Companies use photosharing sites in order to add a personal touch to their businesses.
a. True
b. False
Marketers of computer software, music CDs, and books are particularly affected by
cultural differences in:
a. socioeconomic status of citizens.
b. advances in technology.
c. differences in cross-cultural exchange behavior.
d. ethical codes of conduct for businesses.
e. standards regarding intellectual property.
Fraudulent usage, inability to attract potentially brand-loyal customers, and use by
current customers but not new customers are believed to be disadvantages of:
a. sweepstakes.
b. money refunds.
c. frequent-user incentives.
d. coupons.
e. premiums.
Which of the following best defines product features?
a. The sensory appeal of a product
b. Mechanical efforts or activities a company provides that add value to a product
c. Specific design characteristics that allow a product to perform certain tasks
d. How a product is conceived, planned, and produced with the necessary functions
e. The physical appearance of a product
Team selling involves building mutually beneficial long-term associations with a
customer through regular communications over prolonged periods of time.
a. True
b. False
Price skimming is designed to yield maximum unit sales volume.
a. True
b. False
Which of the following is nota purpose of the marketing plan?
a. Communicating internally with employees
b. Assigning tasks and responsibilities for implementation
c. Specifying the allocation of resources
d. Monitoring the performance of a marketing strategy
e. Serving as a contract with the customer
The right to be informed means that consumers should be treated fairly when they
complain to marketers about their products.
a. True
b. False
The fact that services cannot be stored and then sold at a later date is called:
a. intangibility.
b. heterogeneity.
c. inseparability.
d. perishability.
e. nonstorability.
A marketing strategy that successfully generates sales may not be deemed effective if it
is extremely costly.
a. True
b. False
Scenario 12.3
Use the following to answer the questions.
Glenwood Pet Hospital is considering implementing a new pricing strategy for its
veterinarian services. After reviewing the previous three years’ revenue, Glenwood
finds that most of its customers bring their pets in for the required annual vaccinations
only if the animal is ill. Glenwood’s objective is to generate more income per customer
on an annual basis. The hospital has previously priced its services by charging a flat fee
for the office visit, a fee for each vaccine, and a fee for each type of examination
beyond the basic office visit. Most customers pay the flat office fee and a fee for a
rabies vaccine. Glenwood is now considering a new plan where the pet owner would
pay one fee that would cover an office visit, the required rabies vaccine, and additional
vaccines that prevent
heartworm, kennel-cough, and fleas. Glenwood hopes to encourage the pet owners to
view their pet’s health as part of a prevention program, rather than a one-time annual
visit.
Refer to Scenario 12.3. Glenwood’s closest competitor, The Hearthstone Pet Hospital,
currently charges $60 for each basic office visit. If Glenwood were to price its basic
office visit at $45, it would most likely be employing: a. customary pricing.
b. penetration pricing.
c. prestige pricing.
d. price skimming.
e. cost-based pricing.