MGT301 Quiz 4 by VU Sparky

Q1. We define a service as anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.

1. True
2. False

Q2. An aspect of managing service differentiation is in the company’s service delivery.

1. False
2. True

Q3. Product costs set a floor to the price; consumer perceptions of the product’s value set the ceiling.

1. False
2. True

Q4. Internal marketers face special challenges. They must figure out what products to introduce to other countries.

1. False
2. True

Q5. Companies that set a low initial price in order to get their “foot in the door” quickly and deeply, attract a large number of buyers quickly, and win a large market share practice market-skimming pricing.

1. True
2. False

Q6. Programs that include public health campaigns to reduce smoking, alcoholism, drug abuse, and overeating are examples of the social idea known as social marketing.

1. True
2. False

Q7. The more elastic the demand, the more it pays for the seller to raise the price.

1. True
2. False

Q8. When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering them, it is able to reduce the main product’s price to make it more competitive.

1. True
2. False

Q9. Competitors’ prices and offers are external factors that companies have to deal with.

1. False
2. True

Q10. Customers come to know a brand through a wide range of contacts and touch points. These include word of mouth, personal interactions with company people, telephone interactions, and company Web pages. Many brands are not maintained by advertising but by brand experience.

1. True
2. False

Q11. In industrial markets, salespeople outrank top management in determining the sales price of products.

1. True
2. False

Q12. Customer retention is perhaps the best measure of quality—a service firm’s ability to hang on to its customers depends on how consistently it delivers value to them.

1. True
2. False

Q13. Value-based pricing is when costs vary directly with the level of product.

1. True
2. False

Q14. Value-based pricing is the reverse of cost-based pricing.

1. False
2. True

Q15. An increasing number of retailers and wholesalers have created their own brands—such as Hyper Star offering variety of food products. This is called co-branding.

1. True
2. False

Q16. Product support services identify the product or brand, describe several things about the product, and promote the product through attractive graphics.

1. True
2. False

Q17. If demand changes greatly, we say the demand is inelastic.

1. False
2. True