BUSI 330 quiz 4 complete solutions correct answers A+ work

Liberty University BUSI 330 quiz 4 complete solutions correct answers A+ work

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Question 1 Which of the following products would have a low­learning product life cycle curve?

Question 2 Many nonprofit organizations use PSAs in their media planning. What does the acronym "PSA" stand for?

Question 3 Brand personality refers to __________.

Question 4 During the __________ stage of the product life cycle, product proliferation occurs to help differentiate a company's brand from competitors.

Question 5 Seiko makes watches. It markets its higher quality watches under the Seiko or LaSalle brand name, and its lower­priced watches are sold under the Pulsar brand. Seiko uses a __________ strategy.

Question 6 Commuters in New York often have often installed radio frequency identification (RFID) devices on their cars that can be read automatically as they approach a toll booth. This saves time, improves traffic flow, and means drivers don't need to keep exact change in their cars. It also offers New York authorities the opportunity to manage traffic flow by charging different toll amounts for different times of day, such as charging a higher toll for "rush hour" periods during the morning and afternoon commutes. Commuters in New York are experiencing

Question 7 Since Gatorade Thirst Quencher was concocted in 1965, its marketers have introduced Gatorade Frost in 1997, Gatorade Fierce in 1999, the Gatorade Performance Series in 2001, Gatorade Rain in 2006, and the Gatorade G Series in 2011, to name a few. These introductions are examples of __________.

Question 8 Bayer Aspirin is sold in the original strength, in a safety­coated version, in an extra­strength version, and in a version designed especially for women. Bayer is using __________.

Question 9 Consider the PLC photos above. Which stage of the product life cycle (PLC) is the Apple iPad tablet device?

Question 10 In the seven Ps of services marketing, the term "process" involves not only "what" gets created but also

Question 11 A box of Cascade dishwasher detergent shrink­wrapped with a bottle of Jet Dry for 10 cents more than the regular price of the dishwasher detergent is an example of __________ pricing.

Question 12 SHAPE magazine is targeted at young women seeking healthier lifestyles. At a price of $3.00 per copy, 1.25 million copies are sold. If the price per issue is increased to $3.25, only 1 million copies would be sold. Fixed costs are $1 million and unit variable costs are $0.50 per magazine. From the information provided here, what is SHAPE magazine's total revenue obtained at the lower $3.00 price?

Question 13 The manufacturer of a new kind of fat­free ice cream that has the consistency and taste of regular ice cream is thinking of using a penetration pricing strategy for its new product. Which of the following conditions would argue AGAINST using a penetration pricing strategy for the tasty dessert treat?

Question 14 Figure 11­3B Which of the following statements most likely would account for the shift in the demand curve from D1 to D2shown in Figure 11­3B above?

Question 15 A manufacturing company that introduces a product must know or anticipate what specific price its __________ currently charge or may charge in the future.

Question 16 A firm's profit equation demonstrates that profit equals __________.

Question 17 Price Premium Marketing Dashboard As the brand manager for Red Bull, what would you conclude from the information provided in the Price Premium Marketing Dashboard above?

Question 18 All of the following statements about standard markup pricing are true EXCEPT:

Question 19 An ad campaign by Suave shampoo asked television viewers to identify the heads of hair of women who used Suave shampoo and conditioner and those that used the much more expensive salon hair­care products. The idea of the ad was that no one could tell which woman used the much cheaper Suave brand. By making price its selling point, Suave is most likely using __________.

Question 20 Setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors is referred to as __________.

Question 21 In the automobile industry, many companies use a __________, whereby a manufacturer licenses dealers to sell its cars subject to various sales and service conditions.

Question 22 A __________ can be compared to a pipeline through which water flows—making possible the flow of products from a producer, through intermediaries, to a buyer.

