Mktg test 3

66. What is a primary difference between an industrial distributor and a manufacturers' agent? a) A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does. b) A manufacturers' agent is employed by the manufacturers while an industrial distributor is independent. c) An industrial distributor is employed by the manufacturers while a manufacturers' agent is independent. d) A manufacturers' agent rarely adds any value to the marketing channel while an industrial distributor reduces costs significantly. e) An industrial distributor does not form relationships with customers for repeat business whereas a key asset of a manufacturers' agent is his knowledge of his customers.

a) A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does.

114. Which of the following best defines nonprofit marketing? a) Activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit or return on investment b) Marketing activities conducted by organizations other than business organizations c) Nonbusiness activities aimed at goals such as profit or return on investment d) Marketing activities aimed at getting the product to the retailers, through intermediaries e) The marketing activities conducted by individuals and organizations that are considered volunteer establishments

a) Activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit or return on investment

98. When designing a package, which characteristic is least important? a) An association with the company's brand mark b) Cost-effectiveness c) Environmental responsiveness d) Safety e) The value it has as a promotional tool

a) An association with the company's brand mark

88. Which of the following service providers are most likely to bundle-price their services? a) Cable television companies b) Retail stores c) Airlines d) Theaters e) Doctors

a) Cable television companies

111. ___________ packaging means that the product is packaged in line with the packaging practices associated with a particular product category. a) Category-consistent b) Category-specific c) Innovative d) Multiple-category e) Selective

a) Category-consistent

89. Trying to link a motorcycle brand like Harley-Davidson to a food brand like Healthy Choice would be considered a poor decision in this type of branding. a) Co-branding b) Individual branding c) Family branding d) Product branding e) Wholesaler branding

a) Co-branding

175. If Anheuser-Busch refused to allow Jackson Distributing to carry its product if the distributor also carried Miller Brewing products, the company would have been engaging in which of the following channel management practices? a) Exclusive dealing b) Dual distribution c) Tying contacts d) Refusal to deal e) Restricted sales territories

a) Exclusive dealing

164. Which of the following organizations consolidates shipments from several firms into more efficient lot sizes? a) Freight forwarder b) Forwarding agency c) Transporter d) Special transportation company e) Intermodal shipping company

a) Freight forwarder

47. Maria asks Glenda what housecleaning service she would recommend in Oakview. Glenda responds that Pristine Cleaning is great if you can be assured that Janice will be the person assigned to your house. Glenda's recommendation addresses which of the following service features? a) Heterogeneity b) Intangibility c) Perishability d) Inseparability e) Homogeneity

a) Heterogeneity

39. When marketers at Nabisco meet to identify the types of snacks that young people want, they are engaging in which phase of new-product development? a) Idea generation b) Business analysis c) Test marketing d) Commercialization e) Product development

a) Idea generation

161. ___________ is the combining and coordinating of two or more modes of transportation to take advantage of benefits offered by each of the different types of carriers. a) Intermodal transportation b) Physical distribution c) Containerized movement d) Efficient transportation e) Freight forwarding

a) Intermodal transportation

32. What links producers to consumers through the purchase and reselling of products or contractual agreements? a) Marketing intermediaries b) Distributors c) Suppliers d) Middle marketers e) Marketing channels

a) Marketing intermediaries

132. As Lisa eats her morning bowl of Golden Grahams cereal, she reads about the calories, fats, carbohydrates, and vitamins she is ingesting. This information is required by the a) Nutrition Labeling Act. b) Food and Drug Administration. c) Fair Packaging and Labeling Act. d) Nutritional Content Disclosure Act. e) Federal Trade Commission.

a) Nutrition Labeling Act.

155. Which mode of transportation hauls more freight than any other? a) Railroads b) Waterways c) Pipelines d) Trucks e) Airways

a) Railroads

67. 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) Tarzink Yogurt

46. Questions such as "How often would you buy this product?" and "Which features are of little or no interest to you?" are often proposed during a) concept testing. b) product development. c) screening. d) idea generation. e) test marketing.

a) concept testing.

94. When produce companies such as Dole Tomatoes bypass wholesalers and sell directly to retailers, it is likely to create channel ___________ between Dole and these wholesalers. a) conflict b) cooperation c) leadership d) integration e) flows

a) conflict

Which of the following is a primary factor specific to services in choosing a brand name? a) The service brand is usually the same as the company name so it must be flexible enough to fit several services. b) The name must convey an image of great customer service because this is more important for services than for goods. c) The name should be distinctive and set the company apart from potential competitors. d) Shortness and conciseness are extremely important when choosing brand names for services so that they can easily be remembered. e) Service brands are much more difficult to protect legally, so marketers must focus on creating brands with made-up words or a combination of letters and numbers.

a) The service brand is usually the same as the company name so it must be flexible enough to fit several services.

154. Which major mode of freight transportation provides the most flexible schedules and routes? a) Trucks b) Waterways c) Airways d) Pipelines e) Railroads

a) Trucks

73. Which of the following types of products would be the most difficult to brand? a) Wheat b) Soap c) DVD players d) Automobiles e) Tax preparation services

a) Wheat

70. Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink, Frappucino, to grocery stores and other retail outlets. This is an example of a) a strategic channel alliance. b) exclusive distribution. c) dual distribution. d) horizontal channel integration. e) channel leadership.

a) a strategic channel alliance.

98. When a single channel member manages an integrated marketing channel to achieve low-cost, efficient distribution for satisfying target markets, ______ exists. a) a vertical marketing system b) horizontal channel integration c) channel power d) channel cooperation e) extensive distribution

a) a vertical marketing system

105. In an administered vertical marketing system (VMS), interorganizational relationships are a) achieved by informal coordination. b) formalized through contracts. c) combined under the ownership of a single organization. d) guided by legal agreements. e) achieved by clearly defining the obligations and rights of all channel members.

a) achieved by informal coordination.

29. Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called ___________ modifications. a) aesthetic b) functional c) operational d) quality e) feature

a) aesthetic

32. If Conway School Furniture Company provides standard primary school chairs in new colors to match the interiors of schools, this modification is most likely to be viewed as a(n) __________ modification. a) aesthetic b) functional c) quality d) image e) feature

a) aesthetic

84. The three major ways to modify a product include a) aesthetic, quality, and functional changes. b) extensions, generations, and upgrades. c) color, size, and quantity modifications. d) styling, product features, and product design. e) quality, quantity, and design.

a) aesthetic, quality, and functional changes.

50. Traditionally, the main advantage of a private brand over a manufacturer brand was the _____, but this advantage is gradually diminishing. a) better price b) higher quality c) more accessible distribution d) straightforward labeling e) friendlier customer service

a) better price

105. Packages designed to appeal to children often use a) bold designs and primary colors. b) clear color and simple designs. c) black and white only. d) pastels and soft images. e) lots of writing and little color.

a) bold designs and primary colors.

40. The talking gecko used by Geico Insurance facilitates the development of a) brand associations. b) perceived brand quality. c) product preference. d) manufacturer brands. e) product equity.

a) brand associations.

94. Marvel Comics allowed various organizations to use its Spiderman and Incredible Hulk characters to market a wide variety of toys and clothing items. Marvel Comics received a percentage of the gross revenues. This is a) brand licensing. b) character exploiting. c) co-branding. d) family branding. e) trademark leasing.

a) brand licensing.

78. When Anheuser-Busch added Michelob Light to the line of Michelob beers, the firm was using ___________ branding. a) brand-extension b) individual c) exclusive d) selective e) existing

a) brand-extension

79. When a firm uses an existing brand name as part of a brand name for a new product, this is called ___________ branding. a) brand-extension b) licensed c) family d) individual e) new-product

a) brand-extension

150. A public warehouse is a a) business that leases storage space and related facilities for distribution to other firms. b) large, centralized warehouse that focuses on moving rather than storing goods. c) company that provides a complete array of logistical services for businesses. d) company-operated facility for storing and shipping products. e) warehouse used to store the personal property of many different customers.

a) business that leases storage space and related facilities for distribution to other firms.

93. Marketing channel members are likely to experience misunderstandings, frustration, and poorly coordinated strategies as a result of a) channel conflict caused by inefficient communication between channel members. b) open communication among the channel members. c) methods of channel coordination designed to reduce ambiguity. d) negotiating territorial issues among regional distributors of a product. e) allowing one member of the channel to take the role of channel captain.

a) channel conflict caused by inefficient communication between channel members.

121. A university's student body would be considered its ___________ public, and parents, alumni, and trustees would be included as its ___________ public. a) client; general b) specialized; general c) target; simple d) general; client e) target; market

a) client; general

45. The phase of new-product development in which a small sample of potential buyers are presented with a product idea through a written or oral description in order to determine their attitudes and initial buying intentions regarding the product is called a) concept testing. b) customer response testing. c) idea analysis. d) test marketing. e) screening.

a) concept testing.

57. At one time, generic brands represented about 10 percent of all retail grocery sales. Today they account for a) considerably less. b) about 35 percent. c) about the same. d) up to 20 percent. e) approximately 25 percent.

a) considerably less.

78. The ability of a product to provide the same level of quality over time is called a) consistency. b) longevity. c) variability. d) status. e) image.

a) consistency.

106. Packaging is most important, as a strategic tool, for a) consumer convenience products. b) consumer shopping products. c) industrial products. d) consumer specialty products. e) services.

a) consumer convenience products.

107. In the distribution channel for Domino's Pizza, channel members are linked by legal agreements that spell out the obligations and rights of each member. This is an example of a(n) ___________ vertical marketing system. a) contractual b) administered c) corporate d) negotiated e) institutional

a) contractual

96. Services have three evaluation attributes: search qualities, experience qualities, and ___________ qualities. a) credence b) value c) perishable d) marketability e) credibility

a) credence

54. The necessary interaction between service provider and customer that allows a service to be delivered is called a) customer contact. b) service exchange. c) marketing. d) relationship marketing. e) service contact.

a) customer contact.

63. The heterogeneity characteristic of services provides marketers with tremendous opportunity to a) customize their services to meet unique individual needs. b) hold down the cost of providing services to customers. c) create standardized packages that will appeal to many customers. d) offer the same service as all of their competitors. e) develop relationship marketing with their customers.

a) customize their services to meet unique individual needs.

122. The United States Postal Service works hard to get priority mail from the sender to the recipient as quickly as possible in order to compete with companies such as UPS and FedEx. The postal service works to reduce a) cycle time. b) order processing. c) turn-around. d) shipping time. e) transportation.

a) cycle time.

22. Quality modifications are changes that relate to a product's a) dependability and durability. b) effectiveness and versatility. c) price and availability. d) reliability and value. e) value and durability.

a) dependability and durability.

67. Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using a) dual distribution. b) industrial distribution. c) strategic channel alliance. d) supply chain management. e) an unethical marketing channel.

a) dual distribution.

69. Gateway Computer makes computers available through its own stores, its toll-free telephone line, and a website. This is an example of a) dual distribution. b) vertical integration. c) horizontal integration. d) tying agreements. e) exclusive dealing.

a) dual distribution.

70. Prudential Insurance uses "the rock" symbol to communicate stability and security to customers. This is Prudential's attempt to help customers better understand its services by a) emphasizing tangible cues in promoting the service. b) using word association. c) personalizing the selling of the service. d) utilizing publicity techniques to enhance the service. e) distributing the service directly through television.

a) emphasizing tangible cues in promoting the service.

116. Planters is concerned that acquiring a taste for its new product, honey-roasted macadamia nuts, takes time. Planters should use ___________ packaging for its new product. a) family b) multiple c) tamper-resistant d) unlabeled e) transparent

a) family

80. Gorton's sells Gorton's Fish Sticks, Gorton's Fish Fillets, and Gorton Grilled Fish. This is an example of a) family branding. b) shared naming. c) individual branding. d) brand extension. e) single branding.

a) family branding.

22. Brands provide all of the following benefits for buyers except that they do not a) foster brand loyalty. b) help identify specific products. c) help buyers evaluate the quality of products. d) offer psychological rewards. e) reduce perceived risk of purchase.

a) foster brand loyalty.

25. Changes that affect a product's versatility, effectiveness, convenience, or safety are called ___________ modifications. a) functional b) formal c) aesthetic d) quality e) package

a) functional

42. The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ______ of services. a) heterogeneity b) customer contact aspect c) intangibility d) inseparability e) perishability

a) heterogeneity

57. An independent business that takes title to products and carries inventories is a(n) a) industrial distributor. b) intermediary. c) agency. d) wholesaler. e) producer.

a) industrial distributor.

66. Clean, sharp looking employees with appropriate uniforms help assure customers about service quality and therefore address the _____ of services. a) intangibility b) perishability c) tangibility d) inseparability e) heterogeneity

a) intangibility

77. Transamerica's pyramid-shaped building in San Francisco is used to symbolize strength, security, and reliability. This type of promotion is designed to address the ___________ characteristic of services. a) intangibility b) perishability c) heterogeneity d) inseparability e) customer service

a) intangibility

136. A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production. This inventory management technique is called a) just-in-time (JIT). b) time management. c) inventory minimization. d) economic order quantity. e) reorder point maximization.

a) just-in-time (JIT).

35. If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are a) long-term commitments. b) short-term commitments. c) easier to change than prices. d) easier to change than promotion. e) impossible to change.

a) long-term commitments.

26. Brand ___________ is a customer's favorable attitude toward a specific brand and, depending on its strength, some likelihood of the consistent purchase of this brand. a) loyalty b) equity c) awareness d) personality e) quality

a) loyalty

27. Joe is an athlete who plays a variety of sports that all require various athletic shoes. He has a favorable attitude toward Nike shoes. This favorable attitude is called brand a) loyalty. b) recognition. c) preference. d) insistence. e) equity.

a) loyalty.

165. Freight transportation companies that offer several different shipment methods are called a) megacarriers. b) intermodal transporters. c) freight forwarders. d) shipping experts. e) superfreighters.

a) megacarriers.

