marketing principles test (quizes)

A company's external sources of new product ideas include its ________.

suppliers

The first part of a marketing strategy statement describes the ________ of a new product.

target market, the planned value proposition, and the sales goals

What is the customer lifetime value of a person who buys $1,235 in product every year and is expected to be a loyal customer for at least 20 years?

$24,700

In which of the following cases is crowdsourcing used for new product development?

A company creates a forum where anyone can contribute new product ideas.

________ products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort.

Convenience

________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk.

Cost-based

________ uses buyers' perceptions of what a product is worth as the key to pricing.

Customer value-based pricing

Commercialization focuses on finding new ways to solve customer problems and create more customer satisfying experiences.

False

Shopping products are purchased more frequently than convenience products.

False

Which of the following is an example of consumer-generated marketing?

Fun & Run, a local amusement park, promotes its services by allowing consumers to upload videos and write reviews about the park.

________ is the only element in the marketing mix that produces revenue.

Price

________ refer to a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible.

Services

________ products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

Shopping

________ pricing is an approach whereby a firm tries to determine the price at which it will break even or earn the profit it is seeking.

Target return

Which of these is NOT a reason that new products fail?

They are made overseas.

A product is defined as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

True

An augmented product is a product that is built around the core benefit and actual product by offering additional consumer services and benefits.

True

If consumers perceive less value relative to competing products, a company should attempt to change customer perceptions to justify a higher price.

True

A ________ is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.

brand

Which of the following is an example of a convenience product?

candy

Which of the following is an industrial product categorized under materials and parts?

cement

Which of the following sets the price ceiling for a product's pricing?

consumer perceptions of value

Harley-Davidson disciples share a common, deeply held attraction to the brand. Harley appeals include: freedom, independence, power, and authenticity. Harley-Davidson doesn't just sell motorcycles. It sells self-expression, lifestyles, aspirations, and dreams. This illustrates ________.

core customer values

A product life cycle has five distinct stages: product development, introduction, growth, maturity, and ________.

decline

Rent, electricity, and executive salaries that do not vary with production or sales level are referred to as ________ costs.

fixed

Retailers like Kohl's and JCPenney carry less-expensive versions of established brand name products or new lower-price lines. They have adopted a ________ pricing strategy.

good-value

The new product development starts with ________.

idea generation

The Dairy Bar, a national soft-service ice cream retailer, buys cones from Cones & More. Cones & More is an important resource for marketplace information. They're considered a(n) ________ source of new product ideas for the Dairy Bar.

internal

Some companies, such as Google, have ________ that encourage employees to develop new ideas.

intrapreneurial programs

Which of the following is an example of an unsought product?

life insurance

Doggie World tested an idea for a new chew toy that would entertain dogs while simultaneously cleaning their teeth. Dog owners were pleased with the results. The next stage in developing the new product concept is ________.

marketing strategy development

Under ________, the market consists of many buyers and sellers trading over a range of prices rather than a single market price.

monopolistic competition

Little Rock, Arkansas is the former home of President Bill Clinton when he was a sitting governor of the state. His presidential library is located in Little Rock and the city uses this connection to generate tourism. This is an example of ________ marketing.

place

The second part of a marketing strategy statement describes the ________ of a new product.

planned price, distribution, and the marketing budget

Which of the following sets the price floor lower limit for a product's pricing?

product costs

Taco Bell test marketed Doritos Locos Tacos for three years and developed 45 prototypes. Once the decision was made to launch the new taco shell, it moved into the ________ stage of the new product development process.

product development

In ________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities.

pure competition

Which of these is NOT a way for a firm to obtain a new product?

receive one from the government

The third part of a marketing strategy statement describes the ________ of a new product.

sales, market mix strategy, and profit goals

Which of the following is a pure tangible good?

shampoo

Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing.

value-added

A ________ pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth.

value-based

Costs that change directly with the level of production are referred to as ________ costs.

variable

A company launching a new product must first decide ________.

when to launch the product