Deck 10: Marketing: Providing Value to Customers

Question 1

Technology optimists are those who embrace new technology.

Answer 1

True

Question 2

When we identify a specific group of consumers that have particular interests in our product,access to it,and the means to buy it,we've identified our target market.

Answer 2

True

Question 3

_____ would not be included in a demographic segmentation of consumers.

A)Marital status
B)Ethnic background
C)Lifestyle preferences
D)Educational background

Answer 3

C

Question 4

Psychographic segmentation classifies consumers on the basis of individual lifestyles as they're reflected in people's interests,activities,attitudes and values.

Question 5

Demographic segmentation divides a market into groups based on such criteria as values,interests,opinions,and lifestyles.

Question 6

A company's marketing strategy is a plan for selecting a company's target market and developing advertising materials that can be used to promote products of interest to them.

Question 7

The _____ market includes buyers who want a product for use in making other products.

A)secondary
B)wholesale
C)consumer
D)industrial

Question 8

Market segments consist of groups of potential customers with common characteristics that influence their buying decisions.

Question 9

In order to put a marketing concept into practice,you need a _____ for performing two tasks: selecting a target market and developing your marketing mix.

A)marketing scheme
B)marketing plan
C)marketing strategy
D)marketing mix

Question 10

_____ is not an aspect of marketing strategy.

A)Selecting a target market
B)Implementing strategies for promoting products
C)Distributing products
D)Performing sales-related accounting tasks

Question 11

The basic philosophy of satisfying customer needs while meeting organizational goals is called the marketing strategy.

Question 12

Your _____ market consists of a specific group of consumers who are interested in your product,have access to it,and possess the means to buy it.

A)strategic
B)target
C)popular
D)local

Question 13

Working in the field of _____,Juan Gonzales deals with processes for creating,communicating,and delivering value to customers and for improving customer relationships.

A)promotion
B)marketing
C)customer service
D)customer relations

Question 14

Because its customers want its products for personal use and household consumption,Sunshine Cosmetics sells in a(n)_____ market.

A)consumer
B)retail
C)industrial
D)attractive

Question 15

Marketing includes everything that organizations do to identify and satisfy customer needs.

Question 16

A consumer market consists of buyers who want a product for use in making other products.

Question 17

By making a decision to sell snow shovels in Alaska you are dividing your market using a geographics segmentation variable.

Question 18

Dividing consumers by such variables as attitude toward the product is called psychographic segmentation.

Question 19

Marketing is just advertising and selling.

Question 20

If you own an automobile dealership,you would be interested in a potential buyer's income,which is a demographic segmentation variable.

Question 21

The four P's of the marketing mix are product,price,place and public relations.

Question 22

Online surveys are easier to answer but get poorer response rates than telephone surveys.

Question 23

A _____ is a letter,sound,or symbol that differentiates a product from similar products on the market.

A)title
B)tag
C)name
D)brand

Question 24

The marketing mix consists of strategies for creating,pricing,promoting,and distributing products that satisfy customers.

Question 25

To prevent other companies from coming out with their own "Robosapiens" its manufacturer took out a patent on the name "Robosapien".

Question 26

Setting a price for a product is a tool of the marketing mix.

Question 27

Which two segmenting variables would be most important for a company that sells children's hiking boots?

A)Geographic and behavioral
B)Demographic and geographic
C)Behavioral and psychographic
D)Demographic and psychographic

Question 28

A firm that markets a product with no branding information attached to the packaging except a description of its contents is using _____ branding.

A)generic
B)private
C)proprietary
D)tag

Question 29

Using _____ segmentation,Pierre Trudeau has divided his market according to a variable called usage rate.

A)behavioral
B)demographic
C)geographic
D)psychographic

Question 30

When a travel agency wanted to predict sales for a new travel adventure they wanted to start marketing,they looked at sales figures and customer feedback on similar types of vacation packages they had offered in the past.This is an example of _____.

A)primary data gathering
B)secondary data gathering
C)scientific research
D)intermediate data gathering

Question 31

The marketing mix is often regarded as the least important ingredient of marketing.

Question 32

Labeling offers consumers a glimpse of the product and should be designed to attract their attention.

Question 33

Between the two types of data,marketers generally begin by looking at primary data-previously collected information pertaining to the target market.

Question 34

A product on a supermarket shelf contains no identification except for a description of the contents.The company is using manufacture branding.

Question 35

McDonald's sells tacos for breakfast in Arizona because its marketers have identified a _____ segment.

A)demographic
B)behavioral
C)geographic
D)psychographic

Question 36

A trademark is a word,letter,sound or symbol that differentiates a product from its competitors.