21. In product modification, three conditions must be met to improve a firm's product mix: the product must be modifiable, customers must be able to perceive that a modification has been made, and a) modification should make the product more consistent with customers' desires. b) competing companies should not be aware of planned product modifications. c) modification should change customers' desires to provide greater satisfaction. d) management must perceive the modification as a reasonable and necessary action. e) production costs and materials needed should be limited.

a) modification should make the product more consistent with customers' desires.

114. If a firm decides to contract its physical distribution functions to third parties that have no managerial authority within the marketing channel, it is using a) outsourcing. b) sole-sourcing. c) logistics. d) wholesaling. e) distribution services.

a) outsourcing.

83. Service activities are time-dependent, meaning that the service must be provided at a point in time when customers want to use it. This point in time is also known as a) peak demand. b) preferred demand. c) off-peak demand. d) high-contact time. e) high intensity time.

a) peak demand.

86. Any service provider that offers time-sensitive services receives most of its revenue during a) peak demand. b) heavy use time. c) the off-season. d) preferred demand. e) customer contact time.

a) peak demand.

100. A brand manager in a multiproduct firm would be responsible for a) performance of a specific brand. b) all brands within a product line. c) branding the products of the firm. d) all products in the brand-line group. e) all brands made by the firm.

a) performance of a specific brand.

73. Using appointments or reservations for scheduling delivery of services is an attempt to address the ___________ characteristic of services. a) perishability b) intangibility c) heterogeneity d) inseparability e) homogeneity

a) perishability

82. Demand-based pricing most closely relates to the _____ of services. a) perishability b) intangibility c) heterogeneity d) customer contact aspect e) inseparability

a) perishability

37. Marketing channels create three types of utility for consumers including a) place, time, and possession. b) location, availability, and suitability. c) time, location, and promotion. d) retailer, wholesaler, and producer. e) position, possession, and place.

a) place, time, and possession.

54. Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) _________ channel. a) producer-to-business buyer b) producer-to-industrial-distributor-to-business buyer c) producer-to-agent-to-business buyer d) equipment e) consumer

a) producer-to-business buyer

76. Three major ways in which marketers engage in product differentiation are a) product quality, product design and features, and product support services. b) product quality, product support services, and packaging. c) product support services, product design and features, and product positioning. d) product positioning, product quality, and product management. e) product positioning, product design and features, and product promotion.

a) product quality, product design and features, and product support services.

31. Because practically all marketers provide some services, ___________ typically do not exist in today's business environment. a) pure goods b) pure services c) customer services d) service products e) tangible-dominant products

a) pure goods

79. The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is a) quality. b) consistency. c) durability. d) styling. e) design.

a) quality.

28. The weakest level of brand loyalty is brand a) recognition. b) insistence. c) equity. d) trial. e) preference.

a) recognition.

47. After direct-marketing, the next slightly longer marketing channel adds a(n) a) retailer. b) producer. c) wholesaler. d) agent. e) consumer.

a) retailer.

48. When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a a) retailer. b) wholesaler. c) broker. d) functional middleman. e) producer.

a) retailer.

41. Concerns about cannibalization of current product sales must be addressed in the ___________ phase of the new-product development process. a) screening b) concept testing c) business analysis d) product development e) test marketing

a) screening

110. The decorative tins used to package holiday cookies and candies are an example of ____ packaging. a) secondary-use b) multiple c) family d) category-consistent e) altered

a) secondary-use

80. Using only some of the available outlets to distribute a product is called a) selective distribution. b) intensive distribution. c) channel conflict. d) vertical channel integration. e) exclusive distribution.

a) selective distribution.

29. The continuum of tangibility goes from _____ on one end to _____ on the other end. a) service-dominant products; good-dominant products b) pure products; pure services c) rational products; irrational products d) mostly service goods; mostly product goods e) easy to see; not easy to see

a) service-dominant products; good-dominant products

23. Long-term partnerships among channel members working together to reduce inefficiencies, costs, and redundancies in the entire marketing channel is called a) supply chain management. b) vertical channel integration. c) industrial management. d) industrial distribution. e) marketing management.

a) supply chain management.

28. Wal-Mart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of a) supply chain management. b) a vertical marketing system. c) a horizontal marketing system. d) channel conflict. e) dual distribution.

a) supply chain management.

101. Attributes which are assessed only during the consumption of a service are called a) tangibles. b) search qualities. c) experience qualities. d) use benefits. e) credence qualities.

a) tangibles.

118. Children with muscular dystrophy who receive treatments developed through research programs funded by MDA represent ___________ for this charitable organization. a) target publics b) target population c) general publics d) focus groups e) client publics

a) target publics

23. A trademark signifies a) that the owner has exclusive use of a brand and others are prohibited from using it. b) that a product was manufactured by a particular company. c) the full and legal name of an organization. d) the level of quality of a product based on its legally protected rights. e) the inventive use of a brand name or brand mark to identify a company's products.

a) that the owner has exclusive use of a brand and others are prohibited from using it.

119. Multiple packaging encourages a) the consumer to try the product several times. b) higher consumption of all products. c) infrequent purchases. d) easier handling and storing of all products. e) environmentally responsible behavior.

a) the consumer to try the product several times.

120. Arm & Hammer would probably not want to use multiple packaging for its baking soda because a) the product is used infrequently. b) storage would be more difficult. c) shelf space could not be maximized. d) shipping costs would increase. e) the product has a short shelf life.

a) the product is used infrequently.

124. Order processing is defined as a) the receipt and transmission of sales order information. b) the second stage in a physical distribution system. c) the four main tasks. d) the same as order handling. e) electronic processing of information.

a) the receipt and transmission of sales order information.

170. The main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales territories is to a) tighten its control over distribution of its products. b) discourage competition from other manufacturers. c) incorporate selective distribution. d) contain distribution costs. e) punish intermediaries for past behavior.

a) tighten its control over distribution of its products.

50. Client-based relationships are least likely to be developed by a) towing services. b) accountants. c) beauticians. d) orthodontists. e) psychiatrists.

a) towing services.

24. iPod is the ___________ of the MP3 player made by Apple, Inc. a) trade name b) brand mark c) trade label d) brand e) identifier

a) trade name

104. Surveys, focus groups, and customer comment cards are all methods used by service companies to a) understand customer needs and expectations. b) set service quality specifications. c) establish guidelines for employee performance. d) manage service expectations. e) control service intangibility.

a) understand customer needs and expectations.

141. Johnson Controls hires a consultant to assess its materials handling procedures. The consultant recommends the implementation of ___________ if they want easier movement of items between internal destinations in the warehouse. a) unit loading b) piggybacking c) containerization d) inventory management e) priority transportation

a) unit loading

118. The best way to reduce overall distribution costs is to a) use a total-cost approach to analyze and evaluate the entire system. b) minimize the costs associated with materials handling and transportation. c) reduce the number of distribution functions that are necessary. d) find the cheapest price for each function and use them to create the system. e) lower the service standards that the company has.

a) use a total-cost approach to analyze and evaluate the entire system.

106. Elizabeth from marketing, Manuel from finance, Tony from production, Cynthia from engineering, and Alexandra from research and development were put together by their company to develop a new low-calorie, high-nutrition snack treat. These five people are a(n) __________ at their company. a) venture team b) SWAT team c) brand management group d) idea generation group e) product positioning group

a) venture team

72. Early in the commercialization phase, marketers must make decisions about a) warranties, repairs, and replacement parts. b) product features and breakeven points. c) functionality, safety, and convenience. d) the proposed marketing mix variables. e) which ideas to further pursue.

a) warranties, repairs, and replacement parts.

26. Which of the following is the best example of a functional modification? a) Campbell's puts more of a higher-grade chicken in its classic chicken noodle soup. b) A smoke alarm is modified to be more sensitive to smoke at farther distances. c) Motorola uses a battery that allows its cell phones to charge back up more quickly. d) The manufacturer of the primer and sealer, Kilz, introduces an odorless variety. e) Friskies changes the ingredients in its cat food to a taste that is preferred by most cats.

b) A smoke alarm is modified to be more sensitive to smoke at farther distances.

116. Which of the following is similar for both for-profit and nonprofit marketing? a) Emphasis on profit as a motive b) Ability to use effective marketing activities c) Concern for the entry of competitors into the field d) Complexity of the typical distribution channels e) Definition of target markets

b) Ability to use effective marketing activities

157. If a microchip in a computer in New York failed, which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from Silicon Valley, California? a) Pipeline b) Airways c) Waterways d) Truck e) Railroad

b) Airways

50. Karla tells Jeff 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 Jeff 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) Business analysis

47. Which of the following is the stage of the new-product development process where customers are first exposed to the new product idea? a) Screening b) Concept testing c) Business analysis d) Product development e) Test marketing

b) Concept testing

49. Which of the following phases of new-product development is likely the least costly for the firm? a) Commercialization b) Concept testing c) Business analysis d) Product development e) Test marketing

b) Concept testing

25. Which of the following is most likely to be considered a business service? a) Housecleaning b) Consulting c) Haircutting d) Personal training e) Alaskan cruise

b) Consulting

80. An American West Airlines flight from Dallas to Houston was full, and the tickets were more expensive than the almost-empty American West flight from Chicago to Phoenix. This is an example of what kind of service pricing? a) Bundled b) Demand-based c) Supply-based d) Upfront e) Customer-based

b) Demand-based

30. Which of the following services falls closest to the middle of the tangibility continuum? a) College education b) Dinner at the Olive Garden c) A new Ford Escape d) A custom built yacht e) A trip to Brazil

b) Dinner at the Olive Garden

56. Caruthers Paint Manufacturing Company buys the chemicals it needs for producing its products from a chemical producer, Roth Chemicals. In this instance, the chemicals are being distributed to Caruthers through which of the following types of channels? a) Industrial distributor b) Direct distribution c) Retail d) Wholesaler-sponsored e) Producer

b) Direct distribution

58. Which of the following statements about customer contact in services marketing is false? a) Service employees are important in creating satisfied customers. b) High-contact services are less expensive to deliver because they are typically equipment-based. c) The main principle of customer contact is that satisfied employees lead to satisfied customers. d) Service companies can minimize customer dissatisfaction by changing high-contact services into low-contact services. e) Employee training programs are an effective way to ensure good customer contact and reduce problems.

b) High-contact services are less expensive to deliver because they are typically equipment-based.

75. R. J. Reynolds markets several brands of cigarettes, including Vantage, Camel, Winston, and Salem. This is an example of which type of branding policy? a) Generic b) Individual c) Family d) Line family e) Brand extension

b) Individual

32. Hair stylists find it challenging to market their service because the customer must be involved in production (i.e., the haircut). This illustrates which of the following unique features of services? a) Intangibility b) Inseparability c) Perishability d) Heterogeneity e) Homogeneity

b) Inseparability

67. If a nonsmoker dines in a restaurant without a no-smoking section, then the overall quality of service experienced by the nonsmoking customer probably declines. This is an example of which of the following service characteristics? a) Perishability b) Inseparability c) Heterogeneity d) Intangibility e) Homogeneity

b) Inseparability

129. Which of the following statements about labeling is false? a) The label can be used to facilitate the identification of a product. b) Labels do not have to disclose nutritional information. c) The label indicates the quality of the product. d) Labeling is used to describe the product. e) The label can play a promotional function.

b) Labels do not have to disclose nutritional information.

18. __________ is the development of a product that is closely related to one or more products in a firm's existing product line but is designed specifically to meet somewhat different customer needs. a) Quality modification b) Line extension c) Aesthetic modification d) Feature modification e) Product mix modification

b) Line extension

112. ___________ marketing includes activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit. a) Unit b) Nonprofit c) Organizational d) Individual e) Enterprise

b) Nonprofit

123. Which is the most typical distribution channel used in nonprofit organizations? a) Nonprofit organization, intermediary, client b) Nonprofit organization, client c) Nonprofit organization, middleman, client d) Nonprofit organization, government, client e) Government, nonprofit organization, client

b) Nonprofit organization, client

125. ___________ is the value of the benefit that is given up by selecting one alternative rather than another. a) Benefit loss b) Opportunity cost c) Privileged cost d) Selection cost e) Exchange loss

b) Opportunity cost

52. Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use? a) Producer, consumer b) Producer, wholesaler, retailer, consumer c) Producer, wholesaler, agent, retailer, consumer d) Producer, retailer, consumer e) Retailer, consumer

b) Producer, wholesaler, retailer, consumer

85. For which of the following products would exclusive distribution be most appropriate? a) Gasoline b) Rolls Royce automobile c) Washing machine d) Laundry detergent e) Moderately priced luggage

b) Rolls Royce automobile

119. Select the true statement regarding nonprofit marketing. a) Nonprofit marketing strategy should be developed to offer unrestricted alternatives and distribution activities that help accomplish the organization's goals. b) Segmentation techniques used to identify target markets in for-profit businesses are also applicable to reaching nonprofit target markets. c) A nonprofit organization usually attempts to serve fewer market segments than a for-profit organization. d) Selection of the target market is the only major strategy development task in nonprofit marketing. e) The narrowest definition of price should be used in developing the marketing mix strategy.

b) Segmentation techniques used to identify target markets in for-profit businesses are also applicable to reaching nonprofit target markets.

65. Besides generic names, what other types of names are very difficult to protect? a) Names created by the company b) Surnames and geographic names c) Arbitrarily chosen names not related to the product d) Arbitrarily chosen names related closely to the product e) Names that contain shapes and colors

b) Surnames and geographic names

72. The most recent act passed by Congress that addresses the protection of trademarks is the a) Lanham Act. b) Trademark Law Revision Act. c) Counterfeit Protection Act. d) U.S. Patent and Trademark Act. e) Fair Trademark and Brand Name Usage Act.

b) Trademark Law Revision Act.

