Chapter 11 Creating Products and Pricing Strategies to Meet Customers' Needs

Question 1

Questions

Answer 1

Answers

Question 2

The process of discovering the needs and wants of potential buyers and customers and then providing goods and services that meet or exceed their expectations is called ___________.

Answer 2

marketing

Question 3

_________ is the process in which two parties give something of value to each other to satisfy their respective needs.

Answer 3

exchange

Question 4

The ____________ identifies consumer needs and then produces the goods or services that will satisfy them while making a profit for the organization.

Answer 4

marketing concept

Question 5

The ratio of benefits to the sacrifice necessary to obtain those benefits, as determined by the customer is _______________. It reflects the willingness of customers to actually buy a product.

Answer 5

customer value

Question 6

The customer’s feeling that a product has met or exceeded expectations is ______________.

Answer 6

customer satisfaction

Question 7

_______________ is a strategy that focuses on forging long-term partnerships with customers by offering value and providing customer satisfaction.

Answer 7

relationship marketing

Question 8

What are the five Ps which together make up the marketing mix?

Answer 8

product, price, promotion, place (distribution), and people

Question 9

The process in which a firm continually collects and evaluates information about its external environment is called __________________.

Answer 9

environmental scanning

Question 10

The _____________ is a specific group of consumers toward which a firm could direct its marketing efforts. It is often divided into segments so that marketing strategies can be directed to a more specific audience.

Answer 10

target market

Question 11

A set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition is called a(n)_______________ advantage, also called differential advantage.

Answer 11

competitive advantage

Question 12

A firm’s ability to produce a product or service at a lower cost than all other competitors in an industry while maintaining satisfactory profit margins is called a(n) ________________ advantage.

Answer 12

cost competitive advantage

Question 13

A firm’s ability to provide a unique product or service with a set of features that the target market perceives as important and better than the competitor’s is called a(n) ________________ advantage.

Answer 13

differential competitive advantage

Question 14

A firm’s ability to target and effectively serve a single segment of the market, often within a limited geographic area is called a(n) ________________ advantage.

Answer 14

niche competitive advantage

Question 15

The ____________ is a blend of product offering, pricing, promotional methods, distribution system, and strategies for utilizing people that creates an offering that brings a specific group of consumers superior value.

Answer 15

marketing mix

Question 16

Taking the good or service and selecting a brand name, packaging, colors, a warranty, accessories, and a service program is the _________.

Answer 16

product strategy

Question 17

Setting a price based upon the demand for and cost of a good or service is the _________.

Answer 17

pricing strategy

Question 18

Creating the means by which products flow from the producer to the consumer is the _______________.

Answer 18

distribution strategy

Question 19

The unique combination of personal selling, traditional advertising, publicity, sales promotion, social media, and e-commerce to stimulate the target market to buy a product. Sometimes referred to as the promotion mix is the _____________________.

Answer 19

promotion strategy

Question 20

__________ is the actions people take in buying and using goods and services.

Answer 20

buyer behavior

Question 21

The set of values, ideas, attitudes, and other symbols created to shape human behavior is known as __________.

Answer 21

culture

Question 22

_______________ groups are formal and informal groups that influence buyer behavior.

Answer 22

reference groups

Question 23

A way of organizing and grouping how an individual reacts to situations is ____________.

Answer 23

personality

Question 24

The process of ____________ includes separating, identifying, and evaluating the layers of a market in order to identify a target market.

Answer 24

market segmentation

Question 25

The differentiation of markets through the use of categories such as age, education, gender, income, and household size is ______________ segmentation.

Answer 25

demographic segmentation

Question 26

The differentiation of markets by region of the country, city or county size, market density, or climate is ______________ segmentation.

Answer 26

geographic segmentation

Question 27

The differentiation of markets by personality or lifestyle is ______________ segmentation.

Answer 27

psychographic segmentation

Question 28

The differentiation of markets based on what a product will do rather than on customer characteristics is ______________ segmentation.

Answer 28

benefit segmentation

Question 29

The differentiation of markets based on the amount of the product purchased is ______________ segmentation.

