Exercise for Final Exam

  1. _ refers to the amount of money charged for a product or service
  2. Value
  3. Cost
  4. [x] Price
  5. Wage
  6. Salary
  7. _ is the only element in the marketing mix that produces revenue
  8. [x] Price
  9. Product
  10. Place
  11. Fixed costs
  12. Variable costs
  13. Which of the following is true with regard to price?
  14. Historically, price has had the least perceptible impact on buyer choice.
  15. Price is the least flexible element in the marketing mix.
  16. Unlike product features and channel commitments, prices cannot be changed quickly.
  17. [x] Price is the sum of all the values that customers give up to gain the benefits of having a product.
  18. Prices only have an indirect impact on a firm's bottom line.
  19. What sets the ceiling for product prices?
  20. product manufacturing costs
  21. sellers' perceptions of the product's value
  22. [x] customer perceptions of the product's value
  23. variable costs
  24. break-even volume
  25. What sets the floor for product prices?
  26. consumer perceptions of the product's value
  27. [x] product costs
  28. competitors' strategies
  29. advertising budget
  30. market competition
  31. Effective _ pricing involves understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value.
  32. [x] customer-oriented
  33. cost-based
  34. time-based
  35. competition-oriented
  36. marketer-oriented
  37. _ pricing uses buyers' perceptions of value as the key to pricing.
  38. [x] Customer value-based
  39. Cost-based
  40. Time-based
  41. Markup
  42. Target return
  43. Which of the following is true of value-based pricing?
  44. [x] The targeted value and price drive decisions about what costs can be incurred and the resulting product design.
  45. Value-based pricing is mostly product driven.
  46. Value-based pricing involves setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for its effort and risks.
  47. The marketer usually designs a product and marketing program and then set the price.
  48. A company using value-based pricing designs what it considers to be a good product, adds up the costs of making the product, nad set a price that cover costs plus a target profit.
  49. The perceived value of different product offers can be resasonably assessed by _.
  50. conducting a SWOT analysis
  51. conducting a break-even analysis
  52. [x] conducting surveys and experiments
  53. collecting data about competitors' offers
  54. setting a benchmark for product quality
  55. Underpriced products _.
  56. [x] produce less revenue than they would if they were priced at the level of perceived value
  57. sell pooly in the global marketplace
  58. produce more revenue than they would if they were priced at the level of perceived value
  59. mostly offer higher value than those with a high markup price
  60. are characterized by rapidly declining demand
  61. A market-skimming pricing strategy should NOT be used for a new product when _.
  62. the product's quality and image support its higher price
  63. enough buyers want the products at that price
  64. competitors are unable to enter the market
  65. [x] competitors can undercut prices easily
  66. producing a smaller number of goods is feasible
  67. When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the _ pricing strategy.
  68. [x] market-skimming
  69. cost-plus
  70. market-segmentation
  71. market-penetration
  72. competititive
  73. The term "demand chain" is considered limited because it _.
  74. advocates a make-and-sell view of the market that relies on a responsive supply network
  75. suggests that planning starts with raw materials, productive inputs, and factory capacity
  76. [x] takes a step-by-step, linear view of purchase-production-consumption activities
  77. ignores the evolution of the global marketplace
  78. overlooks the needs of target customers
  79. A _ is made up of the company, suppliers, distributors, and customers who partner with each other to improve the performance of the entire system.
  80. [x] value delivery network
  81. horizontal channel
  82. consumer base
  83. product delivery network
  84. product line
  85. A _ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.
  86. product line
  87. product delivery network
  88. [x] marketing channel
  89. consumer base
  90. resource bank
  91. Which of the following is most likely true of marketing channel decisions?
  92. [x] They often involve long-term commitments to other firms
  93. They have minimal influence on the prices of products offered to customers
  94. They increase the amount of time a company spends connnecting with customers
  95. The increase the amount of effort a company puts in to distribute goods
  96. They are easily altered, replaced, or discarded
  97. _ play an important role in matching supply and demand by providing consumers with a broad assortment of products in small quantities.
  98. Virtual banks
  99. [x] Intermediaries
  100. Price consultants
  101. Uniform-delivery networks
  102. Upstream partners
  103. From the economic system's point of view, the role of _ is to transform the assortments of products made by producers into the assortments wanted by consumers.
  104. upstream partners
  105. [x] marketing intermediaries
  106. third-party logistics
  107. price consultants
  108. factory supervisors
  109. Which of the following is an example of an indirect marketing channel?
  110. June Bride, which sells bridal gowns via its click-to-order online catalogs
  111. Farmer Brown, who delivers fresh milk from his diary to customers every morning
  112. [x] Wine & Dine, which sells its picnie hampers to select novelty stores across the country
  113. Lifebelt Insurance, which sells life insurance through its door-to-door salespeople
  114. Rhonda's Rental, which rents cars out to people for the day
  115. The greater the number of channel levels in a marketing channel, the _.
  116. less distance between producer and end-consumer
  117. [x] greater the channel complexity
  118. less time it takes for products to reach end-consumer
  119. greater the control producers have over the distribution of their products
  120. greater the control producers have over the demand of their products
  121. _ involves using in-store promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions.
  122. Ambush marketing
  123. [x] Shopper marketing
  124. Bait-and-switch marketing
  125. Affinity marketing
  126. Narrowcasting
  127. _ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money.
  128. Limited-service
  129. [x] Self-service
  130. Full-service
  131. Speciality-service
  132. Wholesailing
  133. Today, _ are flourishing due to the increased use of marketing segmentation and market targeting.
  134. chain stores
  135. [x] specialty store
  136. superstores
  137. discount stores
  138. off-price stores
  139. Specialty stores carry _ with ___ within them.
  140. only convenience products; shallow assortments
  141. [x] narrow product lines; deep assortments
  142. narrow product lines; shallow assortments
  143. wide product lines; shallow assortments
  144. wide product lines; deep assortments
  145. A company's total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. Which of the following terms best describes this communication mix?
  146. the product mix
  147. product line filling
  148. [x] the promotion mix
  149. the price mix
  150. horizontal diversification
  151. Which of the following is one of the five major promotion tools?
  152. market penetration
  153. strategic positioning
  154. product line filling
  155. market diversification
  156. [x] direct marketing
  157. Which of the following promotion categories is most likely to use the promotion tools of press releases, sponsorship, events and Web pages?
  158. sales promotion
  159. direct marketing
  160. advertising
  161. [x] public relations
  162. horizontal diversification
  163. Today's consumers do not need to rely on marketer-supplied information about products and services because they can use _ to seek out a wealth of information
  164. push strategies
  165. direct marketing
  166. [x] the Internet
  167. personal selling
  168. public relations
  169. When the advertising objective is to build primary demand for a new product category, _ advertising will most likely be used.
  170. persuasive
  171. [x] informative
  172. comparative
  173. patronage
  174. institutional
  175. Which of the following is an objective of persuasive advertising?
  176. communicate customer value
  177. correct false impressions
  178. describe available services and support
  179. keep the brand in a customer's mind during off-seasons
  180. [x] change customer perceptions of product value

The final exam will be 100 questions multiple choices.