MKTG test 2
Flurrbies, a line of winter accessories by a leading fashion label, quickly fell in and out of favor with customers. Flurrbies represents an example of a(n) ________. A) form B) fashion C) fad D) style E) drift
C) fad
Which of the following is true of the product life cycle? A) all products generally go through all five stages of the PLC B) all products pass through the stages of PLC in the same order C) it is generally difficult to forecast the sales level at each PLC stage D) the PLC concept can be applied to styles but not to fashions or fads E) product forms have longer life cycles than product classes
C) it is generally difficult to forecast the sales level at each PLC stage
When a product is in the ________ stage, profits level off or decline because of increased marketing outlays to defend the product against competition. A) production B) decline C) maturity D) test marketing E) conception
C) maturity
Sportware, a leading shoe manufacturer, markets sneakers under the brand name "Athletix" and dress shoes under the brand name "Cameo" in order to target the two different market segments. What branding strategy is most likely being used by Sportware? A) brand extensions B) line extensions C) multibrands D) new brands E) co-brands
C) multibrands
Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on ________. A) demographic variables B) geographic regions C) multiple segmentation bases D) behavioral variables E) psychographic segmentation bases
C) multiple segmentation bases
The second part of a marketing strategy statement describes the ________ of a new product. A) marketing mix strategy B) profit and sales goals C) planned price, distribution and marketing budget D) target market and sales goals E) planned value proposition
C) planned price, distribution and marketing budget
Product mix width refers to the ________. A) number of versions offered for each product in the line. B) ways in which the various product lines are related. C) number of different product lines the company carries. D) total number of items a company carried within its product lines. E) total market share captured by the entire product line.
C
The marketing manager at Frizzle's eateries targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of low-fat, low-calorie meals that appeal to dieters. Frizzle's approach is best referred to as ______. A) age and life cycle B) user status C) benefit D) demographic E) geographic
C) benefit
Which of the following is most likely true of a product in the maturity stage of the product life cycle? A) sales are zero, and the company's investment costs mount B) new competitors enter the market C) a slowdown occurs in sales growth D) sales increase with decreasing competition E) new distribution channels are acquired
C) a slowdown occurs in sales growth
T or F: A break even chart shows the total cost in total revenue expected at various sales volume levels of a product.
True
T or F: Price discrimination is allowed if the seller can prove that it's cost are different when selling to different retailers.
True
T or F: Target Costing starts with an ideal selling price based on customer value considerations and then aims at cost that will ensure that the price is met.
True
T or F: an augmented product is a product that is built around the core benefit and actual product by offering additional consumer services and benefits.
True
T or F: companies that combine a customer centered approach with team-based new product development getting a big competitive edge by getting the right new products to market faster.
True
T or F: for market segments to be beneficial for companies, they must be measurable
True
T or F: not all companies that use income segmentation target the affluent.
True
T or F: product modifications are an important source of new products for organizations.
True
T or F: support services are an important part of a customer's overall brand experience.
True
T or F: universal Appliances prices it's refrigerators at five distinct price levels based on finish, style, capacity and features. They range from $799 to $9,500. This is an illustration of price steps.
True
A product mix length refers to the ________. A) number of versions offered for each product in the line. B) ways in which the various product lines are related. C) number of different product lines the company carries. D) total number of items a company carried within its product lines. E) total market share captured by the entire product line.
