Deck 11: Creating Products and Pricing Strategies to Meet Customers Needs

Question 1

Frequent-buyer clubs are common tools in relationship marketing.

Answer 1

True

Question 2

When Clorox targets heavy users of bleach, it is using volume segmentation.

Answer 2

True

Question 3

The five P's are product, promotion, price, people and possession.

Answer 3

False

Question 4

Basing market decisions on what a product will do rather than on consumer characteristics is called benefit segmentation.

Question 5

The strategy that is based on the demand for the product and the cost of producing it is called the pricing strategy.

Question 6

Buying Canon brand cameras because quarterback Archie Manning promotes that brand is an example of the use of benefit segmentation.

Question 7

Personal selling is an element of the product strategy.

Question 8

Verna Knight is doing observation research when he asks people to describe how to fold sheets, towels, and pillowcases.
.

Question 9

The first step in the consumer decision-making process for buying sandals would be for the weather to turn hot and me to realize I have no footwear that doesn't make my feet sweat.

Question 10

The goal in environmental scanning is to gather internal environmental data to identify future market opportunities and threats.

Question 11

The marketing concept emphasizes a consumer orientation.

Question 12

Marketing is the process of combining the conception, pricing, promotion, and distribution of goods or services to create exchanges that satisfy individual and organizational objectives.

Question 13

Distribution strategy is another term for place strategy.

Question 14

A target market is a specific group of consumers toward whom a firm directs its marketing effort.

Question 15

Chewing gum, flashlight batteries, sewing needles, and adhesive tape are considered convenience products.

Question 16

Selling retirement plans to people over the age of 50 is an example of demographic segmentation.

Question 17

There are no significant differences between the consumer market and the business-to-business market.

Question 18

Sales promotion, advertising, and public relations are elements of the promotion strategy.

Question 19

A product is any good or service, along with its perceived attributes and benefits, that satisfies wants.

Question 20

Market behavior is a term used to describe the actions people take in buying and using goods and services.
.

Question 21

Customer satisfaction:

A)refers to the customer's feeling that a product has met or exceeded expectations
B)determines what kind of marketing strategy will be used
C)is the same as customer value
D)is only important to companies that have a differential competitive advantage
E)is accurately described by all of the above

Question 22

Price skimming is a price strategy often used in the maturity stage of the product life cycle.

Question 23

Quality is the perceived value that is exchanged for something else.

Question 24

In the product development process, most companies utilize the concepts of brainstorming, screening, and test marketing.

Question 25

_____ is the ratio of benefits to the sacrifice necessary to obtain those benefits.

A)Customer satisfaction
B)Cognitive dissonance
C)Relationship marketing
D)Customer value
E)Price

Question 26

Customer satisfaction:

A)is the same as customer value
B)can occur even if the product does not meet customer expectations
C)is most likely to be achieved by companies that have a production orientation
D)refers to the customer's feeling that a product has met or exceeded expectations
E)is accurately described by all of the above

Question 27

The two types of business products are classified as expense and non-expense items.

Question 28

The _____ is the belief that the firm should dedicate all of its planning, policies, operations, and efforts to the satisfaction of the customer.

A)exchange relationship
B)marketing concept
C)market approach
D)market mission statement
E)total exchange concept

Question 29

The idea behind bundling is to reach a segment of the market that would not be reached as effectively if the product were sold separately.

Question 30

One-to-one marketing is synonymous with database marketing.

Question 31

The marketing concept:

A)achieves long-term organizational goals
B)satisfies customer wants and needs legally and responsibly
C)focuses on customer wants so the company can differentiate its product from its competition
D)integrates all of the company's activities to satisfy customer wants
E)does all of the above

Question 32

When the manufacturer of Dove soap introduced Dove moisturizing body wash, it was an example of the use of a line extension strategy.

Question 33

Price skimming is often used as an inducement to get consumers to switch brands or companies.

Question 34

Transmissions purchased by the Snapper Inc.to build riding lawn mowers are called component parts.

