Question 1

The What Went Wrong feature in Chapter 11 focuses on a series of missteps at JCPenney under the tenure of then CEO Ron Johnson. According to the feature, Johnson's three most damaging marketing-related mistakes were ________.

Accepted Answer

The feature states that Johnson's three most damaging marketing-related mistakes were the implementation of Fair and Square Pricing (without testing the ideas in advance), no testing of ideas in advance, and a total misread of JCPenney's brand. Therefore, the correct answer is D.

Question 2

The amount of money consumers pay to buy a product is its ________.

Accepted Answer

Price is the amount paid by consumers to buy a product. Fee generally refers to a charge for a specific service or activity, not the overall cost of a product. Value represents the worth of a product in the eyes of the consumer. Cost refers to the expenses incurred by the producer to make the product. Charge can be used interchangeably with price, but typically refers to fees for services, such as credit card charges.

Question 3

The Savvy Entrepreneurial Firm feature in Chapter 11 focuses on Airbnb, the company that created a marketplace for people to list, discover, and book unique spaces in people's homes or apartments while traveling. According to the feature, Airbnb was able to generate substantial buzz about its service via the use of ________.

Accepted Answer

According to the feature, Airbnb was able to generate substantial buzz about its service via the use of blogs, specifically leveraging the power of influential bloggers to write about their experiences using Airbnb.

Question 4

According to the textbook, most experts recommend ________ pricing because it hinges on the perceived value of a product or service.

Accepted Answer

According to the textbook, most experts recommend value-based pricing because it hinges on the perceived value of a product or service. This type of pricing strategy takes into account what the customer is willing to pay based on the benefits and value they receive from the product or service.

Question 5

Kevin Jackson owns a general contracting company. The way Kevin prices his services is to figure his cost and then add a 33 percent markup. The method that Kevin uses to determine his prices is called ________-based pricing.

Accepted Answer

Kevin is using a cost-based pricing strategy, where he determines his prices by considering his costs and adding a markup.

Question 6

The Partnering for Success feature in Chapter 11 focuses on Caribou Coffee and Bruegger's Bagels, two companies that have established a cobranding relationship. Cobranding is when two companies ________.

Accepted Answer

Cobranding is when two companies form a partnership to combine their brands. This can take various forms, such as creating a new product together or using each other's logos on their own products. In the case of Caribou Coffee and Bruegger's Bagels, they have created a cobranded cafe concept where customers can enjoy both brands under one roof.

Question 7

In ________ pricing, the list price is determined by estimating what consumers are willing to pay for a product and then backing off a bit to provide a cushion.

Accepted Answer

Value-based pricing involves determining the perceived value of the product to the customer and then setting a price that reflects that value. This often involves estimating what customers are willing to pay and adjusting the price accordingly. This approach may involve a cushion to provide a margin for error or to account for uncertainty in customers' willingness to pay.

Question 8

A(n) ________ is an early user of a firm's product who is willing to give a testimonial regarding his or her experience with the product.

Accepted Answer

The term that best fits the description is "reference account" as it refers to an early user of a firm's product who is willing to provide a testimonial which future prospects can refer to. Tribute account, approval report, appreciation account, and acknowledgment report do not accurately describe the role of an early user in providing a testimonial.

Question 9

The Google program called ________ allows advertisers to buy keywords on the Google Home Page.

Accepted Answer

AdWords is the Google program that allows advertisers to buy keywords on the Google Home Page. AdSense is another Google program but it allows publishers to earn money by displaying ads on their websites. Adcenter and Search Marketing are programs offered by Microsoft and Yahoo respectively. AdGoogle is not a program.

Question 10

Annie Clarke owns a smartphone app development firm. The way Annie prices her products is to determine what consumers are willing to pay, and then she backs off a bit to provide a cushion. The method that Annie used to determine her prices is called ________ pricing.

Accepted Answer

Annie used value-based pricing, which involves determining the value that a product or service provides to consumers and then setting the price based on that perceived value. She backs off a bit to provide a cushion, which is a common practice in value-based pricing.

Question 11

________ refers to the activities the firm takes to communicate the merits of its product to its target market.

Accepted Answer

Promotion refers to the activities the firm takes to communicate the merits of its product to its target market. Sponsorship, advertising, and endorsement are all types of promotional activities, but not the overarching term. Price is a part of the marketing mix but not specifically related to communication activities.

Question 12

A(n) ________ channel is a route a product takes from the place it is made to the customer who is the end user.

Accepted Answer

The definition provided in the question fits the description of a distribution channel. A trade channel typically refers to the various intermediaries involved in the sale and distribution of the product, while a product channel and allotment channel are not common industry terms. Promotion channels refer to the various methods and channels used to market and advertise a product.

Question 13

A firm's marketing mix is the assortment of products and services that it sells.

Accepted Answer

A firm's marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. It traditionally includes the four Ps: Product, Price, Place, and Promotion.

Question 14

Karen Simon recently purchased a digital camera. She considered three cameras-a Sony that was priced at $239.00, a Canon priced at $319.00, and a Nikon priced at $399.00. Karen couldn't tell much difference between the cameras, so she bought the Nikon, figuring that because it was the most expensive of the three, it must be the best. According to the textbook, Karen was making a ________.

Accepted Answer

Karen made a price-quality attribution, assuming that the most expensive camera must be better in quality than the others.

Question 15

Which element of the marketing mix is the only one that produces revenue?

Accepted Answer

Price is the only element of the marketing mix that generates revenue as it determines the amount that customers are willing to pay for a product or service. The other elements of the marketing mix influence customer perceptions and behavior, but do not produce revenue directly.

Question 16

Every January thousands of electronic products manufacturers gather in Las Vegas to display their products and to see what their competitors are up to. This type of event is called a ________ show.

Accepted Answer

A trade show is an exhibition that is typically organized so that companies in a specific industry can showcase and demonstrate their latest products, services, and technologies. The show is usually not open to the general public and is attended mainly by people working in the industry. The CES (Consumer Electronics Show) held in Las Vegas every January is an example of a trade show where electronic products manufacturers showcase their latest products.

Question 17

Efforts to establish and maintain a company's image with the public are referred to as ________.

Accepted Answer

The term used to describe efforts by a company to establish and maintain its image with the public is public relations. The other choices, while related to public relations, are not as accurate in describing this specific function.

Question 18

Before Kimberly Campbell opened her jiffy print store, she processed several large print jobs for local merchants for free, to demonstrate the quality of her service and to solicit feedback. Two of the merchants wrote favorable reviews of Kimberly's service, and agreed to let Kimberly post the reviews on her company's Web site. The companies that wrote the favorable reviews are referred to as ________.

Accepted Answer

The companies that wrote the favorable reviews are referred to as referent accounts. Referent accounts are businesses or individuals who refer other customers or clients to a particular business. In this case, these two merchants are referring potential customers to Kimberly's print store through their positive reviews.

Question 19

________ marketing is a low-budget approach to marketing that relies on ingenuity, cleverness, and surprise rather than traditional techniques.

Accepted Answer

The term "guerrilla marketing" refers to a non-traditional approach to promotions that relies on unconventional tactics, such as flash mobs, publicity stunts, and interactive experiences, to generate buzz and create a memorable brand experience. This type of marketing is often used by small businesses and startups with limited budgets who are looking to stand out from the competition without spending a lot of money on advertising.

Question 20

In ________-based pricing, the list price of an item is determined by adding a markup percentage to a product's cost.

Accepted Answer

Cost-based pricing involves adding a markup percentage to the cost of a product in order to determine its list price.

Quiz 11: Unique Marketing Issues