According to the lecture, word of mouth models in marketing and the spread of new products is based on
spread of contagious diseases models
Unlike product, promotion, or place, price is the only part of the marketing mix that:
generates revenue.
If the Amador County Pest Control Association got together and all member agreed to charge 3 percent of the value of a home for a termite inspection letter, the association members would be engaging in:
horizontal price fixing.
When a company greatly exceeds the customer’s expectations the outcome is often
During the _______ stage of the product life cycle, sales rise, profits rise rapidly, and there are a small but increasing number of competitors.
One key feature of the value of a brand is that:
it often protects the firm from competition and price competition.
When there is a significant difference between the service customers receive and the service the firm promotes, the firm has a:
communications gap
According to the instructor, if a company wants its price to meet its profit goals, they need to:
use margin up pricing
Paul is considering psycho-graphics as a way to segment the market for his small travel agency. This approach to segmentation offers him an advantage because:
it is based on underlying reasons why people make choices.
One of the following is not one of the stages of the product life cycle. Which is it?

a. Introduction
b. Pregnancy
c. Growth
d. Maturity
e. Decline

Jackson manages an upscale French restaurant in the Washington, D.C. area. His restaurant offers a few specials each evening in addition to its regular menu. Jackson has trained his waiters and waitresses to report to comments and requests for items that have previously only been offered as specials. Jackson uses his information to learn more about diners’ food preferences, which helps to reduce the ______ gap in services marketing.
According to the lecture, which of the following is NOT an important characteristic of marketing?
Segments must always be more than 50% of the population.
The instructor said that research is
about finding information not just data.
The segments that a company chooses to market to is
their target segment
Customer satisfaction occurs when
the customer evaluates the post purchase outcomes as exceeding the CL level
The diffusion of innovation theory is useful to marketers in helping them:
predict which types of customers will buy their product immediately and later.
Positioning is perception of the customer about your products features, values, and benefits relative to
the competition
In a ______ pricing tactic, sellers advertise low prices and then aggressively pressure customers to purchase higher priced versions of the product advertised with the low price.
bait and switch
Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to
evaluate the attractiveness of each segment
Caroline needs to find information about income and age distribution in Orange County, California. The best source of secondary research of use to Caroline is likely to be:
census data.
NASCAR redirected its marketing efforts when a survey indicated that almost 50% of race fans were female. This is an example of
demographic segmentation
process by which ideas are transformed into new products and services that will help firms grow.
Break-even point
The point at which the number of unites sold generates enough revenue to equal the total costs of running an operation
After reviewing the existing data on season spending by his company’s customers, Marvin decided he needed new information collected to address his research questions. Marvin will need _____ data to address the questions in his market research study
recently, the number of students enrolled in the marketing program dropped while the enrollment in the psychology program increased. The chair of the marketing department will probably use ______ as a first step to gain a better understanding of why enrollments are changing.
exploratory research.
a name, symbol, design, or term that identifies a seller’s good or service as distinct from those of other sellers.
As you check out or pay at the grocery cash register, you notice gum on display and purchase some. This is most likely a
Convenience product
Breakeven analysis
gives you the total number of units you need to sell to breakeven
Pre-paid funeral services is an example of
An unsought product
In general, prices should not be based on costs because:
consumers make their purchase decisions based on perceived value
An invalid reason for creating a perceptual map is:
It’s a way to show the position of the company in ten years.
Firms with well known brands can spend relative less on marketing costs than firms with little known brands because:
people already know what the brand means
any intangible offering that involves a deed, performance, or effort that cannot be physically possessed.
Characteristics of a service:
intangible, inseparable, variable, perishable.
Marketing firms should only try to improve the customer’s perceptions by
one point on the rating scale.
One of the primary reasons that companies create new products related to the product life cycle:
New products must be created to replace products in the decline stage.
The term BIG DATA in marketing as used in the class lecture includes all of the following EXCEPT
Macro-environmental factors like inflation rates.
The main element that distinguishes a product from a service is
An important marketing outcome
customer satisfaction
In the value equation, the price of a good or service is
the perceived cost of either the offering or the alternative offering
Branding helps companies market but it also helps companies by
increasing the net worth of the company
allowing employees to make decisions about how service is provided to customers
When customers buy branded products that they like, it has the neurological effect of
releasing neurotransmitters that part of the reward system
The term service recovery is not very accurate because:
it is actually a service replacement
The step of testing a concept has one important element that is:
that the actual product or service has not yet been actually made
Today’s salespeople do not engage in as much
cold call
The flow of product from raw materials through no disposal is best described as:
the supply chain
Integrated marketing communications represents which P in the four P’s of a firm’s marketing mix?
Describe the information flow
it is associated with the pull strategy and moves away from the customer.
the physical movement of goods and services
Key advantage of personal selling:
it provides immediate feedback from the customer
Use of private label brands
strategy used by retailers to differentiate themselves from competitors
Three elements of any IMC strategy:
the consumer, the channels, and the results.
The main goal of Integrated Marketing Communications (IMC) is:
a coordinated message across all marketing media
What marketers have learned from how consumers interpret their IMC messages:
each receiver decodes IMC messages in his or her own way
Two key skills needed by a salesperson:
questioning and listening
Questioning and listening skills allow salespeople to:
create value by solving problems or addressing specific needs
When a product has gained a certain level of brand awareness, firms use ______ advertising to motivate consumers to take action
Distribution Intensity is about:
the number of outlets and channels used to provide the product or service to the customer.
In the AIDA model, marketing communications move consumers stepwise:
through a series of mental stages
additional sales that can be attributed to an advertising campaign
Marketing communications can be wasted if:
the sender does not gain the attention of the consumer first
Describe the product flow:
associated with a push strategy and moves towards the customer
If a company find the return on marketing using social media is 146% and the return on marketing using broadcast media is 38%, the company should:
increase communications expenditures on social media
The Promotion ‘P’ of the four P’s of the marketing mix is also called:
Integrated Marketing Communications
US based global marketers have often found that:
EU advertising laws are more restrictive than those in the US
The goals of IMC need to:
be explicit and measurable
Media Mix
the combination of media used and the frequency of advertising in each medium
One of the greatest constraints faced by store based retailers and one that the Internet channel can address is:
the amount of merchandise that can be carried in a physical store
Inexperienced salespeople mistakenly believe that during the sales call, they should:
do all the talking
Because advertising is the most visible form of marketing:
people think of marketing and advertising as synonymous
In marketing’s four P’s, Place refers to all activities required to get:
the right products to the right customer when that customer wants it
Naren knows that he needs to ask a series of questions early in his sales presentation, but he also knows that he:
needs to listen carefully to the answers
The group at school that is promoting and teaching sales is:
Professional Sales Institute
Works selling products to industrial users, spends most of their time working on customers’ new buy and modified rebuy situations
order getter
For a JIT system to be successful, the firm and its vendors must
What is the primary function of a stock keeping unit (SKU)?
it represents a unique inventory item in a store
Orders for merchandise are generated at the store level based on sales data captured at POS terminals
pull supply chain
Today, most successful retailers concentrate on providing:
more value to their best customers
Reminder advertising:
prompt repurchase of a product
The most expensive media of all the components of IMC
personal selling
Three types of distribution intensity:
intensive, exclusive, and selective
Sound adjustment on TV commercials is part of:
the AIDA model