44. What should marketers do to promote the consistency and reliability of their services most effectively? a) Limit the number of employees in their organization b) Train employees and develop standard procedures for dealing with customers c) Encourage employees to be creative in solving customer issues and complaints d) Perform as much of the service as possible before the customer arrives e) Require employees to be shining, happy people all day long

b) Train employees and develop standard procedures for dealing with customers

21. Which of the following countries was the world's first service economy? a) England b) United States c) Sweden d) Canada e) Germany

b) United States

146. What function of physical distribution enables companies to compensate for dissimilar production and consumption rates and stabilize prices and availability of seasonal items? a) Materials handling b) Warehousing c) Transportation d) Inventory management e) Order processing

b) Warehousing

159. The Diamond Salt Company needs to transport 20 tons of salt from Baton Rouge, Louisiana, to Cincinnati. Which of the following methods would be the cheapest for transporting this cargo? a) Pipelines b) Waterways c) Trucks d) Airways e) Railroads

b) Waterways

55. Which of the following is a low-contact service? a) Childcare b) Website design c) Health care d) Manicure e) Legal services

b) Website design

63. A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances? a) When the firm wants specialized personnel to follow up the work of the sales force b) When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force c) When only one or two channels of distribution are available for products d) When the sales force is large and the marketer is thinking of cutting it down e) When customers are highly concentrated in one geographic area

b) When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force

90. If Ralph Lauren, a designer of fine clothing, authorized Dan River Mills to market a line of sheets under the Ralph Lauren name - this arrangement is an example of a) brand extension. b) brand licensing. c) product continuation. d) private branding. e) individual branding.

b) brand licensing.

21. Healthy Choice is a ____ manufactured by ConAgra Foods, which is a ____. a) brand mark; trade name b) brand name; trade name c) trade name; brand d) brand name; trademark e) brand mark; trademark

b) brand name; trade name

42. Private distributor, generic, and manufacturer are the three types of a) equity. b) brands. c) producers. d) packaging. e) trade names.

b) brands.

109. A secondary-use package is defined as one that a) can be used as a promotional tool. b) can be reused for purposes other than its initial use. c) facilitates transportation, storage, and handling for middlemen. d) is recyclable and environmentally safe. e) promotes an overall company image.

b) can be reused for purposes other than its initial use.

88. Nike maintains a good deal of control over how its products are promoted, displayed, and sold. Because of this control, Nike would be appropriately described as the channel a) intermediary. b) captain. c) allocator. d) terminator. e) price leader.

b) captain.

90. When one company in a marketing channel has the ability to influence another member's goal achievement, the company has a) channel control. b) channel power. c) marketing leadership. d) a channel captain. e) distributive influence.

b) channel power.

71. When Natalie and Chris analyze the results from the recently completed test market to determine if any changes in the marketing mix are needed, they are in the ___________ phase of the new-product development process. a) idea generation b) commercialization c) test marketing d) business analysis e) screening

b) commercialization

69. 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) competitors may copy the product.

20. A distinguishing factor between a brand name and a brand mark is that a brand name a) creates customer loyalty. b) consists of words. c) identifies only one item in the product mix. d) is registered with the U.S. Patent and Trademark Office. e) implies an organization's name.

b) consists of words.

143. Fansteel manufactures parts used in jet engines, which it sells to companies such as Boeing. When shipping products to Boeing, Fansteel seals the parts in 8' × 8' × 40' boxes for shipping to decrease loss and damage. This method of materials handling is a) unit loading. b) containerization. c) freight forwarding. d) unitized shipping. e) bonded packaging.

b) containerization.

61. A first class airline ticket offers a ____ service of transportation as well as _______ services of drink and food service, special boarding rights, and extra customer service. a) primary; secondary b) core; supplementary c) bundled; extra d) complementary; main e) major; minor

b) core; supplementary

48. 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) manufacturers are not identified on the product.

124. The overall challenge for marketers when developing packaging is to a) make it as attractive as possible to the target market of the product. b) create effective, convenient packaging that appeals to customers and keeps costs low. c) find ways to reduce costs as much as possible for packaging without letting safety suffer. d) always be more innovative than the competitors in order to make a product stand out. e) ensure that product damage is minimized during distribution.

b) create effective, convenient packaging that appeals to customers and keeps costs low.

30. A channel of distribution is defined as a group of individuals and organizations that a) consumes about one-half of every dollar spent on products in the United States. b) directs the flow of products from producers to customers. c) links producers to other marketing intermediaries. d) takes title to products and resells them. e) manages transportation and warehousing functions.

b) directs the flow of products from producers to customers.

37. 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) evaluation of competitors' efforts.

104. All Healthy Choice products come in green boxes with the same Healthy Choice logo. This is an example of the use of a) category-consistent packaging. b) family packaging. c) multiple packaging. d) family branding. e) group labeling.

b) family packaging.

99. A firm may decide that all packages should be similar and include one major element of the same design. This approach to promote an overall company image is called a) family extension. b) family packaging. c) overall packaging. d) package extension. e) selective packaging.

b) family packaging.

56. While grocery shopping at Albertson's grocery store, Janna sees a box that is plain in color and labeled cotton swabs. This is an example of a) streamline packaging. b) generic branding. c) store branding. d) individual branding. e) category-consistent packaging.

b) generic branding.

79. Production and consumption of services must simultaneously occur due to the _____ characteristic of services. a) intangibility b) heterogeneity c) customer contact d) perishability e) inseparability

b) heterogeneity

120. At the annual managers' planning conference, Jackie Conrad asks the other managers to consider her proposal to increase the quantity of inventory to a five-week supply in order to increase the percentage of completely filled customer orders from 85 percent to 90 percent. She states that she is willing to trade off the ___________ incurred for the positive effect of better customer service. a) lower response time b) higher warehousing costs c) higher transportation costs d) higher order processing costs e) higher performance levels

b) higher warehousing costs

113. A no-drip spout on a bottle of liquid Tide laundry detergent is an example of __________ packaging. a) category-consistent b) innovative c) traditional d) secondary-use e) convenience

b) innovative

75. When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used ___________ distribution. a) horizontal b) intensive c) selective d) agent e) exclusive

b) intensive

77. Candy bars and chewing gum are most likely to be distributed through _____ and _____. a) selective distribution; multiple channels b) intensive; dual distribution c) strategic channel alliances; intensive d) exclusive; a single channel e) dual distribution; convenience channels

b) intensive; dual distribution

67. Competitive interference with a test-marketing program is called a) tactical interference. b) jamming. c) test interference. d) squeezing. e) ramming.

b) jamming.

86. Because Coke is such a popular product and the company is so powerful, Coca-Cola is in a position to exert considerable control over channel structures and the way Coke is marketed. This is an illustration of channel ___________ in the distribution channel. a) conflict b) leadership c) dominance d) cooperation e) negotiation

b) leadership

80. Victor thinks that a Lexus coupe is a quality vehicle, yet compared to a Mercedes Benz, he feels the quality of a Lexus is not as high. This demonstrates that the dimension of _____ is relative or difficult to describe without a basis of comparison. a) consistency of quality b) level of quality c) differentiation d) product features e) product positioning

b) level of quality

16. A(n) ___________ is the development of a product that is closely related to one or more products in the existing product line but is designed specifically to meet somewhat different needs of customers. a) product modification b) line extension c) quality modification d) functional development e) aesthetic extension

b) line extension

17. If the manufacturer of Cool Whip were to introduce an orange-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of a) a brand extension. b) line extension. c) functional modification. d) quality modification. e) a new-to-the-world product.

b) line extension.

33. Most marketing channels have marketing intermediaries. A marketing intermediary's role is to a) link wholesalers to other wholesalers. b) link producers to other middlemen or to consumers. c) always sell products to wholesalers. d) not take title to products. e) always sell products to retailers.

b) link producers to other middlemen or to consumers.

133. The result of an inventory stockout is usually an increase in a) inventory costs. b) lost sales. c) net profit. d) customers. e) prices.

b) lost sales.

43. A ___________ brand usually requires a producer to become involved in distribution, promotion, and pricing decisions. a) dealer b) manufacturer c) private distributor d) store e) wholesaler

b) manufacturer

51. Kellogg's Rice Krispies, a _____ brand, is likely to be found next to Crispy Rice, a _____ brand that has very similar coloring and styling for its package. a) generic; store b) manufacturer; private c) dealer; private distributor d) producer; house e) distributor; store

b) manufacturer; private

162. Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through a) transit time. b) warehousing. c) packaging. d) containerization. e) lot sizes.

d) containerization.

65. An independent businessperson who is paid a commission to sell complementary products of different producers in an assigned territory without actually taking title of the merchandise is a(n) a) sole intermediary. b) manufacturers' agent. c) producers' broker. d) industrial distributor. e) channel facilitator.

b) manufacturers' agent.

29. A group of organizations and individuals that directs the flow of products from producers to the ultimate consumers is called a a) free trade association b) marketing channel c) channel of suppliers d) production line-up e) chain of retailers

b) marketing channel

91. Product deletion a) tends to be an easy task for most organizations. b) may be opposed by management. c) involves immediate termination. d) is a matter of indifference to customers. e) usually occurs only with convenience items.

b) may be opposed by management.

41. Eliminating a wholesaler from a marketing channel will a) cut costs and lower prices. b) not eliminate the functions performed by that wholesaler. c) eliminate the functions performed by that wholesaler. d) lead to lower costs but higher prices. e) reduce channel conflict.

b) not eliminate the functions performed by that wholesaler.

126. By receiving orders online instead of through a paper-based ordering system, Barnes and Nobles has been able to save time and money on a) electronic data interchange. b) order entry. c) inventory management. d) order delivery. e) order handling.

b) order entry.

127. The order-processing task that involves verifying product availability, checking prices and customer credit ratings, and filling orders is a) warehousing. b) order handling. c) information processing. d) materials handling. e) order entry.

b) order handling.

89. Few supermarkets would try to replace a national brand of baby food with their own brand. Assuming that this is true, we have a good example of channel leadership by a) wholesalers. b) producers. c) retailers. d) agents. e) brokers.

b) producers.

89. If Hewlett-Packard provides its customers with a help line for computer questions and problems, it is differentiating itself through a) support of its level of quality. b) product support services. c) a help line feature. d) product features. e) customer requests.

b) product support services.

96. The most important function of packaging is a) offering convenience to customers. b) protecting the product and maintaining its functionality. c) covering the product. d) communicating information to the customer. e) attracting the attention of the customer.

b) protecting the product and maintaining its functionality.

35. A complex product development process, including an extensive business analysis to determine the possibility of success, are hallmarks of a a) genuinely new product. b) radically new product. c) new product failure. d) controlled new product. e) market share advance.

b) radically new product.

77. Elena recently purchased a pair of sunglasses because she liked their quality, styling, and price. Her friend Katie purchased an almost identical pair, except that Katie's sunglasses had the name "Armani" imprinted on the side. Elena probably based her purchase decision on ___________, whereas Katie apparently based her decision on ___________. a) price; product quality b) real product differences; perceived product image c) perceived product image; product quality d) product value; perceived product image e) product design; product quality

b) real product differences; perceived product image

103. The willingness and readiness of employees to meet the needs of the customer while providing the service is an important dimension of service quality called a) reliability. b) responsiveness. c) empathy. d) tangibles. e) assurance.

b) responsiveness.

75. A new variety of Doritos is initially introduced in Ft. Worth, Texas; Columbia, South Carolina; Peoria, Illinois; and Spokane, Washington. After its initial success, Frito Lay markets the Doritos in those entire states, then the adjacent states, and finally the entire country. Frito-Lay is using a _____ for its new variety of Doritos. a) multi-stage introduction b) roll-out approach c) test-market expansion d) mass commercialization e) trickle-down approach

b) roll-out approach

138. All of the following are concepts used in a just-in-time inventory management system except a) supplies arrive just as they are needed. b) safety stock is kept to reduce stockouts. c) much waste is eliminated. d) purchases are made in small quantities. e) purchases are made frequently.

b) safety stock is kept to reduce stockouts.

94. Tara finds evaluating a new pair of jeans much easier than evaluating tennis lessons because she can try on the jeans to see exactly how they feel and fit. In other words, the jeans have many _____ qualities. a) experience b) search c) intangible d) credence e) assurance

b) search

72. Fragile products that require special handling are more likely to be distributed through a) longer channels. b) shorter channels. c) Channel D. d) Channel H. e) exclusive outlets.

b) shorter channels.

59. If Best Western bundles its rooms with services such as free local phone calls, cable television, wireless Internet access, and complimentary breakfast, these services are known as ___________ services. a) core b) supplementary c) bundled d) business e) complimentary

b) supplementary

61. Top managers at Cincinnati Microwave believe that they have a successful working prototype of their new radar detector and plan to go directly to regional commercialization of the new product. In this instance, they are contemplating skipping the __________ phase of the new-product development process. a) screening b) test marketing c) product development d) business analysis e) idea generation

b) test marketing

31. 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 redesign of the product. d) a possible decrease in market share. e) that there is no differentiation for the product in the market.

b) that the value of the modification is determined subjectively.

42. What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level? a) Product development b) Evaluation of competitor's efforts c) Screening d) Idea generation e) Business analysis

c) Screening

38. Possession utility is best described as a) products being available in places where the customers wish to purchase them. b) the customer having access to the product to use now or store and use later. c) having a company's products available when a customer needs them. d) being able to legally own a product despite restrictions on trade. e) getting the products to the consumers in as short of time as possible for ownership.

b) the customer having access to the product to use now or store and use later.

120. In nonprofit organizations, a) development of a marketing strategy should focus on the general public. b) the direct consumers of the product are the client public. c) target markets are defined much more easily. d) the techniques used by for-profit organizations to define target markets cannot be applied. e) goods are marketed more often than ideas or services.

b) the direct consumers of the product are the client public.

In product modification, the first issue to consider is whether a) existing customers can perceive that a product modification has been made. b) the product is modifiable. c) quality is modified. d) modification will make the product more consistent with customers' desires. e) modification will provide greater satisfaction to the consumer.

b) the product is modifiable.