Question 23 Marketing channels help create value for consumers through four utilities. These utilities are

Question 24 In an episode of the Glee television series, members of the glee club sold home­baked cupcakes at school to raise money. The students selling their cupcakes without any intermediary would be an example of a(n)

Question 25 For which of the following products would their respective manufacturers be most likely to use exclusive distribution?

Question 26 Cross­docking is most closely related to __________.

Question 27 A large company produces paint and other home decorating products. Its goal is to choose the best marketing channel arrangement that would give it the most control over supply sources. Which marketing channel system should this company choose?

Question 28 The three major types of vertical marketing systems are administered, corporate, and __________.

Question 29 The importance of time, dependability, communication, and convenience are all important concepts of __________, within the context of the supply chain.

Question 30 Which of the following best describes the goal for a firm's inventory and transportation costs?

Question 1

Reducing the package content without changing package size while maintaining or increasing the package price is referred to as __________.

Question 2

A brand name that cannot be spoken is referred to as a __________.

Question 3

Product modification refers to a marketing strategy that __________.

Question 4

Mott's applesauce promotes itself as a low‑fat alternative to cooking oil for baked goods. Mott's is __________.

Question 5

Promotional expenditures at the introduction stage of the product life cycle are best spent on __________.

Question 6

The four steps in the sequential process of building the brand equity pyramid include: (1) developing positive brand awareness; (2) establishing a brand's meaning in the minds of consumers; (3) __________; and (4) creating a consumer‑brand connection.

Question 7

Gatorade is MOST LIKELY in which stage of its product life cycle?

Question 8

Tylenol successfully used __________ with the introduction of Tylenol Arthritis, Tylenol Sinus and Allergy, Tylenol Cold and Flu, and Tylenol Pain and Sleeplessness.

Question 9

A manufacturer can successfully use mixed branding because __________.

Question 10

Which of the following is an example of a product in the maturity stage of the product life cycle?

Question 11

Rather than emphasize demand, cost, or profit factors, a price setter can stress what __________ is (are) doing.

Question 12

Which of the following is a profit‑oriented approach to pricing?

Question 13

Setting an annual target of a specific dollar volume of profit is referred to as __________.

Question 14

Price Premium Marketing Dashboard

The Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks. What is the price premium for Monster in 2009?

Question 15

Demand factors refer to

Question 16

All of the following are demand factors EXCEPT:

Question 17

A target return profit objective implies that a company chooses to

Question 18

The four types of discounts are

Question 19

The owner of a take‑out fried chicken and biscuits restaurant pays each month $2,500 in rent, $500 in utilities, $750 loan interest, $200 insurance premium, and $250 on local bus advertising. A bucket of chicken is priced at $9.50. Variable costs for the bucket are $5.50. How many buckets of chicken does the restaurant need to sell to break‑even each month?

Question 20

Allowances, like discounts, refer to

Question 21

Schwan's Sales Enterprises of Marshall, Minnesota, markets a full line of frozen foods in 49 states and parts of Canada using door‑to‑door salespeople who sell from its refrigerated trucks. This particular method of distribution is referred to as a(n)

Question 22

Amazon uses supply chain and logistics management to

Question 23

While Maytag appliances have the leading brand name, its sales are third in the industry. One of the things the company has done to spur sales is to create a website where potential customers can find the answers to the questions they ask during the appliance purchase process. Although Maytag considered using a __________ strategy by directing customers to Maytag appliance stores it owns, the firm decided against it and simply provides the names and addresses of all the retailers (Sears, Home Depot, etc.) that carry Maytag appliances.

Question 24

Rather than compete with large greeting card companies for shelf space in supermarkets, several smaller card companies place their cards in pack‑and‑ship stores where the customer can mail a card on the spur of the moment, and in carwashes where customers are waiting and appreciate having something amusing to read. This would be an example of which type of marketing channel strategy?

Question 25

Which of the following statements regarding supply chains is most accurate?

Question 26

Which statement regarding responsive supply chains is most accurate?

