Deck 10: Marketing: Providing Value to Customers

Question 1

If you own an automobile dealership, you would be interested in a potential buyer's income, which is a demographic segmentation variable.

Answer 1

True

Question 2

A consumer market consists of buyers who want a product for use in making other products.

Answer 2

False

Question 3

Your _____ market consists of a specific group of consumers who are interested in your product, have access to it, and possess the means to buy it.

A)strategic
B)target
C)popular
D)local

Answer 3

B

Question 4

Because its customers want its products for personal use and household consumption, Sunshine Cosmetics sells in a(n) _____ market.

A)consumer
B)retail
C)industrial
D)attractive

Question 5

Technology optimists are those who embrace new technology.

Question 6

In order to put a marketing concept into practice, you need a _____ for performing two tasks: selecting a target market and developing your marketing mix.

A)marketing scheme
B)marketing plan
C)marketing strategy
D)marketing mix

Question 7

The basic philosophy of satisfying customer needs while meeting organizational goals is called the marketing strategy.

Question 8

The _____ market includes buyers who want a product for use in making other products.

A)secondary
B)wholesale
C)consumer
D)industrial

Question 9

When we identify a specific group of consumers that have particular interests in our product, access to it, and the means to buy it, we've identified our target market.

Question 10

By making a decision to sell snow shovels in Alaska you are dividing your market using a geographics segmentation variable.

Question 11

Demographic segmentation divides a market into groups based on such criteria as values, interests, opinions, and lifestyles.

Question 12

Psychographic segmentation classifies consumers on the basis of individual lifestyles as they're reflected in people's interests, activities, attitudes and values.

Question 13

Marketing is just advertising and selling.

Question 14

Market segments consist of groups of potential customers with common characteristics that influence their buying decisions.

Question 15

Dividing consumers by such variables as attitude toward the product is called psychographic segmentation.

Question 16

A company's marketing strategy is a plan for selecting a company's target market and developing advertising materials that can be used to promote products of interest to them.

Question 17

Marketing includes everything that organizations do to identify and satisfy customer needs.

Question 18

_____ is not an aspect of marketing strategy.

A)Selecting a target market
B)Implementing strategies for promoting products
C)Distributing products
D)Performing sales related accounting tasks

Question 19

Working in the field of _____, Juan Gonzales deals with processes for creating, communicating, and delivering value to customers and for improving customer relationships.

A)promotion
B)marketing
C)customer service
D)customer relations

Question 20

_____ would not be included in a demographic segmentation of consumers.

A)Marital status
B)Ethnic background
C)Lifestyle preferences
D)Educational background

Question 21

Setting a price for a product is a tool of the marketing mix.

Question 22

_____ segmentation classifies consumers on the basis of individual lifestyles as they're reflected in personal values.

A)Geographic
B)Demographic
C)Behavioral
D)Psychographic

Question 23

When conducting marketing research, the first data looked at by marketers is secondary data.They then collect and analyze primary data.

Question 24

The marketing mix is often regarded as the least important ingredient of marketing.

Question 25

A _____ is a letter, sound, or symbol that differentiates a product from similar products on the market.

A)title
B)tag
C)name
D)brand

Question 26

If you are food shopping and see a jar of peanut butter on the shelf with the store's name on it, the branding strategy used is private branding.

Question 27

To prevent other companies from coming out with their own "Robosapiens" its manufacturer took out a patent on the name "Robosapien".

Question 28

A trademark is a word, letter, sound or symbol that differentiates a product from its competitors.

Question 29

The four P's of the marketing mix are product, price, place and public relations.

Question 30

Labeling offers consumers a glimpse of the product and should be designed to attract their attention.

Question 31

What is psychographic segmentation?

Question 32

McDonald's sells tacos for breakfast in Arizona because its marketers have identified a _____ segment.

A)demographic
B)behavioral
C)geographic
D)psychographic

Question 33

Online surveys are easier to answer but get poorer response rates than telephone surveys.