D
Company and brand positioning should be summed up in a ________. A) mission statement B) vision statement C) profit statement D) positioning statement E) corporate statement
D) positioning statement
Electronics International has experienced a significant decline in sales for SweetTunes, its MP3 player, during the past two years. In response, the company has reduced its advertising and sales expenditures for SweetTunes in an attempt to improve short run profits. Which term best describes Electronics International's strategy for SweetTunes? A) sales outsourcing B) product modification C) industry repositioning D) product harvesting E) marketing mix modification
D) product harvesting
Some companies are now appointing ________, whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems. A) intradepartmental teams B) idea generation teams C) product audit committees D) product stewards E) listening officers
D) product stewards
Companies are likely to gain ________ through speedy, convenient, or careful delivery of products. A) price differentiation B) product differentiation C) channel differentiation D) services differentiation E) people differentiation
D) services differentiation
The first part of a marketing strategy statement describes the ________ of a new product. A) planned price and distribution B) marketing budget C) marketing mix strategy D) target market, planned value proposition and sales goals E) planned long-run sales and market share
D) target market, planned value proposition and sales goals
The full positioning of a brand is referred to as the _______. A) differentiated strategy B) concentrated strategy C) unique selling proposition D) value proposition E) undifferentiated strategy
D) value proposition
_________ pricing refers to selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business. A) oligopolistic B) captive C) dynamic D) zone E) predatory
E) predatory
T or F: Freight absorption pricing is used for market skimming and holding on to monopolistic markets.
False
T or F: The demand curve shows the number of units the market will buy any given time period at similar prices.
False
T or F: an abstract presentation of a product concept is likely to increase the reliability of the concept test.
False
T or F: corporate image marketing consist of activities undertaken to create, maintain or change attitudes or behavior toward particular people.
False
T or F: during concept testing, the product is evaluated by management without any input from external sources.
False
T or F: every day low pricing is a cost based pricing strategy.
False
T or F: it's important for a market pioneer to choose a launch strategy that is consistent with competitive positioning strategies.
False
T or F: light users are often a small percentage of a company's market but account for a high percentage of total consumption.
False
T or F: since suppliers are so close to the market, they are valuable sources of information about consumer problems, marketing opportunities and new product possibilities.
False
T or F: the augmented product is considered the basic level among the three levels of product.
False
T or F: the full positioning of a brand is called the unique selling proposition.
False
T or F: using a differentiated marketing strategy, a company is likely to design a product and a marketing program that will appeal to the largest number of buyers.
False
T or F: when developing a new product, concept testing should ideally be followed by the business analysis stage.
False
T or F:In airline runs a six month promotional program we're all baggage fees are waived. It is using a cost based pricing strategy.
False
T or F: when a manufacturer seeks a market for by-products and excepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.
True
Which of the following is an example of an industrial product grouped under capital items? A) factory B) cement C) crude petroleum D) coal E) paint
A) factory
Many companies are taking a ______ approach today, viewing quality as an investment and holding quality efforts accountable for bottom-line results. A) return on quality B) quality level C) performance quality D) conformance quality E) total quality management
A) return on quality
Product mix depth refers to the ________. A) number of versions offered for each product in the line. B) ways in which the various product lines are related. C) number of different product lines the company carries. D) total number of items a company carried within its product lines. E) total market share captured by the entire product line.
A
The third part of a marketing strategy statement describes the ________ of a new product. A) sales, market share and profit goals B) distribution and pricing C) marketing budget D) planned value proposition E) target market and sales goals
A) sales, market share and profit goals
Wilkinson & Company sells plumbing supplies across the United States. Wilkinson uses Chicago as its central location for determining freight costs regardless of the city from which products are actually shipped. For example, a Dallas customer pays the freight cost from Chicago to Dallas even if the goods are shipped from Dallas. Wilkinson most likely uses ________ pricing. A) basing point B) FOB-origin C) freight absorption D) zone E) reference
A) basing point
Which of the following costs is most likely associated with commercialization? A) building or renting a manufacturing facility B) paying groups of consumers for participating in crowdsourcing activities C) determining a products planned price, distribution and marketing budget D) developing a prototype of a product E) using simulated tests to measure market capacity.
