Marketing Test 3 - Quiz Questions

Among consumer products, advertising and wide distribution are especially important for A. durable goods B. specialty products C. nondurable goods D. production goods

With respect to distribution, convenience products are available A. at relatively few outlets B. at a large number of specialty outlets C. only online from the manufacturer D. on a widespread basis at many outlets

The two main classifications of business products are A. durable and nondurable products B. tangible and intangible products C. components and support products D. consumer and industrial products

Services can be classified according to whether they are __________, for-profit or nonprofit organizations, or government agencies. a. national or global b. use independent contractors c. privately owned or publicly owned d. delivered by people or equipment

To help consumers assess and compare services, marketers try to make them tangible or ________ a. show the benefits of using the service b. consistent c. adaptable d. measurable

How a person establishes expectations for a service not yet experienced is influenced by _______, personal needs, past experiences, and promotional activities. a. the economy b. consumer income c. word-of-mouth communications d. how the organization delivers its service

The emphasis of a marketing strategy for a dynamically continuous innovation would include a. advertising to generate awareness b. obtaining widespread distribution c. advertising to explain points of difference and benefits d. using personal selling

From an organization's perspective regarding its new products and innovations, which of the following new-product strategies has the lowest level of risk? a. a brand extension b. a product line extension c. a jump in innovation d. a product refinancing

One of the eight primary marketing-related reasons for new-product failure is_________. a. not listening to the voice of the engineer b. too much advertising or too aggressive a tone for it c. failure to anticipate competitors actions d. no economical access to buyers

Which stage in the new-product process is a SWOT analysis used to identify the strategic role the new product might serve in the firm's business portfolio? a. idea generation b. screening and evaluation c. new-product strategy development d. business analysis

The money or other considerations (including other products and services) exchanged for the ownership or use of a product or service is referred to as __________. A. Fee B. Value C. an exchange rate D. price

The key to setting a price for a product is finding an approximate price level to use as a reasonable starting point. Four common approaches to selecting an approximate price level are: (1) demand-oriented; (2) cost-oriented; (3) __________; and (4) competition-oriented A.stakeholder-oriented B.revenue-oriented C.profit-oriented D.distribution-oriented

Target pricing refers to A. a method of selecting specific prices wholesalers and retailers are willing to pay based upon the elasticity of each given item B. a method of charging different prices to maximize revenue for a set amount of capacity at any given time C. the practice of simultaneously increasing product and service benefits while maintaining or decreasing price. D. estimating the price that ultimate consumers would be willing to pay for a product, then working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers.

Which one of the following statements regarding bundle pricing is most accurate? A. Bundle pricing is intended to benefit the consumer, not the seller. B. Bundle pricing is really "bundle packaging" since the price charged is for two or more of the same products that are shrink-wrapped together. C. Bundle pricing often provides a lower total cost to buyers and lower marketing costs to sellers. D. Bundle pricing is based on the idea that consumers value the individual items more than they value the group contained in the package.

Cost-plus pricing refers to A. summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price. B. setting the price of a line of products at a number of different price points. C. adding a fixed percentage to the cost of all items in a specific product class D. setting prices to achieve a profit that is a specified percentage of the sales volume.

Adding a fixed percentage to the cost of all items in a specific product class is referred to as A. target profit pricing. B. standard markup pricing. C. customary pricing. D. everyday low pricing.

One problem in the interstate trucking industry is the number of trucks that return empty after making a delivery. There is a website where independent interstate truckers can look for loads to carry on their return trips, known as backhauls. Because the trucks would normally return empty, truckers who use this website to generate business they would not have had otherwise receive a reduced shipping rate. This reduced rate for a backhaul is an example of A. penetration pricing. B. target pricing. C. odd-even pricing D. yield management pricing.

Customary pricing refers to A. a pricing method where the price the seller quotes includes all transportation costs. B. setting the same price for similar customers who buy the same product and quantities under the same conditions. C. deliberately selling a product below its list price to attract attention to it. D. setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors.

Basic to setting a product's price is the extent of __________. This information is used in estimating the revenues the firm expects to receive. A. management's commitment to the product relative to other products in the line B. curiosity or interest potential consumers expressed during market testing C. customer demand for it D. the firm's promotional budget

Inelastic demand exists when A. a small percentage decrease in price produces a smaller percentage increase in quantity demanded. B. a small percentage increase in price produces a larger percentage increase in quantity demanded. C. an increase in price is impossible due to government restrictions. D. the quantity demanded remains the same regardless of any changes in marketing strategies.