Marketing 11, 12, 15, 19 (final p1)
A product mix is best described as A) all products offered by a firm. B) product, distribution, promotion, and price. C) many products sold by one firm. D) all products of a particular type. E) a group of closely related products that are considered a unit because of the market, technical, or end-use considerations.
A
Although they become part of a larger product, ____ can often be easily identified and distinguished on the larger product. A) component parts B) accessory parts C) raw materials D)process materials E) MRO supplies
A
At the breakeven point, A) the money a company brings in from selling products equals the amount spent producing the products. B) the total fixed costs are exactly equal to the total variable costs. C) profits are exactly equal to the difference between revenue and total variable costs. D) the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit. E) the marginal cost curve and the average cost curve will be identical for a particular product.
A
At what point does a firm maximize profit? A) The point at which marginal cost equals marginal revenue B) The point at which the firm sells its product at the highest price C) The breakeven point plus the adjusted marginal cost D) The point at which marginal profits equal marginal revenue E) The point at which marginal cost equals marginal profits
A
Early in the commercialization phase, marketers must make decisions about A) warranties, repairs, and replacement parts. B) product features and break-even points. C) functionality, safety, and convenience. D) the proposed marketing mix variables. E) which ideas to further pursue.
A
If a product has an inelastic demand and the manufacturer raises its price, A) total revenue will increase. B) quantity demanded will decrease. C) the demand schedule will shift. D) the demand will become more inelastic. E) total revenue will decrease.
A
Of the following choices, which would be the easiest brand name to legally protect? A)Tarzink Yogurt B) Learn and Grow Daycare C) Scout Camping Supplies D) Sullivan Water Filtering Systems E) Western County Distributors
A
The jolly green giant used by the Green Giant Company facilitates the development of A) brand associations. B) brand quality. C) product preference. D) brand loyalty. E) product equity.
A
The three major ways to modify a product include A) aesthetic, quality, and functional changes. B) extensions, generations, and upgrades. C) color, size, and quality modifications. D) styling, product features, and product design. E) quality, quantity, and design.
A
Which of the following is the best example of disruptive innovation? A) Razor blade B) Can opener C) Snickers candy bar D) iPhone E) Chevy Corvette
A
All of the following are major steps in developing new products except A) test marketing. B) evaluation of competitors' efforts. C) screening. D) business analysis. E) idea generation.
B
All of the following are types of direct marketing except A) online retailing. B) direct selling. C) television home shopping. D) direct-response marketing. E) catalog marketing.
B
Charlotte and Grace own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase the food items and cleaning supplies they need for their business. With the exception of the volume they purchase and the items' intended use, this grocery shopping trip is identical to a weekly trip by their families to a grocery store. Sam's is serving as a ____ wholesaler for these entrepreneurs. A) specialty-line B) cash-and-carry C) truck D) general-line E) full-service merchant
B
Drop shippers A) do not take title to but take physical possession of the goods. B) take title to but not physical possession of the goods. C) take title to and physical possession of the goods. D) do not take title to or physical possession of the goods. E) are similar to truck wholesalers but provide the extra service of placing products on retailers' shelves.
B
If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is most likely a(n) A) specialty retailer. B) department store. C) niche retailer. D) category killer. E) superstore.
B
In which stage of the product life cycle do profits begin to increase? A) Introduction B) Growth C) Maturity D) Decline E) Recovery
B
Marianna tells Rajesh that she likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. She is asking Rajesh to proceed to which stage of the new-product development process? A) Idea generation B) Business analysis C) Commercialization D) Test marketing E) Screening
B
One disadvantage of test marketing a new product is that A) the product is distributed on a regional basis. B) competitors may copy the product. C) the results give little indication of the product's future success. D) price, advertising, and packaging cannot be varied from market to market. E) it might fail before it can be commercialized.
B
Product deletion A) tends to be an easy task for most organizations. B) may be opposed by management. C) usually involves immediate termination. D) is a matter of indifference to customers. E) usually occurs only with convenience items.
B
The major characteristic of a private brand is that A) only retailers initiate and own the brand. B) manufacturers are not identified on the product. C) producers become involved with the marketing mix. D) producers price the product. E) wholesalers encourage producers to make the product available.