88. A co-branded product from Ruffles potato chips and Chiquita bananas would likely fail because a) neither of these brands is very well known to consumers. b) their products are not complementary. c) they are both food products. d) this co-branding will not provide product differentiation. e) the market segment for this product is too vast

b) their products are not complementary.

100. The reasons a vertically integrated channel can be more effective against competition is because of all of the following except a) the consolidation of power. b) tightly controlled and bureaucratic management style. c) the ability to inhibit competitors. d) the sharing of responsibilities and information. e) increased bargaining power.

b) tightly controlled and bureaucratic management style.

36. Having products available when the customer wants them is called a) place utility. b) time utility. c) availability. d) possession utility. e) chronavailability.

b) time utility.

81. Piano teachers, tutors, attorneys, and consultants are most likely to price their services based on a) functions performed. b) time. c) objectives accomplished. d) demand. e) combination pricing.

b) time.

102. When Benetton, the Italian sportswear designer and manufacturer, decided to open its own specialty shops to sell its merchandise, the firm was engaging in a) channel repetition. b) vertical channel integration. c) channel conflict. d) horizontal channel integration. e) channel expansion.

b) vertical channel integration.

101. Bennetton, a leading manufacturer of knitwear in Italy, expanded its operations to include retail outlets in the United States and South America. This type of integration is called a) horizontal. b) vertical. c) multilevel. d) retail. e) merchandising.

b) vertical.

111. Janet sets up her new interior decorating business and advertises her expertise in high-quality draperies and other window treatments. One of her first customers is extremely dissatisfied with Janet's work, so Janet redoes the job at her own expense because she knows how powerful _____ is (are) for services and wants to stay in business. a) service expectations b) word-of-mouth communication c) zones of tolerance d) customer perceptions e) experience qualities

b) word-of-mouth communication

59. Which of the following is most likely to be a product stocked by an industrial distributor? a) Tires b) Exercise equipment c) Screws d) Countertops e) Bananas

c) Screws

95. As Stan and Anna Walicki meet with the account representative at Landmark Bank, they are shown a sample of what their monthly statement will look like. Providing such sample documents allows Landmark to add tangibility to which of the following service qualities? a) Experience b) Credence c) Search d) Perishability e) Inseparability

c) Search

135. What is the reorder point if the usage rate is 10 units per day, the order lead time is five days, and the safety stock is 30? a) 50 b) 150 c) 80 d) 200 e) 400

c) 80

19. Which of the following is not a service product? a) Maroon 5 concert b) Flight on Southwest Airlines c) A 100 percent service satisfaction guarantee d) Overnight stay at Holiday Inn e) Dry cleaning of a suit

c) A 100 percent service satisfaction guarantee

168. In which of the following situations is dual distribution likely to be determined illegal? a) A manufacturer sells its product online and through independent and company-owned retail outlets. b) A manufacturer opens its own retail outlets across the country and sells its entire line of products. c) A producer uses company outlets to dominate independent retailers that carry its products. d) A producer sells its products both to wholesalers who deal with small and medium-sized retailers and directly to retailers. e) A producer charges higher prices at its company-owned retail outlets than independent retailers charge for the same products.

c) A producer uses company outlets to dominate independent retailers that carry its products.

50. The marketing channel of producer to retailer to consumer is most likely to be used by producers of which of the following products? a) Chewing gum b) Tobacco c) Automobiles d) Hardware e) Saltine crackers

c) Automobiles

53. During which stage of new-product development does the firm consider profitability? a) Idea generation b) Testing c) Business analysis d) Product development e) Compatibility research

c) Business analysis

26. Where do supply chains start? a) Raw materials b) Suppliers c) Customers d) Producers e) Retailers

c) Customers

62. Which of the following service characteristics results in variability of service quality yet provides the opportunity for customizing services to match the specific needs of individual customers? a) Homogeneity b) Perishability c) Heterogeneity d) Intangibility e) Inseparability

c) Heterogeneity

132. Greg Braddock is a physical distribution manager. He is currently developing and maintaining assortments of products that are adequate for customer demand. In which stage in the physical distribution system is Greg currently involved? a) Order processing b) Materials handling c) Inventory management d) Transportation e) Warehousing

c) Inventory management

51. Which of the following service providers would typically call their customers "clients"? a) High school teachers b) Waiters c) Lawyers d) Dry cleaners e) Nurses

c) Lawyers

117. Select the true statement about nonprofit marketing. a) The chief beneficiaries of a nonprofit organization are the owners or stockholders. b) The planning of market strategies requires less refinement and coordination of goals in the nonprofit field than in the for-profit field. c) Major nonprofit marketers in the United States are social causes and charitable organizations. d) Marketing goals in nonprofit activities cannot be determined. e) All nonprofit organizations that have adopted the marketing concept have been successful.

c) Major nonprofit marketers in the United States are social causes and charitable organizations.

38. Marketers of services must deal with the challenges of balancing supply and demand and planning for peak and off-peak times. What characteristic of services creates these challenges? a) Inseparability b) Customer contact c) Perishability d) Heterogeneity e) Intangibility

c) Perishability

71. Which of the following is least likely to be a factor affecting the selection of marketing channels? a) Customer characteristics b) Product attributes c) Product packaging d) Competition e) Environmental forces

c) Product packaging

113. Which of the following issues is least important in nonprofit marketing? a) Distribution b) Exchange c) Profits d) Negotiation e) Persuasion

c) Profits

49. Private distributor brands are owned by retailers and do not identify the manufacturer of the product. Which of the following is an example of a private distributor brand? a) Green Giant corn b) IBM computers c) Sears Kenmore washers d) Little Debbie snack cakes e) Nike Air Jordan basketball shoes

c) Sears Kenmore washers

86. Which of the following is the best definition of product features? a) The things a product does that provide benefits to the customer b) Mechanical efforts or activities a company provides that add value to a product c) Specific design characteristics that allow a product to perform certain tasks d) How a product is conceived, planned, and produced with the necessary functions e) The physical appearance of a product

c) Specific design characteristics that allow a product to perform certain tasks

134. Anna Wren, sales manager for Pacific Lumber, tells Jason Peoples, the firm's inventory manager, that the firm's failure to have adequate supplies of pressure-treated lumber on hand has cost the firm $175,000 in lost sales. This figure represents which of the following inventory management costs? a) Carrying b) Replenishment c) Stockout d) Safety stock e) Reorder

c) Stockout

64. Sales and cost analyses occur most frequently in what stage of the new-product development process? a) Screening b) Product development c) Test marketing d) Commercialization e) Business analysis

c) Test marketing

63. Select the true statement concerning test marketing. a) Test marketing is simply an extension of the screening and developing stages. b) Test marketing should be conducted after all the marketing mix variables have been finalized. c) Test marketing is a limited introduction of the product in areas chosen to represent the intended market. d) If the product is successful in the test market, then it is ensured of success upon total introduction. e) Large corporations usually launch test-marketing efforts in one small area at a time.

c) Test marketing is a limited introduction of the product in areas chosen to represent the intended market.

84. Which of the following issues is least important in using co-branding effectively? a) The brands involved should represent a complementary fit in a customer's mind. b) The brands that are teamed together should not lose their individual identities. c) The brands involved should be owned by different companies. d) Co-branding should be done in a way so that it is obvious which brand is the main brand or key brand. e) Co-branding should take advantage of the distribution capabilities of the brands involved.

c) The brands involved should be owned by different companies.

87. To use co-branding effectively, which one of the following is probably least important? a) The brands involved should represent a complementary fit in a customer's mind. b) The brands that are teamed together should not lose their individual identities. c) The brands involved should be owned by two or more organizations. d) To avoid confusion on the part of customers, co-branding should be done in a way so that it is obvious which brand is the main brand or key brand. e) The co-branded product should be able to benefit from the distribution system of both brands involved.

c) The brands involved should be owned by two or more organizations.

Why are line extensions more common than new products? a) They are higher risk and more expensive. b) They are guaranteed to succeed in the marketplace. c) They are less expensive and lower-risk. d) They require no market research. e) Modifications to existing products are very easy.

c) They are less expensive and lower-risk.

60. Which of the following describes a disadvantage of using industrial distributors? a) Industrial distributors possess considerable market information. b) Their marketing exchange relationships are very focused. c) They are unlikely to handle bulky items or items that are slow sellers. d) Industrial distributors sell specific brands aggressively. e) Industrial distributors acquire title to the products and take possession.

c) They are unlikely to handle bulky items or items that are slow sellers.

127. The label on a soft drink reads, "cool and refreshing." For what reason is this phrase used? a) To provide product use information b) To encourage multiple purchases c) To promote the product d) To satisfy legal requirements e) To encourage the proper consumption patterns of the product

c) To promote the product

174. If an intermediary wants to carry Tide detergent and Procter & Gamble agrees only if the supplier purchases P&G's entire line of detergents as well, the company is engaging in which of the following channel management practices? a) Exclusive dealing b) Dual distribution c) Tying agreement d) Refusal to deal e) Restricted sales territories

c) Tying agreement

44. Customers who purchase computer laptops from manufacturer websites are acquiring products through a) the most efficient channel of distribution. b) the most common type of marketing channel. c) a direct-marketing channel. d) a business-to-business channel of distribution. e) an indirect-marketing channel.

c) a direct-marketing channel.

76. A major advantage of using individual branding is that a) the promotion of one of the company's brands will also promote the company's other brands. b) this branding policy will prevent the overextension of a brand name to products that are completely unrelated to the original. c) a poor quality product will not contaminate all of the company's other products with negative images. d) a specific brand name for each product will help the company grow during times of economic recession. e) the quality of one of the company's products will help increase the perceived quality image of the company's other related products.

c) a poor quality product will not contaminate all of the company's other products with negative images.

93. Brand licensing agreements can fail for many reasons but usually not because of a) poor timing in the marketplace. b) a lack of manufacturing control of the licensed product. c) a strong match between the product and the licensed brand. d) using the wrong types of distribution channels to market the product. e) licensing the brand to too many unrelated products.

c) a strong match between the product and the licensed brand.

33. If buyers choose certain types of products by the way they look, smell, taste, or sound, marketers should focus most on appropriate a) line extensions. b) quality modifications. c) aesthetic modifications. d) sensory systems. e) functional modifications.

c) aesthetic modifications.

64. Rob Stevens is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ___________ to maintain contact with the firms using its products. a) wholesalers b) brokers c) agents d) merchants e) retailers

c) agents

62. A producer is not likely to receive _____ from an industrial distributor. a) selling activities in local markets b) market information about consumers c) aggressive promotion of its brand d) reduced capital requirements e) a reduced financial burden from customers

c) aggressive promotion of its brand

158. Kolder Inc. is using a new just-in-time inventory management system that requires ordering smaller quantities of parts more frequently. The success of its business depends significantly on receiving these parts very quickly, so like many other companies using just-in-time, Kolder Inc. is relying more on the ______ mode of transportation despite its expense. a) railroad b) pipeline c) airway d) truck e) waterway

c) airway

91. An agreement in which one company allows another to use its brand on other products for a fee is called a) co-branding. b) brand extension. c) brand licensing. d) trademark licensing. e) cooperative branding.

c) brand licensing.

The part of a brand that can be spoken including letters, numbers, and words is the a) brand. b) brand mark. c) brand name. d) trade name. e) trademark.

c) brand name.

51. Breakeven analysis is a tool that marketers are likely to employ during the ___________ stage of the new-product development process. a) screening b) concept testing c) business analysis d) product development e) test marketing

c) business analysis

52. "Is the demand strong enough?" is a question that marketers ask during the ___________ phase of new-product development. a) screening b) concept testing c) business analysis d) product development e) test marketing

c) business analysis

112. Customers will more easily recognize a new product as belonging to a particular product category if the marketers use a) family branding. b) innovative packaging. c) category-consistent packaging. d) category labeling. e) product category packaging.

c) category-consistent packaging.

96. If a wholesaler continually emphasizes and promotes one company's products over a competing company's products, _____ is likely to result. a) channel cooperation b) vertical channel integration c) channel conflict d) horizontal channel integration e) channel leadership.

c) channel conflict

86. Betty Crocker Brownie mix that contains real Hershey's syrup is an example of a) brand extension. b) brand licensing. c) co-branding. d) individual branding. e) line family branding.

c) co-branding.

48. Marketers at Starbucks have generated several ideas for new food products. Management has assessed whether these ideas are consistent with Starbuck's objectives and resources. Several product ideas were dropped after this analysis. The next stage of development for the remaining product ideas is a) product development. b) idea screening. c) concept testing. d) business analysis. e) test marketing.

c) concept testing.

28. The intangibility aspect of a service means that a) there is a lack of perceived quality compared to a tangible good. b) unused capacity cannot be stockpiled or inventoried for later use. c) consumers may have a problem evaluating service offerings. d) services are not produced at the same time they are consumed. e) services are not labor-intensive.

c) consumers may have a problem evaluating service offerings.

98. Dentists find it difficult to attract customers because many customers cannot distinguish whether or not the product offered is beneficial. This aspect of the dentist's product is called ___________ quality. a) search b) experience c) credence d) tangible e) separable

c) credence

99. A small private college in Tennessee paid a large sum of money to a marketing firm to study the college's current marketing strategy and help develop new strategies for attracting students. The college is having a difficult time evaluating the effectiveness of the marketing firm's work because this type of service has many a) search qualities. b) undefined parameters. c) credence qualities. d) experience qualities. e) unknown results.

c) credence qualities.

56. The level of interaction necessary between a customer and service provider in order to complete a service is called a) tangibility. b) client-based relationships. c) customer contact. d) consumer interaction. e) heterogeneity.

c) customer contact.

74. By installing ATMs, banks have increased production capacity and reduced the number of personnel. This results in a decrease in a) perishability. b) intangibility. c) customer contact. d) inseparability. e) customer service.

c) customer contact.

