Principles of Marketing Mini Test 9
Terms in this set (47)
In class, we looked at some of the costs of providing services. Which of the following do mangers need to consider as they set the cost of their services?
These were ALL costs that need to be considered
According to lecture, how much more does it cost to attract a new customer than to keep an existing one?
5 times more
In thinking about price, we noted that the Final Price paid may be reduced by "incentive and allowances." What is an example of this for college tuition?
In class, we noted that our Variable Cost divided by the Quantity we manufacture is our:
Unit Variable Cost
Which of the following would be an example of an objective in Step 1 of the price-setting process?
"We need to make a profit of at least $1.2 million."
Which of the following is the BEST example of a people-based service?
Unit volume as a pricing objective refers to
the quantity of products to be produced or sold.
Inventory carrying costs can be reduced by
using a commission compensation system.
Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value are referred to as __________.
Demand for a product is likely to be more price elastic if it
has many substitutes.
In class, we looked at services such as personal shoppers, take out food, and house and lawn care as growing to help consumers deal with:
a poverty of time
Based on lecture, which of the following properties of services can consumers use to judge the service prior to the actual purchase of the service?
In class we noted that a firm's "Service Image" is conveyed by its "service products." In choosing the service dimensions to create a competitive position, which service dimensions should be emphasized?
The dimension which are most valued by the customers.
In class, we looked at an approach to pricing that may result in market analysts giving our firm a higher rating, which should move the price of our stocks up. Which profit objective is most likely to produce this result?
Managing for Current Profit
The revenue generated by each seat flown one mile shown in UMD12: Capacity Management above is
Suppose you want to get "plugged in" and buy an all-electric Tesla Model S (see the photo above), the world's leading all-electric, zero-emission car that has a 265-mile range and can be recharged in three hours. The Tesla Model S Performance model has a list price of $87,500. However, you want several options (Performance Plus Package, red multi-coat armor paint, Tech package, Sound Studio Package, home charging station, performance wheels, and others) that will cost $17,500. An extended warranty will add an additional $5,000. However, if you put $50,000 down now and finance the balance over the next year, you will receive a dealer rebate of $5,000 off the list price. The dealer will give you a $7,000 trade-in allowance for your 2008 Honda Civic DX four-door sedan. In addition, you will have to pay a state sales tax of $10,000, an auto registration fee of $1,000 to the state, and a $1,000 destination charge to ship and prep the car. But because the Tesla Model S is an alternative energy vehicle, you qualify for a $2,500 state rebate and a $7,500 federal tax credit! Finally, your total finance charge is $7,000. Applying the price equation, what is your final price for the Tesla Model S?
According to Figure 12-5 above, which statement is MOST ACCURATE?
Television repair is more difficult to evaluate than restaurant meals
Which of the following statements is MOST ACCURATE?
Marketers must ensure that firms in their channels of distribution must make an adequate profit or they will be cut off from their customers.
Pricing objectives refer to
specifying the role of price in an organization's marketing and strategic plans.
The practice of exchanging products and services for other products and services rather than for money is referred to as __________.
Based on lecture, which property of services can consumers evaluate BEFORE the purchas
According to the lecture, about how much does the service sector contribute to the U.S. economy?
In Marketing in the News, we heard that LG has a new effort that launched with an experiential event in New York City's Times Square area. What segment of the market is this new campaign targeting?
Upscale buyers who can afford this premium priced technology.
In class, we thought about situations in which it might be a good idea to OUTSOURCE customer service. Which of the following is NOT one of the times when we might outsource?
Actually, these are ALL situations in which we might outsource.
Jason graduated from high school and took his mom to dinner after the ceremony. At the restaurant, the server fills their water glasses, checks on their table, and takes care of their requests. Jason notes that the last time he was at this same restaurant, the experience was much worse. This scenario illustrates the ___________ of services.
All of the following are legal and/or ethical considerations when setting a final price EXCEPT:
A __________ is very important to the process aspect of services because it helps identify steps that will ultimately lead to better service creation and delivery proc
customer contact audit
A flowchart of the points of interaction between consumer and service provider is referred to as
a customer contact audit.
There are a lot of skateboards on the market, but the BMW Streetcarver is the only one with stabilizers and wheel design based on BMW's automobiles. This technology gives the BMW Streetcarver better control at high speeds and around sharp turns than any other brand. The skateboard is priced at $495, which leaves many consumers (especially young males) who might want to buy the Streetcarver unable to afford it. This inability to pay for the high-priced BMW-made skateboard shows the affect of __________ on sales.
A maximizing current profit objective implies that a company chooses to
set targets whose performance can be measured quickly.
In lecture, we discussed "the importance of price." According to the instructor, which of the following best reflects "the importance of price?"
Price is important because it is the only thing that produces revenues or profits (all else are expenses).
In class, we talked about Fixed Costs. Here at Marks Manufacturing, we want to get a good handle on our costs. Which of the following would NOT be a fixed cost?
The cost of the materials we use in production
In Marketing in the News, we heard that Kmart is bringing back an iconic marketing approach to help boost its sales. What are they bringing back?
The Bluelight Special
In class we considered the element of the Profit Equation. We noted that the Fixed Cost plus Variable Cost is equal to:
According to the service continuum shown in Figure 12-3 above, what does "B" represent?
Three different objectives relate to a firm's profit, which have different implications for pricing strategy. The three profit-oriented objectives include __________, managing current profit, and achieving a target return.
managing for long-run profits
Figure 13-5A above shows that when the price for Red Baron frozen cheese pizzas moves from $8 to $6 per unit along the demand curve D1, the quantity demanded
increases from 2 to 3 million units per year.
The sum of the expenses of the firm that change with the quantity of the product that is produced and sold is referred to as
Pricing constraints refer to
factors that limit the range of prices a firm may set.
In class, we looked at the example of JetSuite. Their last minute daily flight deals give you the chance to fly privately starting at only $536 each way (for the whole jet)!!! What characteristic of services is JetSuite's offering related to?
In class, we considered the example of tuition at KSU. We looked at the $85 College of Business Undergraduate Program Fee. What aspect of "price" did this represent?
The $85 represents an "add on" to the published tuition in the form of an "extra fee."
The giving of unauthorized free products or services to customers to inflate their customer satisfaction levels is referred to as __________.
To increase value, marketers may __________, decrease price, or do both.
Consumers have more difficulty evaluating services than they do products; the difficulty results from the
intangibility of services.
Small regional producers selling grocery products have a special problem because they need to set prices at which both they and their channel members can profit while
competing with other brands to gain valuable space on supermarket shelves
Which of the following would be an example of a constraint in Step 1 of the price-setting process?
"We're going to face some stiff competition."
Using Figure 13-4 above, how much price competition is likely for small coffee shops?
There are many sellers competing within a range of prices.