Question 1

Karen Simon recently purchased a digital camera. She considered three cameras-a Sony that was priced at $239.00, a Canon priced at $319.00, and a Nikon priced at $399.00. Karen couldn't tell much difference between the cameras, so she bought the Nikon, figuring that because it was the most expensive of the three, it must be the best. According to the textbook, Karen was making a ________.

Accepted Answer

Karen assumed that the Nikon, being the most expensive, must be the best quality. This is an example of price-quality attribution, where consumers assume that higher prices indicate higher quality.

Question 2

A firm's marketing mix is the assortment of products and services that it sells.

Accepted Answer

A firm's marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. It traditionally includes the four Ps: Product, Price, Place, and Promotion.

Question 3

In ________-based pricing, the list price of an item is determined by adding a markup percentage to a product's cost.

Accepted Answer

Cost-based pricing involves adding a markup percentage to the cost of a product to determine its list price. Other options such as compliance, value, competitive, and economic are pricing strategies that may consider factors such as customer perception, market demand, or competition, but not necessarily the cost of the product.

Question 4

Kevin Jackson owns a general contracting company. The way Kevin prices his services is to figure his cost and then add a 33 percent markup. The method that Kevin uses to determine his prices is called ________-based pricing.

Accepted Answer

Kevin uses his costs as the basis for his pricing strategy, hence he uses cost-based pricing.

Question 5

________ refers to the activities the firm takes to communicate the merits of its product to its target market.

Accepted Answer

Promotion refers to the activities a firm takes to communicate the merits of its product to its target market. This may include advertising, personal selling, sales promotions, public relations, and direct marketing. Sponsorship and endorsement can be part of the promotion mix but are not the overall definition. Price is a separate element of the marketing mix that refers to the amount charged for the product or service.

Question 6

A(n) ________ is an early user of a firm's product who is willing to give a testimonial regarding his or her experience with the product.

Accepted Answer

A reference account is an early user of a firm's product who is willing to give a testimonial regarding his or her experience with the product. A tribute account, approval report, appreciation account, and acknowledgment report are not commonly used terms in the context of marketing or customer testimonials.

Question 7

A(n) ________ is an event at which the goods or services in a specific industry are exhibited and demonstrated.

Accepted Answer

A trade show is specifically designed for businesses to showcase and demonstrate their goods or services within a particular industry. Carnivals, expos, exhibitions, and conferences may also have the opportunity for businesses to exhibit products or services, but they are not solely focused on that purpose.

Question 8

A(n) ________ channel is a route a product takes from the place it is made to the customer who is the end user.

Accepted Answer

A distribution channel is specifically designed for the delivery of products from manufacturers and producers to customers. Therefore, the best choice is option E, distribution.

Question 9

________ marketing is a low-budget approach to marketing that relies on ingenuity, cleverness, and surprise rather than traditional techniques.

Accepted Answer

Guerrilla marketing is a low-budget approach to marketing that relies on ingenuity, cleverness, and surprise rather than traditional techniques. The approach is often unconventional and unexpected, aiming to make a big impact without spending a lot of money.

Question 10

Which element of the marketing mix is the only one that produces revenue?

Accepted Answer

Price is the only element of the marketing mix that produces revenue. The other elements, such as product, place, advertising, and promotion, contribute to the sale but do not directly generate revenue.

Question 11

The amount of money consumers pay to buy a product is its ________.

Accepted Answer

Price is the most appropriate term to describe the amount of money consumers pay for a product. Fee, cost, and charge could be considered synonyms of price but are more commonly associated with specific types of expenses, such as fees for services or charges for credit card transactions. Value, on the other hand, refers to the worth or usefulness of a product, not the amount of money paid for it.

Question 12

Annie Clarke owns a smartphone app development firm. The way Annie prices her products is to determine what consumers are willing to pay, and then she backs off a bit to provide a cushion. The method that Annie used to determine her prices is called ________ pricing.

Accepted Answer

Annie Clarke uses value-based pricing, which involves determining what customers are willing to pay based on the perceived value of the product or service, rather than focusing on costs or competitors' prices. She then adds a cushion to ensure profitability.

Question 13

In ________ pricing, the list price is determined by estimating what consumers are willing to pay for a product and then backing off a bit to provide a cushion.

Accepted Answer

This is the description of value-based pricing, which is focused on setting a price based on the perceived value of a product or service to the customer. The price is not determined by costs or the competition, but rather by what the customer is willing to pay. The goal is to capture as much value as possible without pricing too high and driving customers away.

Question 14

According to the textbook, most experts recommend ________ pricing because it hinges on the perceived value of a product or service.

Accepted Answer

The textbook states that most experts recommend value-based pricing because it depends on the perceived value of a product or service, rather than solely on production costs or the prices of competitors.

Question 15

The What Went Wrong feature in Chapter 11 focuses on a series of missteps at JCPenney under the tenure of then CEO Ron Johnson. According to the feature, Johnson's three most damaging marketing-related mistakes were ________.

Accepted Answer

The feature states that Johnson's three most damaging marketing-related mistakes were Fair and Square Pricing (a shift from value-based to cost-based pricing), no testing of ideas in advance, and a total misread of JCPenney's brand. Therefore, the correct choice is D.

Question 16

Before Kimberly Campbell opened her jiffy print store, she processed several large print jobs for local merchants for free, to demonstrate the quality of her service and to solicit feedback. Two of the merchants wrote favorable reviews of Kimberly's service, and agreed to let Kimberly post the reviews on her company's Web site. The companies that wrote the favorable reviews are referred to as ________.

Accepted Answer

The two merchants who wrote favorable reviews are referred to as referent accounts. The other options do not accurately describe the situation.

Question 17

Every January thousands of electronic products manufacturers gather in Las Vegas to display their products and to see what their competitors are up to. This type of event is called a ________ show.

Accepted Answer

A trade show is an exhibition organized so that companies in a specific industry can showcase and demonstrate their latest products and services, meet with industry partners and customers, study activities of rivals, and examine recent market trends and opportunities. The context of the passage suggests that electronic product manufacturers gather to display their products and see their competitors' offerings, which are the typical objectives of attending a trade show. Therefore, choice A (trade) is the most appropriate option.

Question 18

Efforts to establish and maintain a company's image with the public are referred to as ________.

Accepted Answer

Efforts to establish and maintain a company's image with the public are referred to as public relations. Public relations involves building relationships with various stakeholders, such as customers, employees, investors, and the media, and managing the company's reputation and image through various communication channels.

Question 19

The Google program called ________ allows advertisers to buy keywords on the Google Home Page.

Accepted Answer

AdWords is the program that allows advertisers to buy keywords on the Google Home Page. AdSense is for website publishers to earn money by displaying ads on their website. Adcenter and Search Marketing are both programs from Microsoft Advertising. AdGoogle is not a real program.

Question 20

The Partnering for Success feature in Chapter 11 focuses on GoPro and Red Bull, two companies that have established a cobranding relationship. Cobranding is when two companies ________.

Accepted Answer

Cobranding is when two companies form a partnership to combine their brands. In the case of GoPro and Red Bull, they collaborated on content and events such as the Red Bull Stratos skydiving project, which provided exposure for both brands.

Quiz 11: Unique Marketing Issues