88. Best Buy differentiates its product offerings from its competition with stores like Sam's, by offering delivery and installation, financing arrangements, and repairs. Best Buy is differentiating through a) product ancillaries. b) company styling. c) customer services. d) company features. e) product features.

c) customer services.

117. The main objective of physical distribution should be to a) decrease costs while increasing market coverage. b) increase service and market coverage. c) decrease costs while increasing service. d) increase market coverage and channel power. e) balance costs and market coverage.

c) decrease costs while increasing service.

17. In general, differences between goods and services are determined by the a) degree of labor intensiveness. b) type of target market. c) degree of tangibility. d) type of provider. e) degree of consumer contact.

c) degree of tangibility.

Many cellular phone plans contain a certain number of anytime minutes and then either significantly more or even unlimited night and weekend minutes. This is an example of a) time-based pricing. b) off-peak demand. c) demand-based pricing. d) time dependence pricing. e) bundled costing.

c) demand-based pricing.

66. The well-known brand AT&T (American Telephone and Telegraph) would most likely be classified as a) fanciful. b) generic. c) descriptive. d) suggestive. e) arbitrary.

c) descriptive.

129. A commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is a) web-based inventory management. b) just-in-time. c) electronic data interchange. d) universal product codes. e) activity based management.

c) electronic data interchange.

110. Offering pet owners who recommend Prize Pet Grooming to a friend $10 off their next grooming bill is a program designed primarily to a) increase perceptions of service quality. b) elevate expectations. c) encourage word-of-mouth communication. d) standardize the service offering. e) increase advertising effectiveness.

c) encourage word-of-mouth communication.

91. If Ralston Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be a) demonstrating sound channel leadership. b) insisting on exclusive exposure. c) exercising channel power. d) minimizing channel conflict. e) creating a coordinate system.

c) exercising channel power.

96. A runout policy of product deletion a) lets the product decline without changing the product strategy. b) is an immediate-drop decision. c) exploits any strengths left in the product. d) raises the price of the product continually to secure as much profit as possible before the product is priced out of the market. e) occurs when production cannot keep pace with demand because of material shortages.

c) exploits any strengths left in the product.

77. When ___________ branding is used, each of a firm's products is branded with at least part of the same name. a) individual b) trademark c) family d) selective e) brand-extension

c) family

81. Lysol Basin, Tub, and Tile Cleaner and Lysol Disinfectant Spray exemplify a) private branding. b) product brand marks. c) family branding. d) individual branding. e) wholesaler branding.

c) family branding.

58. A ___________ brand type is considered the least protectable under existing trademark regulations. a) descriptive b) fanciful c) generic d) symbolic e) suggestive

c) generic

54. A product that is simply labeled with the product category is considered a a) private brand. b) no-name product. c) generic brand. d) poor quality item. e) lean manufacturer brand.

c) generic brand.

128. Federal laws require the disclosure of nutritional information on labels. So far, evidence on this matter a) indicate that consumers regularly use the information. b) have been conducted only by the federal government. c) have shown mixed results about the use of this information. d) prove that labels are necessary only for promotional reasons. e) indicate that consumers do not use the information.

c) have shown mixed results about the use of this information.

110. To expand the number of its retail outlets in the Washington, D.C., area, the Dress Barn bought out a small chain of women's apparel stores in northern Virginia. This type of integration is called a) vertical. b) retail. c) horizontal. d) backward. e) forward.

c) horizontal.

16. Services are usually provided through the application of _______ directed at people or objects. a) tangible and intangible products b) physical labor c) human or mechanical efforts d) ideas and other intangible efforts e) knowledge and technology

c) human or mechanical efforts

58. Jeff Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital requirements for the producers. Jeff's company is an example of a(n) ___________ in a distribution channel. a) direct distributor b) manufacturers' agent c) industrial distributor d) producers' agent e) wholesalers' agent

c) industrial distributor

114. Dutch Boy house paint comes in plastic jugs that effectively stop dripping and are easy for the customer to hold and pour. This is an example of ______ packaging. a) multiple b) secondary-use c) innovative d) category-consistent e) handling-improved

c) innovative

36. A genuinely new product—like the iPhone once was—offers a) lower prices than existing products. b) at least two new product features. c) innovative benefits to consumers. d) better value than existing products. e) at least two new product features at a lower price.

c) innovative benefits to consumers.

33. Personal trainers cannot complete their work without their clients present because of the _______ feature of services. a) perishability b) intangibility c) inseparability d) heterogeneity e) tangibility

c) inseparability

69. A sign in a doctor's office waiting room says "Please be courteous of the others waiting with you." The doctor's office is trying to positively influence the _______ aspect of services. a) tangibility b) perishability c) inseparability d) customer contact e) heterogeneity

c) inseparability

29. The three levels of brand loyalty from strongest to weakest are a) preference, insistence, recognition. b) insistence, recognition, preference. c) insistence, preference, recognition. d) recognition, preference, insistence. e) insistence, preference, indifference.

c) insistence, preference, recognition.

33. A customer must have a particular brand and will accept no substitutes. This is termed brand a) preference. b) loyalty. c) insistence. d) recognition. e) requirement.

c) insistence.

76. Producers of convenience products such as soft drinks, toothpaste, and breath mints are most likely to use _____ distribution. a) selective b) extensive c) intensive d) exclusive e) demand-based

c) intensive

78. Sales are most likely to have a direct relationship to product availability for products that use _____ distribution. a) selective b) dual c) intensive d) extensive e) exclusive

c) intensive

131. Because of the significant investment many companies have in the products they sell to customers, they must develop and maintain adequate varieties of products to meet their customers' needs. This is called a) just-in-time. b) order processing. c) inventory management. d) merchandise stocking. e) logistical management.

c) inventory management.

76. Symbols such as the Travellers' Financial Services umbrella are designed to help customers overcome the ________ of services. a) heterogeneity b) unpredictability c) inseparability d) intangibility e) perishability

d) intangibility

68. If Jason Carter, product manager at SeaRay Boats, became aware that Bass Boats, Inc., was in the process of test marketing a new line of shallow-water fishing boats in the southeast region, he might want to engage in ___________ to reduce the validity of the other firm's results. a) testing interference b) leadership pricing c) jamming d) test marketing

c) jamming

115. Multiple packaging is a) likely to decrease serving size. b) the same as family packaging. c) likely to increase demand. d) the most effective type of packaging for decreasing demand. e) the most expensive type of packaging.

c) likely to increase demand.

97. Dropping an unprofitable product immediately is the best strategy when a) all advertising and promotional efforts have been exhausted. b) customers have a negative outlook on other products. c) losses are too great to prolong the product's life. d) the product's performance cannot be improved. e) there is low compatibility with the firm's business strategies.

c) losses are too great to prolong the product's life.

103. In marketing, family packaging means a) packaging products in a quantity suitable for use for an average-sized family. b) putting a set of related products all in the same package. c) making all of a company's or product line's packaging look similar. d) putting the same brand name on all a company's products. e) designing and selling only products that are related.

c) making all of a company's or product line's packaging look similar.

131. The Fair Packaging and Labeling Act focuses on the voluntary adoption of packaging standards by firms within industries. It also provides enforcement power to the Federal Trade Commission and the Food and Drug Administration, and establishes a) specific package colors for selected product categories. b) package design approval procedures. c) mandatory labeling requirements. d) designated package sizes for certain product categories. e) packaging regulations from the Consumer Product Safety Commission.

c) mandatory labeling requirements.

144. Managers and consultants at Colgate-Palmolive are meeting to discuss better ways to package its products to reduce damage and make loading more efficient. The primary function they are trying to improve is a) warehousing. b) inventory management. c) materials handling. d) cycle time. e) containerization.

c) materials handling.

Kleenex Boutique is a brand ___________ of tissues made by the Kimberly-Clark Corporation. a) mark b) identification c) name d) guarantee e) type

c) name

34. Introducing new products is risky and so is a) performing marketing research. b) keeping tabs on the actions of competitors. c) not introducing new products. d) generating new product ideas. e) addressing customers' concerns about products.

c) not introducing new products.

37. Kathy Adkins, owner of Adkins Styling Salon, looks at the day's appointment schedule and notices that it is completely full. She wishes some of the empty slots from earlier in the week were available on this Saturday afternoon. Her thoughts deal with the ___________ characteristic of services. a) credence b) heterogeneity c) perishability d) search e) inseparability

c) perishability

111. Order processing, inventory management, materials handling, warehousing, and transportation are the activities that define a) wholesaling. b) retailing. c) physical distribution. d) channel management. e) drop shipping.

c) physical distribution.

31. A customer who really wants to buy a certain brand but will settle for others if her first choice is unavailable displays brand a) recognition. b) acceptance. c) preference. d) insistence. e) acknowledgement.

c) preference.

98. If Kraft General Foods offered you a position in which you would have total marketing responsibility for all of its cheese products, this position would probably hold the title of __________ manager. a) brand b) area c) product d) sales e) marketing

c) product

58. After building a prototype of his new device, Brad is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the ____ phase of the new-product development process. a) product design b) screening c) product development d) concept testing e) test marketing

c) product development

43. Without wholesalers and other intermediaries, a) most products would be much less expensive because fewer companies would be handling the product. b) products would be cheaper because the functions of intermediaries would be eliminated. c) products would likely be more expensive due to the use of less efficient channel members. d) products would never be able to make it to the ultimate consumer at any price without passing through intermediaries. e) many products would be more expensive because retailers would expect more profit.

c) products would likely be more expensive due to the use of less efficient channel members.

73. Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as a) market development. b) regional commercialization. c) roll-out. d) market extension. e) competitive jamming.

c) roll-out.

53. When service companies change high-contact services into low-contact services, the a) service becomes more expensive to deliver. b) quality of the service declines. c) service becomes less personalized. d) time required to deliver the service increases. e) service becomes less standardized.

c) service becomes less personalized.

63. The brand name Hamburger Helper would most likely be considered a) arbitrary. b) generic. c) suggestive. d) descriptive. e) fanciful.

c) suggestive.

60. A service is usually offered as part of a bundled package of services with a core service and one or more ________ services. a) basic b) tangible c) supplementary d) auxiliary e) other core

c) supplementary

171. Tying agreements occur when a a) producer distributes the same product through two or more different channels. b) manufacturer forbids an intermediary to carry products of competing manufacturers. c) supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well. d) producer refuses to deal to channel members that seem unethical or illegitimate. e) manufacturer prohibits intermediaries from selling its products outside designated sales territories.

c) supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well.

93. Tina, a waitress at the Riverfront Grill, is angry that a customer complained that his soup was cold because of her slow service. Riverfront owner Max Griffin reminds her that she must focus on service quality as defined by a) the health department. b) restaurant management. c) the customer's perceptions. d) temperature guidelines. e) general practices.

c) the customer's perceptions.

115. An important difference between for-profit and nonprofit marketing is that a) there is no exchange in nonprofit marketing because the nonprofit organization receives something of value but does not give anything of value. b) marketing exists only in the for-profit organization. c) the goals of the nonprofit organization differ from the goals of the for-profit organization. d) a target market need not be determined in the nonprofit marketing scheme. e) there is no price in the marketing mix of the nonprofit organization.

c) the goals of the nonprofit organization differ from the goals of the for-profit organization.

108. In most service industries, customer-contact employees are a) valued as the most important employees in the organization. b) the best trained employees in the organization. c) the lowest-paid and least-trained employees. d) managers and other supervisory level employees. e) moderately paid personnel confined to strict dress codes.

c) the lowest-paid and least-trained employees.

112. The notion of physical distribution is a) speed of delivery. b) used only by manufacturers. c) the movement of products from producers to end users. d) primarily the wholesaler's responsibility. e) an assessment of distribution costs.

c) the movement of products from producers to end users.

126. The series of thick and thin lines that electronically identify many products is called a(n) a) stock keeping unit. b) brand name identifier. c) universal product code. d) price bar. e) inventory control symbol.

c) universal product code.

107. In service marketing, the most important link to the customer is a) effective advertising. b) good word-of-mouth communication. c) well-trained contact employees. d) the tangible aspects of the service. e) exceptional service quality.

c) well-trained contact employees.

78. Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on a) news stories. b) a webpage. c) word of mouth. d) newspaper ads. e) television ads.

c) word of mouth.

74. Which of the following is a disadvantage of gradually introducing a product to market? a) It reduces the risk of introducing a new product. b) It is easier logistically to introduce it all at once. c) It is difficult to slow down production enough for a gradual introduction. d) It allows competitors to monitor the results of the new product. e) It prevents product differentiation based on geographical differences.

d) It allows competitors to monitor the results of the new product.

71. The amount of annual losses companies suffer from counterfeit products is estimated to be a) $500-$800 million. b) $3-$5 billion. c) $30-$50 billion. d) $250-$350 billion. e) $600-$800 billion.

d) $250-$350 billion.

109. American Airlines runs a series of television commercials that show its personnel going out of their way to help customers. In addition to consumers, an important secondary audience for these ads is (are) a) the FAA. b) airline competitors. c) bus line customers. d) American Airlines employees. e) American Airlines shareholders.

d) American Airlines employees.

