information sources and influence opinions

Answer 126

They serve as information sources and influence opinions

Question 127

A ____________ is a set of values, ideas and attitudes that are shared among members of a group.

a. Attitude
b. Culture
c. Personality
d. Decision
e. Market

Answer 127

Culture

Question 128

Which of the following is NOT a source of information for a typical Marketing Information System?

a. Marketing research
b. Computer systems
c. Internal data
d. Marketing intelligence
e. Acquired databases

Answer 128

Computer systems

Question 129

BruceCo is a company that makes products for the coffee industry. They subscribe to IRI’s (Information Research incorporated) market watch newsletter to help them understand what is happening with coffee in retail stores. This is an example of _____________ in a marketing information system?

a. Internal information
b. Decision makers
c. Blogs
d. Computer hardware and software
e. Syndicated reports

Answer 129

Syndicated reports

Question 130

Which of the following is an example of a source of data you might acquire in marketing analytics?

a. Customer service history
b. All of these are sources of data you might acquire in marketing analytics.
c. Location data
d. Customer data
e. Syndicated research

Answer 130

Syndicated research

Question 131

Lands End was traditionally a mail order catalog company. In order to expand their business, they decided to open retail outlets where customers could visit and actually see the merchandise. By analyzing the zip codes from past mail order shipments, they were able to locate new stores in areas where many of their customers already lived. This is an example of?

a. GIGO
b. Data manipulation
c. Exception analysis
d. Environmental scanning
e. Data Mining

Answer 131

Data Mining

Question 132

What is the difference between a research objective and a business objective?

a. A research objective provides an answer to a specific question, a management objective may require several sources of information
b. A research objective provides information, a management objective can only use information that has been provided.
c. All of these are differences between a research objective and a management objective.
d. A research objective is usually short-term, while a management objective is usually long-term
e. A research project and a management project may have the same objective

Answer 132

A research objective provides an answer to a specific question, a management objective may require several sources of information

Question 133

Frontline users need technical training in order to get the most out of marketing analytics programs.

True
False

Answer 133

False

Question 134

When would you be willing to spend money to develop new information to support a decision?

a. All of these are reasons to spend money to develop new information to support a decision.
b. When the information you develop is better than guessing.
c. When there is a high level of uncertainty about alternative outcomes.
d. When there is a lot at risk in making the decision.
e. When the expected value of the decision increases with better information.

Answer 134

All of these are reasons to spend money to develop new information to support a decision.

Question 135

What is a data silo as described in class?

a. A database designed to support one business function that is not integrated with other business functions.
b. A piece of computer hardware used to store the information left over after data mining is complete.
c. A computer program that compares databases within a business and identifies information that may be incorrect.
d. An agricultural products database.
e. A database designed to combine information from many functional areas and make it available to decision makers.

Answer 135

A database designed to support one business function that is not integrated with other business functions.

Question 136

Which of the following is a question that should be answered in the ‘define the problem’ stage of the market research process, well before any money is invested in the project?

a. Is there any secondary data?
b. Should we do pseudo research?
c. What concepts will we use to illustrate the choices to participants?
d. Is the measurement valid?
e. What action will we take based on the results of the research?

Answer 136

What action will we take based on the results of the research?

Question 137

Which of the following is NOT a requirement for causal research?

a. Focus group
b. Theoretical framework
c. Control group
d. Independent variable
e. Probability sample

Answer 137

Focus group

Question 138

Which of the following is one of the three typical uses for information in a decision support system as described in class?

a. To justify decisions that have already been made
b. To support ad-hoc or one of a kind decisions.
c. To persuade potential customers to try your product
d. To create jobs for information technology professionals
e. To manipulate data in order to make the financial reports look better.

Answer 138

To support ad-hoc or one of a kind decisions.

Question 139

Which of the following is NOT a source of information for a typical Marketing Information System?

a. Acquired databases
b. Marketing intelligence
c. All of these are sources of information for a typical marketing information system.
d. Marketing research
e. Internal data

Answer 139

All of these are sources of information for a typical marketing information system.

Question 140

Which of these is a major constraint to consider when developing a research plan?

a. The time managers spend discussing the project with researchers.
b. All of these are constraints to be considered when developing a research plan.
c. Fees paid to an outside market research firm.
d. The shelf-life of the market opportunity addressed by the research.
e. The salaries paid to in-house market researchers.

Answer 140

All of these are constraints to be considered when developing a research plan.

Question 141

Yuli is the California regional manager for a suntan lotion company. Each morning a routine report identifies cities whose sales are 15% below projection for the previous day. This ____________ report allows Yuli to focus on stores that may need personal attention.

a. Ad-hoc
b. Quarterly
c. Exception
d. Progress
e. Decision support

Answer 141

Exception

Question 142

The main advantage of primary data is that?

a. All of these are advantages of primary data collection.
b. It is less expensive than survey data.
c. It is more convenient than secondary research.
d. It will be error free.
e. It addresses your specific research question.

Answer 142

It addresses your specific research question.

