Marketing 310 Exam 2

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value is referred to as a(n) _________.
product
Services:
are intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value.
Items that a consumer purchases frequently, conveniently, and with a minimum of shopping effort are referred to as:
convenience products.
Products that the consumer does not know about or knows about but does not initially want are referred to as:
unsought products.
Items (such as lumber or grain) that become part of the final product are referred to as:
components.
Which of the following products at the time of their introduction was the best example of a continuous innovation?
Blu-Ray player
There are eight marketing reasons why a new product can fail. One of these is __________.
having an insignificant point of difference
A benefit of performing a SWOT analysis and an environmental scan during the new-product strategy development process is that they:
can help identify the strategic role the new product might serve in the firm’s portfolio.
Sara Burns is the owner of a company called Piquant (which means having a pleasantly sharp taste or appetizing flavor). She was looking for a new product to go with her company’s line of food condiments when a customer suggested combining spices with tea. This is an example of:
open innovation.
In the new-product development process, the __________ stage involves specifying the product features and marketing strategy along with financial projections needed to bring it to market.
business analysis
During the introduction stage of the product life cycle, the place element of the marketing mix is highly involved with:
convincing channel intermediaries to carry the product.
Profit margins often peak as competitors enter the market, and aggressive pricing strategies take hold. This happens during which stage of the product life cycle?
Growth
Harvesting is an option for a product in the __________ stage of its product life cycle.
decline
Which of the following products is the best example of a product that might experience an introduction, a decline, and then a resurgent reintroduction as part of its normal product life cycle?
Designer handbags
If a customer is reluctant to try a new product because he doesn’t see that much difference between it and similar products, the company is most likely facing a __________ barrier.
value
The person responsible for managing the marketing efforts for a close-knit family of products or brands is called the __________ or __________.
product manager; brand manager
Which of the following triggers a product repositioning action?
Reacting to a competitor
Michelin has added a “run-flat” feature to its higher-priced tire lines so that they can travel up to 50 miles at 55 miles per hour after suffering total air loss. The marketing strategy Michelin used is called:
trading up
When a brand name cannot be spoken, it is considered a __________.
logo
All products sold by the Tabasco Company use the Tabasco brand. This is an example of __________.
multiproduct branding
Services are:
intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value.
A student who is inadequately helped by someone in career services and whose phone calls to the librarian remain unanswered may start to have a negative perception of her school, despite the fact that she has learned a lot in her classes. This is a function of the __________ aspect of services.
Inseparability
When Brad (a customer of the supermarket) heard, “There is no wait in checkout lines 2 and 5,” he knew that the supermarket had:
idle production capacity.
Equipment-based services do not have the marketing concerns of inconsistency because:
employees do not have direct contact when providing services to consumers.
Services such as restaurants and childcare, have __________ properties, which can only be discerned after purchase or during consumption.
experience
Burger King is attempting to measure the difference between their customers’ expectations and experiences by using a 24-hour toll-free hot line capable of receiving 4,000 customer calls a day. What is this type of activity called?
Gap analysis
Caring, individualized attention provided to customers as a dimension of service quality is referred to as __________.
empathy
The seven Ps of services refer to an expanded marketing mix for services that includes the four Ps (product, price, place, and promotion) as well as:
people, physical environment, and process.
Off-peak pricing refers to:
charging different prices during different times of the day or during different days of the week to reflect variations in demand for the service.
Internal marketing refers to:
the notion that a service organization must focus on its employees first before successful marketing programs can be directed at customers.
All of the following are examples of a price except:
a tax.
Gem Cakes sells designer cupcakes for $4 each. Each cupcake costs $1 for the ingredients and wrapper. Monthly expenses for the shop include the following: rent is $1,000; utilities are $200; an advertisement in the local paper is $200; and wages are $4,000 per month. How much monthly profit would be expected if the business sells 6,000 cupcakes each month?
$12,600
Which of the following is NOT a pricing constraint?
Social responsibility impact the product has on society
The former Soviet Republic of Turkmenistan is located in Central Asia and is one of the last countries on the planet to gain Internet access. The only Internet service provider for the entire country is Turkmen Telecom. As a result, there is no need for price competition, promotion, or product differentiation because Turkmen Telecom operates in a(n) __________ type market.
pure monopoly
At a price of $3 per issue, SHAPE magazine sells 1.25 million copies of its magazine targeted to young women seeking a healthier lifestyle. If the price is increased to $3.25 per issue, only 1 million copies will be sold. Fixed costs are $1 million and unit variable costs are $0.50 per issue. From the information provided here, what is SHAPE magazine’s total revenue obtained at the higher price?
$3,250,000
At a price of $3 per issue, SHAPE magazine sells 1.25 million copies of its magazine targeted to young women seeking a healthier lifestyle. If the price per issue is increased to $3.25 per issue, only 1 million copies will be sold. Fixed costs are $1 million and unit variable costs are $0.50 per magazine. Calculate the average revenue for SHAPE magazine at the higher price.
$3.25
Which of the following statements about price elasticity of demand is most accurate?
Items requiring large cash outlays relative to a consumer’s disposable income are price elastic.
The Precision Writing Instruments Company makes a high-end pen known as the Cordova. Materials cost per pen is $6. Labor cost per pen is $5. Production overhead is $1,000,000. Advertising and promotion is $1,000,000. What is the total cost for sales of 500,000 units of the Cordova design?
$7,500,000
Marginal analysis refers to:
a continuous, concise trade-off of incremental costs against incremental revenues.
North Safety Products manufactures butyl gloves that offer permeation resistance to gas or water vapors for workers that use dangerous chemicals like ketones. The company has fixed costs of $10 million for its butyl glove production and unit variable costs of $5 per pair. If the company charges $15 per pair, how many pairs of gloves must it sell to break even?
1,000,000 pairs
Callaway Golf markets its products through more than 15,000 on- and off-course golf retailers and sporting goods retailers; the firm also has its own online store. This makes Callaway Golf an example of a(n) __________ marketer.
multichannel
Contacting potential customers, promoting products, and seeking orders would be an example of a(n) __________ function that intermediaries perform.
transactional
Having a Chevron gas station located on a long stretch of lonely highway is an example of __________ utility.
place
Which of the following statements regarding electronic marketing channels is most accurate?
Internet marketing channels employ the Internet to make products and services available for consumption or use by consumers or organizational buyers.
The channel strategy demonstrated when Hallmark sells its Hallmark brand greeting cards through Hallmark stores and select department stores and its Ambassador brand of cards through discount and drugstore chains is referred to as __________.
dual distribution
The purpose of a vertical marketing system is to:
achieve channel economies and maximum marketing impact.
Which of the following is the most popular type of vertical marketing system?
Contractual vertical marketing systems
Marketing executives typically consider three questions when choosing a marketing channel and intermediaries. These include: (1) which channel and intermediaries will provide the best coverage of the target market, (2) which channel and intermediaries will best satisfy the buying requirements of the target market, and (3) which channel and intermediaries will be the:
most profitable
Which statement regarding responsive supply chains is most accurate?
Responsive supply chains use common platforms and common components across several products.
The ability of a logistics system to satisfy users in terms of time, dependability, communications, and convenience is referred to as __________.
customer service