MRKT Exam 2 Review

Idea Screening

screening new product ideas to spot good ones and drop poor ones as soon as possible

Service Inseperability

services are produced and consumed at the same time and cannot be separated from their providers

Service Intangibility

services cannot be seen, tasted, felt, heard, or smelled before they are bought

Service Perishability

services cannot be stored for later sale or use

Concept Testing

testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal

Business Buyer Behavior

the buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others

Business Buying Process

the decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands

New-Product Development

the development of original products, product improvements, product modifications, and new brands through the firm's own product development efforts

Product Line Length

the number of items in the product line

Test Marketing

the stage of new product development in which the product and its proposed marketing program are tested in realistic market settings

Performance Review

the stage of the business buying process in which the buyer assesses the performance of the supplier and provides feedback

Proposal Solicitation

the stage of the business buying process in which the buyer invites qualified suppliers to submit proposals

Supplier Selection

the stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers

Supplier Search

the stage of the business buying process in which the buyer tries to find the best vendors

Idea Generation

the systematic search for new product ideas

Service Variability

A major characteristic of services—their quality may vary greatly, depending on who provides them and when, where, and how

In marketing how is sequential product development defined? A. A new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage. B. New-product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences. C. A detailed version of the new-product idea stated in meaningful consumer terms. D. An approach to developing new products in which various company departments work closely together, overlapping the steps in the product-development process to save time and increase effectiveness.

A. A new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.

In marketing how is team-based new-product development defined? A. An approach to developing new products in which various company departments work closely together, overlapping the steps in the product-development process to save time and increase effectiveness. B. A new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage. C. New-product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences. D. Trying out new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal.

A. An approach to developing new products in which various company departments work closely together, overlapping the steps in the product-development process to save time and increase effectiveness.

Systems selling as the concept pertains to marketing is defined as? A. Buying a packaged solution to a problem from a single seller. B. Government units-federal, state, and local-that purchase or rent goods and services for carrying out the main functions of government. C. All organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others. D. An approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production.

A. Buying a packaged solution to a problem from a single seller.

In the application of marketing products and services, how is "interactive marketing" defined? A. Marketing by a service firm that recognizes that perceived service quality depends heavily on the quality of buyer-seller interaction. B. The chain that links service firm profits with employee and customer satisfaction. C. Marketing by a service firm to orient and motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction. D. Product bought by individuals and organizations for further processing or for use in conducting a business.

A. Marketing by a service firm that recognizes that perceived service quality depends heavily on the quality of buyer-seller interaction.

In the application of marketing products and services, the term "internal marketing" is defined as: A. Marketing by a service firm to orient and motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction. B. Marketing by a service firm that recognizes that perceived service quality depends heavily on the quality of buyer-seller interaction. C. The design, implementation, and control of programs seeking to increase the acceptability of a social idea, cause, or practice among a target group. D. The value of a brand, based on the extent to which it has high brand loyalty, name awareness, perceived quality, strong brand associations, and other assets such as patents, trademarks, and channel relationships.

A. Marketing by a service firm to orient and motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction.

In marketing how is customer-centered new-product development defined? A. New-product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences. B. A new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage. C. An approach to developing new products in which various company departments work closely together, overlapping the steps in the product-development process to save time and increase effectiveness. D. The course of a product's sales and profits over its lifetime. It involves five distinct stages: product development, introduction, growth, maturity, and decline.

A. New-product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences.

Which of the following is NOT a product attribute? A. Price B. Features C. Design D. Quality

A. Price

The term service-profit chain as it applies to marketing products and services is defined as: A. The chain that links service firm profits with employee and customer satisfaction. B. Product bought by final consumer for personal consumption. C. Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. D. A major characteristic of services; their quality may vary greatly, depending on who provides them and when, where, and how.

A. The chain that links service firm profits with employee and customer satisfaction.

In marketing, we define the business buying process as? A. The decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands. B. All organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others. C. A business buying situation in which the buyer routinely reorders something without any modifications. D. All the individuals and units that participate in the business buying-decision process.