Question 143

Which of the following is one of the three typical uses for information in a marketing information system as described in class?

a. To generate routine reports showing progress toward meeting marketing goals.
b. These are all uses for information in a typical marketing information system.
c. To serve as a resource for investors
d. To create jobs for information technology professionals
e. To make ad-hoc changes in the competitive environment

Answer 143

To generate routine reports showing progress toward meeting marketing goals.

Question 144

Which of the following is NOT a source of internal data used in a marketing information system?

a. An information silo
b. Sales data
c. Ordering data
d. customer service logs
e. Tracking logs from the company website

Answer 144

An information silo

Question 145

According the information presented in class, the role of unsupervised learning in marketing analytics is to create models to predict future outcomes.

True
False

Answer 145

False

Question 146

Which of the following research techniques is most likely to be used in exploratory research?

a. Survey questionnaire
b. Focus Groups
c. Mail survey
d. Longitudinal research.
e. Quasi-experiment

Answer 146

Focus Groups

Question 147

Every time Jiwon goes to the candy counter at the bookstore, they never have exactly what she wants and she believes that there is an opportunity to develop a candy specifically for college students. Because she is not sure what features college students look for in candy, she should conduct __________ research to better understand how college students feel about candy?

a. Descriptive
b. Exploratory
c. Experimental
d. Causal
e. Pseudo

Answer 147

Exploratory

Question 148

Tracy is thinking of marketing a new energy drink. Her target market will be parents of young children who need an energy boost in the car while driving from dance lessons to soccer games. She plans on testing whether or not people will like her new energy drink by offering free samples to students outside of the student union. If the majority of students say they like her product, she will go ahead with the product launch. Tracy may have a problem with the ___________ of her findings in this market research project.

a. Validity
b. Reliability
c. Information
d. Measurement
e. Generalizability

Answer 148

Generalizability

Question 149

____________ attempts to identify new business opportunities by analyzing data from past transactions?

a. Routine reporting
b. Exception reporting
c. Environmental scanning
d. Data mining
e. Quarterly reporting

Answer 149

Data mining

Question 150

_____________ is(are) the systematic gathering, recording, and analyzing data with respect to a specific customer group in a specific geographic area?

a. Marketing analytics
b. Segmentation
c. Marketing fundamentals
d. Market research
e. Marketing

Answer 150

Market research

Question 151

Tracy is thinking of marketing a new energy drink. Her key selling proposition will be that her product tastes just as good at room temperature as it does when it is ice cold. She plans on testing whether or not students will like her new energy drink by showing pictures of her drink and the other leading brands to students outside the student union. If the majority of students prefer the picture of her product, she will go ahead with the product launch. Tracy may have a problem with the ___________ of her measurement in this market research project.

a. Probability
b. Generalizability
c. Information
d. Validity
e. Reliability

Answer 151

Validity

Question 152

Which of the following is NOT a common application of marketing analytics programs?

a. Optimization
b. Predictive modeling
c. Cluster analysis
d. Data mining
e. All of these are applications of marketing analytics programs.

Answer 152

All of these are applications of marketing analytics programs.

Question 153

Which of the following research techniques is most likely to be used in descriptive research?

a. Survey questionnaire
b. Focus group
c. Observation study
d. One-on-one depth interviews
e. Ethnography

Answer 153

Survey questionnaire

Question 154

What is the most important stage of the market research process?

a. Set research objectives
b. Take action based on the findings
c. Define the problem
d. Develop the research plan
e. Answer specific questions

Answer 154

Define the problem

Question 155

It makes it easier for a customer to adopt a new product if the new product is similar to the one it is intended to replace.

True
False

Answer 155

False

Question 156

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company define the marketing strategy for and determine the projected income from a new product?

a. Commercialization
b. Screening and evaluation
c. New-product strategy
d. Idea generation
e. Technical development
f. Market Testing
g. Business analysis

Answer 156

Business analysis

Question 157

Gandalf opened a tobacco shop in the Haight/Ashbury District. He wanted to create a distinctive brand personality for the store, so he insisted that all of the employees wear purple robes and long, pointed hats while they were on duty so they would all look like wizards to customers. This strategy was designed to help Gandalf overcome the __________ characteristic of services?

a. Invisibility
b. Inseparability
c. Perishability
d. Variability
e. Intangibility

Answer 157

Variability

Question 158

Jiwon is thinking of developing a candy specifically for college students. Before she begins manufacturing, she has decided to conduct some research to determine whether or not she should include caffeine in the candy. If the results show students prefer caffeine, she will market it as a caffeine product. If the results show students don’t care about caffeine, she will market it as an energy product. Jiwon is probably in the __________ stage of the market research process?

a. Define the problem
b. Develop the research plan
c. Set research objectives
d. Answer specific questions
e. Take action based on the findings

Answer 158

Define the problem

Question 159

Which of the following statements about the growth stage of the product life cycle is FALSE?

a. Increasing numbers of customers creates the opportunity to develop profitable market segments.
b. Branding is an important tool to use in differentiating the product.
c. Increasing demand and decreasing competition lead to higher profits.
d. All of the other statements about the growth stage of the product life cycle are false.
e. Increasing demand and high profits encourage competitors to enter the market.

Answer 159

Increasing demand and decreasing competition lead to higher profits.

