CHAPTER 8
Which of the following correctly defines a product?
A.A product is anything offered to a market that might satisfy a need or want. | B.Products are tangible goods only. | C.A product is the overall market offering. | D.Products include tangible objects and services but not events or people. | E.A product consists of the actual product and the augmented product. The core customer value is not part of a product.
A product is anything offered to a market that might satisfy a need or want.
Profits increase during the __________ stage of the product life cycle.
growth
________ are costs that do not change with production or sales level.
Fixed costs
When Apple introduced their iPhone, they priced the new product at $599, considerably higher than either their iPod or competing cellular phones. Apple was pursuing a(n) __________ pricing strategy.
market-skimming
When the seller requires that dealers not handle competitors' products, its strategy is called ________.
exclusive dealing
Which of the following is NOT one of the four major branding strategy decisions?
A.Brand sponsorship | B.Brand positioning | C.Brand name selection | D.Brand equity | E.Brand development
Brand equity
Which stage of the product life cycle usually lasts the longest and poses strong challenges to marketers?
Maturity
Caramour Construction Inc. estimates the cost of building a structure and then adds 20% to the bid before submitting it. This practice is called ________.
markup pricing
Many state colleges and universities charge one price for in-state students and a higher price for out-of-state students. Which form of segmented pricing are these schools using?
Location-based pricing
Companies today see channel members as first-line customers and practice strong ________.
partner relationship management
For which service characteristic do marketers need to pay close attention to fluctuations in demand?
A.Variability | B.Intangibility | C.Tangibility | D.Perishability | E.Inseparability
Perishability
What is the primary marketing objective when a product enters the decline stage of the product life cycle?
Reduce expenditures and milk the brand.
The simplest pricing method is ________ pricing where a standard markup is added to the cost of the product.
cost-plus
A company has set a low price on a new product it introduced. They want to maximize their market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?
Market-penetration pricing
When a product or service producer cuts out intermediaries and goes directly to final buyers or when radically new types of channel intermediaries displace traditional ones this is called ________.
disintermediation
The number of items in a product line represents the __________ and the total number of product lines a company carries represents the __________.
A.product line length; product line width | B.product line length; product mix width | C.product line width; product mix length | D.product mix depth; product line width | E.product mix length; product mix depth
product line length; product mix width
Which of these reasons is NOT one of the causes of new product failure?
The product's profit margin could be too high.
Company ABC sets prices after computing all of the expenses associated with manufacturing and getting the product to market and then adding a reasonable return. This is an example of ________.
cost-based pricing
Poultry processors such as Perdue Farms once couldn't give chicken feet away and even had to pay to dispose of them. However, they have now discovered a huge demand in China for the chicken feet. What pricing strategy are these poultry producers using?
By-product pricing
Which of the following statements regarding marketing channel design is correct?
Channel alternatives should be evaluated against economic, control, and adaptability criteria.
What are the four special service characteristics marketers must consider when designing marketing programs?
A.Tangibility, substitutability, variability, and conformity | B.Tangibility, inseparability, variability, and perishability | C.Intangibility, inseparability, variability, and substitutability | D.Intangibility, inseparability, conformity, and perishability | E.Intangibility, inseparability, variability, and perishability
Intangibility, inseparability, variability, and perishability
Jessica's team has been working on a new beverage product that she believes is almost ready for launch. However, the next step is to see how consumers react to the new beverage in a realistic setting. How can her team collect that information?
Use a test market to determine consumer reactions.
Which of the following is the correct formula for break-even volume? Assume FC is fixed costs, VC is variable costs, and P is price.
FC / (P – VC)
Assume a competitor has cut prices and a company determines it should respond. Potential actions that the company could initiate include ________.
reducing price, raising perceived value, improving quality and increasing price, and launching a low-price "fighter brand"
What are the four major functions of marketing logistics?
Inventory management, warehousing, transportation, and logistics information management