Question 37

When conducting marketing research,the first data looked at by marketers is secondary data.They then collect and analyze primary data.

Question 38

When consumers prefer and insist upon buying Dell products,they're demonstrating brand loyalty.

Question 39

If you are food shopping and see a jar of peanut butter on the shelf with the store's name on it,the branding strategy used is private branding.

Question 40

_____ segmentation classifies consumers on the basis of individual lifestyles as they're reflected in personal values.

A)Geographic
B)Demographic
C)Behavioral
D)Psychographic

Question 41

_____ is the most productive way to conduct surveys.

A)Asking customers face to face in stores
B)Mailing out questionnaires
C)Phoning people
D)Using the Internet

Question 42

Developing a marketing mix may involve all of the following activities except:

A)developing a marketing budget.
B)developing a product aimed at the needs of the target market.
C)setting a price for a product.
D)informing potential buyers about a product.

Question 43

With skimming pricing,a company starts off with the highest price that very interested customers will pay.

Question 44

Marketers generally begin the research process by gathering _____ data.

A)secondary
B)primary
C)electronic
D)free

Question 45

Over time,your company hopes to develop brand ____ among customers who prefer or even insist upon its product.

A)awareness
B)monopoly
C)constancy
D)loyalty

Question 46

Prestige pricing sets prices artificially high to give the impression of a high-quality product.

Question 47

When Toyota offers a premium car under the brand name Lexus,it is using which of the following branding approaches?

A)Private branding
B)manufacture branding
C)Generic branding
D)Multibranding approach

Question 48

The marketing mix consists of all of the following except _____.

A)price
B)product
C)positioning
D)place

Question 49

Using _____ branding,a company makes a product and sells it to a retailer who resells it under its own name.

A)generic
B)primary
C)private
D)tag

Question 50

With penetration pricing,a company would initially charge a low price on a product to "get its foot in the door." Over time,this approach will encourage others to enter the market.

Question 51

A company seeks a(n)_____ by registering the name of a product with the U.S.Patent Trade Office.

A)brand name
B)trademark
C)copyright
D)endorsement

Question 52

When a new product is introduced,the marketer will consider either skimming or penetration pricing.

Question 53

Brand _____,like that enjoyed by Coca-Cola,results from favorable consumer experience with a product.

A)loyalty
B)equity
C)primacy
D)status

Question 54

Typically,all of the following information is included on a packaging label except _____.

A)where the product was made
B)what risks are associated with the product
C)who made the product
D)what color the product is

Question 55

_____ is the most productive way to conduct surveys.

A)Asking customers face to face in stores
B)Mailing out questionnaires
C)Phoning people
D)Using the Internet

Question 56

Marketers often determine how much potential customers are willing to pay for a product and then price it accordingly.This pricing strategy is called target costing.

Question 57

With odd-even pricing,marketers price a product according to its cost to the manufacturer plus a reasonable profit.

Question 58

Marketers generally begin the research process by gathering _____ data.

A)secondary
B)primary
C)electronic
D)free

Question 59

_____ is the process of collecting and analyzing data that's relevant to a specific marketing situation.

A)Advertising research
B)Sample selling
C)Marketing research
D)Target scanning

Question 60

When skimming pricing is adopted for a new product,it will likely generate early profits.But the early profits will entice competitors to enter the market.

Question 61

Stevens Outdoor Furniture has just introduced a new line of products in the southeastern United States. Owner James Bilby discovered the new line, which includes outdoor furniture and other lawn items, on a recent vacation to California. The market is extremely promising because none of his main competitors stocks this type of furniture. He’s concerned, however, about pricing because shipping costs will drive his prices higher than those charged by stores closer to the manufacturer’s West Coast factory. Initial promotion and advertising costs, as well as warehousing expenses, are also on Bilby’s mind. He’s called a teleconference with his ten store managers to develop a pricing strategy that must take effect immediately.

-Demand-based pricing would never work in this situation.

Question 62

Wholesalers buy goods from suppliers and sell them to businesses that resell them.

Question 63

A few years ago,when Nike was charging $140 for a pair of jogging shoes,the company was using a strategy of _____ pricing.

A)cost-based
B)prestige
C)over-the-top
D)target

Question 64

Stevens Outdoor Furniture has just introduced a new line of products in the southeastern United States. Owner James Bilby discovered the new line, which includes outdoor furniture and other lawn items, on a recent vacation to California. The market is extremely promising because none of his main competitors stocks this type of furniture. He’s concerned, however, about pricing because shipping costs will drive his prices higher than those charged by stores closer to the manufacturer’s West Coast factory. Initial promotion and advertising costs, as well as warehousing expenses, are also on Bilby’s mind. He’s called a teleconference with his ten store managers to develop a pricing strategy that must take effect immediately.