Question 160

The product life cycle consists of two curves which show the expected _________ and ________ of a product over time.

a. profits, losses.
b. Units, dollars
c. Sales, revenue.
d. Sales, market share.
e. Sales, profits.

Answer 160

Sales, profits.

Question 161

When you are dealing with the ____________ characteristic of a service, one approach is to institute procedure manuals and training programs so that your service employees will know how they are supposed to deal with customers.

a. Invisibility
b. Perishability
c. Variability
d. Intangibility
e. Inseparability

Answer 161

Variability

Question 162

An inverted demand curve is usually associated with luxury or prestige goods. With an inverse demand curve, within a certain range of prices…

a. An increase in price will lead to an increase in the quantity demanded
b. There is no limit to the quantity demanded.
c. An increase in price will lead to a decrease in the quantity demanded
d. A decrease in price will lead to an increase in the quantity demanded
e. A discount will lead to an increase in the quantity demanded

Answer 162

An increase in price will lead to an increase in the quantity demanded

Question 163

Manny opened a coffee shop right across the street from a Barstucks coffee shop. Manny had studied the market and he knew that it cost Barstucks, a national chain, $1.40 to make a cup of coffee that sold for $2.50. Manny could make the same cup of coffee for $1.10 and could sell it profitably for $2.25. The day he opened his shop, the Barstucks across the street offered a 99cent cup of coffee special. No customers came to Manny’s store and he had to close. The day he closed his store, the Barstucks 99 cent special ended and the price of a cup of coffee went up to $2.75. This was probably?

a. Price discrimination
b. A coincidence.
c. Price fixing.
d. Bait and switch pricing.
e. Predatory pricing

Answer 163

Predatory pricing

Question 164

Psychographics, the practice of combining psychology, lifestyle and demographic information to segments markets can provide useful insight about consumer motivations and buying patterns. One of the weaknesses of using this approach for market segmentation is that it is difficult to ___________ psychographic segments.

a. Find useful differences between
b. Reach
c. Measure
d. Spell
e. Define

Answer 164

Measure

Question 165

What is the easiest way to become the category leader for a product category?

a. Spend more on advertising than the category leader.
b. Make your packaging look the same as the category leader to gain spillover benefits from the category leader’s advertising.
c. Identify the weakest attributes of the category leader and design a product that is better than the category leader
d. Start at the back of the category and develop a plan to surpass each product in the category until you are the leader.
e. Develop a brand new product that is different from anything else on the market.

Answer 165

Develop a brand new product that is different from anything else on the market.

Question 166

A(n) ______________ targeting strategy develops more than one distinct marketing mix?

a. Concentrated
b. One-to-one
c. Multisegment
d. Pretentious
e. Undifferentiated

Answer 166

Multisegment

Question 167

What is the point you instructor was trying to make when discussing the law of “truly large” numbers?

a. That if you have a large enough group of people there will probably be subgroups who are similar to each other at least in the way they perceive your product.
b. No matter how large the group, people are individuals.
c. That it is easier to become wealthy by making a small amount of profit on a large number of transactions than by making a large amount of money on a small number of transactions.
d. That in order to be successful, your product needs to appeal to everybody.
e. That no two people are exactly alike.

Answer 167

That if you have a large enough group of people there will probably be subgroups who are similar to each other at least in the way they perceive your product.

Question 168

Bruce recently went to the eye doctor because he couldn’t see clearly enough to do the sudoko puzzle on his iPad. He could see well enough to drive, just not well enough to do the puzzle. His eye doctor said he had presbyopia, a condition that is common in people who are middle aged. The doctor said that Bruce could continue to do the crossword puzzle, but he would need to wear reading glasses. Clearly, a manufacturer of reading glasses would benefit from using a ______________ segmentation approach.

a. Buying Behavior
b. Geographic.
c. Demographic
d. Statistical
e. Psychographic.

Answer 168

Demographic

Question 169

The most attractive market segment for fast food restaurants is heavy users (no pun intended). These customers visit fast food restaurants 14 or more times per month on average. This is an example of _______________ segmentation in the fast food industry?

a. Statistical
b. Geographic.
c. Buying behavior
d. Demographic
e. Psychographic.

Answer 169

Buying behavior

Question 170

What is the hard way to become the category leader?

a. Find an attribute that nobody else is talking about and develop a market position featuring that unique attribute.
b. To acquire the leading products in the category through merger and acquisition.
c. Spend money on advertising to make consumers think your product is superior when, in fact, it is not.
d. To close your eyes and wish really, really hard that you are the category leader; then open your eyes and see if you have become the category leader.
e. Use the marketing mix to improve your position in an existing category.

Answer 170

Use the marketing mix to improve your position in an existing category.

Question 171

The point of discussing the different bases for segmenting markets was?

a. You should start with demographic segmentation and then use other segmentation variables to refine your segments.
b. You should start with demographic segmentation and move on to more advanced techniques only if necessary.
c. Most businesses find it useful to use one or two segmentation variables at the most in order to keep their segmentation schemes simple.
d. Demographic segments are more useful than segments developed with other variables.
e. You can use any combination of segmentation variables to develop market segments that work for your organization.

