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The federal government may prevent a company from adding products through
acquisitions if acquisition threatens to lessen competition.
E-procurement has caused the time between order and delivery to increase significantly.
A good competitor plays by its own rules at the expense of the industry as a whole.
Dynamic pricing is least prevalent online.
Excess capacity leads to companies initiating an increase in price.
Benchmarking refers to the process that turns marketing plans into marketing actions to
accomplish strategic marketing objectives.
Customer relationship management helps manage detailed information about individual
customers and maximize customer loyalty.
If demand is elastic rather than inelastic, sellers will consider lowering their prices.
Which of the following is a price adjustment strategy?
A) product bundle pricing
B) by-product pricing
C) product line pricing
D) optional product pricing
E) discount and allowance pricing
Which of the following is true of product bundle pricing?
A) It promotes the sale of products that consumers might not otherwise buy.
B) It is used to set prices across an entire product range based on customer evaluations.
C) It forces customers to buy product parts that are only compatible with the main
product.
D) It results in companies making fewer'”though more profitable'”sales.
E) It involves pricing the main product low and setting high markups on the supplies.
Marketers can expand markets by discovering and promoting ________.
A) subliminal points of interest
B) the deficiencies of competitors
C) subtle advantages of the product
D) new uses of the product
E) green technologies
Which of the following processes does value-based pricing reverse?
A) high-low pricing
B) everyday low pricing
C) cost-based pricing
D) good-value pricing
E) value-added pricing
Identify three ways that companies can collect secondary data.
Which of the following statements is true regarding the affordable method for setting a
promotion budget?
A) It is mostly used by large businesses.
B) It completely ignores the effects of promotion on sales.
C) It tends to place promotion first among spending priorities.
D) It leads to a certain annual promotion budget.
E) It almost always results in overspending.
According to the model of buyer behavior, which of the following is one of the two
primary parts of a "buyer's black box"?
A) technological stimuli
B) buyer's decision process
C) buyer's spending habits
D) social stimuli
E) promotion stimuli
Papillon, a popular retailer of chic women's clothing, segments its market according to
consumer lifestyles. Papillon most likely uses ________ segmentation for segmenting
its market.
A) geographic
B) psychographic
C) benefit
D) age and life-cycle
E) occasion
Refer to the scenario below to answer the following question.
Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small,
seaside motel to a thriving year-round resort in just a few years. Atop a cliff
overlooking the Maine coast, Seagull Terrace had attracted thousands of visitors during
summer, but then faced a tremendous downturn in business during winter. "But, given
the established industries in the nearby towns, very little year-round competition, and
our close proximity to Portland," Carol added, "I couldn't understand why seasonality
had to hit Seagull Terrace so hard!"
So Carol spent her first winter devising a new marketing plan. She put together a
promotional package designed to attract business travelers year-round. Carol's plan also
involved a seasonal promotional gimmick'”to be implemented from early winter to late
spring'”that would attract the same numbers as the large summer crowd. Her idea
worked! During her second winter, Carol greeted numerous business travelers'”both
satisfied repeat guests as well as new guests who had been snagged by her promotional
appeals.
"We still have a long way to go," Carol admitted. "Our delicatessen offers entrees that
are a part of the local cuisine, but we'd like to expand that. We provide health club
privileges off-site, but we'd like to eventually provide our own. These are goals I hope
to achieve in a few years. Our first project, however, included a renovation of our guest
rooms and I'm quite proud of the results." Carol then added, "Actually there are so
many possibilities. With an indoor pool area, I will eventually offer weekend getaways
throughout winter."
Seagull Terrace offers its customers good accommodations, local delicacies, and
amazing seaside views. The overall experience provided at the motel is a part of its
________.
A) market offering
B) target market
C) market segment
D) product positioning
E) marketing mix
Which of the following statements characterizes the introduction stage of the PLC?
A) There are increased marketing outlays.
B) Profits are nonexistent.
C) The company incurs minimal expenses.
D) The product achieves acceptance by most potential buyers.
E) Promotional expenditures are zero.
________ refers to qualitative research designed to probe consumers' hidden,
subconscious motivations.
A) Perception analysis
B) Subliminal analysis
C) Motivation research
D) Need recognition
E) Market segmentation
DivetheBlue, a company marketing deep-sea diving equipment, charges very high
prices for its products. Despite the availability of many low-priced products in the
market, customers seem to prefer DivetheBlue, which has earned a reputation for
selling high-quality products. This exemplifies ________.
A) a pure monopoly
B) an oligopoly
C) a nonprice position
D) break-even pricing
E) target costing
As production workers become better organized and more familiar with equipment, the
average cost per unit tends to decrease with the ________.
A) increase in the diseconomies of scale
B) accumulated production experience
C) decrease in the economies of scale
D) increase in derived demand
E) increase in primary demand
Which of the following is true of value-based pricing?
A) The targeted value and price drive decisions about what costs can be incurred and
the resulting product design.
B) Value-based pricing is mostly product driven.
C) Value-based pricing involves setting prices based on the costs of producing,
distributing, and selling the product plus a fair rate of return for its effort and risk.
D) The marketer usually designs a product and marketing program and then sets the
price.
E) A company using value-based pricing designs what it considers to be a good product,
adds up the costs of making the product, and sets a price that covers costs plus a target
profit.
Moral appeals ________.
A) relate to the audience's self-interest by showing that the product will produce the
desired benefits
B) attempt to stir up either negative or positive emotions that can motivate purchase
C) range from love, joy, and humor to fear and guilt
D) are directed to an audience's sense of what is "right" and "proper"
E) are based on the idea that practical benefits are more important for consumers than
emotions
Consumers today receive commercial messages from a broad range of sources.
However, consumers ________ the way marketers do.
A) don't distinguish between message sources
B) never pay attention to sales promotions
C) don't care about buzz marketing
D) are not able to block out messages
E) block out all media messages
________ is the process of comparing the company's products and processes to those of
competitors or leading firms in other industries to find ways to improve quality and
performance.
A) Segmenting
B) Positioning
C) Sales promotion
D) Benchmarking
E) Publicity
If a company's offer delivers greater value by exceeding the competitor's offer on
important attributes, the company can charge a higher price and ________, or it can
charge the same price and ________.
A) earn lower profits; gain higher profits
B) earn higher profits; lose profits
C) earn higher profits; gain more market share
D) lose profits; gain more market share
E) lose profits; gain higher profits
Using ________, retailers can share real-time data on sales and current inventory levels
with suppliers.
A) automated storage and retrieval systems (ASRS)
B) vendor-managed inventory (VMI) systems
C) transportation management systems (TMS)
D) warehouse management systems (WMS)
E) distribution center management systems (DCMS)
What is good-value pricing?
Company X, a manufacturer of office supplies, follows the selling concept. Explain
how the firm may lose sight of customer relationships with this marketing orientation.
What are the key service characteristics a company must consider when designing
marketing programs? Briefly describe each characteristic.
Why do ad expenditures remain high in the growth stage of the PLC?
Briefly define the four marketing concepts.