Question 34

The marketing mix consists of strategies for creating, pricing, promoting, and distributing products that satisfy customers.

Question 35

Using _____ segmentation, Pierre Trudeau has divided his market according to a variable called usage rate.

A)behavioral
B)demographic
C)geographic
D)psychographic

Question 36

A product on a supermarket shelf contains no identification except for a description of the contents.The company is using manufacture branding.

Question 37

When consumers prefer and insist upon buying Dell products, they're demonstrating brand loyalty.

Question 38

Explain what is meant by a marketing strategy and identify the two tasks that need to be performed in implementing the strategy.Identify the actions that are taken to select a target market.
(1) A marketing strategy is a plan for performing two tasks: Selecting a target market; and developing a marketing mix-implementing strategies for creating, pricing, promoting, and distributing products that satisfy customers.(2) To select a target market, you would take these actions: Identify the company's overall market (consumer or industrial market); and then segment your market using these segmentation variables: demographic, geographic, behavioral, and psychographic.

Question 39

Between the two types of data, marketers generally begin by looking at primary data-previously collected information pertaining to the target market.

Question 40

Which two segmenting variables would be most important for a company that sells children's hiking boots?

A)Geographic and behavioral
B)Demographic and geographic
C)Behavioral and psychographic
D)Demographic and psychographic

Question 41

_____ is the process of collecting and analyzing data that's relevant to a specific marketing situation.

A)Advertising research
B)Sample selling
C)Marketing research
D)Target scanning

Question 42

_____ is the most productive way to conduct surveys.

A)Asking customers face to face in stores
B)Mailing out questionnaires
C)Phoning people
D)Using the Internet

Question 43

_____ is the most productive way to conduct surveys.

A)Asking customers face to face in stores
B)Mailing out questionnaires
C)Phoning people
D)Using the Internet

Question 44

Using _____ branding, a company makes a product and sells it to a retailer who resells it under its own name.

A)generic
B)primary
C)private
D)tag

Question 45

When skimming pricing is adopted for a new product, it will likely generate early profits.But the early profits will entice competitors to enter the market.

Question 46

With skimming pricing, a company starts off with the highest price that very interested customers will pay.

Question 47

Describe-in the order in which they're generally used-the two types of data sought by marketing researchers.

Question 48

Over time, your company hopes to develop brand ____ among customers who prefer or even insist upon its product.

A)awareness
B)monopoly
C)constancy
D)loyalty

Question 49

The marketing mix consists of all of the following except _____.

A)price
B)product
C)positioning
D)place

Question 50

When a travel agency wanted to predict sales for a new travel adventure they wanted to start marketing, they looked at sales figures and customer feedback on similar types of vacation packages they had offered in the past.This is an example of _____.

A)primary data gathering
B)secondary data gathering
C)scientific research
D)intermediate data gathering

Question 51

Marketers generally begin the research process by gathering _____ data.

A)secondary
B)primary
C)electronic
D)free

Question 52

Describe-in the order in which they're generally used-the two types of data sought by marketing researchers.

Question 53

How do marketing researchers use focus groups?

Question 54

Typically, all of the following information is included on a packaging label except _____.

A)where the product was made
B)what risks are associated with the product
C)who made the product
D)what color the product is

Question 55

Brand _____, like that enjoyed by Coca-Cola, results from favorable consumer experience with a product.

A)loyalty
B)equity
C)primacy
D)status

Question 56

A firm that markets a product with no branding information attached to the packaging except a description of its contents is using _____ branding.

A)generic
B)private
C)proprietary
D)tag

Question 57

A company seeks a(n) _____ by registering the name of a product with the U.S.Patent Trade Office.

A)brand name
B)trademark
C)copyright
D)endorsement

Question 58

Marketers generally begin the research process by gathering _____ data.

A)secondary
B)primary
C)electronic
D)free

Question 59

When Toyota offers a premium car under the brand name Lexus, it is using which of the following branding approaches?

