Module 5 Flashcards

1
Q
The combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service is called a:
A) 	product package.
B) 	total product offer.
C) 	product mix.
D) 	product matrix.
A

B

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2
Q
The combination of advertising, personal selling, public relations, and sales promotion activities used by an organization represents its:
A) 	Promotional mix
B) 	marketing communications system.
C) 	marketing mix.
D) 	public relations package.
A

A

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3
Q

Today, packaging is:
A) exclusively intended to protect the product from damage
B) the most expensive component of the production process.
C) the least important component of the marketing mix.
D) assuming an increasingly important role in the promotion of products.

A

D

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4
Q
Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market?
A) 	Total product offer
B) 	Product matrix
C) 	Product line
D) 	Product mix
A

C

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5
Q
A firm that wants to distribute its products as widely as possible would use a(n) \_\_\_\_\_\_\_\_\_\_\_ distribution strategy.
A) 	shotgun
B) 	extensive
C) 	universal
D) 	intensive
A

D

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6
Q

Phil asks you to calculate the break-even point for his firm. You respond that you will need the following information:
A) total fixed costs, selling price, and variable costs per unit.
B) forecasted sales volume, operating expenses, and asset values.
C) sales revenue and total liabilities.
D) the values for all assets and liabilities.

A

A

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7
Q
'Chip off the Old Block' is a new chocolate chip cookie created by the Cookie Company. To generate interest, the company sent a free package of cookies to selected homes along with a coupon. Cookie Company's activities represent:
A) 	trade advertising.
B) 	consumer publicity.
C) 	public relations.
D) 	sales promotions.
A

D

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8
Q
Patrick Bolger is convinced that his product idea has tremendous potential. He will be involved with production, but plans to use other firms who specialize in storing and transporting the product to help him move the product along its path to the final consumer. These specialists are part of his product's:
A) 	wheel of retailing.
B) 	market network.
C) 	franchise system.
D) 	channel of distribution
A

D

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9
Q
LoRider Wheels sells high quality bicycles and accessories. The store is known for a pleasant environment, friendly salespeople and an excellent service department. All of these elements are part of the \_\_\_\_\_\_\_\_\_\_\_ offered by LoRider.
A) 	total product offer
B) 	competitive environment
C) 	product matrix
D) 	promotion mix
A

A

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10
Q

Which of the following is the best example of a product line?
A) General Motors offers passenger cars, small trucks, and tractor trailers.
B) Hewlett Packard offers scanners, printers, and personal computers.
C) Kellogg offers Special K, Raisin Bran, Corn Flakes, and a variety of other cold ready-to-eat cereals.
D) Sony offers DVD players, compact disc players, and video game consoles.

A

C

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11
Q
\_\_\_\_\_ uses price points to establish prices that help create the impression that the product is less expensive than it is.
A)	Bundling
B)	Psychological pricing
C)	Everyday low pricing (EDLP)
D) 	High-low pricing
A

B

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12
Q
Firms utilize \_\_\_\_\_\_\_\_ when they attempt to add value to their product by offering services after the sale, product demonstrations, or interactive customer web sites.
A)	Break-even segmentation
B)	Niche marketing
C)	Relationship branding
D)	Non-price competition
A

D

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13
Q
A(n) \_\_\_\_\_\_\_\_\_\_ is a marketing intermediary that sells to other organizations.
A) 	Wholesaler
B)	Agent
C)	Retailer
D)	Broker
A

A

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14
Q
Which of the following represents a pricing strategy for a new product that establishes a low price to attract more customers and attempts to discourage competitors?
A)	Everyday low pricing strategy
B)	Skimming strategy
C)	Penetration strategy
D)	High-low pricing strategy
A

C

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15
Q
The producers of candy bars are most likely to use a(n) \_\_\_\_\_\_\_\_\_ distribution strategy for their products.
A)	Exclusive
B)	Extensive
C)	Selective
D)	Intensive
A

D

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16
Q
The Proctor & Gamble Company is a major producer of bar soaps. In fact, Proctor & Gamble produces Ivory, Zest, and Coast bar soaps that all claim a variety of benefits. These products are part of Proctor & Gamble’s \_\_\_\_\_\_\_\_ in bar soaps.
A)	Product offer
B)	Product line
C)	Product life cycle
D)	Product mix
A

B

17
Q
At the break-even point:
A) variable costs are equal to total fixed costs
B) target profit is achieved
C) total revenue is equal to total cost
D) profits are maximized
A

C

18
Q
Jian has entered into a contract with the federal government to design a computer simulation for training helicopter pilots. The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production. This represents:
A) target costing
B) supply and demand pricing
C) demand-based pricing
D) cost-based pricing
A

D

19
Q

Which of the following is an example of what a brand can do for a seller?
A) build brand equality
B) support higher pricing for products or services
C) eliminate the need for marketing intermediaries
D) reduce the time required to search out a product or a service

A

B

20
Q

Which of the following is a potential problem with a high-low pricing strategy?
A) it teaches customer to wait for sales, and therefore could reduce profits
B) it is difficult to implement
C) it confuses and frustrates customers
D) it places too much emphasis on non-price competition

A

A

21
Q
\_\_\_\_\_\_\_\_\_\_ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.
A) Cost-based pricing		
B) Target costing
C) Price discrimination
D) Price leadership
A

B

22
Q
The degree to which customers are satisfied and are committed to future purchases of a desired brand is called:
A) brand equity.		
B) brand loyalty.
C) brand awareness.
D) brand intensity.
A

B

23
Q
. \_\_\_\_\_\_\_\_\_\_\_ would probably be distributed using an intensive strategy.
A) Men's suits		
B) Popular magazines
C) Digital cameras
D) Television sets
A

B

24
Q
The maturity stage follows the \_\_\_\_\_\_ stage of the product life cycle.
A) profit
B) decline
C) introduction
D) growth
A

D

25
Q
The Pillsbury Doughboy is an example of a:
A) private brand
B) patent
C) trademark
D) generic label
A

C

26
Q

What is “bundling”?

A

grouping two or more products together

27
Q

what are the 4 stages of the product life cycle in order?

A

Introduction
growth
maturity
decline

28
Q

What is “building traffic” in terms of the pricing strategy

A

supermarkets advertise the product below cost, to attract people. these products are known as “loss leaders”

29
Q

what is the difference between cost-based pricing and demand-based pricing?

A

Cost-based: using cost as a primary basis to set a price, they develop cost accounting systems to measure production costs.
Demand-based: considers the factors of the customers taste’s and preferences

30
Q

What is integrated marketing communication (IMC)

A

a technique used that combines all promo tools into one comprehensive and unified promo strategy

31
Q

2 promotional strategies to move products?

A

Push: convincing wholesalers to stock & sell merchandise, pushing it through the distribution system to the stores.(exs: advertising, personal selling, sales promotion)

Pull: directs heavy advertising & sales promotion efforts towards customers