test 3

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.

If Safeway Foods advertises 2-liter bottles of Pepsi for 89 cents to generate store traffic that will purchase other items at regular prices, the grocer is using _____.

a price leader.

Odd-number pricing is _______

a psychological pricing strategy

Glenwood is considering a markup pricing basis, with the cost for office visit plus vaccines at $45. If glenwoods were to add a markup of 33.3% of the cost, it's price would be _____

$60

When designing a package, which characteristic is least important?

An association with the company's brand mark

Which of the following statement sis true about breakeven analysis?

At the breakeven point, the firm's sales revenue equals the sum of its fixed and variable costs.

As Georgina enters Audio Jetz car electronics department, she is asked by the salesperson if she has seen the new plug-in cell phone with coffee-warming app. She answers that she didn't know that this type of app for cars was available. Based on this information, she is now in what stage of the product adoption process for this item?

Awareness

When meeting with the CEO, she recounted to you the numerous times in the past when products are launched but cause a detrimental impact on the company's overall costs and profits mix. She wants you to revamp the company's new product development process to prevent this from happening in the future. Which of the following steps in the new-product development process should you overhaul in order to address the CEO's concerns?

Business analysis

Which of the following is not a business product?

Calculators bought to help individuals complete their personal federal income tax forms

If Coca-Cola sets its twelve-pack price charged by PepsiCo, Coca-Cola is using which of the following pricing methods?

Competition-based

When are marketers least likely to change a product's design, style, or other attributes?

Decline

Tia loves new electronic products, but she also wants to make sure she gets a good value for her money. She waits a few months, reads ratings and turns to her friend Jimmy. When she is satisfied as to its value, she usually buys the product. She most likely fits into which category?

Early majority

Brandon ordered 16 dozen lures for $375. When he gets the invoice, he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs. Brandon should have been certain that the order terms were ______.

F.O.B destination

Saresh owns the Change-ezz, a salon specializing in the unique hair needs of minority populations. Recently, Saresh has been trying to improve the quality of service received by his customers. However, he has experienced difficulty in finding ways to standardize and control the salon's quality of service. Saresh's problem illustrates which of the following unique features of service?

Heterogeneity

Which of the following statements about labeling is false?

Labels do not have to disclose nutritional information

_____ 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.

Line extension

Which of the following tactics would typically be employed when a product is in the growth stage of its life cycle?

Lowering prices after developmental costs have been recovered

The annual Consumer Reports rating of your company's flagship product was just released. Generally speaking the rating was good but not great. Based on the consumer comments that were referenced in the rating, it appears that many consumers have a negative view of the products convenience and safety attributes. In order to address these consumer concerns your company should consider doing which of the following?

Make functional modifications to the product

Which of the following bases for pricing is most commonly used by retailers?

Markup pricing

Which of the following can thwart tampering and shoplifting?

Packaging

Dylan is interested in determining how customers consider his firm's dietary products compared with its competitors. He begins surveying customers and asking them to state what they think about the products and brands in the dietary industry based on the dimensions of effectiveness and affordability. He will use this feedback to create "ideal points" for what consumers desire and dietary products. He will then compare these "ideal points" with his firm's products as well as other brands in the industry to see how they measure up. Dylan is engaging in ______.

Perceptual mapping.

Which of the following is the best example of disruptive innovation?

Razor blade

You are reading the quarterly financial report of one of your competitors. You expected to see their total sales revenue declined because they had a large price increase during the quarter. You were certain that the price increase would lead to an equivalently large decreases in their total sales revenue. To your surprise, their total sales revenue actually increased in the quarter. Based on this information, which of the following explanations could explain why the competitors total sales revenue increased?

The demand for the company's product is inelastic, so total sales revenue increases when prices are raised

You are the general manager of the manufacturing products division of a diversified manufacturing company in Des Moines, Iowa. You primarily produce matching products for sale to wholesalers around the world. However, you periodically get requests from other divisions and your company to purchase your products. You treat these purchase requests the same as a purchase request from a non-affiliate entity. You sell your machining products to other internal divisions at a price that is equivalent to a market-based cost. This is an example of which of the following types of business pricing?

Transfer pricing

What is the primary distinction between a line extension and a product modification?

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.

If Tiara O'Neal were given total marketing responsibility over Diet Cherry Coke, she would hold the position of ____ manager.

brand

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

brand licensing

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

brand mark

Break-even analysis is a tool that marketers are likely to employ during the ? stage of the new product development process.

business analysis

Products are classified as being business or consumer products according to the

buyer's intended use of the product

Some grocery stores collect data on competitive prices

by using comparison shoppers

A Sony laptop that has an "intel" logo on its keyboard is an example of ?

co-branding

Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Krackel, Hershey's Kisses, Reese's Peanut Butter Cups, Rolo, and Twizzlers. These candies best illustrate Hershey's product mix

depth

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 ?

emphasizing tangible cues in promoting the service

Sales usually start to decline during the ? stage of the product life cycle.

end of maturity

Greenpeace is an environmental organization with the mission to "ensure the ability of the Earth to nurture life in all its diversity." It engages in much advocacy related to environmental issues including climate change, deforestation, overfishing, and more. Greenpeace's main product is most likely ?

idea

R.J. Reynolds markets several brands of cigarettes, including Vantage, Camel, Winston, and Salem. This is an example of which type of branding policy?

individual

The three levels of brand loyalty from strongest to weakest are ?

insistence, preference, recognition

Sales of Schwinn's apartment-sized exercise machine have experiences a steady climb; however, the profits have been negative. The Schwinn exercise is most likely in the ? stage of the product life cycle.

introduction

The test-marketing stage _______

is a sample launching of the entire marketing mix.

Shopping products have a ? inventory turnover and need ? distribution outlets than convenience goods.

lower; fewer

Firestone notices that when the number of tries it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's _____.

marginal revenue

Courtney prefers to buy Pantene Shampoo for Colored Hair; however, if that is not in stock, she will buy L'Oreal or Garnier Fructis. Courtney's level of brand loyalty can be described as ?

preference

The newest version of a product like Bose headphones is likely to use ____, while the new version of Red Bull is likely to use ______.

price skimming; promotional pricing

Lindsay's company plans to release a new version of its signature television set. This television will have more advanced features, including better sound quality and high definition. They plan to discontinue the older version once this newer version is launched. This is an example of a ?

product modification

Your company has a product that is struggling in its market. However, the product appears to have some strength left that can be exploited. Which of the following product deletion actions would be most appropriate for the product?

reduce the price and implement a run-out strategy

A new variety of Cheetos is initially introduced in Fort Worth, Texas; Chicago, Illinois and Spokane, Washington. They market in those states, then the adjacent states, and finally the entire country. They are using a ? for its new variety of Doritos.

rollout approach

During the new product development process, two of the stages designed to reject possible product ideas that are likely to fail are ?, which analyzes a product idea to see if it matches an organization's objectives and resources, and ?, which involves asking potential buyers about their attitudes and initial buying intentions regarding the product.

screening; concept testing

Larissa is a concert promoter who works for Kanye West. She works very hard to make sure most of Kanye's concerts are sold out because she understands the concept of perishability, which means ?`

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

Teslas have the unique characteristics of being totally electric, premium luxury vehicles. The marketing manager wants to focus on these unique aspects rather than comparing the vehicles directly to competitors. He wants Tesla to be seen in a totally different light. Based on these objectives, he would want to position the vehicles ?

to avoid competition