Question 35

_____ is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

A)Sales
B)Marketing
C)Exchange
D)Production
E)Advertising

Question 36

Prestige pricing is the pricing strategy of selling a new product at a low price in hopes of achieving a large sales volume and prestige for the product.

Question 37

According to the _____, a firm should first identify consumer needs and then produce the goods and services that will satisfy them.

A)market mission statement
B)customer satisfier
C)sales concept
D)total exchange concept
E)marketing concept

Question 38

Pricing products below the normal markup or even below cost to attract customers is called bait pricing.

Question 39

The marketing concept:

A)satisfies customer wants and needs legally and responsibly
B)is only concerned with the achievement of short-term goals
C)is not concerned with what the competition is doing
D)only affects an organization's marketing department
E)does all of the above

Question 40

A good marketing strategy should carry a product through all stages of the product life cycle.

Question 41

_____ is a strategy that focuses on forging long-term partnerships with customers.

A)Niche marketing
B)Relationship marketing
C)Transactional marketing
D)Exchange targeting
E)Mass customization

Question 42

The _____ is based on the five P's.

A)marketing mix
B)target market
C)production mix
D)advertising mix
E)competitive advantage

Question 43

Aldi is a no-frills grocery chain.It sells grocery staples right out of crates and boxes.By controlling expenses, Aldi customers can expect to save 30 to 50 percent compared to Kroger customers.The supermarket chain's emphasis on maintaining its cost competitive advantage means the company's top management is often concentrating on its _____ strategy.

A)place
B)promotion
C)pricing
D)possession
E)production

Question 44

Vegetarians have the upper hand in Mumbai, India, where not eating meat is a centuries-old tradition.In a booming Indian economy, the vegetarians are outnumbering the meat-eaters in many metropolitan areas.In response to this growing vegetarianism (especially among the middle class), franchises like Pizza Hut have created 100 percent vegetarian menus.By eliminating all meat from pizzas, the Indian Pizza Huts have engaged in a _____ strategy.

A)product
B)place
C)promotion
D)production
E)pricing

Question 45

A firm with a _____ has its ability to provide a unique product or service that offers something of value to buyers besides simply a lower price.

A)promotional emphasis
B)niche strategy
C)relationship building advantage
D)comparative advantage
E)differential competitive advantage

Question 46

A pharmaceutical company with headquarters in India sells fluconazole, the generic version of Pfizer's anti-fungal drug Diflucan internationally for significantly less money than many U.S.generic drug manufacturers.The generic drugs industry in this country needs to rethink its _____ strategy to stay competitive.

A)place
B)promotion
C)pricing
D)possession
E)production

Question 47

The blend of the marketer's tools is called the five Ps.Which of the following is NOT one of the five Ps?

A)product strategy
B)pricing strategy
C)place strategy
D)possession strategy
E)promotion strategy

Question 48

In 2006, The Home Depot launched its first consumer and business rewards credit cards.The Home Depot Rewards MasterCard and The Home Depot Business Rewards MasterCard allows consumers and business owners earn rewards for everyday purchases.The Home Depot is engaged in:

A)convenience selling
B)relationship marketing
C)transactional marketing
D)exchange targeting
E)mass customization

Question 49

_____ is the process in which a firm continuously collects and evaluates information about its external environment.

A)Marketing research
B)Secondary data collection
C)Environmental scanning
D)External monitoring
E)Relationship marketing

Question 50

Topik is a product that is sprayed on thinning hair and makes the hair appear thicker.The manufacturer considers its potential market to be blue-collar workers who earn less than $30,000 per year, are divorced, and who like to think of themselves as weekend athletes.The manufacturer of Topik considers this group to be its:

A)population sample
B)target market
C)demand group
D)utility market
E)package group

Question 51

Maria Manow is planning to sell handmade quilts over the Internet.As she decides what to charge for a full-sized quilt, Manow will calculate her fixed and variable costs.At this point, Manow will be developing her _____ strategy.