82. ___________ occurs when two or more brands are placed on a single product. a) Brand extension b) Brand licensing c) Line family branding d) Co-branding e) Cohort branding

d) Co-branding

91. Who judges service quality? a) Employees b) The company c) Independent raters d) Customers e) Marketers

d) Customers

59. Which of the following should be the least important concern for marketers when selecting a brand name? a) Choosing a name that is easy to say and recall b) Positively suggesting the product's major benefits c) Designing a name that can be used in all different types of media d) Developing an advertising campaign to introduce the name e) Checking to see if the name is already trademarked by another company

d) Developing an advertising campaign to introduce the name

151. Garcia Wholesale Plumbing has seen its sales in the Southeast triple in the past two years. Materials handling director Barb Peterson announces plans to the board for an Atlanta facility that will combine shipments received from Garcia's 25 suppliers for nearly immediate shipment to plumbing stores and contractors in the region. This new facility would be best classified as which of the following? a) Sales office b) Public warehouse c) Field public warehouse d) Distribution center e) Bonded warehouse

d) Distribution center

81. ___________ and ___________ are important characteristics of quality for consumer markets, and ___________ and ___________ are important characteristics of quality for business markets. a) Reliability/ease of use; technical suitability/ease of repair b) Technical suitability/reasonable price; trusted brand name/ease of repair c) Durability/technical suitability; company reputation/ease of repair d) Ease of maintenance/company reputation; durability/technical suitability e) Trusted brand name/ease of repair; reliability/company reputation

d) Ease of maintenance/company reputation; durability/technical suitability

83. Honey Farms is a maker of fine chocolates. The company's latest product, Fudge-Dipped Strawberries, is the premier product in its Fudge-Dipped line. The product is very expensive and targeted to upscale consumers. Which form of distribution would Honey Farms be likely to use for its new product? a) Intensive b) Selective c) Targeted d) Exclusive e) Premier

d) Exclusive

101. In the packaging for a new line of beef jerky, Hormel should avoid the use of which color? a) Red b) Yellow c) Orange d) Green e) Clear

d) Green

43. The owner of the Lords and Ladies hair salon has difficulty in standardizing and controlling the quality of service that the customers in his salon receive. This problem illustrates which of the following unique features of service? a) Intangibility b) Inseparability c) Perishability d) Heterogeneity e) Marketability

d) Heterogeneity

139. Justin Abercrombie attends a seminar on just-in-time inventory management. Excited about the idea, he returns to his office at Atlanta Auto Supply to start designing such an inventory system. Which of the following steps must Justin take as he institutes this change? a) Increase safety stock b) Raise the reorder point c) Reduce customer service standard d) Increase order frequency e) Reduce estimates of inventory turnover rate

d) Increase order frequency

60. Regarding the factors that marketers consider when selecting a brand name, which one does the toilet bowl sanitizer 2000 Flushes best fulfill? a) Compatibility with other products in the line b) Flexibility to be used in various types of media c) Using fabricated names that cannot be duplicated d) Indicating the product's major benefits e) Keeping the brand name as short as possible

d) Indicating the product's major benefits

125. Labeling is important for three specific reasons, including promotional and legal reasons. What is the third reason? a) Marketing b) Branding c) Strategy d) Informational e) Packaging

d) Informational

34. What degree of brand loyalty is the strongest and most desired by marketers? a) Preference b) Requirement c) Awareness d) Insistence e) Recognition

d) Insistence

35. Recently Jose went to a neighborhood grocery store to pick up a few items. When he looked for Old Spice Ultra deodorant, it was unavailable. Although there were a number of deodorant brands available, he did not buy any deodorant. Jose's behavior indicates that he most likely has what level of brand loyalty toward Old Spice Ultra deodorant? a) Recognition b) Resistance c) Preference d) Insistence e) No brand loyalty

d) Insistence

125. What are the three primary tasks of order processing? a) Order receipt, order delivery, order follow-up b) Order handling, inventory management, order delivery c) Materials handling, warehousing, order delivery d) Order handling, order entry, order delivery e) Order receipt, order checking, order delivery

d) Order handling, order entry, order delivery

41. Which of the following products is an example of a manufacturer brand? a) Sears Kenmore washing machines b) JC Penney jeans c) Kmart tires d) Pioneer stereos e) Safeway tomato sauce

d) Pioneer stereos

53. Which of the following is the most commonly used channel for distributing business products? a) Producer, agents, industrial distributors, organizational buyers b) Producer, industrial distributors, organizational buyers c) Producer, agents, organizational buyers d) Producer, organizational buyers e) Industrial distributors, organizational buyers

d) Producer, organizational buyers

49. Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels? a) Producer, industrial distributors, retailers, consumers b) Producer, consumers c) Producer, wholesalers, retailers, consumers d) Producer, retailers, consumers e) Producer, agents, wholesalers, retailers, consumers

d) Producer, retailers, consumers

51. Nationally distributed consumer convenience products are most likely distributed through which of the following channels? a) Producer, consumers b) Producer, agents, wholesalers, retailers, consumers c) Producer, wholesalers, consumers d) Producer, wholesalers, retailers, consumers e) Producer, industrial distributor, wholesalers, retailers, consumers

d) Producer, wholesalers, retailers, consumers

65. PepsiCo has a new flavor of soft drink that it wants to test to determine reactions of probable buyers. Which of the following test-market characteristics would be least useful to PepsiCo when testing the new soft drink? a) There are research and audit services available. b) Retailers would be cooperative. c) Testing efforts would not be easily jammed by competitors. d) Tourism is a major industry in the area. e) The city has stable year-round sales of soft drinks.

d) Tourism is a major industry in the area.

69. Which of the following laws was enacted by Congress in 1988 to strengthen trademark protection? a) Brand Protection Act b) Lanham Act c) Trademark Infringement Act d) Trademark Law Revision Act e) U.S. Patent and Trademark Act

d) Trademark Law Revision Act

152. What is the most expensive physical distribution function? a) Warehousing b) Order processing c) Inventory management d) Transportation e) Materials handling

d) Transportation

145. Which of the following physical distribution functions involves design and operation of facilities for storing goods? a) Order processing b) Materials handling c) Transportation d) Warehousing e) Inventory management

d) Warehousing

19. What is the primary distinction between a line extension and a product modification? a) A product modification results in a completely new product while a line extension is simply changing an old product. b) In both cases an existing product is altered, but the alteration is more dramatic with a product modification than it is with a line extension. c) Line extensions are designed to better meet the needs of the existing market segment while product modifications target entirely new segments of the market. d) With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension. e) Line extensions are strictly aesthetic changes to an existing product whereas product modifications consist of changes in quality and functionality.

d) With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension.

106. The two levels of expectations that consumers generally have about services are a) acceptable and unacceptable. b) desired and undesired. c) reliable and unreliable. d) acceptable and desired. e) tolerable and desired.

d) acceptable and desired.

25. The supply chain includes a) producers, wholesalers, and retailers. b) suppliers, producers, intermediaries, and customers. c) suppliers and suppliers' suppliers. d) all entities that facilitate product distribution. e) buyers, seller, marketing intermediaries, and agents.

d) all entities that facilitate product distribution.

McDonald's golden arches are a classic example of a a) brand. b) brand symbol. c) brand name. d) brand mark. e) trademark.

d) brand mark.

130. Garments must be labeled with the country of manufacture, fabric content, and a) clothing style. b) size. c) inspection code. d) care instructions. e) universal product code.

d) care instructions.

87. A single leader who controls and organizes a marketing channel is called a a) channel champion. b) distribution leader. c) marketing maverick. d) channel captain. e) lead distributor.

d) channel captain.

122. According to the text, the direct consumers of a nonprofit organization's ideas or services are called its _________ public. a) general b) consumer c) member d) client e) nonbusiness

d) client

85. Ford Explorer vehicles that are Eddie Bauer versions exemplify a) brand licensing. b) brand extensions. c) dual-branding. d) co-branding. e) cooperative branding.

d) co-branding.

100. All packaging must at a minimum a) protect and preserve the contents in the package. b) clearly communicate the contents and the product's benefits. c) be tamper-proof and safe for children. d) comply with the FDA's packaging regulations. e) be made out of the most cost-effective materials available.

d) comply with the FDA's packaging regulations.

87. To differentiate their products, companies sometimes emphasize the product support services that they offer. This is especially true when a) the company's prices are higher than the competition's. b) the company introduces a new product. c) consumers are willing to pay for product support services. d) consumers perceive all products in a market to have essentially the same quality, design, and features. e) the quality of the company's products is inferior to the quality of competing products.

d) consumers perceive all products in a market to have essentially the same quality, design, and features.

108. The Wicks 'N Sticks candle and gift marketing organization has a(n) ___________ vertical marketing system arrangement with its franchised retail store operations. a) corporate b) administered c) negotiated d) contractual e) horizontal

d) contractual

92. Overall channel goals and individual channel member goals cannot be achieved together without a) conflict. b) captains. c) leadership. d) cooperation. e) tying agreements.

d) cooperation.

31. The driving force behind marketing channel decisions should be a) convenience. b) cost reduction. c) environmental concerns. d) customer satisfaction. e) quality.

d) customer satisfaction.

18. Any human or mechanical effort that adds value to a product is called a) a service. b) an intangible. c) overhead. d) customer service. e) service marketing.

d) customer service.

107. The spray bottle for Windex Glass Cleaner could be considered a secondary-use package because a) its shape is ideal for multiple-unit packaging. b) glass cleaner works on chrome as well as glass. c) the spray nozzle has an adjustable valve. d) customers can reuse it for other purposes. e) it has a shape similar to other glass cleaner bottles.

d) customers can reuse it for other purposes.

45. Select Comfort, a producer of adjustable air mattresses, sells most of its products through direct mail sales and Internet sales. This channel would be classified as a) direct distribution. b) producer, retailer, consumer. c) telemarketing. d) direct-marketing. e) indirect marketing.

d) direct-marketing.

52. Client-based relationships are most likely to be developed by a) funeral directors. b) electricians. c) installers. d) doctors. e) brick layers.

d) doctors.

169. Ralph Lauren sells Polo products through department stores as well as in its own specialty shops. The designer uses ___________ as a channel strategy. a) channel extension b) intermediary exclusion c) broker utilization d) dual distribution e) channel diversification

d) dual distribution

68. Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called a) multiple channeling. b) strategic channel alliance. c) intensive distribution. d) dual distribution. e) market splitting.

d) dual distribution.

100. There are five elements that affect customers' perceptions of service quality. They are reliability, appearance of the tangibles, responsiveness, assurance, and a) credibility. b) experience within industry. c) responsibility. d) employee empathy. e) product knowledge.

d) employee empathy.

36. The value, measured in either marketing or financial terms, associated with a brand's strength in a market is referred to as brand a) loyalty. b) value. c) share. d) equity. e) association.

d) equity.

102. To promote overall company image, packages of Pillsbury cake and cookie mixes have similar designs and colors. This approach is known as a) family branding. b) brand managing. c) line consistency. d) family packaging. e) product grouping.

d) family packaging.

59. After a company has created a prototype during the product development stage, its performance, or ___________ must be tested. a) appeal to customers b) dependability c) durability d) functionality e) pricing

d) functionality

123. The package design of a bag of flour would most likely be criticized for being a) unsafe to the environment. b) unsafe to the user. c) deceptive. d) functionally deficient. e) well suited for multiple-unit packaging.

d) functionally deficient.

55. A package of aluminum foil at Kroger grocery store has no brand name on the package. This product is an example of a _________ brand. a) manufacturer's b) private distributor's c) no-name d) generic e) no-frills

d) generic

122. Packaging that is designed to flow through the distribution channel easily is called ____ packaging. a) category-consistent b) multiple c) innovative d) handling-improved e) logistic

d) handling-improved

41. Because of a service's ___________, standardization and quality are difficult to control. a) intangibility b) inseparability c) homogeneity d) heterogeneity e) perishability

d) heterogeneity

46. Machinery such as ATMs and online customer services can reduce the ______ that comes from increased contact with human employees. a) intangibility b) perishability c) inseparability d) heterogeneity e) tangibility

d) heterogeneity

27. Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and a) labor-intensiveness. b) orientation toward value. c) homogeneity. d) heterogeneity. e) specialization.

d) heterogeneity.

24. The growth of business services is largely attributed to a) increases in incomes and living standards. b) decreases in the consumption of products. c) increases in governmental expenditures. d) increases in the complexity and competitiveness of business environments. e) increases in population.

d) increases in the complexity and competitiveness of business environments.

74. When a firm uses a policy of naming each product differently, this strategy is called ___________ branding. a) brand-extension b) family c) differentiated d) individual e) new-product

d) individual

34. Jason Robinson, a dentist, finds that he is not bringing in enough revenue to cover his expenses. He would like to schedule more patients, but he finds that in almost every time slot, he is seeing an existing patient. Jim's difficulty in expanding his practice involves the aspect of service called a) slotting. b) perishability. c) credence. d) inseparability. e) heterogeneity.

d) inseparability.

65. Brittany recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Brittany was trying to overcome the ______ aspect of services. a) heterogeneity b) perishability c) customer contact d) intangibility e) inseparability

d) intangibility

64. Service marketers make promises to customers, suggesting that the customer place some degree of trust in the service provider. In this way, service marketers are trying to address the challenge of the service characteristic of a) perishability. b) heterogeneity. c) inseparability. d) intangibility. e) customer contact.

d) intangibility.

62. The test-marketing stage a) is an extension of the screening stage. b) should come immediately after business analysis. c) ensures that the product will not fail. d) is a sample launching of the entire marketing mix. e) prevents competitors from copying the product.

d) is a sample launching of the entire marketing mix.

Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of a) product modifications. b) functional modifications. c) aesthetic modifications. d) line extensions. e) product lining.

d) line extensions.

102. Kyle Bolger of U.S. Hospital Supply Corporation has responsibility for managing the marketing activities for products aimed at nursing homes and extended care facilities. Kyle's job is that of a(n) a) product manager. b) area manager. c) director of operations. d) market manager. e) sales coordinator.

d) market manager.

103. Luis Mayo is an accountant at Ralston Purina. However, he is currently working with a group to determine the feasibility of a new brand of hot breakfast cereal. After the product is launched, Luis will return to the accounting department. His present position can be described as a a) product manager. b) brand manager. c) general manager. d) member of a venture team. e) market manager.

d) member of a venture team.

85. When a theater entices customers to see movies during the daytime by offering tickets at a reduced price, it is trying to solve the services marketing problem of a) inseparability. b) intangibility. c) customer contact. d) off-peak demand. e) heterogeneity.

d) off-peak demand.

95. The development of a container and graphic design for a product is called a) licensing. b) labeling. c) preparing. d) packaging. e) distributing.

d) packaging.

