QUESTION Differentiate among brand awareness, brand preference, and brand insistence. What will be an ideal response? ANSWER Answer: Brand awareness means that consumers recognize the product. Brand preference means that consumers habitually buy the product if it is easily available but will try alternatives if they can’t find it. Brand insistence means that consumers […]
QUESTION What is “driving traffic”? What are the two pricing strategies associated with driving traffic? What will be an ideal response? ANSWER Answer: Driving traffic means attracting customers. Stores use loss leaders, products advertised at or below cost, to attract customers. Low pricing can also be used to increase market share, the percentage of […]
QUESTION Which of the following is NOT a strategy companies use to induce customers to buy with credit cards? A) Offer a zero interest rate for a period of time. B) Extend the time period of payments. C) Offer interest-only payments for a period of time. D) Offer a discount for early-paying customers. E) Lower […]
QUESTION Why might women pay more for a lipstick that comes with a mirrored case than one sold without the mirror? In other words, what functions of pricing and branding come into play here? What will be an ideal response? ANSWER Answer: Lipstick with a mirror sold at a high price might feel more […]
QUESTION What is an innovation? What will be an ideal response? ANSWER Answer: An innovation is a product that customers perceive as being newer or better than existing products. Explanation: Examples of past innovative products range from the vacuum cleaner (1907) to Velcro (1954) to the Searle birth control pill (1960) to the Toyota […]
QUESTION Which soup company could get away with charging more than its competitors, for at least a short time: a long-established company with a nationally recognized brand or a new company with a brand no one has heard of? Use evidence from the text to support your answer. What will be an ideal response? […]
QUESTION What is the consumer market? What will be an ideal response? ANSWER Answer: The consumer market consists of all those individuals or households that want goods or services for their personal use. Explanation: Consumer goods and services fall into the four general classes of convenience, shopping, specialty, and unsought.
QUESTION At which stage in developing a new product does packaging come into play? What will be an ideal response? ANSWER Answer: at the test-marketing stage Explanation: Test-marketing is the first stage at which the product is ever sold, and so packaging is needed.
QUESTION Name 10 of the 15 given components of a total product offer. What will be an ideal response? ANSWER Answer: Any 10: advertising image, availability, brand name, consumer’s prior experience, convenience, financing, guarantees, Internet access, maker’s reputation, packaging, price, product labeling, retailer’s environment, service, warranty Explanation: The 15 possible components of a total […]
QUESTION Which of the following, if true, undermines the argument that Zappos should move toward a mass marketing campaign? A) Zappos’ market research reveals that price is the most important factor for most customers who routinely buy shoes, clothing, and accessories. B) Awareness of Zappos’ brand is low among customers who routinely buy shoes, clothing, […]