A) building or renting a manufacturing facility
Which of the following is an industrial product categorized under supplies and services? A) coal B) wheat C) lumber D) elevator E) generator
A) coal
The relationship between the price charged for a product and the resulting demand level can be shown in a(n) _________ A) demand curve B) supply curve C) elastic demand slope D) break-even chart E) in elastic demand slope
A) demand curve
There are more than 50 blueberry farms in Shammonton, New Jersey, that grow, package, and distribute the same quality blueberries. An individual farmer cannot charge more than the going market price per unit without the risk of losing business to the other farmers. This is an example of _________ A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a black market
A) pure competition
Parvon, a cleaning product, is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely take to achieve this goal? A) find new market segments for the brand B) improve the overall quality of the product C) reduce mass media advertising expenses D) offer improved services to new buyers E) conduct controlled test marketing activities
A) find new market segments for the brand
Producers of popular beverages often partner with global music channels to target consumers through a variety of promotional events and advertisements. This approach to marketing is referred to as ________ segmentation. A) intermarket B) income C) age and life-cycle D) occasions E) gender
A) intermarket
________ occurs when a company uses its existing brand name for new forms, colors, sizes, ingredients, or flavors of an existing product category. A) line extension B) co-branding C) private labeling D) brand extension E) clustered branding
A) line extension
When establishing prices, it's important for a manager to understand that "good value" is not the same as________ A) low price B) high price C) bargain basement D) perceived value E) everyday value
A) low price
The first generation Apple iPod was introduced in 2001 and sold for $500. The following year a mini version was introduced for $250. Apple initially used a ________ strategy to price their digital music innovation. A) market skimming B) target costing C) deceptive D) market penetration E) predatory
A) market skimming
Posh Collections introduced a new watch to appeal to upscale consumers. The company will most likely use a _______ strategy. A) market skimming pricing B) market penetration pricing C) optional product pricing D) by-product pricing E) allowance pricing
A) market skimming pricing
The Sherman Act, Clayton Act and Robinson-Patman Act are all federal laws that were initially adopted to curb the formation of _______. A) monopolies B) oligopolies C) competitive markets D) international markets E) limited partnerships
A) monopolies
Using a(n) ________ positioning strategy, companies can attack the more-for-more strategy of another firm by offering a brand of comparable quality at a lower price. A) more-for-the-same B) more-for-less C) the-same-for-less D) less-for-much-less E) less-for-more
A) more-for-the-same
Foods International is developing a new gluten-free, chili-flavored pretzel. The marketing strategy for the product has already been developed and presented to top management. Several prototypes were also formulated by the company's R&D team. The final prototype is now being tested rigorously to ensure that is passes FDA standards. Once approved, the next step will most likely be...... A) test marketing B) portfolio analysis C) commercialization D) internal marketing E) business analysis
A) test marketing
Which group is most likely offered functional discounts by manufacturers? A) trade-channel members that perform sales tasks B) consumers who buy products in large quantities C) buyers who pay their rent bills before the due date D) buyers who purchase merchandise out of season E) retailers that participate in advertising programs
A) trade-channel members that perform sales tasks
A product is in the maturity stage of the product life cycle, and the company decides to modify the marketing mix. Which of the following steps is the company most likely to take? A) use aggressive sales promotions B) change features of the product C) improve product quality D) find new uses for the product E) explore new market segments
A) use aggressive sales promotions
Zappos recognizes the importance of the buyer-seller interaction. They only hire people with an innate "passion to serve" and they go through four weeks of customer loyalty training. This is referred to as ________ marketing. A) horizontal B) interactive C) advocacy D) social E) internal
B) interactive
An innovation management system would most likely be used by ________. A) managers to update details about customer information B) brand managers to collect, review, and evaluate new product ideas C) suppliers to access inventory information D) product managers to track logistics of a new product E) human resource managers to update information on employee incentives
B) brand managers to collect, review, and evaluate new product ideas
Which of the following is an industrial product categorized under materials and parts? A) factory B) cement C) generator D) drill presses E) coal
B) cement
Which of the following types of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance? A) services differentiation B) channel differentiation C) people differentiation D) product differentiation E) price differentiation
B) channel differentiation
Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ________ marketing. A) concentrated B) differentiated C) individual D) mass E) local
B) differentiated
Flores Fashions promotes its clothing by emphasizing the durability and quality of the fabrics it uses. The company has positioned its brand based on ________. A) product benefits B) product attributes C) beliefs and values D) market share E) brand loyalty