A)possession
B)place
C)pricing
D)promotion
E)product

Question 52

3M Consumer Healthcare has introduced a "Home 'n Go Pack" packaging concept that organizes each of its bandage offerings into a separate plastic pouch within the bandage box.The pouch is visible through a window in the external packaging.The decision to offer this new packaging was made as part of the _____ strategy.

A)place
B)promotion
C)pricing
D)possession
E)product

Question 53

The Accent Modification Center helps upwardly mobile international professionals smooth accents that may be holding them back from getting that next promotion.The business's target market is from the growing Asian population in Virginia.The center has developed a(n):

A)promotional emphasis
B)niche competitive advantage
C)relationship building advantage
D)comparative advantage
E)differential competitive advantage

Question 54

Mike and Ike, the fruit-flavored chewy candies, needed a major facelift.The brand had a small but loyal core of "munchers." A relatively small brand, it needed visibility to take on share leaders like Starburst and Skittles.The company changed its packaging and developed contests all geared to 12- to 17-year-olds.The makers of Mike and Ike have modified its _____ strategies.

A)place and price
B)promotion and place
C)product and place
D)product and promotion
E)promotion and price

Question 55

Finding a place to live in Mumbai, India, has been getting harder these days for people who are not vegetarians.Vegetarianism is a centuries-old custom among the Indian population, but the requirement is becoming more obvious as non-vegs are being segregated from vegs.A real estate broker in Mumbai who will only rent or sell a home to a vegetarian as defined that group as its:

A)population sample
B)target market
C)demand group
D)utility market
E)package group

Question 56

Aldi is a no-frills grocery chain.It sells grocery staples right out of crates and boxes with emphasis on low-priced, private-label brands.Aldi stores are typically about one-third the size of the traditional supermarket.By controlling expenses, Aldi customers can expect to save 30 to 50 percent compared to Kroger customers.The chain targets bargain hunters who are willing to rent a cart and bag their own groceries.Aldi competitive advantage is based on:

A)low costs
B)its competition
C)promotion
D)stakeholders
E)the production concept

Question 57

In general, when a business is engaged in environmental scanning, it looks at all of the following external forces that might affect it EXCEPT:

A)the economy
B)suppliers
C)technology
D)demographic forces
E)political and legal forces

Question 58

Shenshen Zhongxing Telecom (ZTE) is a Chinese company that is the only telecommunications company in China that produces and markets an inexpensive camera phone to sell to middle class Chinese living in urban areas.Because ZTE targets a single segment within a limited geographical area, it can be said to have a(n):

A)promotional emphasis
B)niche competitive advantage
C)relationship building advantage
D)comparative advantage
E)differential competitive advantage

Question 59

There are numerous office supplies manufacturers.U.S.-based Esselte concentrates on selling filing products and desktop products such as staplers and pen sets.Because the Esselte brand is recognized as an innovative leader in the development of filing products and desktop items, the company can be said to have a(n):

A)promotional emphasis
B)economies-of-scale-based strategy
C)value-based strength
D)comparative advantage
E)differential competitive advantage

Question 60

The _____ is a specific group of consumers toward which a firm directs its marketing efforts.

A)population sample
B)package market
C)demand group
D)target market
E)utility group

Question 61

Which one of the following is NOT a commonly used method for segmenting markets?

A)volume
B)consumer
C)benefit
D)demographic
E)psychographic

Question 62

Which of the following is an example of a social factor that influences the consumer decision-making process?

A)attitude
B)family
C)values
D)self-concept
E)personality

Question 63

Finding a place to live in Mumbai, India, has been getting harder these days for people who are not vegetarians.Vegetarianism is a centuries-old custom among the Indian population, but the requirement is becoming more obvious as non-vegs are being segregated from vegs.This is important consumer information to a McDonald's franchisee and reflects how _____ shapes consumer behavior.

A)consumer expectation
B)stimulus reaction
C)culture
D)geographic segmentation
E)consumer impulse

Question 64

Which of the following is an example of an individual factor that influences Bil Naggin's decision to buy a Sharps black powder cartridge rifle?