-Skimming pricing,which would also help Bilby recover some of his initial costs,is a viable option because Stevens has virtually no competition.

Question 65

The supply chain is the entire range of activities that begins with a company's purchase of raw materials and ends in the sale of its finished product to an end user.

Question 66

_____ pricing bases the selling price of a product on its cost plus a reasonable profit.

A)Rational
B)Prestige
C)Target
D)Cost-based

Question 67

Distribution entails all activities involved in getting the right quantity of your product to your customers at the right time and at a reasonable cost.

Question 68

When a manufacturer of digital video recorders initially charged a high price but later dropped the price after others entered the market,it was practicing which pricing method?

A)Cost-based pricing
B)Target costing
C)Skimming pricing
D)Penetration pricing

Question 69

Using _____ pricing,a company initially charges a low price,both to discourage competition and to grab a sizeable share of the market.

A)skimming
B)flexible
C)penetration
D)bidding

Question 70

If a customer pays $40 for a shirt that's been marked up 100 percent over cost,what price did the retailer pay for it?

A)$15
B)$20
C)$22.50
D)$25

Question 71

With _____ pricing,a company tries to cover its initial costs by setting the highest price that keenly interested customers will pay.

A)skimming
B)penetration
C)flexible
D)bidding

Question 72

If you stood outside an NBA championship game and sold your ticket for double the original price,you'd be engaged in _____ pricing.

A)prestige
B)cost-based
C)unsportsmanlike
D)demand-based

Question 73

Stevens Outdoor Furniture has just introduced a new line of products in the southeastern United States. Owner James Bilby discovered the new line, which includes outdoor furniture and other lawn items, on a recent vacation to California. The market is extremely promising because none of his main competitors stocks this type of furniture. He’s concerned, however, about pricing because shipping costs will drive his prices higher than those charged by stores closer to the manufacturer’s West Coast factory. Initial promotion and advertising costs, as well as warehousing expenses, are also on Bilby’s mind. He’s called a teleconference with his ten store managers to develop a pricing strategy that must take effect immediately.

-It appears that,at this point,penetration pricing is Bilby's best strategy.

Question 74

When a manufacturer sells a product to a retailer,the retailer's cost is _____ what the consumer pays for it.

A)much less than
B)a little less than
C)insignificant compared to
D)unrelated to

Question 75

Using demand-based pricing,you work backwards,figuring out how much consumers are willing to pay for a product and then subtracting an amount to cover your profit.

Question 76

Automation is the process of physically moving or carrying goods during production,warehousing,and distribution.

Question 77

You manufacture covers for barbeque grills at a cost of $5 each and make a profit of $2 per cover.The barbeque grill covers are sold to consumers by a national outdoor furniture retailer for $18,and you know the selling price includes a markup of $9 each.What is true about this situation?

A)The covers are priced using cost-based pricing
B)You sold the covers directly to the outdoor furniture retailer
C)You need a new accountant because the numbers don't add up
D)You sold the covers through a distributor

Question 78

Stevens Outdoor Furniture has just introduced a new line of products in the southeastern United States. Owner James Bilby discovered the new line, which includes outdoor furniture and other lawn items, on a recent vacation to California. The market is extremely promising because none of his main competitors stocks this type of furniture. He’s concerned, however, about pricing because shipping costs will drive his prices higher than those charged by stores closer to the manufacturer’s West Coast factory. Initial promotion and advertising costs, as well as warehousing expenses, are also on Bilby’s mind. He’s called a teleconference with his ten store managers to develop a pricing strategy that must take effect immediately.

-The traditional practice of cost-based pricing is worth a try if Bilby thinks it important to establish a market for his ten stores.

Question 79

Wholesalers are sometimes called "distributors."

Question 80

Stevens Outdoor Furniture has just introduced a new line of products in the southeastern United States. Owner James Bilby discovered the new line, which includes outdoor furniture and other lawn items, on a recent vacation to California. The market is extremely promising because none of his main competitors stocks this type of furniture. He’s concerned, however, about pricing because shipping costs will drive his prices higher than those charged by stores closer to the manufacturer’s West Coast factory. Initial promotion and advertising costs, as well as warehousing expenses, are also on Bilby’s mind. He’s called a teleconference with his ten store managers to develop a pricing strategy that must take effect immediately.

-If the new line of furniture is of above-average quality,prestige pricing might well work because customers will probably assume that it's of very high quality.