Exam 4 Study Guide: Ch 12, 16, 17, 20, 21
1. Which characteristic is NOT a characteristic that distinguish services from goods
2. A hair salon is furnished with sleek leather chairs, bright chandeliers, the best tools, and the most skilled stylists. When a customer comes in they know they will get a haircut they love. Which two service qualities does this exemplify:
a. Reliability and Tangibles
b. Assurance and Responsiveness
c. Responsiveness and Empathy
d. Assurance and Tangibles
3. Marketing research can close the _____ gap between what customers want and what managers think they want
4. Jimmy Johns promises freaky fast delivery. If customers are constantly calling to inquire as to where their food is or to complain about the slow delivery, the ____ gap is fairly large
5. Empowering employees and making sure they are satisfied and able to complete their job to their fullest potential closes the _____ gap. a. Knowledge
We also discuss several other topics like What is the highest interest rate of a long-term bonds?
6. Hiring a maid to come and clean your house is an example of what kind of process?
a. People processing
b. Possession processing
c. Mental stimulus processing
d. Information processing
7. Imagination Theatre puts on a show every month. They take reservations, provide valet service at the door and snacks and beverages during intermission, they usher people to their seats and give each person a bulletin when they walk in. The show is an example
of a ___ service, while the reservations, valet, food, and bulletins are examples of ___ services.
a. Primary and secondary
b. Core and supplemental Don't forget about the age old question of What are the three instances of lawful purpose?
c. Major and minor
d. True and accessory
8. Determining the number of outlets and the convenience of your service falls under which aspect of the marketing mix
9. Because Amazon can obtain customers’ personal information and track their purchases, they might lower the price for a product if you are student, but they will raise the price of that same product if they know you are a professional with a steady income. This pricing strategy is a. Revenue-oriented
10. A high-end hotel that turns down customers’ beds and places chocolates and mints on their pillows exemplifies Level 1 relationship Marketing If you want to learn more check out How does hemoglobin know when to let go of oxygen?
11. In the communication process, ____ occurs when the marketing manager creates an advertisement to communicate ideas. a. Reception
12. In a mass communication, there is low reception due to the high noise level
13. If Dominos wanted to influence behavior and get people to buy their pizza instead of Papa John’s, they would use ____ promotion a. Informative
b. Persuasive If you want to learn more check out In what stage of motor proteins is the separation of chromosomes?
14. For the brand new Apple Pen, Apple released a commercial showing all the various uses for their product. They are practicing ____ promotion
15. The goal of advertising is to drive immediate purchases and to influence behavior
16. Kroger wanted to boost sales and retain customer’s loyalty by running a contest where every time a customer used their Kroger card, they were entered to win a $10,000 gift card to Kroger. This contest is an example of
a. Personal selling
b. Public Relations
c. Sales Promotion
17. A product that has a high value with few customers in a concentrated area would be best promoted by
a. Personal selling If you want to learn more check out What is the ph of water?
b. Public Relations
c. Sales Promotion
18. The AIDA concept aims to encourage consumers to buy a product or take an action. The acronym stands for
a. Ask, Interact, Describe, Adapt
b. Attend, Inform, Describe, Act
c. Analysis, Implication, Decoding, Alternative
d. Attention, Interest, Desire, Action
19. Public relations’ greatest impact is
a. Gaining attention of goods and services
b. Attracting attention and building goodwill
c. Creating strong desire and purchase intent
d. Reaching mass audiences and engaging with customers 20. The message consumers receive – whether from a sales person, magazine ad, social media, or promotional event – should be the same describes
a. The promotional strategy
b. The marketing objectives
c. Integrated marketing communications
d. The promotional mix
21. When a wholesaler promotes to a retailer, and a retailer promotes to consumers, a ____ strategy is used
22. When Wal-mart decided to improve its check out process and improve appearance of some of its stores to keep high-end customers happy and increase their customer base, they were practicing a. Sales maximization
b. Satisfactory profits
c. Profit maximization If you want to learn more check out What are the four stages of the business cycle?