Answer 171

You can use any combination of segmentation variables to develop market segments that work for your organization.

Question 172

Which of the following is a condition that must be met before you can consider a group of people to be a market segment?

a. They must be the same as each other.
b. The market potential of the group must be large enough to make it economically viable.
c. They must be from a similar ethnic background..
d. There must be a large number of people in the segment.
e. They must be able to communicate with each other.

Answer 172

The market potential of the group must be large enough to make it economically viable.

Question 173

The VALS system identifies eight consumer segments based on (1) ____________ and (2) _______________?

a. Primary motivation, resources
b. Psychographics, demographics
c. Psychographics, buying patterns
d. Primary motivation, secondary motivation
e. Primary motivation, personality type

Answer 173

Primary motivation, resources

Question 174

Roxanne has completed her positioning analysis and has decided that she needs to reposition her product to a more attractive segment. In order to do this she needs to consider?

a. She needs to consider all of these things.
b. Whether the organization can support the new product position
c. Does she have the money to make the change
d. What are her competitors likely to do when they notice she is changing her strategy
e. What changes she will need to make to the product

Answer 174

She needs to consider all of these things.

Question 175

According to Michael Porter’s theory, which is best strategy to use when you are not the low cost producer in an industry?

a. Create economies of scale through advertising.
b. Go after the mass market.
c. Become the second lowest cost producer.
d. Reduce your marketing expenditures to compensate for your increased costs.
e. Differentiate your product.

Answer 175

Differentiate your product.

Question 176

How many segments should a company target?

a. You should target one market segment for each product the company offers.
b. The number that allows you to maximize profits with the resources available to you.
c. As many segments as you can afford to target with existing financial resources.
d. You can only ‘target’ one segment. The rest are secondary markets.
e. You should determine what is the normal number of segments targeted by companies sharing the same NAICS code with you and use that at a guideline for how many segments to target.

Answer 176

The number that allows you to maximize profits with the resources available to you.

Question 177

After years of steadily declining sales, the amalgamated telephone book company adopted new product development as a strategic priority for future growth. This is an example of the ___________ approach to new product development?

a. internal development
b. proactive
c. defective
d. defensive
e. reactive

Answer 177

reactive

Question 178

When a new product is being adopted by the ____________ , you could say it has reached the mass market.

a. Late adopters
b. Innovators
c. Late majority
d. Early majority
e. Early adopters

Answer 178

Early majority

Question 179

Which of the following statements about the product life cycle is TRUE?

a. The product life cycle deals with aggregate demand over the lifetime of a product.
b. All of these statements about the product life cycle are true.
c. The product life cycle can only be used to understand individual brands.
d. The product life cycle shows that a product begins life profitable and will last until it is no longer profitable.
e. The product life cycle is not useful for understanding products such as fashion, which are expected to have a short life.

Answer 179

The product life cycle deals with aggregate demand over the lifetime of a product.

Question 180

Marketers of ___________ and __________ products have to use intrusive advertising in order to make consumers aware of them at the appropriate point in the consumer buying process?

a. New, unsought
b. Marketers should use intrusive advertising for all products.
c. Memory based, commercial
d. Brand name, hard to find
e. Familiar, repeat purchase

Answer 180

New, unsought

Question 181

Large corporations use crowdsourcing campaigns to fund new product development, even if they don’t need the money raised through crowdsourcing to develop the product idea.

True
False

Answer 181

True

Question 182

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company be seeking input from customers, following up on complaints, listening to employees, analyzing market research and monitoring competitors?

a. Idea generation
b. Technical development
c. Screening and evaluation
d. Business analysis
e. Market Testing
f. New-product strategy
g. Commercialization

Answer 182

Idea generation

Question 183

It makes it easier for a customer to adopt a new product if the new product is similar to the one it is intended to replace.

True
False

Answer 183

False

Question 184

A ___________ is a distinctive mode of presentation or performance?

a. Fashion
b. Style
c. Attribute
d. Attitude
e. Feature

Answer 184

Style

Question 185

The “trickle down” theory suggests fashion trends originate with lower classes and migrate upward.

True
False

Answer 185

False

Question 186

The value of having a wide product mix is?

a. It is easier to manage several different product lines than it is to manage only one because you have fewer decisions to make.
b. It allows you to meet other needs of the customers in your target market, increasing the strength of the relationship with your target customers.
c. It allows you to feature both tangible and intangible products in the same product category.
d. Having wider packages allows you to take up more shelf space in retail stores, increasing the chances that a customer will notice your product.
e. It allows you to run several different advertising themes at the same time, increasing the chances of finding an advertisement that really works.

Answer 186

It allows you to meet other needs of the customers in your target market, increasing the strength of the relationship with your target customers.

Question 187

Most new products are successful, at least for a short while.

True
False

Answer 187

False

Question 188

What do we mean when we say that, from the consumer perspective, new products span a continuum from small, incremental changes to radically different products?

a. We mean all of these things when we speak of the new product continuum.
b. That consumers may be unaware of the difference between incremental changes and radically different products unless the manufacturer communicates the difference to them.
c. That new products start out as incremental changes to existing products and go through refinements until they become radically different products.
d. That whether or not a product is new depends on how the manufacturer chooses to position it on the continuum.
e. That ‘newness’ is hard to define and new could mean different things for different products.

