Deck 14: Creating Marketing Strategies

Question 1

Tony and Jeff just graduated from college and are starting their own restaurant. They are trying to create a unique atmosphere and image for the restaurant and came up with a name and logo that conveys that image. What can they get to prevent someone from copying it?

A) patent
B) trademark
C) copyright
D) brand exclusivity

Answer 1

B

Question 2

What is a relatively inexpensive item that requires very little shopping effort?

A) shopping product
B) sought product
C) convenience product
D) specialty product

Answer 2

C

Question 3

What are products that are bought after comparing price, suitability, quality, and style?

A) sought products
B) generic products
C) specialty products
D) shopping products

Answer 3

D

Question 4

When most people think about brand, they mistakenly think that it refers to only which one of the following?

A) label
B) logo
C) corporate symbol
D) name of a product

Question 5

Which of the following is the best example of a consumer product?

A) a car bought by a real estate agency for its salespeople to use
B) a textbook purchased by a student taking this class
C) magazines sold to a college bookstore
D) a case of toothbrushes sold to a dentist

Question 6

What is a brand that is so dominant that consumers think of it immediately when a product category is mentioned?

A) master brand
B) dominant brand
C) leading brand
D) preeminent brand

Question 7

What is a name, symbol, design, slogan, or any other feature that identifies and distinguishes a product and creates a perception in the minds of consumers?

A) label
B) trademark
C) brand
D) service

Question 8

Which of the following is an example of a master brand?

A) McDonalds
B) Starbucks
C) Kleenex
D) Coca-Cola

Question 9

Which of the following is NOT one of the four most common types of brands?

A) master
B) loyalty
C) generic
D) manufacturer

Question 10

A brand that has high awareness, brand loyalty, and perceived quality has which of the following?

A) high brand value
B) high brand performance
C) high brand worth
D) high brand equity

Question 11

George has a strong preference for Coffee Place, will drive out of his way to go there, and tells all of his friends about the restaurant. What is George demonstrating?

A) brand advocacy
B) brand exclusivity
C) brand loyalty
D) brand preference

Question 12

What are the four major groupings of consumer products?

A) limited, generic, durable, and unsought
B) unsought, convenience, shopping, and specialty
C) shopping, durable, limited, and brand
D) brand, specialty, convenience, and generic

Question 13

When Katherine Cozzine graduated from high school, she chose a university that would provide her a strong business foundation even though she would have preferred to major in music. Cozzine did not know that there are over 200 music-business programs that would have allowed her to continue her music and prepare for a career in the industry. To Cozzine, the music-business programs were which of the following products?

A) specialty
B) unsought
C) shopping
D) generic

Question 14

Robert and Maxine Thomason are planning to purchase a new refrigerator-freezer for their new home. They have compared the quality, style, and price of four models. For the Thomasons, a refrigerator-freezer is which of the following?

A) convenience product
B) shopping product
C) industrial product
D) specialty product

Question 15

Which of the following is any good or service that satisfies wants, along with its perceived attributes and benefits?

A) market
B) product
C) brand
D) exchange

Question 16

Jay DuClerc has decided to buy a new Porsche. Since there are no Porsche dealers in his community, he must travel almost 200 kilometres to find a Porsche dealer to purchase the car of his dreams. For DuClerc, a Porsche is which of the following?

A) sought product
B) generic product
C) specialty product
D) shopping product

Question 17

Which of the following is a consumer durable?

A) shampoo
B) sinus medication
C) pretzels
D) bedroom dresser

Question 18

Which of the following is a consumer nondurable?

A) swimming pool
B) dishwasher
C) laptop computer
D) breakfast cereal

Question 19

Gary's grocery store carries a line of soups that has no specific name on it; is not associated with a manufacturer, wholesaler, or retailer; and usually comes in plain containers and sells for less than brand-name products. This line of soups is classified as which of the following type of brand?