A)Private branding
B)manufacture branding
C)Generic branding
D)Multibranding approach

Question 60

Developing a marketing mix may involve all of the following activities except:

A)developing a marketing budget.
B)developing a product aimed at the needs of the target market.
C)setting a price for a product.
D)informing potential buyers about a product.

Question 61

_____ pricing bases the selling price of a product on its cost plus a reasonable profit.

A)Rational
B)Prestige
C)Target
D)Cost-based

Question 62

Using _____ pricing, a company initially charges a low price, both to discourage competition and to grab a sizeable share of the market.

A)skimming
B)flexible
C)penetration
D)bidding

Question 63

If the new line of furniture is of above?average quality, prestige pricing might well work because customers will probably assume that it's of very high quality.

Question 64

The traditional practice of cost-based pricing is worth a try if Bilby thinks it important to establish a market for his ten stores.

Question 65

When a new product is introduced, the marketer will consider either skimming or penetration pricing.

Question 66

When a manufacturer of digital video recorders initially charged a high price but later dropped the price after others entered the market, it was practicing which pricing method?

A)Cost-based pricing
B)Target costing
C)Skimming pricing
D)Penetration pricing

Question 67

If a customer pays $40 for a shirt that's been marked up 100 percent over cost, what price did the retailer pay for it?

A)$15
B)$20
C)$22.50
D)$25

Question 68

When a manufacturer sells a product to a retailer, the retailer's cost is _____ what the consumer pays for it.

A)much less than
B)a little less than
C)insignificant compared to
D)unrelated to

Question 69

Using demand-based pricing, you work backwards, figuring out how much consumers are willing to pay for a product and then subtracting an amount to cover your profit.

Question 70

If you stood outside an NBA championship game and sold your ticket for double the original price, you'd be engaged in _____ pricing.

A)prestige
B)cost-based
C)unsportsmanlike
D)demand-based

Question 71

With odd-even pricing, marketers price a product according to its cost to the manufacturer plus a reasonable profit.

Question 72

Scenario-Based
Stevens Outdoor Furniture has just introduced a new line of products in the southeastern United States.Owner James Bilby discovered the new line, which includes outdoor furniture and other lawn items, on a recent vacation to California.The market is extremely promising because none of his main competitors stocks this type of furniture.He's concerned, however, about pricing because shipping costs will drive his prices higher than those charged by stores closer to the manufacturer's West Coast factory.Initial promotion and advertising costs, as well as warehousing expenses, are also on Bilby's mind.He's called a teleconference with his ten store managers to develop a pricing strategy that must take effect immediately.
Demand-based pricing would never work in this situation.

Question 73

It appears that, at this point, penetration pricing is Bilby's best strategy.

Question 74

Skimming pricing, which would also help Bilby recover some of his initial costs, is a viable option because Stevens has virtually no competition.

Question 75

Prestige pricing sets prices artificially high to give the impression of a high-quality product.

Question 76

With penetration pricing, a company would initially charge a low price on a product to "get its foot in the door." Over time, this approach will encourage others to enter the market.

Question 77

Marketers often determine how much potential customers are willing to pay for a product and then price it accordingly.This pricing strategy is called target costing.

Question 78

With _____ pricing, a company tries to cover its initial costs by setting the highest price that keenly interested customers will pay.

A)skimming
B)penetration
C)flexible
D)bidding

Question 79

You manufacture covers for barbeque grills at a cost of $5 each and make a profit of $2 per cover.The barbeque grill covers are sold to consumers by a national outdoor furniture retailer for $18, and you know the selling price includes a markup of $9 each.What is true about this situation?

A)The covers are priced using cost-based pricing
B)You sold the covers directly to the outdoor furniture retailer
C)You need a new accountant because the numbers don't add up
D)You sold the covers through a distributor

Question 80

A few years ago, when Nike was charging $140 for a pair of jogging shoes, the company was using a strategy of _____ pricing.

A)cost-based
B)prestige
C)over the top
D)target