A. The decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands.

In marketing, we define new-product development as: A. The development of original products, product improvements, product modifications, and new brands through the firm's own R&D efforts. B. The systematic search for new-product ideas. C. An approach to developing new products in which various company departments work closely together, overlapping the steps in the product-development process to save time and increase effectiveness. D. Designing an initial marketing strategy for a new product based on the product concept.

A. The development of original products, product improvements, product modifications, and new brands through the firm's own R&D efforts.

In marketing, brand equity is defined as: A. The positive differential effect that knowing the brand name has on customer response to the product/service or its marketing. B. Using a successful brand name to launch a new or modified product in a new category. C. The practice of using the established brand names of two different companies on the same product. D. A major characteristic of services; they cannot be seen, tasted, felt, heard, or smelled before they are bought.

A. The positive differential effect that knowing the brand name has on customer response to the product/service or its marketing.

Product Value Analysis

An approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production

In marketing and buyer behavior, the term "new task" refers to? A. The first stage of the business buying process in which someone in the company recognizes a problem or need that can be met by acquiring a good or service. B. A business buying situation in which the buyer purchases a product or service for the first time. C. The stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item. D. The stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item.

B. A business buying situation in which the buyer purchases a product or service for the first time.

In the marketing of products and services, what is the definition of a brand? A. The value of a brand, based on the extent to which it has high brand loyalty, name awareness, perceived quality, strong brand associations, and other assets such as patents, trademarks, and channel relationships. B. A name, term, sign, symbol, design or combination of these that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors. C. Using a successful brand name to introduce additional items in a given product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes. D. The practice of using the established brand names of two different companies on the same product.

B. A name, term, sign, symbol, design or combination of these that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors.

Cognitive dissonance as it pertains to marketing is defined as? A. A person's pattern of living as expressed in his or her activities, interests, and opinions. B. Buyer discomfort caused by postpurchase conflict. C. Changes in an individual's behavior arising from experience. D. A person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea.

B. Buyer discomfort caused by postpurchase conflict.

In marketing and buyer behavior, the term 'opinion leader' refers to? A. People in the organization's buying center who control the flow of information to others. B. Person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others. C. People in an organization's buying center who affect the buying decision; they often help define specifications and also provide information for evaluating D. People in the organization's buying center who have formal or informal power to select or approve the final suppliers.

B. Person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others.

The concept of perception in marketing is defined as? A. Consumer buying behavior in situations characterized by high involvement but few perceived differences among brands. B. The process by which people select, organize, and interpret, information to form a meaningful picture of the world. C. Consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences. D. Consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences.

B. The process by which people select, organize, and interpret, information to form a meaningful picture of the world.

Adoption process as the term relates to marketing and buyer behavior is defined as? A. Members of the organization who will use the product or service; users often initiate the buying proposal and help define product specifications. B. A descriptive thought that a person holds about something. C. The mental process through which an individual passes from first hearing about an innovation to final adoption. D. A business buying situation in which the buyer purchases a product or service for the first time.

C. The mental process through which an individual passes from first hearing about an innovation to final adoption.

Derived Demand

Business demand that ultimately comes from (derives from) the demand for consumer goods.

The concept of lifestyle in marketing is defined as? A. Changes in an individual's behavior arising from experience. B. Consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands. C. A person's pattern of living as expressed in his or her activities, interests, and opinions. D. The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.

C. A person's pattern of living as expressed in his or her activities, interests, and opinions.

In marketing, we define a service as: A. A major characteristic of services; they cannot be seen, tasted, felt, heard, or smelled before they are bought. B. Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. C. Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. D. The practice of using the established brand names of two different companies on the same product.

C. Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.

In marketing, we define a product as: A. Consumer product that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort. B. A name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service. C. Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. D. Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.

C. Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

The concept of learning in marketing is defined as? A. The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions. B. A person's pattern of living as expressed in his or her activities, interests, and opinions. C. Changes in an individual's behavior arising from experience. D. Consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands.

C. Changes in an individual's behavior arising from experience.

The concept of culture as used in marketing is defined as: A. Changes in an individual's behavior arising from experience. B. A person's pattern of living as expressed in his or her activities, interests, and opinions. C. The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions. D. Consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands.