A) manufacturer
B) dealer
C) generic
D) master

Question 20

Which of the following is a convenience product?

A) tuxedo
B) computer
C) loaf of bread
D) vacuum cleaner

Question 21

A company in Nova Scotia builds portable drilling platforms used to locate new oil fields underwater. To build a platform, the company had to construct a specially designed dock with a large permanently placed crane able to lift a 20 tonne structure onto its floating base. This expensive dock and crane are examples of which of the following?

A) structural products
B) integral parts
C) emplacements
D) installations

Question 22

What are expense items that have undergone little or no processing and are used in the manufacture of end products?

A) component parts
B) specialty products
C) raw materials
D) installations

Question 23

What is the process that products go through as they pass through their introduction, growth, maturity, and decline stages?

A) marketing mix
B) marketing cycle
C) product mix cycle
D) product life cycle

Question 24

Which of the following is a capital product for a multinational organization?

A) corporate jet
B) fax machine paper
C) mobile phone
D) file folder

Question 25

What is a product that is bought by a company for use in making another product?

A) business product
B) institutional product
C) functional product
D) distribution product

Question 26

Which of the following business products would be considered an accessory in a supermarket?

A) foam trays for meat
B) price stickers
C) a cash register and scanning equipment
D) plastic bags

Question 27

Which of the following is one of the stages in the product life cycle?

A) production
B) decline
C) development
D) pre-production

Question 28

Which of the following business products would be considered an accessory in an insurance claims office?

A) computer
B) computer paper
C) printer cartridge
D) photocopier cartridge

Question 29

What is a product for which consumers may search long and hard and for which they refuse to accept substitutes?

A) specialty product
B) generic product
C) shopping product
D) convenience product

Question 30

Which of the following is an example of a capital product that would be found in a brewery?

A) bottling machine
B) bottle labels
C) hops to make the beer
D) glass bottles

Question 31

Which of the following is NOT one of the stages in the product life cycle?

A) introduction
B) decline
C) growth
D) peak

Question 32

In which of the following stages of the product life cycle are you most likely to find the manufacturer using a line extension strategy?

A) introduction
B) maturity
C) development
D) growth

Question 33

Which of the following occurs during the growth stage of the product life cycle?

A) Sales grow at an increasing rate, and profits are healthy.
B) The product is frequently modified.
C) Primary demand promotion is the norm.
D) Manufacturers adopt a line extension strategy for their product.

Question 34

Which of the following is an expense item for an independent bookstore?

A) order forms
B) the building in which store is located
C) book shelves
D) display cabinet for first editions

Question 35

Which of the following is considered an expense item for a dentist's office?

A) peroxide for whitening teeth
B) dental X-ray equipment
C) an office desk
D) a computer system

Question 36

The unprocessed corn used as the primary ingredient in many brands of dog food is an example of which of the following?

A) component material
B) accessory part
C) raw material
D) specialty product

Question 37

Radial tires installed on four-wheel drive vehicles are examples of which of the following?

A) capital items
B) semi-finished material
C) accessories
D) component parts

Question 38

Business products are classified into two categories. What are they?

A) special use and general use
B) capital and expense
C) installation and accessory
D) revenue and expense

Question 39

What is a large, expensive capital product, such as the Ford assembly plant in Oakville, Ontario?

A) integral part
B) emplacement
C) structural product
D) installation

Question 40

Compressor pumps installed in General Electric refrigerators would be considered which of the following?

A) raw material
B) component parts
C) accessories
D) capital items

Question 41

IGA marked individual-sized snacks down to 25 cents a package for the first five individual packages purchased. This was below the store's cost. These snacks would be considered which of the following type of product?

A) differentiated product
B) loss leader
C) markdown
D) bargain leader

Question 42

What is a product pricing strategy of offering new products at low prices in the hope of achieving a large sales volume?

A) penetration
B) leader
C) bundling
D) skimming

Question 43

What is the term used when goods and services are exchanged for one another?