26. According to your text, one perspective from which to view services is as a ______ targeted at a(n) ________. a) sporting event; spectators b) concert; audience c) play; actors d) performance; audience e) presentation; spectators

d) performance; audience

36. The fact the services cannot be inventoried and then sold at a later date is called a) intangibility. b) heterogeneity. c) inseparability. d) perishability. e) nonstorability.

d) perishability.

94. Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by letting the product decline and not change the current marketing strategy. This method of deletion is called a) business analysis. b) immediate drop. c) screening. d) phase out. e) runout.

d) phase out.

95. If 7-UP decides Diet 7-Up with Vitamins is not reaching profit expectations and simply allows the product to decline without any change in marketing strategy, it is using a ____ deletion strategy. a) run-out b) immediate drop c) slow-down d) phase-out e) drop-down

d) phase-out

32. Melissa needs some spaghetti sauce and always buy Ragu. However, her local supermarket is out of Ragu and since Melissa wants to get home to cook dinner she settles for Prego. Melissa has brand _____ for Ragu and brand _____ for Prego. a) insistence; recognition b) insistence; preference c) loyalty; preference d) preference; recognition e) preference; loyalty

d) preference; recognition

75. Compared to goods marketers, services providers are more likely to promote performance documentation, availability, guarantees, and a) distribution. b) tangible elements. c) management expectations. d) price. e) customer expectations.

d) price.

47. Craftsman tools, sold and branded by Sears, is an example of a ___________ brand. a) manufacturer b) generic c) wholesaler d) private distributor e) regional

d) private distributor

52. Of the different types of brands, the one that has experienced the steadiest growth is a) manufacturer. b) producer. c) generic. d) private distributor. e) imitator.

d) private distributor.

147. Morgan Steel Company leases a warehouse in Jacksonville, Alabama to serve Deep South markets that were large enough and stable enough to make a long-term commitment to fixed facilities. This is a a) flexible warehouse. b) dispatching center. c) distribution center. d) private warehouse. e) public warehouse.

d) private warehouse.

56. "How much quality should we build into the product?" is a question that marketers ask during the ___________ phase of new-product development. a) commercialization b) concept testing c) business analysis d) product development e) test marketing

d) product development

40. 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) product development.

57. The phase of the new-product development process when the organization determines the technological feasibility of producing the product at a cost that results in a reasonable selling price is a) test marketing. b) commercialization. c) concept testing. d) product development. e) business analysis.

d) product development.

85. If Ford adds a driver-side sliding door, side impact airbags, and a small television with DVD player to its Freestar Minivan, it is differentiating its product based on a) styling. b) support services. c) design. d) product features. e) product quality.

d) product features.

99. A ______ is responsible for a product, product line, or several distinct products in an interrelated group within an organization. a) product marketer b) brand manager c) market manager d) product manager e) line manager

d) product manager

45. H&R Block, a major tax preparation firm, reported having a problem with its employees being inconsistent in the filing of returns. The firm is experiencing a problem with which of the following characteristics of the service offering? a) Tangibility b) Intangibility c) Perishability d) Inseparability e) Heterogeneity

e) Heterogeneity

68. In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to a) deliver on these promises and risk financial losses and the success of the company. b) promise less than they can actually deliver and keep customers away. c) make the appearance of their facilities consistent with their promises to customers. d) promise too much and cause customer expectations beyond what they can deliver. e) make the quality of their services too tangible in the eyes of the customer.

d) promise too much and cause customer expectations beyond what they can deliver.

149. Air-Tech management learns that last month's production run of heaters at its Newark plant is defective and announces a recall of the specific models produced. To handle the large number of products it expects to receive for replacement of the defective thermostats, Air-Tech will probably need to add a ___________ to its distribution network. a) distribution center b) private warehouse c) dispatching shipment system d) public warehouse e) materials handling system

d) public warehouse

37. Elements that help create brand equity include all of the following except brand a) quality. b) associations. c) loyalty. d) recognition. e) awareness.

d) recognition.

137. Eric is concerned about not having enough air conditioning units in inventory during June, July, and August so he keeps extra inventory to guard against stockouts during this critical period. Eric is keeping a) short order lead times. b) just-in-time inventory. c) a controlled usage rate. d) safety stock. e) excessive inventory.

d) safety stock.

44. 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) screening

108. A package that can be used again for a different purpose than its original function is called a a) reusable container. b) innovative package. c) second-round package. d) secondary-use package. e) dual purpose package.

d) secondary-use package.

42. When three buyers purchase the products of three producers, nine transactions are required. If one intermediary serves both producers and buyers, the number of possible transactions is a) fifteen. b) five. c) eighteen. d) six. e) twenty.

d) six.

44. Another common name for a private distributor brand is a ______ brand. a) home b) manufacturer c) generic d) store e) label

d) store

92. A suggested approach to deleting products, in which each product is evaluated periodically to determine its impact on the overall effectiveness of the firm's product mix, is called a(n) a) evaluation study. b) formal evaluation. c) product inspection. d) systematic review. e) reassessment examination.

d) systematic review.

102. Although it has a strong customer base, Sato Japanese Restaurant rarely attracts customers by methods other than word-of-mouth communication. The manager believes this can be explained by the restaurant's location in a rough area in the city and its run-down appearance. In other words, potential customers are most concerned about a) reliability. b) assurance. c) responsiveness. d) tangibles. e) empathy.

d) tangibles.

66. Angela and Ralph at Tablerock Foods believe they have come up with a delicious low-calorie dessert, but they have some doubt about which of two promotional and pricing campaigns will be better received by consumers. In this instance, they probably should proceed to the ___________ stage of the new-product development process. a) business analysis b) commercialization c) screening d) test marketing e) product development

d) test marketing

39. Lauren is a concert promoter who works for pop star Justin Timberlake. She works very hard to make sure most of Justin's concerts are sold out because she understands the concept of perishability, which means a) because the concert is not tangible, customers will have a difficult time judging its quality in advance. b) the production of the concert and the consumption of the concert by the fans cannot be separated so tickets must be sold. c) a high level of interaction will exist between the customers and the musicians, which makes the customers' presence necessary. d) that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again. e) that each concert is different and customers will miss a unique experience if they are not present at the concert.

d) that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again.

106. In an administered VMS, informal coordination brings about a high level of interorganizational management. Nonetheless, a) decision making does not take into account the goals of the system. b) the channel members do not remain autonomous. c) the decision making is not coordinated. d) the channel members remain autonomous. e) the goals of the individual firms are not congruent with the goals of the system.

d) the channel members remain autonomous.

156. Magnetic Springs wants to ship its bottled water with the most flexible schedules and routes of all transportation modes. Magnetic Springs should use ___________ as its transportation mode. a) railroads b) waterways c) pipelines d) trucks e) airways

d) trucks

142. Federal Mogul places several boxes of products or materials on pallets in order to load them efficiently using forklifts. This system of materials handling is called a) warehousing. b) containerization. c) group storage. d) unit loading. e) mechanized handling.

d) unit loading.

23. Which of the following factors have contributed the least to the growth of services in the U.S. economy? a) Increased interest in travel and entertainment b) Increased number of women in the workforce c) Increased proportion of older people in the United States d) Increased interest of Americans in fitness and recreation e) Increased number of high-tech goods

e) Increased number of high-tech goods

118. Which one of the following is not a benefit of multiple packaging? a) Facilitates special price offers b) Increases demand c) Increases consumer acceptance of the product d) Makes handling or storage easier e) Conveys an overall image of the firm

e) Conveys an overall image of the firm

87. Which of the following service providers are most likely to use demand-based pricing? a) Dentists b) Lawyers c) Doctors d) Hair stylists e) Cruise ships

e) Cruise ships

62. What is the most protectable brand type as determined by a series of court decisions? a) Generic b) Suggestive c) Descriptive d) Arbitrary e) Fanciful

e) Fanciful

89. Safe Auto Insurance advertises "minimum coverage for minimum budgets" for its automobile insurance. Which of the following best describes Safe Auto's approach? a) Customers often use price as an indicator of quality, and Safe wants to be seen as a low-quality provider. b) This type of advertising makes insurance more tangible to the customer. c) Safe wants to reassure customers that they provide the highest level of service quality available. d) Because market conditions limit prices on auto insurance, Safe uses this approach to gain customers. e) For some services, customers look for the low-cost provider, which is what Safe claims to be.

e) For some services, customers look for the low-cost provider, which is what Safe claims to be.

70. Many brand names have become so common that they are now generic terms for a particular product category. Which of the following is the best example of this? a) Aunt Jemima Pancake mix b) Dell computers c) Puffs d) Crispix e) Jell-O

e) Jell-O

82. Product and target market characteristics usually determine the type of coverage a product receives. For which of the following products is selective distribution most appropriate? a) Gasoline b) Jaguar automobiles c) Cigarettes d) Laundry detergent e) Panasonic stereos

e) Panasonic stereos

109. Select the greatest advantage of horizontal channel integration. a) The flexibility of the channel is decreased. b) The markets are more heterogeneous. c) The expanded number of units is coordinated. d) Efficiencies in advertising, marketing research, and purchasing are increased. e) Planning and research are increased to cope with increased competition.

e) Planning and research are increased to cope with increased competition.

57. Which of the following is the best example of a high-contact service? a) Appliance repair b) Newspaper delivery c) Dog training d) Interior decorating e) Plastic surgery

e) Plastic surgery

140. What is the primary determinant in deciding how materials will be handled? a) Unit loading b) Containerization c) Customer preference d) Cost reduction e) Product characteristics

e) Product characteristics

54. As Justin works on the prototype of a new action-oriented computer game, he is engaging in which phase of the new-product development process? a) Idea generation b) Commercialization c) Test marketing d) Screening e) Product development

e) Product development

55. Ideally, test marketing should follow which stage in the new-product development process? a) Commercialization b) Business analysis c) Screening d) Limited production e) Product development

e) Product development

24. Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the organization? a) Aesthetic b) Operational c) Benefit d) Functional e) Quality

e) Quality

163. What two modes of transportation are used when containers are shipped by piggyback? a) Railroads and airways b) Trucks and airways c) Pipelines and trucks d) Waterways and railroads e) Railroads and trucks

e) Railroads and trucks

43. A group of managers has been assigned the task of developing a new product, has listed several good ideas, and is now in the process of assessing each idea to determine whether it is consistent with the firm's overall objectives and resources. The managers are at what stage of the new-product development process? a) Business analysis b) Product testing c) Idea generation d) Commercialization e) Screening

e) Screening

71. What are the three primary ways that marketers deliver services? a) Over the phone, online, or in-person b) Continuously, periodically, or on demand c) At the customer's home, in-person, or by telecommunications d) Through service centers, delivery vehicles, or the mail e) Service facilities, customer's home, or from a distance

e) Service facilities, customer's home, or from a distance

22. Which of the following products associated with weddings is most likely to be considered a service? a) Wedding cake b) Floral arrangements c) Bridal gown d) Reception hall e) String quartet music

e) String quartet music

64. Through a series of court decisions, a hierarchy of brand protection based on brand type has been created. These brand types include all but which of the following? a) Arbitrary b) Descriptive c) Fanciful d) Generic e) Symbolic

e) Symbolic

60. Product failure is a concern of all marketers. Which of the following phases of new-product development is best able to measure this concern? a) Screening b) Concept testing c) Business analysis d) Product development e) Test marketing

e) Test marketing

61. Which of the following is an advantage of using an industrial distributor? a) These firms are easy to control because they work directly for the producers. b) Inventory holding costs are minimized because they can store inventory very cheaply. c) They are closer geographically to all of the producers' customers. d) They possess a high level of technical knowledge about their products. e) They help reduce a producer's financial burdens by extending credit to customers.

e) They help reduce a producer's financial burdens by extending credit to customers.

153. ___________ adds time and place utility to a product by moving it from where it is made to where it is purchased and used. a) Warehousing b) Containerization c) Distribution d) Materials handling e) Transportation

e) Transportation

104. When channel members are linked by legal agreements that specify each member's rights and responsibilities, _______ exists. a) horizontal channel integration b) an administered VMS c) a corporate VMS d) a channel captain e) a contractual VMS

e) a contractual VMS

30. Sony's design of its new plasma television sets with smoked-glass control panel covers and other visual changes would be classified as a(n) ___________ modification. a) functional b) quality c) product extension d) brand e) aesthetic

e) aesthetic

53. Many manufacturers that produce their own brand a) also produce generic versions of their products. b) sell only to outlets bearing their brand name. c) receive most of their profits from service work. d) use low prices to build their perceived brand quality. e) also produce products for private distributor brands.

e) also produce products for private distributor brands.

101. If Megan Roberts were given total marketing responsibility over Diet Cherry 7Up, she would hold the position of __________ manager. a) product b) sales c) marketing d) advertising e) brand

e) brand

93. The product deletion process is similar to the ___________ step of the new-product development process because both involve deciding whether the product should be in the product mix based on an assessment of sales, costs, and profits. a) idea generation b) screening c) product development d) test marketing e) business analysis

e) business analysis

82. Schwinn adds features to its bicycles no other companies offer in order to create a) commercialization. b) consistency of quality. c) styling. d) product positioning. e) product differentiation.

e) product differentiation.

49. The main characteristic of a ___________ is that customers are satisfied to the point that they use a service repeatedly over a period of time. a) service relationship b) professional marketer c) high-contact service d) heterogeneous service e) client-based relationship

e) client-based relationship

48. Many services base their success on building a group of satisfied customers who use their services on a regular basis over long periods of time. This critical component of success is referred to as a) partnerships. b) repeated customer contact. c) inseparable clientele. d) long-term customers. e) client-based relationships.

e) client-based relationships.

83. When a product tries to capitalize on the brand equity of two separate brands, marketers are using a) licensing. b) dual-branding. c) partnerships. d) brand extension. e) co-branding.

e) co-branding.

