Marketing Test #2

Front 1

There are many furniture manufacturers. Tall Paul's is the only one that makes furniture to meet the needs of people who are over 6'6" tall. These people find furniture designed for average-sized people to be cramped and uncomfortable. Tall Paul's uses _____ segmentation.

Back 1

Benefit

Hint 1

The consumers are described by the type of benefit they seek.

Front 2

Train collectors Jack McCoy and Sandro Dias have decided to open a store that sells train memorabilia--everything from toy train sets to full-sized railroad signs. After 18 months in business, they have noticed most of their sales are to the same small group of customers (about 40 people) even though they have records to show there are over 200 active train collectors within a 50-mile radius of their store. Their retailing experience is supportive of the:

Back 2

80/20 Principle

Hint 2

The 80/20 principle proposes that a minority of a firm's customers purchase a majority of the volume of the product.

Front 3

Hank operates a plumbing and electrical supply store. He has categorized its business customers by their purchasing strategy. Hank has found it much easier to serve and satisfy the _____, who usually recontact familiar suppliers and place an order immediately if product and delivery requirements are acceptable.

Back 3

Satisficers

Hint 3

Satisficers use a simple, quick purchasing strategy of looking for the first available adequate supplier.

Front 4

What is the first step in segmenting a market?

Back 4

select a market or product category for study

Hint 4

The steps in segmenting a market are (1) select a market or product category for study, (2) choose a basis or bases for segmenting the market, (3) select segmentation descriptors, (4) profile and analyze segments, (5) select target markets, and (6) design, implement, and maintain appropriate marketing mixes.

Front 5

Sure Fit, Inc. has begun a rebranding strategy to let customers know it no longer only produces slipcovers, but now also carries a line of rugs, window treatments, and bedding. Its _____ is described as women with average annual household income of $60,000 or more.

Back 5

target market

Hint 5

The target market is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group.

Front 6

Candace Popwell makes and markets Festive Holiday Truffles candy. The confectionary company owner views the world as one big market with no individual segments and tries to reach it with only one marketing mix. Her essentially mass-market philosophy indicates she probably uses a(n) _____ strategy.

Back 6

undifferentiated targeting

Hint 6

With an undifferentiated targeting strategy, the market is viewed as one big market with no individual segments and uses a single marketing mix.

Front 7

E&V Bridal Studios, a wedding consulting business, only works with Eastern Asian customers who want to use their cultural heritage in their wedding ceremonies. What type of segmentation strategy does the wedding consultant use?

Back 7

concentrated targeting

Hint 7

E&V Bridal Studios concentrates on the segment of East Asians, who want a traditional wedding.

Front 8

Pharmaceutical firms market many brands of cold remedies with highly similar ingredients. The primary difference among the brands is their promotions that emphasize that various brands will treat different symptoms, such as runny noses, headaches, and fever. This is one way to practice:

Back 8

multisegment targeting

Hint 8

Different promotional appeals rather than completely different marketing mixes may be used as the basis for a multisegment strategy.

Front 9

Clorox saw sales of its bleach products suffer when it introduced laundry detergents with bleach as an added ingredient. This is an example of:

Back 9

cannibalization

Hint 9

Cannibalization occurs when sales of a new product cut into sales of a firm’s existing products.

Front 10

Ad campaigns by Aleve pain reliever emphasize the fact that to get the same relief offered by one Aleve, you would need to take six aspirin or Tylenol and four Advil. These promotions are using the positioning base of:

Back 10

competitor

Hint 10

Positioning against competitors is a positioning strategy.

Front 11

Which of the following is NOT an example of a product's tangible feature?

Back 11

brand equity

Hint 11

Brand equity is the value of company and brand names.

Front 12

When a greenhouse plant grower sells plants to nursery retailers, is selling _____ products.

Back 12

business

Hint 12

Retailers resell the plants, so they are considered a business product.

Front 13

There are so many high-definition television sets on the market, and they vary so much on price, quality, and features that consumers often have trouble comparing them. A high-definition TV would probably be considered a _____ product.

Back 13

heterogeneous shopping good

Hint 13

Heterogeneous shopping products are essentially different, and consumers often have trouble comparing them.

Front 14

Bang & Olufsen make some of the best sound systems in the world. After years of development, Bang & Olufsen recently released its new BeoLab 5 speakers. For audiophiles who demand the best in audio equipment, the $19,950 Bang & Olufsen BeoLab 5 speakers represent an example of a(n) _____ product.

Back 14

specialty

Hint 14

Bang & Olufsen speakers are expensive, and no substitutes are acceptable to this consumer group.

Front 15

Freda was proud of her shiny new iPhone. She was disappointed when she began to notice scratches on its display surface. If Freda had of known about the clear static cling protective films that were available to protect the iPhone display from scratches, she could have avoided this annoying problem. For Freda, the protective films are a(n) _____ product.