Answer 188

That ‘newness’ is hard to define and new could mean different things for different products.

Question 189

Which of the statements about the levels of the product concept are true?

a. All of these statements are true.
b. It looks at products from the customer’s perspective
c. It recognized that there are an infinite number of ways to satisfy a consumer’s need.
d. It is a useful tool to use in developing new products.
e. It can be used as a basis for positioning.

Answer 189

All of these statements are true.

Question 190

The value of having a lot of offerings within a product line is?

a. A way to avoid product cannibalization because a customer can select exactly the product she desires.
b. All of these reflect the value of having a lot of offerings in a product line.
c. A way to achieve economies of scale and allow you to become the low cost producer within a product category.
d. Each product satisfies slightly different needs which allows you to target different market segments within the product category.
e. A way to maintain high inventory levels because a customer who can’t find the product she desires will always be able to find something almost as good.

Answer 190

Each product satisfies slightly different needs which allows you to target different market segments within the product category.

Question 191

The “trickle up” theory suggests fashion trends originate with lower classes and migrate upward.

True
False

Answer 191

True

Question 192

Which of the following statements about the growth stage of the product life cycle is FALSE?

a. Branding is an important tool to use in differentiating the product.
b. Increasing demand and decreasing competition lead to higher profits.
c. All of the other statements about the growth stage of the product life cycle are false.
d. Increasing demand and high profits encourage competitors to enter the market.
e. Increasing numbers of customers creates the opportunity to develop profitable market segments.

Answer 192

Increasing demand and decreasing competition lead to higher profits.

Question 193

Which of the following statements about fashion is FALSE?

a. Fashion products with very short product life cycles are called fads
b. Fashion products can have a product life cycle of from a few months to several years.
c. Fashion marketing uses ‘style obsolescence’ to make products seem out of date.
d. Fashion marketing works because we want to be unique and at the same time we want to be part of a group
e. Forecasting is less important for fashion products than it is for other products.

Answer 193

Forecasting is less important for fashion products than it is for other products.

Question 194

Which of these is NOT a good source of new product ideas?

a. All of these are good sources of new product ideas.
b. Existing customers
c. Consultants
d. Suppliers
e. People who complain about your current product offerings.

Answer 194

All of these are good sources of new product ideas.

Question 195

During the _____________ stage of the fashion cycle, mass produced fashions are available at lower prices.

a. excitement
b. emulation
c. economic
d. distinctiveness

Answer 195

economic

Question 196

One of the strategies during the decline stage of the product life cycle is to sell the product to another company or simply to stop producing the product. This strategy is called?

a. Harvesting the product.
b. Shaking the product.
c. Leaving the scene of an accident.
d. Milking the product.
e. Exiting the market.

Answer 196

Exiting the market.

Question 197

____________ in the diffusion of innovations process are less influenced by advertising and more likely to consider word of mouth information when deciding to adopt a new product.

a. Late adopters
b. Early majority
c. Innovators
d. Laggards
e. Late majority

Answer 197

Late majority

Question 198

A discontinuous innovation is?

a. A product so innovative that it can change the way we live.
b. A product that is “new to the world”
c. A discontinuous innovation is all of these things.
d. A product so new that customers may not understand how to use it.
e. An opportunity to gain a significant competitive advantage.

Answer 198

A discontinuous innovation is all of these things.

Question 199

A dynamically continuous innovation is?

a. A product that represents a major change to the way we live.
b. Somewhere in the middle of the new product continuum.
c. A way to create distance between your product and a competitor’s product position.
d. Frequently characterized by the words “new and improved” on a familiar package.
e. A dynamically continuous innovation is all of these things.

Answer 199

Somewhere in the middle of the new product continuum.

Question 200

One of the strategies during the decline stage of the product life cycle is to stop spending money on advertising continue to sell the product as long as customers are willing to buy it. This strategy is called?

a. Divesting the product.
b. Skimming the product.
c. Shaking the product.
d. Milking the product.
e. Repositioning the product.

Answer 200

Milking the product.

Question 201

The goal at the ______________ stage of the product life cycle is to maintain market share and extend the life of the product.

a. Growth
b. Decline
c. Rebirth
d. Introductory
e. Maturity

Answer 201

Maturity

Question 202

One of the disadvantages of bringing a discontinuous innovation to market is?

a. The product is so innovative that it may change the way we live.
b. You may have to spend a lot of effort helping customers understand the value of the new product.
c. You can develop a significant competitive advantage if it works.
d. All of these are disadvantages of discontinuous innovations.
e. There is less risk associated with discontinuous innovations than with incremental innovations.

Answer 202

You may have to spend a lot of effort helping customers understand the value of the new product.

