MKTG 3213: EXAM 2 - Kuzmeski

Transactional selling focuses on the customer relationship.

False

The immediate goal of all advertising is to make exchange happen.

False

When a company is looking to increase the wages of all employees, which aspect of the triple bottom line are they most likely concerned with?

People

Why is breaking bulk important?

sellers want to produce in bulk, consumers want to buy in small amounts

What are the two functions of a brand?

identify and differentiate

What are the two parts that make up a brand?

Brand Name and Brand Mark

Seeing a brand can cause consumers to automatically think of the attributes of the firm.

True

A "brand" is confined to the physical name or logo associated with the firm.

False

The primary value of a brand for consumers is the:

reduction of perceived risk

The brand resides in the consumer's:

memory

What is Spreading Activation?

When nodes are energized and brought into working memory

When does activation occur?

With either external or internal cues

Addi is driving from Stillwater to Dallas, and sees a McDonald's sign with golden arches (but no words). She automatically begins to think of her hunger. What kind of cue activated this thought?

External Cue

Brand awareness is associated with the ability of the brand to __________ who is offering a product or service, while brand association is associated with the ability of the brand to ____________ from competitors.

identify; differentiate

Which of these is not a type of brand association?

brand memories

Automaticity in a branding context means:

the evaluation of a brand is brought to either conscious or subconscious thought

A way of visually presenting where your brand is in consumers' minds is called a:

brand map

Brand associations within a brand map can also have _______ attached to them.

mood and emotion

A brand map determines brand associations from the perspective of the:

consumer

When creating a brand map, a word cloud is always more useful than a table.

False

The added value delivered by the brand over the functional benefits or book value is called:

Brand Equity

Book value of assets + Brand equity =

Market value of brand

Brand equity starts as a ________ concept, but ends up having a real ________ effect.

Psychological; monetary

The "magic lesson" teaches us how to turn what into dollars?

What consumers know about the brand

Which of these is not a way to turn brand equity into dollar value?

Price competition

If Oreo cookies come out with a new flavor of s'mores Oreo cookies, what are they using in order to turn brand equity into dollars?

Promotional advantage

The example of the purchase of the PanAm brand demonstrates how:

Brands can have value beyond the book value of the firm

An agreement whereby a company permits another organization to use its brand on other products for a fee is defined as:

Brand licensing

The brand name must provide _________ meaning for the product.

Secondary

Which of these is not a branding strategy?

Franchise Branding

Unilever houses many brands, such as SlimFast nutrition drinks, Dove soap, and Skippy peanut butter, that all sell different products. What branding strategy is used here?

Individual branding

Which of these is not a benefit of individual branding?

strong connections to established brands for new brands to lean on

Which of these is not a benefit of institutional branding?

greater individualized identity for new products

Which of these companies is more likely to use an institutional branding strategy for a new product or service?

Sony

Which of these is not a benefit of sub-branding?

increased market share

What is the main advantage of using a sub-branding strategy?

All of these

Mostly, business is made up of:

smaller, more frequent transactions

Face-to-face communication is necessary for true "frontline" transactions.

False

Technology has had little impact on organizational frontlines in most industries

False

Rachel goes to Walmart to buy groceries and checks out with a cashier. When Rachel hands her cash to the Walmart employee, what kind of interaction has taken place?

Traditional interactions

When Mariah needs money, she goes to an ATM instead of driving to her bank. When Mariah utilizes this ATM that represents her home bank, what kind of interaction has taken place?

Human interaction; machine services provider

Which of these types of interactions is the only one where human interaction is absolutely necessary?

Traditional interactions

The acronym LAURA helps us to analyze and adjust when:

a product or service has disappointed the consumer

What is the definition of retailing?

Selling goods and services to consumers for their own use

What is the difference between retailing and wholesaling?

retailers sell to individuals for end use; wholesalers sell to companies for resale/company use

What is the difference between merchant and agent wholesalers?

merchants take ownership to a product; agents act as intermediaries

Why do retailers exist?

They add value by adjusting discrepancies between the needs of consumers and sellers

What is the reason for so many levels existing between the producer and end-user?

each level adds some kind of value to the end user

When it comes to compensation in a channel of distribution, _______ plays the most important role

Power

Brands marketed as more luxury options (such as Lexus) are likely to utilize ______ distribution intensity

Selective

Which of these is not a form of a sharing economy?

P2B

Air BnB uses a model where the business integrates people who own homes into the market where consumers express demand. This is most accurately described as which type of sharing economy?

