Question 1

The target costing strategy establishes a selling price that consumers are willing to pay for a product,and then subtracts a desired profit margin to determine a target cost of production.

Accepted Answer

This is the correct definition of the target costing strategy.

Question 2

A firm's product line refers to all of the different markets in which it sells the same good or service.

Accepted Answer

A firm's product line refers to a group of related products under a single brand that are sold by the same company, not the different markets.

Question 3

Manufacturers are usually able to perform marketing functions such as transporting,advertising,and storing,faster and more cheaply than marketing intermediaries.

Accepted Answer

The answer of Manufacturers are usually able to perform marketing...

Question 4

Category killer stores tend to compete mainly on the basis of superior service.

Accepted Answer

Category killer stores primarily compete on the basis of a wide selection of products and low prices, rather than superior service.

Question 5

Brand loyalty refers to the degree to which customers are satisfied with a brand and are committed to further purchases.

Accepted Answer

Brand loyalty is based on customer satisfaction and commitment to further purchases, therefore statement A is true.

Question 6

Target costing is a cost-based pricing strategy.

Accepted Answer

The answer of Target costing is a cost-based pricing strategy....

Question 7

Depending upon the promotional campaign,advertising may include paid and non-paid forms of non-personal communication.

Accepted Answer

The answer of Depending upon the promotional campaign,advertising may include...

Question 8

Telemarketing is the sale of goods and services by telephone.

Accepted Answer

Telemarketing involves the use of telephone to sell products or services.

Question 9

Sales promotion involves long-term strategies firms use to enhance their image.

Accepted Answer

Sales promotion typically involves short-term tactics aimed at increasing sales, such as coupons, discounts, and special offers. It is different from advertising, which can involve long-term strategies aimed at shaping a company's image and perception.

Question 10

Changes in packaging can transform the product in the minds of consumers and open larger market opportunities.

Accepted Answer

Packaging plays a significant role in shaping consumers' perceptions of a product. By changing the packaging, companies can alter the product's appearance, functionality, perceived value, and target market. For example, changing packaging from plastic to eco-friendly materials may appeal to consumers who value sustainability, which opens up larger market opportunities for the product. Therefore, changes in packaging can transform the product in the minds of consumers, leading to new opportunities in the marketplace.

Question 11

Publicity is the talking arm of public relations.

Accepted Answer

Publicity is a component of public relations that involves generating media coverage for a company or organization. It is often referred to as the "talking arm" of public relations because it uses various communication channels to disseminate information about the company or its products/services to the public.

Question 12

The best way to reduce the cost of goods is to eliminate marketing intermediaries from the distribution channel.

Accepted Answer

Eliminating marketing intermediaries can actually increase the cost of goods by adding additional expenses such as transportation, storage, and promotion costs. Marketing intermediaries can also help reach a wider audience and provide expertise in areas such as market research and product positioning.

Question 13

The critical component of a total product offer is always a low price.

Accepted Answer

A low price may be one component of a total product offer, but it is not always the critical component. Other factors such as quality, features, customer support, and brand reputation may also be important to customers. Therefore, a total product offer should consider all these factors and not just focus on a low price.

Question 14

The Canadian legal system does not offer trademark protection.

Accepted Answer

This statement is false. The Canadian legal system does offer trademark protection through the Canadian Trademarks Act.

Question 15

Gill's Gadgets establishes the price it charges for its products by determining the cost of production and then adding on a desired profit margin.Gill's strategy is known as target costing.

Accepted Answer

The answer of Gill's Gadgets establishes the price it charges...

Question 16

The purpose of a brand name is to establish an image of generic goods or services.

Accepted Answer

The purpose of a brand name is to differentiate and establish a unique identity for goods or services in the market.

Question 17

A penetration strategy calls for a firm to charge low prices with the intent of attracting a large number of customers and discouraging competition.

Accepted Answer

This statement accurately describes a penetration pricing strategy.

Question 18

Brand equity refers to those factors that people associate with a specific brand name,such as awareness,perceived quality,and loyalty.

Accepted Answer

Brand equity refers to the reputation and value that a brand name holds in the minds of consumers. This includes factors such as brand awareness, perceived quality, brand loyalty, and brand associations.

Question 19

Consumer perceptions of product quality are affected by promotions and packaging,but not by the price of the product.

Accepted Answer

Consumer perceptions of product quality can be influenced by the price of the product. In general, consumers tend to associate higher prices with higher quality, and lower prices with lower quality. However, this association may not always hold true, and other factors such as promotions and packaging can also affect consumer perceptions of product quality.

Question 20

Ultimately,the price of a good will be determined by the interaction of supply and demand in the marketplace.

Accepted Answer

This statement is true. In a market economy, the price of a good is determined by the interaction of supply and demand. When there is a high demand for a good and a limited supply, the price will increase. When there is a low demand for a good and a surplus supply, the price will decrease. Ultimately, the price will adjust to a point where supply and demand are balanced.

Quiz 15: Managing the Marketing Mix: Product, Price, Place, and Promotion