B) product attributes
Non-Dairy Delight, a manufacturer of soy milk, attracts new customers by adding cinnamon, pumpkin, and vanilla flavors to its traditional product. In this case, the company has developed its brand with ________. A) brand extensions B) line extensions C) multibranding D) new product lines E) co-branding
B) line extensions
Doggie world concept 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 ______. A) idea screening B) marketing strategy development C) business analysis D) product development E) test marketing
B) marketing strategy development
Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the PLC. A) introduction B) maturity C) growth D) decline E) incubation
B) maturity
The practice of tailoring products and marketing programs to suit the taste of specific individuals and locations is referred to as _______. A) niche marketing B) micromarketing C) segmented marketing D) global marketing E) undifferentiated marketing
B) micromarketing
Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a pure monopsony
B) monopolistic competition
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. A) concept development B) product development C) test marketing D) strategy development E) commercialization
B) product development
Pricing a product based on consumers' reference prices as referred to as ______ pricing. A) geographical B) psychological C) allowance D) by-product E) captive product
B) psychological
______ prices are carried in buyers' minds and used when looking at a given product. A) captive product B) reference C) promotional D) geographical E) dynamic
B) reference
_______ can describe a product class, a product form or a brand. A) the product development process B) the product life cycle concept C) business analysis theory D) vendor analysis theory E) portfolio analysis
B) the product life cycle concept
Netcorp, an Internet service provider, charges its users a fixed rental fee for its basic package, which has a download limit. If a user exceeds this download limit, an additional fee is charged for every download. In this case, the firm's pricing strategy is referred to as ________ pricing. A) by-product B) two-part C) optional-product D) segmented E) promotional
B) two part
Which of the following is an approach where firms target a whole market based on common consumer needs? A) demographic segmentation B) undifferentiated marketing C) micromarketing D) concentrated marketing E) geographic segmentation
B) undifferentiated marketing
If a product passes both the concept test and the product test, the next step is most likely to be ________. A) marketing strategy development B) product development C) test marketing D) business analysis E) concept development
C) Test marketing
Gershwin, a musical toy for toddlers, is in the maturity stage of the product life cycle, and Gershwin managers have decided to modify the product. What will Gershwin managers most likely do to achieve this goal? A) change distributors B) offer coupons for the toy C) change the packaging of the toy D) launch an online advertising campaign E) cut prices of the toy to attract new customers
C) change the packaging of the toy
Evans and Hills, a beverages manufacturing company, has developed a new line of specialty teas and is seeking regular input from the test marketing process. To facilitate this process, the firm uses BuyerScan, a software that generates store-by-store, week-by-week reports on the actual sales of tested products and the impact of in-store and in-home marketing efforts. Which of the following approaches does this scenario illustrate? A) standard test markets B) inventory tracking C) controlled test markets D) simulated test markets E) direct commercialization
C) controlled test markets
Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors will be $5. Lovely Skin is using a ________ approach to price the new moisturizer. A) value-added B) good-value C) cost-plus D) competitor-based E) break-even
C) cost-plus
The vitamin Shoppe sells natural vitamins and supplements. Product prices are adjusted frequently to meet the needs of individual customers. For example, long-time customers receive discounts. This strategy is most likely an example of _______ pricing. A) zone B) competition based C) dynamic D) basing point E) penetration
C) dynamic
A company launching a new product must first decide ________. A) where to launch the product B) the sample size of the market C) when to launch the product D) the viability of a global launch E) the budget for print advertising
C) when to launch the product
The style, ease of use, and multi-blade technology of Gillette's Fusion razor system is a _____ that has favorably impacted consumer perceptions about other new products sold by the company. A) product audit B) product feature C) product image D) product framework E) product concept
C) product image
Radox, a luxury watch brand, identifies a market segment that is willing to pay premium prices for its watches, and Radox managers select an ideal selling price. Managers then determine the costs to create watches that meet the ideal selling price. The company's pricing approach is referred to as ________. A) mass production B) cost-plus pricing C) target costing D) value-added pricing E) target return pricing
C) target costing
Which of the following is true of perceptual positioning maps? A) they are used by marketers to divide a market into smaller groups with distinct characteristics. B) they are used by marketers to identify supplier and retailer perceptions of a product. C) they are used to analyze consumer perceptions of a brand relative to competing products. D) they are used to divide buyers into groups based on their perceived income and age. E) they are used to plot the geographic segments that a company needs to target.