Business + person

What has been a problem of implementing Peer to Peer sharing?

Finding platforms where it is legal and available

Of the sharing economy models, which is the most similar to traditional business models?

Business to Person

What is the largest inhibitor to the growth of sharing economies?

Trust

A platform that receives renting fees receives those fees from the _______ and shares those fees with the _______.

seeker; owner

Which of these is not a party that shares and exchanges value in a sharing economy?

Recommender

Which of these is not a potential benefit of increasing a sharing economy?

realize potential market gains

What jobs are the most likely to be automated?

those with a great deal of routine

The degree to which an individual possesses an enduring belief in the importance of customer satisfaction is defined as:

Customer orientation

Some people innately have more of a customer orientation than others.

True

It is often most important for which kind of employee to have a strong customer orientation?

Frontline

When a supervisor doesn't emphasize the importance of customer satisfaction, employees with higher customer orientation:

perform fewer customer service behaviors than they might have

When employees with high customer orientation are embedded in an organization that emphasizes (and benefits from) customer satisfaction, profits are likely to:

Increase

In most circumstances, higher levels of customer orientation lead to all of the following except:

job turnover

Employees with high customer orientation will thrive in what kind of job?

high customer interaction

What are inside sales?

a type of sales in which interactions are initiated by the buyer

A type of selling in which the organization is represented by multiple people, which might include a salesperson, a technical support specialist, or others, is defined as:

Team selling

What is a key account?

a very large customer that provides a significant portion of revenues

A form of personal selling that focuses on making an immediate sale with little or no concern for customer satisfaction or relationship development is defined as:

Transactional selling

A form of personal selling that involves securing, developing, and maintaining long-term relationships with profitable customers is defined as:

Relationship selling

Which of these is not a step in the personal selling process?

Prospecting

When does initial contact with the potential consumer occur?

Approach

What happens in the Presentation stage of the personal selling process?

determine prospect needs and present benefits; handle objections

SPIN selling is about asking questions of potential customers.

True

What is the point of SPIN selling?

position your product or service as the solution to the customer's problems

The most successful salespeople focus on the beginning aspects of the SPIN method (e.g. Situational and Problem questions).

False

What is the definition of Price?

what is exchanged for the product, service, or idea

_______ is not about what we put into our product, it's what our customers get out of it.

Value

The "value created" of a product or service is determined from the perspective of the:

Customer

Small changes in price do not have a very large impact on bottom line profits.

False

Which of these does not happen in a "smart industry"?

Companies fight with price only

What is the first step in strategic pricing?

Knowing how your industry behaves

What is the key difference between cost-based pricing and value-based pricing?

Where you start the process

Value-based pricing will always be more profitable than cost-based pricing.

True

What is price skimming?

setting a high price for a new product to skim maximum revenues

What is dynamic pricing?

variable rate for each customer

What is flat-rate pricing?

single rate per time period

Which of the following describes peak load or congestion pricing?

Variable rate depending on time of day or week

You do not need to understand margin and markup if you are using value-based pricing

False

What is the main difference between the equations for margin and mark-up?

Margin is (Price - Cost)/Price and Mark-up is (Price - Cost)/Cost

Mark-up can be greater than 100%

True

A grocer has purchased a truckload of frozen dinners for $3 each. The grocer operates on a margin of 30% for frozen food items. What is the retail price to the consumer?

$4.29

The competitive retail price for a stereo system is $300. Retail stores normally have a margin of 30% for such items. Wholesalers normally have a margin of 20% for such items. The manufacturer's price is unknown. What steps should be taken to determine the manufacturer's highest price?

Solve for Retail price, then Wholesale price, then Manufacturer price

What is the breakeven point?

where profits just cover costs

Assume that Netflix has introduced a new bundle service for their streaming services. Bundle 1 includes a base price of $9 to cover 25 hours of streaming for the month and variable price of $0.10 for every 30 minutes over that 25 hours. Bundle 2 includes no base price, but a variable price of $0.25 for every 30 minutes of streaming per month. When a consumer attempts to decide which bundle to use, what is he or she determining?

Breakeven point

What is defined as responsiveness of demand to changes in price?

Price elasticity

A change in price in an elastic market is likely to show _______ change in demand when compared to a similar change in an inelastic market.

Greater

In the Transactional Model of Communication, who fulfills the role of the Sender?

Marketer

The message put in place by the Sender is always identical to the message received by the Receiver

False