Answer 29

volume segmentation

Question 30

The process of planning, collecting, and analyzing data relevant to a marketing decision is _____________.

Answer 30

marketing research

Question 31

A marketing research method in which data is gathered from respondents, either in person, by telephone, by mail, at a mall, or through the internet to obtain facts, opinions, and attitudes is called _____________ research.

Answer 31

survey research

Question 32

A marketing research method in which the investigator monitors respondents’ actions without interacting directly with the respondents; for example, by using cash registers with scanners is called _____________ research.

Answer 32

observation research

Question 33

In the marketing research method called ______________, the investigator changes one or more variables — price, packaging, design, shelf space, advertising theme, or advertising expenditures — while observing the effects of these changes on another variable (usually sales).

Answer 33

experiment

Question 34

In marketing, a good, service or idea, along with its perceived attributes and benefits, that creates value for the customer is called a(n) ___________.

Answer 34

product

Question 35

Products that either are not planned as a purchase by a potential buyer or are known but the buyer does not actively seek them, such as funeral services, are _________ products.

Answer 35

unsought products

Question 36

Relatively inexpensive items that require little shopping effort and are purchased routinely without planning are ____________ products.

Answer 36

convenience products

Question 37

Items that are bought after considerable planning, including brand-to-brand and store-to-store comparisons of price, suitability, and style are ______________ products.

Answer 37

shopping products

Question 38

Items for which consumers search long and hard and for which they refuse to accept substitutes are ______________ products.

Answer 38

specialty products

Question 39

Large, expensive items with a long life span that are purchased by businesses for use in making other products or providing a service are ______________ products.

Answer 39

capital products

Question 40

Which items (purchased by businesses) are smaller and less expensive than capital products and usually have a life span of less than one year?

Answer 40

expense items

Question 41

A new flavor, size, or model using an existing brand name in an existing category is called a(n) _____________.

Answer 41

line extension

Question 42

A group of eight to 12 participants led by a moderator in an in-depth discussion on one particular topic or concept is a(n) _________________.

Answer 42

focus group

Question 43

_____________ is a method of generating ideas in which group members suggest as many possibilities as they can without criticizing or evaluating any of the suggestions.

Answer 43

brainstorming

Question 44

The process of testing a new product among potential users is called _________________.

Answer 44

test marketing

Question 45

The _____________ is the person who develops and implements a complete strategy and marketing program for a specific product or brand.

Answer 45

product manager

Question 46

The _______________ is a pattern of sales and profits over time for a product or product category.

Answer 46

product life cycle

Question 47

What are the stages of the product life cycle?

Answer 47

introductory stage, growth stage, maturity, and decline (and death)

Question 48

The strategy of introducing a product with a high initial price and lowering the price over time as the product moves through its life cycle is known as _________________.

Answer 48

price skimming

Question 49

The strategy of selling new products at low prices in the hope of achieving a large sales volume is known as _________________.

Answer 49

penetration pricing

Question 50

The strategy of pricing products below the normal markup or even below cost to attract customers to a store where they would not otherwise shop is known as _________________.

Answer 50

leader pricing

Question 51

A(n) __________ is a product priced below cost as part of a leader-pricing strategy.

Answer 51

loss leader

Question 52

_____________ uses computer algorithms that allow for prices to change based on demand.

Answer 52

dynamic pricing

Question 53

____________ is the strategy of grouping two or more related products together and pricing them as a single product.

Answer 53

bundling

Question 54

The strategy of setting a price at an odd number to connote a bargain and at an even number to suggest quality is known as _________________.

Answer 54

odd-even (psychological) pricing

Question 55

The strategy of increasing the price of a product so that consumers will perceive it as being of higher quality, status, or value is known as __________________.

Answer 55

prestige pricing

Question 56

A computerized file of customers’ and potential customers’ profiles and purchase patterns is a(n) __________.

Answer 56

marketing database

Question 57

________________ creates a unique marketing mix for every customer.

Answer 57

one-to-one marketing

Question 58

Large data sets and systems and solutions developed to manage large accumulations of data is called __________________.

Answer 58

big data