Question 203

Which of the following is NOT a characteristic of a product line?

a. Have some uses in common.
b. Used together
c. Sold to the same customer group
d. Tend to be the same from company to company
e. Satisfy a class of needs

Answer 203

Tend to be the same from company to company

Question 204

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company typically determine the relative importance of new product development to the overall goals of the organization?

a. New-product strategy
b. Idea generation
c. Screening and evaluation
d. Technical development
e. Market Testing
f. Business analysis
g. Commercialization

Answer 204

New-product strategy

Question 205

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company typically first create a physical prototype of a new product?

a. Commercialization
b. Technical development
c. Business analysis
d. Screening and evaluation
e. Idea generation
f. Market Testing
g. New-product strategy

Answer 205

Technical development

Question 206

The goal at the ______________ stage of the product life cycle is to build market share and differentiate the product.

a. Rebirth
b. Maturity
c. Growth
d. Decline
e. Introductory

Answer 206

Growth

Question 207

For new products that have a major benefit to the customer, but the benefit is not obvious by casual inspection, ____________ becomes an important factor in whether customers will adopt the new product?

a. Relative advantage
b. Observability
c. All of these are important when a major benefit is not obvious by casual inspection.
d. Compatibility.
e. Trialability

Answer 207

Trialability

Question 208

A continuous innovation is?

a. A way to eliminate distance between your product and a competitor’s product position.
b. A way to create an incremental competitive advantage.
c. A modification to an existing product.
d. A continuous innovation is all of these things.
e. A way to create distance between your product and a competitor’s product position.

Answer 208

A continuous innovation is all of these things.

Question 209

The actual product, in the levels of the product concept refers to:

a. The bundle of tangible and intangible attributes we normally think of as the product.
b. The physical, or what we think of as the tangible component of the product.
c. All of these are what the actual product refers to.
d. The physical product or, in the case of a service, the service offering.
e. The core benefit the product is designed to deliver.

Answer 209

The bundle of tangible and intangible attributes we normally think of as the product.

Question 210

The goal at the ______________ stage of the product life cycle is to maximize profit without investing a lot of resources in the product.

a. Maturity
b. Rebirth
c. Introductory
d. Growth
e. Decline

Answer 210

Decline

Question 211

The product life cycle consists of two curves which show the expected _________ and ________ of a product over time.

a. Sales, market share.
b. Units, dollars
c. Sales, profits.
d. Sales, revenue.
e. profits, losses.

Answer 211

Sales, profits.

Question 212

In the maturity stage of the product life cycle, profits can be increased by?

a. Skimming.
b. Increasing sales
c. Raising prices
d. Reducing market share
e. Reducing your costs.

Answer 212

Reducing your costs.

Question 213

A ______________ or _______________ tries to create the perception of value by eliminating the advertising expense associated with many consumer products?

a. Manufacturer’s brand, producer’s brand
b. Distributor’s brand, private-label brand
c. Brand name, service mark.
d. Generic brand, no-name brand
e. Trade name, trademark

Answer 213

Generic brand, no-name brand

Question 214

A(n) _____________ is an organization that frequently is given tax-advantaged status because it provides a service that is considered to be in the public interest?

a. Vendor
b. Oligopoly
c. Non-government organization
d. Accounting firm
e. Intangible organization

Answer 214

Non-government organization

Question 215

In the United States, the federal government monitors the marketplace for possible infringement on registered brand names.

True
False

Answer 215

False

Question 216

A company using a ____________ strategy creates several individual brands in the same product category?

a. multibrand
b. cannibalization
c. fighting brand
d. line extension
e. family brand

Answer 216

multibrand

Question 217

Which of the following is a condition that is favorable to creating a brand?

a. The product is a similar to competitive products.
b. There is limited availability of the product.
c. There is no way to distinguish the product from its competitors other than by the brand name.
d. Consumers are unwilling to pay premium prices for similar products.
e. Quality and value are easy to maintain consistently.

Answer 217

Quality and value are easy to maintain consistently.

Question 218

Chez Bruce is the fanciest restaurant in the city. If you want to make a reservation, you have to make it before 5:00 pm or after 10:00 pm. There is so much demand for seats at the restaurant that you have to wait in line during peak hours. Bruce is using this strategy to deal with the __________ characteristic of service provision.

a. Variability (Inconsistency)
b. Perishability
c. Intangibility
d. Inseparability
e. Invisibility

Answer 218

Perishability

Question 219

Frodo was a massage therapist. He was very good at dealing with lower back pain. He gave his clients a book that they could use to keep a record of their visits to his practice and record their thoughts and feelings about the therapy. In the front of the book was a beautiful picture and an inspiring poem that would remind his clients that lower back pain can be treated with a visit to Frodo. By using the book, Frodo’s patients could benefit from his practice even if he wasn’t with them personally. Frodo was using the ___________ approach to making his service seem ‘real’?

a. Visualization
b. Association
c. Physical representation
d. Documentation
e. Word of mouth

Answer 219

Physical representation

Question 220

When you are dealing with the ___________ characteristic of a service, one approach to marketing services is to make the service seem ‘real’ ?