Back 15

unsought

Hint 15

New products are often examples of unsought products until promotion reveals their existence.

Front 16

A characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience is referred to as _____ quality.

Back 16

credence

Hint 16

Medical and consulting services are examples of services that exhibit credence qualities.

Front 17

Which unique characteristic of services means consumers must be present during the production?

Back 17

inseparability

Hint 17

Inseparability is the inability of the production and consumption of a service to be separated.

Front 18

Procter & Gamble manufactures Tide laundry detergent, the best-selling brand in the United States. But is also offers Tide to Go, which is a stick product consumers can use to clean a spot on their clothing between washings, and small travel packets of Tide detergent. These other products are part of Tide’s product line:

Back 18

depth

Hint 18

Product line depth is the number of product items in a product line.

Front 19

Which type of product modification changes a product’s versatility, effectiveness, convenience, or safety?

Back 19

functional

Hint 19

This is a description of functional product modification.

Front 20

The _____ is the element of a brand that cannot be spoken.

Back 20

brand mark

Hint 20

Well-known symbols for brands are called their brand marks, but these elements cannot be spoken.

Front 21

Victorinex has long manufactured Swiss Army knives and developed a line of upscale Swiss Army watches. The Swiss Army brand gave the company credibility over other watch manufacturers and allowed the company to continue targeting sports-minded males between the ages of 18 and 35. Victorinex used which strategy to create new products?

Back 21

new product line

Hint 21

It is offering watches, which it had not done prior to 9/11.

Front 22

For years, Diet Dr. Pepper has been considered a diet drink. After declining sales, the company is attempting to present Diet Dr. Pepper as an alternative to having a dessert. This is an example of a _____ strategy.

Back 22

repositioning

Hint 22

One way to create innovative products is to target new markets through repositioning. Repositioning is an attempt to change the market’s perception of a product.

Front 23

_____ is a process where a group thinks of as many ways to vary a product or solve a problem as possible without considering the practicality of the ideas.

Back 23

Brainstorming

Hint 23

The goal of brainstorming is to get a group to think of unlimited ways to vary a product or solve a problem, no matter how ridiculous it may seem.

Front 24

The same manufacturer produces Hanes, Playtex, and Bali clothing for women. This manufacturer assembled a group of nine regular customers and asked them to discuss what they like and do not like about its current product line for full-figured women and to suggest new-product ideas, such as jewelry, wide shoes, and belts. The manufacturer used a research technique called a:

Back 24

focus group

Hint 24

An objective of focus group interviews is to stimulate insightful comments through group interaction.

Front 25

At what stage of the new-product development process are most new-product ideas rejected?

Back 25

idea screening

Hint 25

Screening is the stage when the bulk of the ideas are rejected for being incompatible or impractical.

Front 26

After Mattel evaluated many new products to add to its Barbie product line and before any prototype was created, the toy manufacturer instructed a committee to select three of the ideas to present to a group of consumers. The consumer group was asked to evaluate the three product ideas in terms of their marketability. This stage of new-product development is called:

Back 26

concept testing

Hint 26

Concept tests evaluate new-product ideas usually before any prototype has been created.

Front 27

_____ is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.

Back 27

Test marketing

Hint 27

After products and marketing programs have been developed, they are usually tested in the marketplace using test marketing, which is the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.

Front 28

A(n) _____ is a consumer who was happy enough with his or her trial experience with a product to use it again.

Back 28

adopter

Front 29

Which product factor influencing the rate of adoption represents the degree of difficulty involved in understanding and using a new product?

Back 29

complexity

Hint 29

The more complex the product, the slower is its diffusion.

Front 30

Many product failures such as Cucumber antiperspirant spray, Toaster Eggs, and Health-Sea sea-sausages most likely did not succeed because they did not conform to the product characteristic of:

Back 30

compatibility

Hint 30

These products failed because they were not compatible with existing products and because customers could not relate to them.

Front 31

At Wal-Mart, Randi saw a bag of daffodil flower bulbs and a box of plant fertilizer. The items, which were sold together, retailed at $28.50, but were marked down to $19.99. The retailer sold one at the $28.50 price and five at the $19.99. The retailer's revenue is:

Back 31

$128.45

Hint 31

$28.50 + ($19.99 x 5) = $128.45.

Front 32

When Apple Inc. originally introduced its iPhone it was priced at what many believed to be about as high as the market would allow. Within weeks Apple lowered the price of the iPhone. It appears that Apple Inc. entered the market with a _____ approach to pricing the iPhone.

Back 32

profit maximization

Hint 32

Profit maximization means setting prices so that total revenue is as large as possible relative to total costs.