C) they are used to analyze consumer perceptions of a brand relative to competing products.
Which of the following pricing strategies is the opposite of FOB-origin pricing? A) basing point pricing B) dynamic pricing C) uniform delivered pricing D) freight absorption pricing E) zone pricing
C) uniform delivered pricing
Which of the following is a disadvantage of a team-based approach to new product development? A) it lengthens the time required to get the right products to the market B) it involves the use of a rigid, sequential product development approach C) a bottleneck at one place can seriously hinder the entire project D) organizational confusion and tension are likely to affect the process E) the process is highly ineffective for products with short life cycles
D) Organizational confusion and tension are likely to affect the process.
When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________. A) accessible B) measurable C) reachable D) actionable E) differentiable
D) actionable
________ involves using an existing brand name for a new product category. A) line extension B) co-branding C) new branding D) brand extension E) multibranding
D) brand extension
Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle aged men, and the other line targets younger, up and coming professionals. Harry's most likely segments the consumer market based on ______ variables. A) geographic B) psychographic C) universal D) demographic E) behavioral
D) demographic
Retailers like Walmart and target carry less expensive versions of established brand name products or new lower price lines. They have adopted a ________ pricing strategy. A) high-low B) target return C) cost-plus D) good-value E) market-skimming
D) good-value
Which of the following statements is most likely true about the product life cycle? A) throughout the product introduction stage, sales are zero B) the growth stage is the longest stage of the product life cycle C) profits are non existent in the growth stage D) growth is a period of rapid market acceptance and increasing profits E) maturity is the period when sales fall off but profits continue to rise.
D) growth is a period of rapid market acceptance and increasing profits
The Dairy Bar, a national soft serve 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. A) entrepreneurial B) competitive C) external D) internal E) intrapraneurial
D) internal
Cement is an example of an industrial product that is categorized under ________. A) capital items B) augmented products C) supplies and services D) materials and parts E) shopping products
D) materials and parts
Xenon, a leading consumer-electronics manufacturing company, markets its products under the company's own brand name. In this case, Xenon has sponsored its products by promoting them as ________ brands. A) licensed B) private C) store D) national E) distributor
D) national
Establishing prices for razor blades that must be used with a razor blade system is known as ________ pricing. A) by-product B) market penetration C) product line D) product bundle E) captive product
E) captive product
Unlike other car rental agencies that are based in airports to serve travelers, Wheelz-On-Rent has a network of neighborhood offices. The firm strives to serve people who need car rentals for reasons other than vacation, such as when their own cars are being repaired. Wheelz-On-Rent caters to a small share of the large car rental market. From this description, it can be concluded that Wheelz-On-Rent most likely practices ________. A) undifferentiated marketing B) multi-segmented marketing C) individual marketing D) local marketing E) concentrated marketing
E) concentrated marketing
Denta Clean's decision to add a whitening toothpaste to its current line of toothpastes is an example of product line ________. A) stretching B) widening C) strengthening D) mixing E) filling
E) filling
A doctor performing hip surgery on a patient illustrates how a service can be produced and consumed simultaneously. This is an example of which service characteristic? A) tangibility B) intangibility C) perishability D) variability E) inseparability
E) inseparability
Which link in the service profit chain emphasizes superior employee selection and training? A) healthy service profit and growth B) satisfied and loyal customers C) greater service value D) satisfied and productive service employees E) internal service quality
E) internal service quality