Question 27

Bombardier is the leading marketer of corporate jets. Its brand name is well known and respected in the corporate jet market. The aircraft company relies on outside suppliers for design support and to share development costs and market risks, but Bombardier is considered the leader in determining design and marketing of its planes. For its newest plane, Bombardier has about 30 prime suppliers—about 10 of those have been involved since the initial design phase. Bombardier is an example of a __________.

Question 28

A commonly used indirect channel moves product from producer to retailer to consumer. This channel is used when

Question 29

Most Apple retail stores have a Genius Bar staffed with highly trained personnel that can help customers with their purchases of iPads, iPhones, and other Apple products and services. Which buying requirement is Apple satisfying with its Genius Bar?

Question 30

The word flow as it relates to the definition of logistics management refers to decisions needed to move

Which of the following statements about Gatorade is true?

            a.    Michael Jordan has been a Gatorade spokesperson.

            b.    International opportunities were vigorously pursued.

            c.    Distribution of Gatorade expanded first to include convenience stores and supermarkets.

            d.    The original Gatorade was a liquid with a lemon-lime flavor.

            e.    All of the above statements about Gatorade are true.

Which of the following statements about Gatorade is true?

            a.    Gatorade began as a rehydration beverage for a football team.

            b.    Gatorade has plans to expand to the Latin American market before the end of this decade.

            c.    Gatorade was first only available through catalogs or mail order.

            d.    The Federal Trade Commission protects the Gatorade brand name from becoming generic.

            e.    All of the above statements about Gatorade are true.

A concept that describes the stages a new product goes through in the marketplace—introduction, growth, maturity, and decline— is called: 

            a.    the retail life cycle.

            b.    the product life cycle.

            c.    the marketing mix.

            d.    the product growth cycle.

            e.    product commercialization.

The stage of the product life cycle when a product is first introduced to its intended target market is called the __________ stage.

            a.    growth

            b.    commercialization

            c.    launch

            d.    introduction

            e.    awareness-trial

Lack of profit in the introductory stage of the product life cycle is very often the result of: 

            a.    insufficient allocation of resources to the marketing mix.

            b.    poor selection of distribution channels.

            c.    high taxes.

            d.    large investment costs in product development.

            e.    ineffective execution of the marketing program.

The marketing objective for a product in the __________ stage of the product life cycle is to promote consumer awareness and gain trial.

            a.    introduction

            b.    growth

            c.    maturity

            d.    decline

            e.    product repositioning

A few years ago Who Wants to Be a Millionaire premiered as the first nighttime game show in a couple of decades.  The marketing for the show was intent on making television viewers aware of its existence and excited enough about the show that we would watch the first episode.  Which of the following statements about televised game shows is true?

            a.    Who Wants to Be a Millionaire was in the introduction stage of the product life cycle of televised nighttime game shows when it premiered.

            b.    Because television has been around for many years, all programs fall naturally into the maturity stage.

            c.    Televised programs are either in the introduction stage or the growth stage and are discontinued when they move into the maturity stage.

            d.    All televised programming uses a three-stage product life cycle--growth, maturity, and decline.

            e.    The product life cycle is totally inapplicable to any television genre.

A product in the introduction stage of the product life cycle should have which of the following marketing objectives?

            a.    to gain awareness and stimulate trial

            b.    to stress differentiation

            c.    to maintain brand loyalty

            d.    to gain as much distribution as possible

            e.    to reveal a marketing niche

One of the newest types of television shows is the category called reality shows.  According to the product life cycle, what was the objective of the marketers of these reality shows when they were in the introduction stage of the product life cycle?

            a.    to gain awareness and stimulate trial

            b.    to stress differentiation

            c.    to maintain brand loyalty

            d.    to gain as much distribution as possible

            e.    to reveal a marketing niche

Gillette spent $35 million in advertising to introduce the Sensor razor to consumers. Such expenditures are often made to stimulate __________, or desire for the product class, rather than for a specific brand, when there are no competitors with the same product.

