1

A pricing such as that used by companies that sell printers and ink, razors, and video games, best illustrates which type of pricing strategy?

A      Bait-and-switch pricing

B      Psychological pricing

C      Captive pricing

D      Price bundling

 

2

Why is the Bradley-Terry-Luce model useful after you have done a conjoint analysis?

A      It tells you total utility of a product

B      It tells you the probability that consumers will choose each attribute

C      It tells you the probability that consumers will choose each product

D      It tells you the total utility of an attribute

 

3

Premium pricing strategies are best for products with a ____price and ____quality

A      higher; higher

B      lower; lower

C      higher; lower

D      lower; higher

 

4

Consumers are generally happier with hedonic experiential purchases rather than hedonic material purchases because

A       We have trouble remembering why we bought the products that we did — hedonic disruption.

B       Experiences also usually include some kind of product, so you get the best of both worlds — hedonic adaptation.

C       Sometimes, we don’t like what we actually buy — hedonic disruption

D       People tend to not enjoy the products that they buy after a while — hedonic adaptation

 

5

Sales for a product are decreasing and the marketing goal has become survival. What stage of the product life cycle is occurring?

A      Decline

B      Maturity

C      Growth

D      Introduction

 

6

Chris is at Walmart and discovers a product that he has not heard of before and decides to purchase it. For Chris, this product is a

A      Unsought product

B      Specialty product

C      Convenience product

D      Ideal product

 

7

Say you buy a calculator to help you crunch numbers. The main reason you buy a calculator is to help with multiplying, adding, dividing, and subtracting to help you solve your problem. This knowledge best exemplifies which dimension of a “product?”

A      Actual/tangible service

B      Augmented/supplementary service

C      Hybrid service

D      Core benefit

 

8

A pricing objective that attempts to maximize market share is

A      sales-oriented

B      Status quo

C      Market-oriented

D      Profit-oriented

 

9

The Brand Asset Valuator (BAV) takes which of the following into consideration?

A      Values, Benefits, Attributes

B      Sincerity, Sophistication, Ruggedness, Competence

C      Brand image, brand awareness, brand equity

D      Differentiation, Relevance, Esteem, Knowledge

 

10

If a particular product category (e.g. smartphones) has become adopted by just over 50% of the population, we can say that this product category is now in which phase of the adoption curve with respect to the diffusion of innovations?

A      Early majority

B      Late majority

C      Early adopters

D      Laggards

 

11

Giving human characteristics to products in attempt to aid consumers in connecting with that product is best described by which of the following?

A      Brand Personality

B      Franchising

C      Individual Ethnography

D      Service blueprinting

12

Given the following information…what is the Manufacturer’s selling price and the Retailer’s selling price?

Manufacturer’s cost = $9

Manufacturer’s markup = 10%

Wholesaler’s markup = 20%

Retailer’s markup = 30%

A         Manufacturer SP =10

          Retailer SP =17.85

B         Manufacturer SP =10.31

          Retailer SP =21.21

C         Manufacturer SP =10

          Retailer SP =21.21

D         Manufacturer SP =10.31

          Retailer SP =17.85

 

13

When marketing in the service industry. “Facilitating promises” equates to

A        Intangible marketing

B        External marketing

C        Internal marketing

D        Interactive marketing

 

14

Pepsi, the parent company of Gatorade, currently makes many variations of beverages including sports drinks. A while back they added a new sports drink called “G2”. By adding this product, Gatorade is

A        Deepening their product mix

B        Widening their product line

C        Widening their product mix

D        Deepening their product line

 

15

A laptop comes equipped with a touch pad that serves the general purpose of a mouse. In short, one does not need another plug-in external mouse to use the laptop but many feel that this increase the ease of computing. This external mouse exemplifies which level of a product?

A        Actual/tangible product

B        Augmented product

C        Non-standardized product

D        Core product

 

16

Chris decides to purchase a new Lamborghini sports car. He finds that he has only one option in the Phoenix area to choose from. For Chris, this Lamborghini is a:

A          Convenience product

B          Specialty product

C          Component product

D          Shopping product

 

17

A product making it to the store shelf and available to consumers for purchase best illustrates which phase of the new product development process?

A          Concept development

B          Idea generation

C          Test marketing

D          Commercialization

 

18

Which dimension of service quality corresponds to the trust and knowledge of the provider?

A          Assurance

B          Responsiveness

C          Reliability

D          Empathy

 

19

Kraft Food products is a company that makes many brands of dairy products and other grocery store items, all of which are identified only by the corporate name, Kraft. These products are sold in virtually all grocery stores in the U.S. In this example, Kraft can best be described as using which branding strategy?

A         Individual branding

B         Combination branding

C         Private branding

D         Family branding

 

20

Procter & Gamble makes many brands of shampoos, none of which include the Procter & Gamble name. These shampoos are sold in virtually all grocery stores in the U.S. In this example, Procter & Gamble can best be described as using which branding strategy?

A         Individual branding

B         Family branding

C         Combination branding

D         Private branding

 

21

The gap between the service provider’s perceptions and the customer’s expectations of the service before consuming the service was identified as which of the following from the Gap Model?

A         Service gap-Gap 5

B         Communications gap-Gap 4

C         Standards gap-Gap 2

D         Knowledge gap-Gap1

 

22

A company with little competition and a high quality (and strongly desired) product might use a pricing strategy that captures higher profits with its initial price before being lowered to attract price-sensitive consumers. Which type of strategy best demonstrates this?

A        Loss leader

B        Price skimming

C        Predatory pricing

D        Bait-and-switch

 

23

Lisa recently purchased a new laptop and is extremely satisfied with the warranty and customer support she has received. These factors represent which dimension of the overall product:

A        Augmented product

B        Fringe benefits

C        Core benefits

D        Actual product

 

24

One name for the concrete physical and spatial aspects of the environment surrounding consumer activity is best described as:

A          Assurance

B          Atmospherics

C          Physical distribution

D          Diffusion

 

25

Which type of marketing equates to “keeping promises” when marketing in the service industry?

A          Internal marketing

B          Interactive marketing

C          Intangible marketing

D          External marketing

 

26

It is said that intangible value is created when which of the following is true?

A           The brand name has been patented to be district

B           The value of the firm’s tangible assets are equal to or greater than its market value

C           The market value of a firm(stock price * number of shares)is greater than the value of its tangible assets

D           The firm’s products use labels that promote the product

 

27

A manufacturer promotes its products directly to consumers in hopes that retailers demand the product from the manufacturer because consumers are demanding it from them. This best illustrates which type of promotion strategy?

A            Push strategy

B            Pull strategy

C            The exponential innovation strategy

D            The AIDA strategy

 

28

A product extension where the company uses the leverage of a well known brand name in one product category to launch a new product in a different product category is best describes as a:

A           Value extension

B           Repositioning extension

C           Brand extension

D           Line extension

 

29

Products that have very few substitutes likely are:

A            Unitarily elastic

B            Inelastic

C            Elastic

D            Price-sensitive

 

30

In which stage of the product life cycle, did we suggest in class that features of the product are typically increasing?

A           Decline

B           Growth

C           Introduction

D           Maturity

 

31

The process by which the adoption of an innovation spreads is known as:

A           Logistics

B           Distribution

C           Diffusion

D           Supply Chain Management

 

32

As proposes by Carl Jung. “universal, archaic patterns and images that derive from the collective unconscious and are the psychic counterpart of instinct” are:

A           Brand attributes

B           Brand image

C           Archetypes

 

D           Archeytypes