STUDY GUIDE Flashcards
(36 cards)
Who among the following individuals is practicing green marketing?
a. Carrie, who sells solar-powered watches
b. Mark, who volunteers at a local self-help group
c. Pamela, who organizes blood donation drives
d. John, who gives money to a nonprofit organization
A
_____ remain constant regardless of how many products are sold.
a. Overhead costs
b. Marginal costs
c. Variable costs
d. Fixed costs
D
Stacey, a multinational company that sells consumer durables, divides its target markets on the basis of the density of population in the areas it operates in. It employs more salesmen and spends more money on promotions in cities with high population densities. In the context of consumer market segmentation, which of the following types of market segmentation does Stacey most likely follow?
a. Behavioral segmentation
b. Geographic segmentation
c. Psychographic segmentation
d. Customer-based segmentation
B
Companies employ _____ when they actively promote the ecological benefits of their products.
a. green marketing
b. social marketing
c. environmental scanning
d. mass customization
A
Wingate Inc., is an independent distributor that distributes paper cups, pens, pencils, and notepads to other firms on a large scale and takes legal possession of the goods it distributes. In this scenario, it can be said that Wingate, Inc. is a(n) _____.
a. agent
b. broker
c. merchant wholesaler
d. store retailer
C
Product augmentation:
a. calls for greater purchase power at the consumer end.
b. results in the dilution of the actual goods.
c. damages the reputation of the company.
d. sharpens the competitive edge of the marketer’s products.
D
Which of the following statements is true of ownership utility?
a. It boosts customer satisfaction by providing helpful information.
b. It adds value by making products available at a convenient time for consumers.
c. It satisfies customer needs by providing the right products in the right place.
d. It adds value by making it easier for customers to possess the goods that they purchase.
D
A downside of publicity is that:
a. it lacks proper planning.
b. it is often perceived by consumers as an untrustworthy and unethical practice.
c. the marketer has no control over how the media present the company or its products.
d. it is a highly expensive affair.
C
In the year 1906, Silver Spoons, a company that sold kitchen utensils, had only one model of each of its products. The company did not feel the need to differentiate its wares because it did not analyze its business from a customer’s point of view. In the context of the evolution of marketing, which of the following eras does this scenario most likely refer to?
a. The relationship era
b. The marketing era
c. The production era
d. The selling era
C
In the introduction stage of the product life cycle, companies are primarily focused on:
a. protecting the market share of the product from competitors.
b. introducing new variations of existing products.
c. defending the franchise with competitive advertising and price cuts.
d. building customer awareness of the product.
D
In the context of business products, _____ consist of small-ticket items that businesses consume on an ongoing basis but do not become part of the final product.
a. accessory equipment
b. maintenance products
c. unsought products
d. processed materials
B
_____ involves placing a producer’s products in as many stores as possible.
a. Selective distribution
b. Direct distribution
c. Intensive distribution
d. Wholesale distribution
C
The coastal town of Brookwood offers various exotic water sports and hiking expeditions to its tourists. The town government of Brookwood advertises its adventure tourism in travel magazines, newspapers, and on the television in neighboring countries. Which of the following marketing strategies does this scenario best illustrate?
a. Place marketing
b. People marketing
c. Event marketing
d. Idea marketing
A
Which of the following business product categories refers to large capital purchases made by a company that are designed for a long productive life?
a. Convenience products
b. Accessory equipment
c. Installations
d. Unsought products
C
Zip Corp, an electronic goods manufacturer, recently launched a new gaming console at a very low price. The company aims to capture as much of the market as possible by offering rock-bottom prices. It aims to compensate for the loss by increasing the sales volume. In the context of pricing strategies, it is evident that Zip Corp has adopted the strategy of _____.
a. sustained discount pricing
b. high/low pricing
c. penetration pricing
d. loss-leader pricing
C
Which of the following identifies how reliably a product delivers its promised level of quality?
a. The life cycle of the product
b. The product consistency
c. The primary features of the product
d. The augmented benefit that the product offers
B
A fitness equipment manufacturing company initiates its new product development process. The management, along with the product design team of the company, makes estimated cost budgets for each of the potential products. This is an important part of the process as it helps the management in assessing whether the company can afford the new product. In the context of the given scenario, the company is most likely in the _____ stage of the new product development process.
a. analysis
b. development
c. testing
d. idea screening
A
Ransome Technologies, a laptop manufacturer, released a new laptop model priced at $800 to attract customers who could afford to pay the high price. After a few months, it introduced low-priced versions of the same laptop to attract new buyers. By doing so, it maximized profitability by targeting different segments of the market. In this scenario, Ransome Technologies has used the _____ strategy.
a. skimming pricing
b. penetration pricing
c. everyday-high pricing
d. loss-leader pricing
A
Coffee Bean Enterprises is an independent distributor that distributes coffee machines and water purifiers to firms on a large scale. In addition to taking legal possession of the goods it distributes, the company also provides a complete array of services that includes warehousing, shipping, product repairs, and credit to its business buyers. In this scenario, it can be said that Coffee Bean Enterprises is a(n) _____.
a. broker
b. store retailer
c. agent
d. merchant wholesaler
D
National Pen Corporation (NPC), a pen manufacturing company, sometimes gives away some of its gel pens practically for free but reaps handsome profits as customers buy pen refills. In the context of pricing strategies, it is evident that NPC has adopted the strategy of _____.
a. loss-leader pricing
b. penetration pricing
c. everyday-low pricing
d. skimming pricing
A
Tammi K. Products, a makeup company based in New York, introduces a range of cream-based lipsticks. It puts up booths in all the high-end malls of the city where it allows the visitors to sample the new products. In the context of product adoption and diffusion, Tammi K. Products illustrates the characteristic of:
a. adaptability
b. compatibility
c. observability
d. trialability
D
Health Help, a company manufacturing health supplements, puts its advertisements in a popular health and fitness blog. The advertisements seamlessly blend in with the overall theme of the blog and almost look like a part of the platform. Which of the following strategies has Health Help implemented in this scenario?
a. Guerilla marketing
b. Sponsorship
c. Native advertising
d. Product placement
C
_____ involves using all the media platforms to promote a product.
a. Viral marketing
b. Integrated marketing communication
c. Linear marketing
d. Social marketing intelligence
B
An advantage of cobranding is that:
a. it ensures greater consistency in products.
b. both partners leverage their strengths to enter new markets.
c. multiple products can be marketed at the same price.
d. both companies enjoy limited liability.
B