A)his culture
B)his interest in the Civil War
C)the fact his great-great grandfather died during the Civil War
D)the fact his favorite book is Red Badge of Courage
E)his desire to experience what it was like to be a Civil War soldier

Question 65

Rap star Xzibit has signed an endorsement deal with athletic footwear manufacturer Dada to produce shoes.The line named "Pimp Your Kicks," alluding to Xzibit's role as host of the MTV show Pimp My Ride, became available in late 2005.Dada hopes Xzibit will act as a(n) _____ and influence consumers to buy the shoes.

A)opinion leader
B)innovator
C)service provider
D)target recipient
E)referential mentor

Question 66

_____ is the set of values, ideas, attitudes, and symbols created to shape human behavior.

A)Consumer expectation
B)Stimulus reaction
C)Culture
D)A market trigger
E)Consumer impulse

Question 67

What do the United Way, the Sierra Club, the Girl Scouts of America, and the American Red Cross have in common?

A)They all engage in environmental scanning.
B)They all have a target market.
C)They all have created a marketing mix
D)They all engage in not-for-profit marketing.
E)All of the above statements describe ways in which the organizations are similar.

Question 68

Which one of the following is a commonly used method for market segmentation?

A)benefit
B)volume
C)psychographic
D)geographic
E)all of the above

Question 69

The dispensing of controlled substances has divided patients, doctors, pharmacists and law enforcement agencies as they strive to create a balance between treating legitimate chronic pain and keeping powerful pain meds out of the hands of abusers.A recent convention discussed the development of a viable ______ strategy for pain medications.

A)production
B)promotion
C)possession
D)place
E)production

Question 70

When the producers of Ocean Spray cranberry products decided to make Craisins (a dried cranberry snack food) available in convenience stores, supermarkets, and vending machines, it was involved with determining _____ strategy.

A)promotion
B)pricing
C)product
D)distribution
E)possession

Question 71

_____ is the division of markets into different groups

A)Market layering
B)Market segmentation
C)Product segmentation
D)Tactical marketing
E)Strategy differentiation

Question 72

When compared to the consumer market, the business-to-business market:

A)is more geographically dispersed
B)bases buying decision more on emotions than rational thought
C)is lower in volume
D)uses more direct channels of distribution
E)is accurately described by all of the above

Question 73

Miller Nwagi will not ride in elevators because he perceives them to be confining boxes that could fall.He refused to visit a store, which was selling his favorite brand of pipe tobacco, because the store could only be reached with an elevator.This would be an example of how _____ influences determine consumer buying decisions A physiological
B)social
C)cultural
D)individual
E)psychological

Question 74

Which of the following is an example of an individual factor that influences the consumer decision-making process?

A)family
B)neighborhood
C)personality
D)opinion leaders
E)culture

Question 75

A short story describing how reluctant British citizens are to play party games that might result in them looking foolish is an example of how _____ shapes human behavior.

A)consumer expectation
B)stimulus reaction
C)culture
D)geographic segmentation
E)consumer impulse

Question 76

Personal selling, advertising, public relations, and sales promotions are decisions made when planning the _____ strategy.

A)place
B)promotion
C)possession
D)pricing
E)product

Question 77

Which of the following organizations would analyze their market environments, find a competitive advantage, and create a marketing mix?

A)a publisher of hunting and fishing magazines
B)a manufacturer of gym equipment
C)the United States Postal Service
D)a Pizza Hut franchise in Mumbai, India
E)all of the above

Question 78

When planning _____ strategy, a manufacturer will deal with wholesalers and retailers.

A)promotion
B)pricing
C)place (distribution)
D)product
E)possession

Question 79

Drew Pastrin bought an AZPX brand skateboard because all of the "other guys" were buying them.Pastrin was influenced by a(n) _____ factor.

A)psychographic
B)individual
C)demographic
D)social
E)conceptual

Question 80

_____ is the action that people take in buying and using goods and services.

A)Target marketing
B)Delegation strategy
C)Consumer responsibility
D)Buyer behavior
E)Market segmentation