a. Variability
b. Derogatory
c. Inseparability
d. Perishability
e. Intangibility

Answer 220

Intangibility

Question 221

Hermione was the office manager for a small business in the city. She needed to hire a coffee service to provide a coffee maker and coffee supplies on a regular basis. Social responsibility was a high priority for the company so she knew that whatever coffee company she used, it had to be socially responsible. She went online and found three coffee companies that provided equipment and made regular deliveries. The company she chose claimed to be socially responsible. All of the coffee was certified to be fair trade coffee by the Fair Trade Coffee association. Hermione was familiar with the Fair Trade Association and knew that fair trade certification meant the coffee was purchased from small farmers who were paid a fair price for their coffee. Hermione used ____________ to evaluate the quality of the service?

a. Comparatives
b. Experiential attributes
c. Search attributes
d. Intangibles
e. Credence attributes

Answer 221

Credence attributes

Question 222

The basic issue when you are dealing with the __________ characteristic of services is that the customer and the service provider have to be together in order for the service to be produced?

a. Variability
b. Invisibility
c. Inseparability
d. Intangibility
e. Perishability

Answer 222

Inseparability

Question 223

In order for a firm to have an increase in market share as a pricing objective, it is assumed that the firm has?

a. no competition
b. social responsibility
c. profits
d. leading market share
e. value.

Answer 223

profits

Question 224

For many products such as candy bars, there is a price consumers expect to pay for the product. Retailers using the _____________ to setting prices will offer the product at a very low price in order to attract customers into their store?

a. Above or below approach
b. Price leadership approach
c. Price line approach
d. Customary pricing approach
e. loss-leader approach

Answer 224

loss-leader approach

Question 225

Many large retail stores use ____________ because it would be impractical to calculate the correct price for thousands of items individually?

a. Cost plus pricing
b. Price floor pricing
c. Standard markup pricing
d. price ceiling pricing
e. Flexible pricing.

Answer 225

Standard markup pricing

Question 226

When _____________ is low, customers are likely to abandon your product if you raise prices?

a. Variable cost
b. Morale
c. Perceived cost
d. Switching cost
e. Inflationary pressure

Answer 226

Switching cost

Question 227

_________ is the amount of money or other consideration, which is exchanged or offered for a product, or other desired outcome.

a. Revenue
b. Price
c. Expense
d. Value
e. Barter

Answer 227

Price

Question 228

BruceCo is planning on selling backpacks for $100 each. The company can buy the backpacks for $30.00 and have them customized for $20.00 apiece. There is a one-time set up charge of $1,000 for customization. In order for the project to go forward, the company needs to show a $10,000 profit. How many backpacks will BruceCo have to sell in order for this project to be acceptable?

a. 157
b. 220
c. 110
d. cannot be determined with this information
e. 367

Answer 228

220

Question 229

Bruce ordered a test bank from teachersupplies.com. The cost of the package was $39.95 plus sales tax (you are responsible for California sales tax, even if you order online). He chose to have the product shipped via UPS ground because it was the least expensive shipping option. Teachersupplies.com is using a ___________

a. Promotional allowance.
b. FOB (free on board)
c. Freight absorption
d. Uniform delivered price
e. Zone delivered price

Answer 229

FOB (free on board)

Question 230

Hewlett Packard makes a variety of inkjet printers for personal computers. You can buy a basic ‘all in one’ printer that scans, copies and prints for less than $99. Replacement ink cartridges from Hewlett Packard cost between $30 and $60 depending on whether it is black and white or color ink. This is an example of _____________?

a. Captive pricing
b. Yield management pricing.
c. Convenience pricing
d. Prestige pricing
e. Price bundling

Answer 230

Captive pricing

Question 231

Which of these is NOT a typical discount or allowance applied at the time a product is purchased?

a. Promotional allowance
b. Quantity discount
c. Seasonal discount
d. All of these are discounts or allowances applied at the time of purchase.
e. Trade discount

Answer 231

All of these are discounts or allowances applied at the time of purchase.

Question 232

The Broyhill furniture company designed a sofa that retailers could sell for $699 and still make a profit. This was because retailers had told the company they needed a promotional sofa that would cost less than the $1000 or more for a typical sofa. They would feature the promotional sofa in their advertisements to bring customers into the store. This is an example of?

a. Prestige pricing.
b. Penetration pricing
c. Target profit pricing
d. Flexible pricing.
e. Captive pricing

Answer 232

Target profit pricing

Question 233

Many airlines advertise low prices on the internet. When you actually book the ticket, you may find that there are destination charges, service, fees and other costs that significantly increase the cost of the ticket. The airlines use this _________ tactic to make their prices appear to be lower to customers who are comparing prices.

a. Multiple price
b. Captive price
c. Flexible price
d. Single price
e. Discount price

Answer 233

Multiple price

Question 234

The threshold level of perception is…?

a. The minimum amount of information a person can absorb
b. The minimum time a person has to be exposed to a stimulus before it will be recorded in memory
c. The minimum difference in a stimulus that a person will notice
d. The maximum level of difference in a stimulus that a person will notice
e. The maximum amount of information a person can absorb

Answer 234

The minimum difference in a stimulus that a person will notice

Question 235

Last year, BruceCo sold 1000 coffee cups for $10 each. If the cost for each cup was $4.70, how much profit did BruceCo make?

a. $5,300
b. $9,995.30
c. $5.30
d. $4,700
e. $10,000

Answer 235

$5,300

Question 236

Companies that have several products in the same category might use ____________ as a way to establish different positions for each product in the category in the mind of the consumer?