B
The major drawback to using aesthetic modifications is A) the cost of the modifications. B) that the value of the modification is determined subjectively. C) the need for a redesign of the product. D) a possible decrease in market share. E) that there is no differentiation for the product in the market.
B
Walmart, Macy's, are Nordstrom are examples of A) manufacturers. B) retailers. C) merchant wholesalers. D) end-users. E) agents.
B
Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing? A) Hypermarket B) Warehouse club C) Catalog showroom D) Warehouse showroom E) Category killer
B
Which of the following products is most likely to have an inverted C-shaped demand curve? A) Visit to the dentist B) Correct Answer Eternity perfume C) Starbucks coffee D) Pillsbury cake mix E) Ford Escape
B
A product line is defined as A) products that can be designated as a unique offering among the organization's products. B) products that an organization makes available to consumers. C) a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations. D) a specific group of products that are offered to the market. E) products that are sold by the same firm or a division of a firm.
C
A(n) ____ is a concept, philosophy, or image. A) product B) good C) idea D) service E) issue
C
If Norwegian Cruise Lines increased the price of its seven-day cruise package by 10% and, as a result, experienced a 20% decline in customer bookings, Norwegian's demand would be A) steady. B) inelastic. C) elastic. D) prestige. E) marginal.
C
Off-price retailers and category killers are both A) showrooms. B) discount stores. C) specialty retailers. D) department stores. E) general merchandisers.
C
One advantage of nonprice competition is that A) a firm can react quickly to competitive efforts. B) market share becomes less important. C) Correct Answer a firm can build customer loyalty. D) marketing efforts are completely eliminated. E) pricing is no longer a factor.
C
Phillip is on his way to work when he realizes he has a flat tire. He swings into Discount Tires and has a new tire installed. Phillip's purchase of a new tire in this situation is considered to be A) a shopping good. B) a convenience good. C) an unsought good. D) a specialty good. E) an industrial good.
C
A product item is best described as a A) component of a marketing mix. B) particular brand. C) a specific characteristic of a product. D) specific version of a product. E) unit of measure for the product.
D
Compared with other phases of the new product development process, the largest number of new-product ideas is rejected during the ____ phase. A) idea generation B) concept testing C) business analysis D) screening E) test marketing
D
Compared with other phases of the new-product development process, the largest number of new-product ideas is rejected during the ____ phase. A) idea generation B) concept testing C) business analysis D) screening E) test marketing
D
During the maturity stage A) product modifications are unnecessary. B) there is less emphasis on changing a product's price. C) marketing strategies are rarely altered. D) some competitors are forced out. E) limited advertising expenditures are required to maintain market share.
D
Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during A) commercialization. B) screening. C) concept testing. D) product development. E) test marketing.
D
Price is a key element in the marketing mix because it relates most directly to A) the size of the sales force. B) the speed of an exchange. C) quality controls. D) the generation of total revenue. E) brand image.
D
The width of a product mix is measured by the number of product A) dimensions in the product line. B) features in each brand. C) items in the product line. D) lines a company offers. E) specialties a company offers.
D
What degree of brand loyalty is the strongest and most desired by marketers? A) Preference B) Requirement C) Awareness D) Insistence E) Recognition
D
When Cameron was visiting family in Missouri, he ate a flavor of Boulder Canyon Kettle Chips that he had never seen before. When he returned home to Virginia, he could not find the flavor in any store. Which of the following reasons most likely explains why he could not find the flavor at home? A) The flavor was being deleted through an immediate drop. B) The flavor was in the screening phase of the new-product development process. C) The chips were undergoing a repositioning. D) He was visiting a city being used as a Boulder Canyon's test market. E) The new flavor was going through product differentiation.
D
Manufacturers' agents offer products that are both A) unrelated and competing. B) unrelated and noncompeting. C) competing and specialized. D) complementary and competing. E) noncompeting and complementary.
E
Price is A) money paid in a transaction. B) not important to buyers. C) of limited interest to sellers. D) the most inflexible marketing mix decision variable. E) the value that is exchanged for products in a marketing transaction.
E
The General Auto Insurance advertises its automobile insurance as "For a great low rate you can get online, go to The General and save some time!" General is engaging in A) nonprice competition. B) demand-based pricing. C) cost-based pricing. D) price differentiation. E) Correct Answer price competition.