            a.    additional marketing research

            b.    innovative sampling

            c.    primary demand

            d.    initial data gathering

            e.    repeat purchase

Scientists have discovered a new medical treatment but before they can market it, physicians and patients must be aware of its existence.  In other words, its manufacturer must create __________ demand.

            a.    selective

            b.    primary

            c.    derived

            d.    generic

            e.    secondary

During the introduction stage of the product life cycle, promotional expenditures are made to stimulate consumer desire for an entire product class rather than for a specific brand.  The consumer desire that is stimulated is referred to as __________ demand.

            a.    selective

            b.    primary

            c.    derived

            d.    generic

            e.    secondary

The popular "Got Milk" advertising campaign was sponsored by the National Milk Board to encourage more people to drink milk.  This ad campaign stimulated __________ demand.

            a.    selective

            b.    primary

            c.    derived

            d.    generic

            e.    secondary

Promotional expenditures at the introduction stage of the product life cycle are spent on: 

            a.    contests and sweepstakes.

            b.    creating selective demand.

            c.    creating primary demand.

            d.    personal endorsements.

            e.    maintaining brand loyalty.

During the growth stage of the product life cycle, promotional expenditures are made to stimulate consumer desire for a specific brand due to increased competition.  The consumer desire that is stimulated is referred to as __________ demand.

            a.    selective

            b.    primary

            c.    derived

            d.    generic

            e.    secondary

As competitors introduce their own products, and the product progresses along its life cycle, company attention is focused on creating __________ demand, or demand for a specific brand.

            a.    selective

            b.    primary

            c.    derived

            d.    generic

            e.    secondary

For years when most consumers thought of cranberries, they thought of the Ocean Spray brand.  Then Northland cranberry juice came on the market claiming that it was superior to the Ocean Spray brand.  Northland was creating __________ demand for its cranberry products.

            a.    selective

            b.    primary

            c.    derived

            d.    generic

            e.    secondary

During the introduction stage of the product life cycle, the place element of the marketing mix is highly involved with: 

            a.    reducing inventory costs.

            b.    gaining distribution outlets.

            c.    guaranteeing there is adequate demand if a skimming pricing strategy is used.

            d.    building storage warehouses and distribution centers.

            e.    using an intermodal logistics system.

The music industry has changed dramatically over the years.  In the 1970s, consumers purchased 8-track tapes.  In the 1980s, cassette tapes caused the decline of 8-track tapes.  In fact, today consumers would experience difficulty in purchasing a new artist on 8-track tape.  Now in the 2000s, compact discs have become very popular and are being purchased by music lovers of every age and background.  As sales of compact discs continue to grow at an increasing rate, sales of cassette tapes are weakening, the profits are declining, and the product may face a fate similar to that of 8-track tapes.  Based upon this information, you can correctly conclude cassette tapes are in the __________stage, and compact discs are in the __________ stage of the product life cycle: 

            a.    decline; growth

            b.    decline; introduction

            c.    maturity; growth

            d.    decline; maturity

            e.    maturity; introduction

During the introduction stage of the product life cycle, __________ may be used used.  This pricing strategy charges a high price to recoup the costs of product development.

            a.    penetration pricing

            b.    cost-plus pricing

            c.    ROI pricing.

            d.    market-oriented pricing

            e.    skimming pricing

INGenius ATG introduced the microware oven-sized battery recycler in 1999.  It was intended for the business market.  Companies could buy the recycler and use it to restore alkaline batteries that are not normally recharged.  The recycling does not let a battery live forever; but it does give it a charge of about 80 percent of the energy it originally had.  Depending on the size of the battery, the recycler can hold up to 96 batteries.  It takes 13 hours to recharge any battery.  The recycler was introduced at $3,000.  When you consider that the R & D to develop this product was quite high, you should suspect that INGenius ATG was using a __________ strategy.

            a.    penetration pricing

            b.    cost-plus pricing

            c.    ROI pricing.

            d.    market-oriented pricing

            e.    skimming pricing

A company follows a skimming strategy as part of introducing a new product to: 

            a.    help recover costs of development and to capitalize on the price insensitivity of early buyers.

            b.    capitalize on the price sensitivity of early buyers and to postpone breakeven.

            c.    discourage competitors and build unit volume.

            d.    move the product into the maturity stage once primary demand has been created.

            e.    do all of the above.

