Marketing Final Exam

Heavy promotion and brand wars the decline stage is

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Unformatted text preview: GROWTH STAGE is characterized by increased sales, new competitors, healthy profits that peak, aggressive brand promotion, expanded distribution, price reductions, and possible acquisitions. The MATURITY STAGE is characterized by a peak in sales, lengthened product lines, style modifications, price reductions, falling profits, competitor turnover, heavy promotion, and brand “wars.” The DECLINE STAGE is characterized by a long-run drop in sales and profits, less demand, widespread competitor failure, reduction of advertising costs, and possible elimination of the product. PTS: 1 REF: 180-183 Communication KEY: CB&E Model Product OBJ: 11-5 TOP: AACSB MSC: BLOOMS Synthesis Chapter 12—Services and Nonprofit Organization Marketing TRUE/FALSE 1. Insurance companies are examples of service organizations. ANS: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Comprehension REF: 187 OBJ: 12-1 KEY: CB&E Model Product 2. Services tend to exhibit more search qualities than do tangible goods. ANS: F A search quality is a characteristic that can be easily assessed before purchase, and tangible goods tend to exhibit more search qualities than do intangible goods. Services exhibit more experience and credence qualities. PTS: 1 REF: 188 Thinking KEY: CB&E Model Product OBJ: 12-2 TOP: AACSB Reflective MSC: BLOOMS Comprehension 3. Services are considered inseparable because most services cannot be felt or touched in the same way most goods can be sensed. ANS: F This describes the characteristic of intangibility. PTS: 1 REF: 188 Thinking KEY: CB&E Model Product OBJ: 12-2 TOP: AACSB Reflective MSC: BLOOMS Comprehension 4. Greta, the owner of House Mouse Cleaning Services, must be physically present when she cleans a house or office. The need for her presence as the service is performed is an example of the intangibility of services. ANS: F The need for her presence and the customer’s presence is an example of how services are produced and consumed simultaneously (inseparability). PTS: 1 REF: 188 Thinking KEY: CB&E Model Product OBJ: 12-2 TOP: AACSB Reflective MSC: BLOOMS Application 5. Heterogeneity of services means the quality of a service may not be consistent. ANS: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Knowledge REF: 188-189 OBJ: 12-2 KEY: CB&E Model Product 6. Hotels will often offer deep discounts on weekends and during the off-season; for the same reason, airlines will adopt a similar pricing strategy during off-peak hours. These services cannot be stored, warehoused, or inventoried because they are perishable. ANS: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Application REF: 189 OBJ: 12-2 KEY: CB&E Model Product 7. The speed with which an ambulance can get to an accident site is an indication of the reliability dimension of service quality ANS: F This would be an example of responsiveness. PTS: 1 REF: 189 Thinking KEY: CB&E Model Product OBJ: 12-3 TOP: AACSB Reflective MSC: BLOOMS Application 8. The se...
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