AEB4342 Marketing Final UF CH6 CH7 CH10 CH11 CH8

Value refers to the
returns the customer gets in exchange for what the customer pays
which of the following is true of the different stages in the product life cycle?
market sales are highest in the maturation stage
According to the process of product adoption and diffusion, which of the following adoptive categories first begins to buy a product if the experience of innovators has been favorable?
early majority
Fresh Cola- the refrigerator pack
using packaging as a part of its product differentiation strategy
When contemplating a product deletion, why should a firm study customer migration patterns?
to determine whether customers of the product would switch to other substitute products marketed by the same firm
John and his team are working to develop a new product. the company has given them a fixed budget and a rough estimate of the time left until the product must hit the market. the team’s key concern is that the product they have developed would be too costly and time-consuming to produce. which of the following best describes this risk that John and his team are most concerned with?
Internal risk
Healthfood makes jelly made out of gelatin. current sale of its jelly line has fallen. The company discovers that women used powdered gelatin to strengthen fingernails. It introduces a flavorless jelly as a nail building agent in an attempt to boost profits. identify the product category involved.
repositionings : the base of their product is just re positioned to make another product that will hopefully gain sales in comparison to their current product that is not doing well on the market.
the producer’s statement of what they will do to compensate the buyer if the product is defective or does not work properly is known as
a warranty
which of the following is the least costly stage in new product development?
idea generation (doesn’t cost to come up with random ideas that may be good or bad)
what is the main goal of a test market?
evaluate and adjust the general marketing strategy to be used and the appropriate marketing mix
In the idea screening phase of new product development, a firm finds that it lacks the resources and expertise necessary to produce the product. which of the following is the best course of action for the firm?
it should consider forming or joint or strategic alliances with other firms (that may have better knowledge in the areas that they are lacking)
which of the following is a reason for organizations to use the direct channel for distributing organizational goods?
many organizational products need a great deal of presale and postsale services
under which of the following conditions may a manufacturer wish to have its own sales force?
the market for its product is geographically concentrated
during the channel selection process, a manufacturer should consider all of the following except
preferences of the intermediaries
(but they should consider: distribution coverage required by its product, degree of control the manufacturer wants to have over the channel and total distribution cost)
most convenience goods require ____ form of distribution
intensive
If a product requires certain specialized selling effort or investment in unique facilities or large inventories, the ___ distribution arrangement is usually selected.
exclusive
inventory carrying costs are one of the major distribution costs that need to be minimized when framing the channel selection decision. Which of the following is an inventory carrying cost?
Insurance
Coke licenses wholesalers in various markets that buy its syrup concentratr and then carbonate, bottle and sell coke products to retailers in their local markets. COke participates in a _____ vertical marketing system
contractual (they contract out to retailers)
Sears obtains over 50 percent of the goods it sells in its retail stores from companies that it partially or wholly owns. Sears participated in a ______ vertical marketing system.
corporate
which of the following is an example of forward integration?
a cigarette manufacturer buying a convenience store
Jenna runs an ice cream cooler at the beach each summer. her brother soes not charge her rent for setting up her ice cream cooler in his stand. each bar of ice cream costs her .20. she adds an additional .20 to each bar to pay for electricity for the freezer, napkins and her time selling the ice cream, finally at .40 per bar, Jenna uses ____ pricing.
markup
the estimated production and sales for a coffee table book on celebrity gardening is 10,000 volumes at a total cost of 100,000. Calculate the sales prices for each book if the publisher desired a before tax return of 25%
12.50

cost per book (100,000dollars /10,000books) =$10 a book

before tax return of 25%
$10 a book x 25% increase =$2.5 markup

$10+$2.50= $12.50

A new device “Sniffer”, used for testing alcohol levels in drunken driving suspects, is priced out of the reach of most law enforcement units. Those units that have bought the Sniffer are extremely pleased with its results and the fact that these results are readily accepted in court. There is nothing on the market today that has the accuracy and the portability of the Sniffer. The manufacturer of the Sniffer is likely to be using a(n) _____ pricing policy.
skimming
General Electric Company and De Beers Centenary AG were charged for conspiring to keep the end-user price for industrial diamonds artificially high. In other words, the two companies were charged for _____.
price fixing