E
Which of the following is NOT a business product? A) Oil to be refined into fuel B) Chips to be integrated into components for personal computers C) Paper, pens, and tape to be used in an office D) Marketing consulting services to aid a company in marketing a new product E) Calculators bought to help individuals complete their personal federal income tax forms
E
Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume? A) Direct marketers B) Traditional specialty retailers C) Department stores D) Warehouse showrooms E) Discount stores
E
______________ refers to how a product is conceived, planned, and produced. A) Product differentiation B) Level of quality C) Product positioning D) Product features E) Product design
E
A firm that competes on a price basis is unable to change prices frequently. t/f
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A product line is a particular version of a product that can be designated as a distinct offering on the organization's list of products. t/f
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A run-out approach to product deletion lets the product decline without changing the marketing strategy. t/f
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Concept testing gives reliable feedback, but at a relatively high cost. t/f
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Concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions. t/f
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Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable. t/f
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Customers always interpret a higher price to mean higher quality. t/f
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Delivery, installation, financing, repair, warranties, and guarantees are all examples of product features. t/f
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Direct-response marketing is the performance of marketing-related activities by telephone. t/f
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Discount stores are distinctive in that they usually are very service-oriented. t/f
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During the growth stage, promotion costs rise as a percentage of total sales. t/f
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Fixed costs vary with the number of units produced or sold. t/f
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Line extensions are less common than other new products because line extensions are more expensive and riskier. t/f
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Marketers have little influence over shaping consumers' concepts or perceptions. t/f
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Product design is the process of creating and designing products so that consumers perceive them as different from competing products. t/f
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Product mix refers to a related group of products in the product line. t/f
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Specialty retailers carry a broad product mix with deep product lines. t/f
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Supermarkets specialize in selling shopping products. t/f
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Test marketing should be conducted when a product has been given a low probability of success. t/f
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The core product element of the total product can include installation, delivery, training, and financing. t/f
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The point at which marginal revenue equals marginal cost is the breakeven point. t/f
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The two major product categories are business and institutional. t/f
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Wholesaling is the final part of the marketing process in which exchanges are entered into for personal, family, or household purposes. t/f
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A brand name is the part of the brand that is spoken. t/f
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A customer looking for the lowest price on a mattress without concern for the quality of the mattress or the status gained by buying and using a certain brand is a price-conscious customer. t/f
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Advertising used in the decline stage may prolong the life of the product. t/f
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Barter is the oldest form of exchange. t/f
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Brand and product managers operate cross-functionally. t/f
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Business analysis provides a tentative sketch of a product's profitability. t/f
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Changes in buyers' attitudes, other components of the marketing mix, and uncontrollable environmental factors can influence demand. t/f
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Communicating product benefits to consumers is very important in the introduction stage. t/f
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Department stores are characterized by wide product mixes. t/f
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Designing a product that customers perceive as different from competing products is an example of product differentiation. t/f
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Dollar General is an example of an extreme-value store. t/f
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During the commercialization phase of new-product development, plans for full-scale manufacturing and marketing are refined and settled. t/f
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Extreme-value stores are a fraction of the size of conventional discount stores. t/f
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Factors affecting pricing decisions can include demand, distribution, and the way in which the product is promoted. t/f
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Functional modifications usually require that the product be redesigned. t/f
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Laggards are the last to adopt a new product and usually distrust new products. t/f
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Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price. t/f
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Price is the most easily adjusted ingredient in the marketing mix. t/f
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Price is the value that is exchanged for products in a marketing transaction. t/f
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Profits decline in the maturity stage, largely because of increased competition. t/f
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Profits decline in the maturity stage, largely because of increased competition. t/f
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Retailing includes all transactions in which the buyer intends to consume the product through personal, family, or household use. t/f
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The buyer's intent can determine whether an item is classified as a consumer or a business product. t/f
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The first adopters of a product are the innovators. t/f
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The first adopters of a product are the innovators. t/f
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The product development stage determines the technical feasibility of producing the new product. t/f
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The purpose of the pricing concept is to quantify and express the value of items in a market exchange. t/f
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