a. yield management pricing
b. multiple pricing
c. prestige Pricing
d. a price line strategy
e. penetration pricing

Answer 236

a price line strategy

Question 237

Experience has shown that customers perceive a price of $99.99 to be significantly lower than a price of $100. The pricing strategy that takes advantage of this phenomenon is called ___________

a. Yield management pricing
b. Price line pricing
c. Penetration pricing.
d. Odd-even pricing
e. Price bundling

Answer 237

Odd-even pricing

Question 238

It has been said that no two people on an airplane pay the same price for a ticket. Prices tend to be lower if you are willing to book you trip well in advance and tend to be much higher if you have to book your trip on short notice. A non-refundable ticket costs less than a refundable ticket. Airlines use this ___________ in order to maximize the revenue they earn from each flight?

a. Flexible pricing
b. Prestige pricing
c. Price bundling
d. Yield management pricing.
e. Captive pricing

Answer 238

Yield management pricing.

Question 239

In an oligopoly situation, where the demand curve for the product is kinked, what is the best strategy to increase profits?

a. Maintain price and reduce costs.
b. Increase price to increase revenues.
c. Increase price to decrease revenues.
d. Decrease price to increase revenues.
e. Decrease price to decrease revenues.

Answer 239

Maintain price and reduce costs.

Question 240

For many products such as candy bars, there is a price consumers expect to pay for the product. Retailers using the _____________ to setting prices will offer the product at a very low price in order to attract customers into their store?

a. loss-leader approach
b. Price leadership approach
c. Above or below approach
d. Price line approach
e. Customary pricing approach

Answer 240

loss-leader approach

Question 241

The four ‘P’s are?

a. A formula for creating successful new products.
b. The marketing mix variables we use to create need-satisfying offerings.
c. All of these.
d. A tool marketers use to create exciting advertising campaigns.
e. The final phase of the marketing concept

Answer 241

The marketing mix variables we use to create need-satisfying offerings.

Question 242

Which of the following statements about the result of cognitive miserliness is TRUE?

a. People will choose the first acceptable solution to a problem rather than choosing the best solution to a problem.
b. People will not think about a product unless marketers pay them to do so.
c. People in groups will identify fewer acceptable solutions to a problem than will one person working alone.
d. People are always thinking about new and better solutions to existing problems.
e. Once a problem has been solved, people will make one last effort to come up with a better solution.

Answer 242

People will choose the first acceptable solution to a problem rather than choosing the best solution to a problem.

Question 243

Grocery stores frequently put new products in high visibility locations such as the end of an aisle or near the checkout lanes. This makes consumers who might be thinking about buying a similar product aware of the new product. This tactic affects consumers who are in the _________ stage of the consumer buying process?

a. Identify alternatives.
b. Problem recognition.
c. Decision.
d. Internal or memory based search strategy.
e. Getting hungry.

Answer 243

Identify alternatives.

Question 244

Grocery stores frequently put items such as candy bars or chewing gum next to the check-out lines. The reason is that simply seeing the candy display may make a consumer hungry for a candy bar. This tactic tends to affect consumers at the ________ stage of the consumer buying process.

a. External motivation
b. Time-sensitive
c. Problem recognition
d. Internal motivation
e. Postpurchase behavior

Answer 244

Problem recognition

Question 245

________________ is the basic unit of exchange?

a. Currency.
b. A share of common stock.
c. Trust.
d. A transaction
e. A legal contract.

Answer 245

A transaction

Question 246

Of the three ways to satisfy a need, which one is used to create exchanges?

a. All of these are used to create exchanges.
b. You can make it.
c. You can buy it.
d. You can steal it.
e. You can fake it.

Answer 246

You can buy it.

Question 247

One of the ways business buyers can be proactive in identifying alternatives is…?

a. To search the internet to discover potential Sales leads.
b. All of these are ways business buyers can be proactive.
c. To contract with freight auditing firms to make sure transportation costs are appropriate for the quantity purchased
d. To put out a RFP (request for proposals) inviting suppliers to design an offering specific to the firm’s needs.
e. To enter into long-term supply contracts with reliable vendors to minimize purchasing costs.

Answer 247

To put out a RFP (request for proposals) inviting suppliers to design an offering specific to the firm’s needs.

Question 248

Nick is thinking of conducting some market research to help him determine the best colors to use for the cover of his new hip-hop CD to be released in February. He decides that he can invest up to $500 in this research, but he needs to get it done in the next three weeks. Nick is probably in the _______________ stage of the market research process?

a. Set research objectives
b. Take action based on the findings
c. Answer specific questions
d. Define the problem
e. Develop the research plan

Answer 248

Develop the research plan

Question 249

Which of the following research techniques is most likely to be used in Causal research?

a. Case studies.
b. Ethnography
c. Video observation
d. Focus groups
e. Controlled experiment

Answer 249

Controlled experiment

Question 250

Which of the following is NOT a source of internal data used in a marketing information system?

a. Customer service logs
b. Sales data
c. Cost information
d. Google searches
e. Scheduling information

Answer 250

Google searches