C. The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.

In marketing, the concept of problem recognition is defined as? A. An approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production. B. The stage of the business buying process in which the buyer tries to find the best vendors. C. The stage of the business buying process when someone in the company recognizes a problem or need that can be met by acquiring a specific product or service. Can result from internal or external stimuli. D. The stage of the business buying process in which the buyer writes the final order with the chosen supplier(s), listing technical specifications, quantity needed, expected time of delivery, return policies, and warranties.

C. The stage of the business buying process when someone in the company recognizes a problem or need that can be met by acquiring a specific product or service. Can result from internal or external stimuli.

In the marketing of products and services, what is a line extension? A. The chain that links service firm profits with employee and customer satisfaction. B. Using a successful brand name to launch a new or modified product in a new category. C. Using a successful brand name to introduce additional items in a given product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes. D. A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.

C. Using a successful brand name to introduce additional items in a given product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes.

Private brand (or store brand) pertains to the marketing of products and services by definition as: A. The design, implementation, and control of programs seeking to increase the acceptability of a social idea, cause, or practice among a target group. B. The value of a brand, based on the extent to which it has high brand loyalty, name awareness, perceived quality, strong brand associations, and other assets such as patents, trademarks, and channel relationships. C. The practice of using the established brand names of two different companies on the same product. D. A brand created and owned by a reseller of a product or service.

D. A brand created and owned by a reseller of a product or service.

In marketing, we define consumer market as? A. A business buying situation in which the buyer routinely reorders something without any modifications. B. All the individuals and units that participate in the business buying-decision process. C. School, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care. D. All the individuals and households that buy or acquire goods and services for personal consumption.

D. All the individuals and households that buy or acquire goods and services for personal consumption.

In the marketing of products and services, what is the definition of packaging? A. A name, term, sign, symbol, design or combination of these that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors. B. Using a successful brand name to introduce additional items in a given product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes. C. The set of all product lines and items that a particular seller offers for sale. D. The activities of designing and producing the container or wrapper for a product.

D. The activities of designing and producing the container or wrapper for a product.

The concept of social marketing is defined as: A. The practice of using the established brand names of two different companies on the same product. B. The value of a brand, based on the extent to which it has high brand loyalty, name awareness, perceived quality, strong brand associations, and other assets such as patents, trademarks, and channel relationships. C. Consumer product that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort. D. The design, implementation, and control of programs seeking to increase the acceptability of a social idea, cause, or practice among a target group.

D. The design, implementation, and control of programs seeking to increase the acceptability of a social idea, cause, or practice among a target group.

Accessible

Effectively reached and served

What is the right order of the four steps to design a customer-driven marketing strategy?

Market segmentation, targeting, differentiating, positioning

The _____________ is used to study the course of a product's sales and profits for the duration that it is produced and sold in the market

Product Life Cycle

Undifferentiated Marketing

Mass Marketing

Introduction

New product is first distributed and made available for purchase

Decline

Product's Sales decline

Growth

Product's Sales start climbing quickly

Maturity

Product's Sales start slowing down or leveling off

Which of the following statements about buying centers is true?

The buying center may involve informal participants who are not obvious to sellers

Product Line Filling

adding more items within the present range of the line

Order-Routine Specification

The stage of the business buying process in which the buyer writes the final order with the chosen supplier(s), listing the technical specifications, quantity needed, expected time of delivery, return policies, and warranties.

Product Mix

all products that an organization sells

Straight Rebuy

a business buying situation in which the buyer routinely reorders something without any modifications

Modified Rebuy

a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers

Convenience Product

a consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort

Unsought Product

a consumer product that the consumer either does not know about or knows about but does not normally consider buying

Shopping Product

a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style

Specialty Product

a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort

Product Concept

a detailed version of the new product idea stated in meaningful consumer terms

Product Line

a group of closely related product items

Consumer Product

a product bought by final consumers for personal consumption

Industrial Product

a product bought by individuals and organizations for further processing or for use in conducting a business

Business Analysis

a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives

Marketing Strategy Development

designing an initial marketing strategy for a new product based on the product concept

Product Development

developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering

Commercialization

introducing a new product into the market

Product Line Stretching

occurs when a company lengthens its product line beyond its current range