Front 33

Which of the following statements describes an advantage of status quo pricing?

Back 33

Status quo pricing requires little planning.

Hint 33

Status quo pricing requires little planning because it involves just copying the competitions' pricing policies.

Front 34

Allstate has more than 1,500 price levels that are determined by a complex algorithms that analyzes 16 credit report variables, including late payments and card balances. Allstate is using a _____ to set prices.

Back 34

yield management system

Hint 34

A yield management system is complex mathematical software used to profitably filled unused capacity.

Front 35

In 2008 United Airlines and American Airlines disclosed settlements in a class-action lawsuit over allegations of airfreight price fixing. This means the companies _____.

Back 35

agreed on the price they would charge customers for air freight

Hint 35

Price fixing is an agreement between two or more firms on the price they will charge for a product.

Front 36

A situation in which a manufacturer, and its distributors agree that the retailers will sell the manufacturer’s products at a certain price, at or above the price floor, is called _____.

Back 36

resale price maintenance

Hint 36

Resale price maintenance occurs when a manufacturer and its distributors agree that the retailer will sell the producer’s product at a certain price, at or above a price floor.

Front 37

Which of the following prohibits any firm from selling to two or more different buyers, within a reasonably short time, commodities (not services) of like grade and quality at different prices where the result would be to substantially lessen competition?

Back 37

Robinson-Patman Act

Hint 37

The Robinson-Patman Act also makes it illegal for a seller to offer two buyers different supplementary services and for buyers to use their purchasing power to force sellers into granting discriminatory prices or services.

Front 38

All of the following elements must be present for a pricing practice to be considered discriminatory under the Robinson-Patman Act EXCEPT:

Back 38

The products sold must not be commodities.

Hint 38

The products sold must be commodities or other tangible goods.

Front 39

When Microsoft introduced its Zune MP3 player, many people thought it would capture the MP3 player market by pricing its product so low that a smaller competitor, like the Apple iPod, would be unable to compete. If Microsoft had used this approach it have been would be guilty of _____.

Back 39

predatory pricing

Hint 39

Predatory pricing is the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market.

Front 40

market segmentation on the basis of personality, motives, lifestyles and geodemographics

Back 40

psychographic segmentation

Front 41

segmenting potential customers into neighborhood lifestyle categories

Back 41

geodemographic segmentation

Front 42

the process of grouping customers into market segments according to the benefits they seek from the product

Back 42

benefit segmentation

Front 43

dividing a market by the amount of product bought or consumed

Back 43

usage-rate segmentation

Front 44

a principle holding that 20% of all customers generate 80% of the demand

Back 44

80/20 principle

Front 45

business customers who place an order with the first familiar supplier to satisfy product and delivery requirements

Back 45

satisficers

Front 46

business customers who consider numerous suppliers, both familiar and unfamiliar, solicit bids, and study all proposals before selecting one

Back 46

optimizers

Front 47

an individualized marketing method that utilizes customer information to build long-term, personalized and profitable relationships with each customer.

Back 47

one-to-one marketing

Front 48

developing a specific marketing mix to influence potential customer's overall perception of a brand, product line, or organization in general.

Back 48

positioning

Front 49

the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings

Back 49

position

Front 50

a positioning strategy that some firms use to distinguish their products from those of competitors

Back 50

product differentiation

Front 51

a means of displaying or graphing in two or more dimensions, the location of products, brands or groups of products in customers minds

Back 51

perceptual mapping

Front 52

a product used to manufacture other goods or services

Back 52

business product

Front 53

a product bought to satisfy an individuals personal wants

Back 53

consumer product

Front 54

a shopping product that is basically similar to others

Back 54

homogenous

Front 55

a characteristic that can be easily assessed before purchase

Back 55

search quality

Front 56

a characteristic that can be assessed only after use

Back 56

experience quality

Front 57

the number of product lines an organization offers

Back 57

product mix width

Front 58

the number of product items in a product line

Back 58

product line depth

Front 59

the practice of modifying products so those that have already been sold become obsolete before they actually need replacement

Back 59

planned obsolescence

Front 60

a brand that carries no evidence of a retailers affiliation, is manufactured by a third party, and is sold exclusively at the retailer

Back 60

captive brand

Front 61

the second stage of the screening process where preliminary figures for demand, cost, sales and profitability are calculated

Back 61

business analysis

Front 62

the process by which the adoption of an innovation spreads

Back 62

diffusion

Front 63

net profit after taxes divided by total assets

Back 63

return on investment

Front 64

a situation in which total revenue remains the same when the prices change

Back 64

unitary elasticity

Front 65

the practice of marking up prices by 100%, or doubling the cost

Back 65

keystoning

Front 66

stocking well known branded items at high prices in order to sell store brands at discount prices

Back 66

selling against the brand