A) countertrade
B) barter
C) interchange
D) swapping

Question 44

Which of the following is the pricing strategy of marking products below normal markup or even below cost to attract customers to a store where they would not otherwise shop?

A) rebate
B) leader
C) skimming
D) economy

Question 45

When Top-Flite introduced its Strata golf balls with a new dimple design and a more solid core for better flight with metal clubs, it charged three times the price of golf balls currently on the market. This high introductory pricing is an example of which of the following strategies?

A) limited value pricing
B) market share pricing
C) penetration pricing
D) skimming

Question 46

Which of the following is the production of a good or service for which the revenue from selling it exceeds the cost of producing it?

A) profit optimization
B) product specialization
C) profit maximization
D) breakeven production

Question 47

In which of the following stages of the product life cycle do most competitors enter the market?

A) introduction
B) maturity
C) launch
D) growth

Question 48

Which of the following is a strategy of charging a high introductory price for a new product that invites eventual competition?

A) kiting
B) escalation
C) skimming
D) penetration

Question 49

Profit maximization is best described by which of the following?

A) obtaining the largest profit possible
B) having your supplier carry your inventory
C) building the lowest-cost product possible
D) selling your product at the highest price possible

Question 50

Price is best described by which of the following?

A) It is always expressed in Canada in dollars and cents.
B) It is also called revenue.
C) It is based on the actual perception you will receive from your product.
D) It is based on the expected value you will receive from your purchase.

Question 51

The Franklin Continental Hotel offers a package of room, breakfast, and parking for $125. What is this strategy?

A) bundling
B) combining
C) aggregated pricing
D) grouping

Question 52

What type of pricing strategy do most manufacturing companies use?

A) target return on investment
B) profit maximization
C) value pricing
D) price skimming

Question 53

Which of the following products would be correctly described as being in the decline stage of their product life cycle?

A) exercise equipment
B) manual typewriters
C) candles
D) golfing magazines

Question 54

Which of the following is an example of a common pricing objective?

A) maximized targeting
B) target return on investment
C) target marketing
D) profit optimization

Question 55

Which of the following is a product pricing strategy of grouping two or more related products together and pricing them as a single product?

A) even pricing
B) co-pricing
C) penetration
D) bundling

Question 56

Which of the following is a common pricing objective in which the price of a product is set so as to give the company the desired profitability in terms of return on its money?

A) return optimization
B) maximized targeting
C) target return on investment
D) target marketing

Question 57

Which one of the following situations best demonstrates an advantage of price skimming?

A) The low initial prices create an image of value for the customer.
B) Prices are initially low to encourage customers to purchase the product.
C) When the price is eventually lowered, consumers might think they are getting a bargain.
D) It discourages competitors from entering the market.

Question 58

When setting the price of a product or service, what must the price equal?

A) that of your competitors
B) the perceived value to target customers
C) the cost of your product plus a markup
D) the amount of money consumers can afford

Question 59

Which of the following are the two main new-product pricing strategies?

A) targeted return pricing and profit maximization pricing
B) value pricing and cost-plus pricing
C) price skimming and penetration pricing
D) psychological pricing and physiological pricing

Question 60

Which of the following is a pricing strategy in which the target market is offered a high-quality product at a fair price and with good service?

A) prestige pricing
B) variable costing
C) value pricing
D) target marketing

Question 61

What is the term for selling Rolex watches for $6,000-$10,000 when a perfectly satisfactory watch can be purchased for 5 percent of that amount?

A) snob pricing strategy
B) over-value pricing strategy
C) prestige pricing strategy
D) price lining strategy

Question 62

Which of the following is defined as the selling price per unit times the number of units sold?

A) total revenue
B) unit cost
C) total cost
D) profit

Question 63

Eve Sheisedo Design Inc. has just started manufacturing sets of triangular and rectangular dinner plates. The design company will use wholesalers, retailers, and consumers to get its plates to market. What is this chain collectively called?