When Texas Instruments (TI) introduced its pocket calculator in the early 1970s, it was a tremendous product innovation, and TI set the mail order price at $495.  What is the name of the pricing strategy Texas Instruments used?

            a.    rip off

            b.    chiseling

            c.    opportunistic

            d.    skimming

            e.    caveat emptor

During the introduction stage of the product life cycle, the strategy that discourages competitive entry by charging a low price is referred to as: 

            a.    penetration pricing.

            b.    cost-plus pricing.

            c.    ROI pricing.

            d.    market-oriented pricing.

            e.    skimming pricing.

Consumers who are frequently on the Internet more than likely use either Netscape Explorer or Netscape as their Web browser.  There is another option called Opera, which is faster and highly customizable, a feature that neither Internet Explorer nor Netscape have.  For example, it can be set to suppress all pop-up ads and there are several mouse-controlled shortcuts available.  Opera was initially offered on the market for $29 and this included tech support.  It was hoped that this low price would build the volume of Opera users quickly.  Opera used a __________ strategy.

            a.    penetration pricing

            b.    cost-plus pricing

            c.    ROI pricing

            d.    market-oriented pricing

            e.    skimming pricing

To discourage competitive entry, a company can price its new product low, using penetration pricing.  This pricing strategy also helps to: 

            a.    reduce costs.

            b.    increase profits.

            c.    build customer loyalty.

            d.    improve product quality.

            e.    build unit volume.

Which of the following statements about the introduction stage of the product life cycle is true?

            a.    During the introduction stage, efforts are made to increase primary demand.

            b.    During the introduction stage, firms may choose a skimming pricing strategy.

            c.    During the introduction stage, firms may choose a penetration pricing strategy.

            d.    Generally the promotional message is to inform and educate the consumer.

            e.    All of the above statements about the introduction stage of the product life cycle are true.

Opera.com introduced a new Web browser that can be easily customized to do what you want it to do—such as suppress all pop-up ads and retrieve previously visited websites quickly.  Opera is spending a lot of money to make potential consumers aware of the existence of a Web browser that can be customized.  Sales have been slow to rise over the past year, and profit has yet to be achieved.  In what stage of the product life cycle is this product category?

            a.    growth stage

            b.    decline stage

            c.    commercialization stage

            d.    maturity stage

            e.    introduction stage

Technology that allows consumers to access information on the Internet from a cell phone is in the introductory stage of its product life cycle.  The industry is composed of several small firms with state-of-the-art products that are neither standardized nor compatible with one another.  Moreover, these small firms have limited marketing expertise and little money to spend on marketing; their common strength is engineering.  This industry has welcomed the entry of a giant in the mobile phone industry like Nokia because: 

            a.    the small companies could leapfrog beyond Nokia's products.

            b.    Nokia's entry would help segment the market, establishing targets for the smaller firms.

            c.    Nokia set standards and is generating primary demand.

            d.    Nokia could solve the remaining technological problems.

            e.    Nokia could acquire the small, struggling firms.

Imagine that Eveready has developed solar rechargeable batteries that cost only slightly more to produce than regular batteries (less than the rechargeable batteries currently available) and can be recharged by sunlight up to 5 times, after which they are meant to be discarded. Unfortunately, the production process cannot be patented, and competitors could arrive within a few months.  Eveready's marketing efforts should include all the following EXCEPT: 

            a.    skimming pricing.

            b.    widespread distribution.

            c.    high production capacity.

            d.    advertising aimed at brand name awareness.

            e.    introductory promotions to encourage trial.

