Marketing Final Exam

Synthesis 19 how do value based pricing unbundling

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Unformatted text preview: BLOOMS Synthesis 19. How do value-based pricing, unbundling, and bundling help marketers hold on to market share during a recession? ANS: VALUE-BASED PRICING stresses to customers that they are getting a good value for their money. Products that typically use prestige pricing can introduce products at a lower price, thereby earning lower profit margins, which are typically offset by increased sales volume. UNBUNDLING allows a marketer to start charging separately for some products that were sold together prior to the economic recession. By selling items separately, the markets have a lower base price, which often appeals to consumers. BUNDLING can stimulate demand. When features are added to a product, consumers may perceive the offering as having greater value, which appeals to some consumers. PTS: 1 REF: 333-334 Communication KEY: CB&E Model Pricing OBJ: 20-5 TOP: AACSB MSC: BLOOMS Synthesis Chapter 22—Social Media and Marketing TRUE/FALSE 1. For most people, social media is a marketing experience. ANS: F For most people, social media is meant to be a social experience, not a marketing experience. PTS: 1 REF: 351 OBJ: 22-1 Thinking KEY: CB&E Model Strategy | CB&E Model Customer Comprehension TOP: AACSB Reflective MSC: BLOOMS 2. A new alt-country band, Pike 27, wants to use a social media Web site to generate some buzz about their first album. Because of its large music-oriented following, MySpace would be a good site for the band to choose. ANS: T PTS: 1 TOP: AACSB Reflective Thinking Creativity MSC: BLOOMS Application REF: 352 OBJ: 22-1 KEY: CB&E Model Strategy | CB&E Model 3. Social commerce combines social media with the basics of e-commerce. ANS: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Knowledge REF: 353 OBJ: 22-1 KEY: CB&E Model Strategy 4. In 2000, Jones Soda used its Web site to ask its mostly teenage customers to suggest new flavors, names, and labels and let other customers vote on which flavors should be introduced into stores. Jones Soda was practicing co-creation. ANS: F Using consumers to develop and market product is called crowdsourcing. PTS: 1 REF: 353 Thinking KEY: CB&E Model Strategy OBJ: 22-1 TOP: AACSB Reflective MSC: BLOOMS Application 5. Erica was so impressed by the customer service she received from Mindware Toys that she tweeted all of her followers about her experience. Erica’s tweets are a good example of owned media. ANS: F Erica’s tweets are an example of earned media, not owned media. Earned media includes viral videos, retweets, comments on blogs, and other forms of customer feedback resulting from a social media presence. PTS: 1 REF: 354 OBJ: 22-2 Thinking KEY: CB&E Model Strategy | CB&E Model Promotion TOP: AACSB Reflective MSC: BLOOMS Application 6. Marketers need to understand that, in cyberspace, paid media is essentially dead; consequently, they should no longer expend any resources into paid media. ANS: F Paid media is not dead but should serve as a catalyst t...
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This document was uploaded on 09/29/2013.

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