70. Stacey and Evan are preparing budgets for a new product as well as finalizing plans for the full-scale marketing and manufacturing of the new Genie-Vac. They are in the ____ phase of the new-product development process. a) test marketing b) business analysis c) concept testing d) product development e) commercialization

e) commercialization

95. Goodyear allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel ___________ with independent Goodyear dealers. a) understanding b) power c) leadership d) communication e) conflict

e) conflict

38. Brand name awareness is an important element of brand equity because a familiar brand is more likely to be in a customer's _____ than an unfamiliar brand. a) inept set b) loyalty set c) preference group d) brand group e) consideration set

e) consideration set

97. Individual-sized boxes and packages that do not require refrigeration are both benefits of the ____ function of packaging. a) protection b) reusability c) cost effectiveness d) safety e) convenience

e) convenience

24. The Home Depot is trying to reduce transportation, information management, and administrative costs. To accomplish this goal, channel members need to a) work independently. b) avoid cooperation due to antitrust considerations. c) work with competitors and share information. d) increase competition among channel members. e) cooperate and accommodate one another's needs.

e) cooperate and accommodate one another's needs.

103. The Limited, which produces and retails clothing products in a coordinated channel, is an example of a(n) a) administered vertical marketing system. b) conventional marketing channel. c) channel network. d) contractual marketing channel. e) corporate vertical marketing system.

e) corporate vertical marketing system.

97. Many services have aspects that consumers may never be able to evaluate, even years after the purchase and consumption of the service. These attributes are called a) search qualities. b) performance attributes. c) experience qualities. d) immeasurable attributes. e) credence qualities.

e) credence qualities.

128. Order handling involves all of the following activities except that the a) credit department approves the purchase. b) order is transmitted to the warehouse. c) availability of product is verified. d) warehouse is instructed to fill the order. e) customer places a purchase order.

e) customer places a purchase order.

27. All members of the supply chain should determine their position in the chain, identify their partners and their roles, and establish partnerships whose focus is a) shifting costs to suppliers. b) maximizing costs. c) maximizing technology implementation. d) cooperation with competitors. e) customer relationships.

e) customer relationships.

123. A goal of physical distribution is to reduce ______ or how long it takes to complete a process. a) time standards b) processing time c) production d) throughput measure e) cycle time

e) cycle time

121. An important goal of physical distribution is reducing the time it takes to complete a) inventory management. b) outsourcing evaluation. c) electronic data interchange. d) order processing. e) cycle time.

e) cycle time.

83. When determining how a product is conceived, planned, produced, and even its physical appearance and its specific characteristics, one is really talking about the product's a) positioning. b) level and consistency of quality. c) ability to meet customer service needs. d) design, styling, and level of quality. e) design, styling, and features.

e) design, styling, and features.

104. The members of a venture team come from a) the marketing department. b) a consulting firm. c) the research and development department. d) the production and finance departments. e) different functional areas of an organization.

e) different functional areas of an organization.

72. The marketing channels for services are usually a) complex and multifaceted. b) characterized by two to three intermediaries. c) dependent on the geographical location of the consumer. d) determined by the customer. e) direct from provider to customer.

e) direct from provider to customer.

46. Many producers selling on the Internet are using a) several intermediaries. b) complex marketing channels. c) Internet wholesalers, retailers, and agents. d) supply chain channels. e) direct-marketing channels.

e) direct-marketing channels.

167. Dual distribution is characterized as a) illegal under the Robinson-Patman Act. b) distribution channels that typically carry exclusive products, such as Rolex watches. c) marketing environments that are highly competitive. d) manufacturers that forbid an intermediary to carry products of competing producers. e) distribution of one manufacturer's product through two or more different channel structures.

e) distribution of one manufacturer's product through two or more different channel structures.

172. An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is called a) exclusive distribution. b) a tying agreement. c) refusal to deal. d) contractual VMS. e) exclusive dealing.

e) exclusive dealing.

45. Private distributor brands are owned by a) manufacturers only. b) manufacturers and retailers. c) wholesalers only. d) manufacturers and wholesalers. e) wholesalers or retailers.

e) wholesalers or retailers.

173. Dell Computers is a nationally recognized manufacturer of computers for the small business and home markets. If Dell were to order one of its wholesalers not to carry any computer products other than those made by Dell, this arrangement would be called a) a tying contract. b) refusal to deal. c) a restricted sales territory. d) a restricted channel. e) exclusive dealing.

e) exclusive dealing.

84. Expensive, high-quality products that are purchased infrequently often reach consumers through a) selective distribution. b) highly-selective distribution. c) sole-source retailers. d) complex marketing channels. e) exclusive distribution.

e) exclusive distribution.

74. The three major levels of intensity at which a company can choose to distribute its products are _____ distribution. a) narrow, medium, and wide b) cooperative, conflicting, and integrated c) intensive, extensive, and exclusive d) selective, cooperative, and conflicting e) exclusive, selective, and intensive

e) exclusive, selective, and intensive

55. Organizational buyers are especially partial to direct marketing channels when a) they buy cheap materials in large quantities. b) they try a new product for the first time. c) they are filling an order for a very important customer. d) a modified rebuy type of decision is involved. e) expensive and/or complex equipment is involved.

e) expensive and/or complex equipment is involved.

28. When Conair adds an electrical component that automatically shuts off its curling irons when they have been left on for more than one hour. This improvement would best be classified as a(n) a) brand extension. b) product deletion. c) aesthetic modification. d) market extension. e) functional modification.

e) functional modification.

121. Nathan recently purchased a floor lamp from Wal-Mart. The floor lamp came in a compact cardboard box and assembly was required. This is an example of _____ packaging. a) secondary-use b) multiple c) category-consistent d) innovative e) handling-improved

e) handling-improved

40. The more __________ involved with delivering a service, the greater the degree of heterogeneity. a) mechanical efforts b) phone contact c) perishability d) tangibility e) human labor

e) human labor

38. Outback Steakhouse wants to expand its line of food products. The managers sent surveys to customers to determine which food items would appeal to them. Outback is currently in the __________ phase of new-product development. a) business analysis b) product development c) test marketing d) screening e) idea generation

e) idea generation

97. Vertical channel integration a) results in two or more different management teams for each member of the channel. b) is made possible when a large corporation divests itself of smaller subsidiaries. c) is a shift back to the conventional channel of distribution. d) combines institutions at the same level of operation. e) is made possible by purchasing the operations of a link in the channel.

e) is made possible by purchasing the operations of a link in the channel.

39. Compared to creating and developing a brand from scratch, a firm sometimes buys a brand from another company at a premium price because outright purchase is a) more challenging strategically. b) less time consuming. c) less risky. d) less expensive. e) less expensive and less risky.

e) less expensive and less risky.

73. When considering the best channel to use, all of the following are true with regard to larger firms except they a) can use an extensive product mix as a competitive tool. b) may be better able to negotiate better deals with vendors or other channel members. c) may have more distribution centers. d) may have the resources to develop their own sales force. e) may be better suited to serve customers in a particular region.

e) may be better suited to serve customers in a particular region.

117. Twin-packs and six-packs are examples of a) family packaging. b) group packaging. c) package bundling. d) family branding. e) multiple packaging.

e) multiple packaging.

20. Service industries account for ____ of the gross domestic product of most developed nations. a) more than half b) a small portion c) approximately 25 percent d) nearly all e) nearly three-quarters

e) nearly three-quarters

90. Product deletion can best be described as the process of deleting a product from the product mix when it a) is perceived as a failure by top management. b) is reviewed negatively by a systematic review board. c) increases production costs and decreases profits. d) no longer responds to promotional efforts. e) no longer satisfies a sufficient number of customers.

e) no longer satisfies a sufficient number of customers.

130. Nathan is trying to decide which shipping company to use to transport his custom-made furniture to customers. Nathan is facing a decision about a) order entry. b) order completion. c) just-in-time. d) order handling. e) order delivery.

e) order delivery.

116. As her Internet quilt and bed linen business grew, Danielle could no longer perform all the distribution activities, so she hired a shipper and an information technology firm to assist with these functions. Danielle is using _____ for physical distribution for her business. a) producers b) wholesalers c) retailers d) selling agents e) outsourcing

e) outsourcing

113. The contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel is known as a) illegal. b) logistics. c) warehousing. d) wholesaling. e) outsourcing.

e) outsourcing.

160. Assuming everything else equal, the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be a) waterways. b) airways. c) tanker trucks. d) railroads. e) pipelines.

e) pipelines.

46. Old Navy sells only Old Navy labeled clothing in its retail stores. The Old Navy brand is not sold in any other outlet. Old Navy is a _____ brand. a) generic b) reseller c) manufacturer d) distribution e) private distributor

e) private distributor

148. When companies operate their own facilities for storing and shipping products, these facilities are known as a) distribution centers. b) product storehouses. c) public warehouses. d) megawarehouses. e) private warehouses.

e) private warehouses.

39. Consumers receive the benefits of place utility when a) they have to travel excessively to obtain products they want. b) retailers remain open 24 hours a day. c) they can stock up on products they need but not use them right away. d) they make purchases with credit and debit cards. e) products are available in locations where consumers want to buy them.

e) products are available in locations where consumers want to buy them.

23. Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost. Because Bauman had been facing stiff competition in the medium-grade carpet industry, it started using the new material in all of its carpeting and reducing its prices. This is an example of a(n) a) aesthetic modification. b) line extension. c) material adjustment. d) functional modification. e) quality modification.

e) quality modification.

30. When a customer is aware that a brand exists and considers it a possibility if his preferred brand is out, he exhibits brand a) loyalty. b) insistence. c) preference. d) acknowledgement. e) recognition.

e) recognition.

27. Functional modifications usually require that the product be a) less specific. b) limited to its functions. c) more appealing. d) more technical. e) redesigned.

e) redesigned.

166. Using a freight forwarder usually a) is not economical for a small firm. b) increases transit time and shipping costs. c) increases transit time and sometimes lowers shipping costs. d) lowers shipping costs for a large firm. e) reduces transit time.

e) reduces transit time.

79. In marketing a new line of nursery furniture for infants and small children, the Fisher Company will most likely use ___________ distribution for the products. a) intensive b) exclusive c) horizontal d) priority e) selective

e) selective

81. Durable goods such as television sets and DVD players generally reach their target markets through a) intensive distribution. b) channel cooperation. c) direct marketing. d) exclusive distribution. e) selective distribution.

e) selective distribution.

35. All of the following are elements of the inseparability characteristic of services except that a) consumers are involved in production. b) centralized mass production is difficult. c) consumption and production are simultaneous. d) many services cannot be performed without the customer being present. e) services are easy to standardize and control.

e) services are easy to standardize and control.

92. Consumers look closely at service quality when comparing competing services because a) they perceive all services to be essentially the same. b) they typically have very few services from which to select. c) all services are priced about the same. d) quality is the only relevant service characteristic. e) services are very difficult to evaluate.

e) services are very difficult to evaluate.

68. Registration of a trademark with the U.S. Patent and Trademark Office protects trademarks domestically for ____ years with indefinite renewals. a) two b) thirty c) eighteen d) five e) ten

e) ten

92. In a brand licensing arrangement, the licensee is responsible for a) providing the brand name to another organization for use in promoting products. b) collecting the royalties from sales of the licensed products. c) half of the financial losses in the event that the licensed brand is a failure. d) the production, but not the marketing of the licensed product. e) the manufacturing, marketing, and financing of the licensed product.

e) the manufacturing, marketing, and financing of the licensed product.

90. American Life uses leather-look portfolios and high-quality paper and printing for its life insurance policies in order to indicate a) the success of its business. b) the intangibility of its service. c) the tastes of its management. d) the inseparability of its agents and customers. e) the quality of its services.

e) the quality of its services.

34. Channel decisions are important to marketers mostly because a) they are relatively flexible to change quickly. b) consumers value reasonable prices delivered through marketing channels. c) they dictate what promotional strategies companies should use. d) many businesses are marketing intermediaries. e) they involve long-term commitments and affect customer accessibility.

e) they involve long-term commitments and affect customer accessibility.

115. Physical distribution activities may be performed by a producer, wholesaler, retailer or a) not performed at all. b) the customer. c) investors in any of the previous three. d) solely through technology. e) they may be outsourced.

e) they may be outsourced.

25. The full and legal name of an organization is called the a) trademark. b) legal title. c) organizational name. d) brand name. e) trade name.

e) trade name.

40. In a simple economy of five producers and five consumers, there would be ___________ transactions possible without an intermediary and _________ transactions possible with one intermediary. a) ten; twenty-five b) thirty; ten c) twenty-five; fifteen d) sixteen; eight e) twenty-five; ten

e) twenty-five; ten

124. Distribution for nonprofit organizations is a) unimportant because physical movement does not take place. b) not an important decision. c) coordinated by middlemen. d) inefficient rather than efficient. e) typically characterized by short channels.

e) typically characterized by short channels.

119. According to the text, physical distribution cost tradeoffs enable firms to a) resolve pricing conflicts among channel partners. b) minimize risk during test marketing of new products. c) reduce costs of all distribution functions simultaneously. d) resolve pricing conflicts within industry sectors. e) utilize resources for greatest cost-effectiveness.

e) utilize resources for greatest cost-effectiveness.

105. The following organizational approaches accomplish tasks necessary to develop and manage products: market manager approach, product manager approach, and the _________ approach. a) brand manager b) functional team c) multiproduct manager d) special projects e) venture team

e) venture team

99. Warner Bros. sells cookie jars, puzzles, photo albums, and other items featuring its popular cartoon characters directly through its own retail outlets. This is an example of a) channel leadership. b) channel cooperation. c) channel conflict. d) horizontal channel integration. e) vertical channel integration.

e) vertical channel integration.

105. Jack and Amy Douglas are purchasing their first home and have certain expectations for the mortgage company with which they are working. After a long series of "unexplainable" delays, Jack and Amy become very frustrated and decide to stay in their apartment at least another year. The mortgage company failed to provide service within Jack and Amy's a) specifications. b) desired responsiveness. c) perceptions of quality. d) service acceptance. e) zone of tolerance.

e) zone of tolerance.