A) industrial channel
B) consumer channel
C) distribution channel
D) promotional channel

Question 64

A pottery manufacturer is conducting a breakeven analysis. Its line of strawberry pots has $18,000 in fixed costs. The fixed-cost contribution is $3. The pottery manufacturer must sell which of the following number of units to break event?

A) 1,000
B) 3,000
C) 6,000
D) 10,000

Question 65

Which of the following is the efficient management of the acquisition of raw materials to the factory and the movement of products from the producer to industrial users and consumers?

A) physical transportation
B) physical distribution
C) material handling
D) channel distribution

Question 66

Eli Wenzki works in the warehouse for a manufacturer of high-quality office furniture. He is involved in the transportation of metal components, fabric, lumber, etc. used to manufacture the furniture as well as the movement of the finished furniture from the manufacturing facility to the warehouse to distribution trucks. Wenzki is involved in which of the following type of distribution?

A) channel distribution
B) centralized distribution
C) physical distribution
D) component distribution

Question 67

When Maurice Tsaki went online to plan his vacation to Australia, he learned that he could buy plane tickets, rent a car, and pay for a hotel in a reduced-price tourist package, which made it very convenient for him to book his trip. The website Tsaki visited used which of the following strategies to make trip planning easier and more economical?

A) price structuring
B) bundling
C) aggregated pricing
D) price grouping

Question 68

Which of the following is a series of marketing entities through which goods and services pass on their way from producers to end users?

A) consumption channel
B) inventory control process
C) distribution channel
D) industrial channel

Question 69

Within the distribution channel, what are retailers and wholesalers?

A) inventory control agents
B) marketing intermediaries
C) movement facilitators
D) logistical managers

Question 70

What is the chain of manufacturer, agent, wholesaler, and retailer through which items such as X-ray machines, dental equipment, and safety goggles flow?

A) service channel
B) distribution channel
C) consumer channel
D) industrial channel

Question 71

Which of the following represents the markup on a scarf that costs $4 and sells for $6?

A) 50%
B) 40%
C) 33.33%
D) 20%

Question 72

A fabric manufacturer is doing a breakeven analysis of oilcloth. It costs $15.00 to manufacture a metre of oilcloth. Customers will pay $25 a metre for oilcloth. The company's fixed costs are $10,000. How many metres must the fabric manufacturer sell to break even?

A) 400
B) 667
C) 1,000
D) 10,000

Question 73

Which of the following is the point at which the cost of making a product equals the revenues gained from selling the product?

A) equilibrium point
B) fulcrum point
C) breakeven point
D) equity point

Question 74

Which of the following is an example of a variable cost for Big Bob's cream store?

A) ice cream freezer
B) ice cream cones
C) rent
D) insurance

Question 75

Charlie Vorwek sells flower arrangements made from dried wildflowers she grows in her garden. Which of the following is a fixed cost in this business?

A) decorative ribbon
B) the undecorated wreath forms
C) a rental storage building
D) silica for drying the flowers

Question 76

For a manufacturer of one-of-kind evening gowns, the lace, satin, and buttons are considered which of the following costs?

A) business
B) tangible
C) fixed
D) variable

Question 77

What is adding a certain percentage to a product's wholesale cost to arrive at the retail price?

A) markdown
B) effective cost
C) cost-effective
D) markup

Question 78

What is the term for pricing a product at $399.99 instead of $400 to make the customer view the price as in the $300 range instead of the $400 range?

A) price lining
B) odd-even pricing
C) minimized pricing
D) red-line pricing

Question 79

Total fixed costs divided by fixed-cost contribution leads to which of the following?

A) profit maximization
B) breakeven point in units
C) perceived value
D) total revenues

Question 80

Which of the following is a product pricing strategy of raising the price of a product so consumers will perceive it as being of higher quality, status, or value?

A) prestige
B) leader
C) penetration
D) skimming