d. Target ROI
23. In the late 1990’s when CD players first came out, they cost between $400 - $500. In 2001 they dropped to around $100, then in 2004 you could buy one for about $50. This example demonstrates a. Skimming Pricing
b. Penetration Pricing
c. Discount pricing
d. Profit maximization pricing
24. A firm will use penetration pricing in order to
a. Gain mass audiences in the hope that they can later raise prices b. Increase market share and therefore increase profits
c. Reward customers if they promote the product or pay early d. Target audiences who are interested in quality, style, or uniqueness and willing to pay a higher price
Determine whether each statement has elastic (E) or inelastic (I) demand
25. _____ High inflation rate
26. _____There are many substitutes for a product
27. _____There is only one use for a product
28. _____Gas, medicine, surgical operations
29. _____ Price is so low that it has no affect on purchasers’ budget
30. Yield Management System is a technique that companies utilize _______ to maximize their revenue by discounting early purchases and limiting early sales at these early prices
a. Price elasticity
b. Dynamic pricing
c. Profit maximization
d. Sales maximization
31. When a wholesaler or retailer establishes price based upon the cost of buying the product from the producer (not the actual cost to make it) then sells it at a higher price, they are practicing
a. Break-even pricing
b. Profit maximization pricing
c. Markup pricing
d. Elastic pricing
32. Seasonal, functional, and cash discounts all lower the base price in order to
a. Meet promotional and positioning goals
b. Adjust for competition in certain markets
c. Meet government regulations
d. All of the above
Match the pricing tactic with the correct description
33. _____ Bait Pricing a. The outdated form of pricing that starts with the customer then
considers the competition and
associated costs, and finally
determines the price
34. _____Single-Price Tactic b. Marketing two or more separate products in a single package for a
35. _____ Geographic Pricing c. Offering a product line with several items at specific price points
36. _____ Value-based pricing
d. When a product is sold at a lower price than the cost in the hopes that a customer buys other products once they are in the store
37. _____ Price Lining e. Pricing odd numbers to connote a bargain, pricing even numbers to
38. _____Flexible Pricing f. Offering the same price for all goods and services
39. _____ Leader Pricing g. The strategy of moderating the impact of shipping costs on distant
40. _____ Price Bundling h. Establishing two separate charges to consume a single good
41. _____ Odd-even Pricing i. A deceptive, misleading form of pricing that tries to get the
consumer through the door and
pressure them to buy a high-priced
42. _____Two-part Pricing j. Used by people with certifications, training, or lengthy experience
k. Different customers pay different
prices for the same good sold in the
43. _____ Professional Experiences
6. B- Possession processing is customer service directed at customer’s personal possessions
7. B – Core service is the main benefit the customer is buying while a supplemental service enhances or supports the core service 8. A
9. D – Patronage-oriented marketing maximizes the number of customers by varying the price
10. B – This is Level 3; they develop not only financial and structural bonds, but they create structural bonds to add value that other firms can’t offer
12. A – Mass communication aims to target large audiences, therefore there is more noise (anything that interferes or distorts the communication message) and a lower reception level.
13. B – Competitive, mature products will use persuasive promotion in order to encourage brand switching, and aims to convert brand users into loyal customers.
14. A – Informative promotion; this is new product in the introductory product life cycle and a commercial that explains how to use the product is necessary to explain to people what their product is about
15. B – The goal of sales promotion is to drive immediate purchases and to influence behavior, while advertising gives consumers a reason to buy their product by informing them of their imbalance between their present state and desired state
16. C – Sales promotion includes things like contests, free samples, sweepstakes, vacation getaways, and coupons in order to complement other advertising and boost sales.
17. A – personal selling is used for products with a high value, technically complex, custom made, and very few customers. It can be a face-to-face interaction, a presentation, or an over-the-phone conversation.
18. D – Attention: the marketer must first get the target market’s attention about the product. Interest: Interest in the product is important if marketers want the product to sell. Desire: The marketers must persuade potential customers that their product is necessary and better than competitors’ products. Action: Finally, the customers must make the decision to buy the product or service.
19. B – Public relations entails gaining attention and building goodwill by sponsoring community events.
20. C – Integrated marketing communications is the coordination of all promotional messages to ensure consistency across all mediums and to ensure the target market is receiving the same message
21. B – Push strategy is used by retailers to “push” customers to buy products through advertising, displays, and other promotional channels 22. C – Profit Maximization means setting prices so that total revenue is as high as possible; this can be done by increasing customer satisfaction or operating more efficiently
23. A – Skimming pricing; a firm charges a high introductory price. This is effective for products that have an inelastic demand, are unique, or when there is legal protection of the product.
24. A – penetration pricing sets prices relatively low in hopes of gaining a mass audience. This is effective for products with a high sales volume, mass production, little room to adjust prices, not for prestige products.
25. E – When the inflation rate is high, consumers are price sensitive, therefore they find many uses and applications for other products making demand relatively elastic
26. E – When there are many substitutes for a product, if a price is too high for one product, they can easily switch to another, making demand elastic
27. I – When a product only has one use and there are no close substitutes (i.e. medicine), no matter how much it costs, consumers will still buy it, making demand inelastic
28. I – Gas, medicine, and surgical operations all have inelastic demand because they are necessary products
29. I – Demand will be inelastic if a product’s price is so low that it has no effect on buyers’ purchasing power
30. B – YMS use a complex mathematical software to adjust prices to profitably fill unused capacity by discounting early purchases, and limiting early sales at these discounted prices
31. C – Markup pricing does not directly analyze the direct cost of production but rather the cost of buying the product from the producer. *Note: this type of pricing is used by wholesalers and retailers; producers tend to use profit maximization to determine the price
32. D –All of these answers are reasons why firms use fine-tuning approaches
39. D 40. B 41. E 42. H 43. J