A few years ago Who Wants to Be a Millionaire premiered as the first nighttime game show in a couple of decades.  Once the show became a hit and televised several nights a week, other networks quickly created their own version of what they hoped to be a successful game show format.  Greed and Twenty-One are the names of but two of the new shows that were created to compete with Who Wants to Be a Millionaire.  At this point in time the nighttime televised game show entered which stage of its product life cycle?

            a.    growth stage

            b.    decline stage

            c.    commercialization stage

            d.    maturity stage

            e.    introduction stage

Which stage in the product life cycle is characterized by a rapid increase in sales and the appearance of competitors?

            a.    introduction

            b.    growth

            c.    maturity

            d.    decline

            e.    profit

At which stage in the product life cycle do industry profits usually peak?

            a.    introduction

            b.    growth

            c.    maturity

            d.    decline

            e.    commercialization

Which of the following is a characteristic of the growth stage of the product life cycle?

            a.    advertising emphasis switches to primary demand

            b.    growing proportion of initial purchasers to repeat purchasers

            c.    slow, steady sales

            d.    competitors appear

            e.    pricing is more aggressive

A technology company has just begun to make a profit on its DVD-R discs (DVD discs in a recordable format).  Its promotional expenditures are aimed at trying to persuade potential customers of the merits of its DVD-R discs.  Even more money is being spent to develop the firm's distribution system for its DVD-R discs.  Since Apple's iMac now comes with a DVD recorder as a standard part, several other companies have started producing DVD-R discs for the market.  What stage of the product life cycle is the DVD-R in?

            a.    commercialization stage

            b.    maturity stage

            c.    growth stage

            d.    decline stage

            e.    introduction stage

Which stage in the product life cycle is characterized by a slowing of industry sales?

            a.    introduction

            b.    growth

            c.    maturity

            d.    decline

            e.    comparability

During the maturity stage of the product life cycle, profit declines because: 

            a.    there are fewer and fewer competitors in the market.

            b.    better products are only in the growth stage.

            c.    production costs increase the more a firm has to manufacture the same product.

            d.    there is fierce price competition among sellers.

            e.    all of the above.

The marketing objective of a firm whose product is in the maturity stage of the product life cycle is to: 

            a.    actively search out new first time users.

            b.    maintain existing buyers since new ones are hard to find.

            c.    actively reinforce competitors' marketing efforts.

            d.    maintain existing distributors and actively seek out new ones.

            e.    shift to a skimming price strategy.

Promotional expenses at the maturity stage of the product life cycle are often directed towards: 

            a.    creating demand for the product class.

            b.    reminding the consumer to use the product.

            c.    creating primary demand.

            d.    gaining new distributors.

            e.    eliminating distribution channels.

Which of the following statements is a characteristic of the maturity stage of the product life cycle?

            a.    Often this stage is entered because of environmental or technological factors.

            b.    During this stage companies attempt to eliminate distribution channels.

            c.    Industry sales revenue peaks, which is one stage after industry profit peaks.

            d.    Industry profits peak because production and distribution costs are declining.

            e.    Industry profit peaks, which is one stage after industry sales revenue peaks.

The videocassette recorder (VCR) was introduced to the market in the late 1970s.  Ninety-one percent of American homes own at least one VCR.  To maintain market share in the VCR market and to get customers to purchase additional VCRs, its manufacturers have continually provided for higher-quality recording capabilities and made the machines easier to watch and with different features that allowed for quicker location of recorded programs.  Because the goal of VCR manufacturers is to maintain brand loyalty and market share, the product category is in the __________ stage of its product life cycle.

            a.    introduction

            b.    growth

            c.    maturity

            d.    decline

            e.    harvesting

Hershey's chocolate bars have been marketed in the United States for more than 100 years, and are still a tremendous success, with a loyal following of consumers.  The company began advertising several years ago to hold its market share