test 4

Services are are inherently variable and cannot be mass-produced. This defines the service characteristic of heterogeneity. homogeneity. perishability. inseparability. intangibility.

heterogeneity (can differ every time)

A service experience changes each time it is created. This characteristic of services is known as: inseparable. perishable. mass-produced. intangible. heterogenous.

heterogenous (services differ almost every time they are delivered or received)

When a company generates a collection of product concepts to determine potentially viable new products, this illustrates which step of the new-product development process? new-product strategy development idea screening business analysis test marketing idea generation

idea generation

Although a service does not involve a physical good, it is still considered a "product." true or false

true

Higher consumer quality perceptions provide benefits for firms, such as higher sales prices, customer satisfaction, and loyalty. true or false

true (Perceived quality is a consumer's perception of the overall quality of a brand)

Haze, a beverage manufacturer, has a business strategy concentrated on developing environment-friendly products. It uses green-colored packaging to indicate the ecofriendly component of its products. This helps Haze's products to stand out and be recognized easily. This scenario exemplifies the use of: A. brand loyalty. B. brand marks. C. brand perception. D. brand consciousness. E. brand equity.

Brand marks (Brand marks are the elements of the brand not expressed in words that a consumer instantly recognizes, such as a symbol, color, or design)

Capitalizing on its high brand equity, ReInforay, an established retail and grocery brand, introduces a new product, ReNew, which is an improved variant of its existing hair protein serum. ReInforay soon discovers that after the successful rollout and high sales of its ReNew, the sales volume of its existing product has dropped significantly. Which of the following phenomena does this scenario exemplify? cannibalization cobranding rebranding market diversification market development

CANNIBALIZATION (Cannibalization occurs when new products take sales away from the firm's existing products rather than generating additional revenues or profits through new sales)

Which of the following is an example of planned obsolescence? Every time a company comes out with a new smartphone, it stops making earplugs compatible with its old smartphone. A pharmaceutical company held off marketing a new drug until it paid for the development of an existing drug. A dishwashing liquid manufacture can no longer place "new and improved" on the product label. General consumers no longer need travel agencies to book trips, so agencies focus on niche markets. The fidget spinner was very popular for a relatively short amount of time.

Every time a company comes out with a new smartphone, it stops making earplugs compatible with its old smartphone

Brand is a characteristic of the augmented product component that enhances product value. true or false

FALSE (The augmented product component contains the services, experiences, warranties, and financing that enhance the product value)

Which of the following best exemplifies the heterogeneity of services? Selena worked hard to sell all advertising slots before the show aired. Allison ordered her lunch from the drive-thru at Burger King. Kimiko's doctor's appointment ran late, so she was late getting back to work. Fabricio usually loves dining at his local diner, but today he found the food bland and the wait staff slow. Ezra took a Lyft to the store because it was raining.

Fabricio usually loves dining at his local diner, but today he found the food bland and the wait staff slow.

Which of the following is true of brand extension? A. It enables new products to profit from the recognition that a brand already enjoys. B. It must only be implemented when the firm is willing to risk cannibalization of existing products. C. It is a strategy in which product of two or more brands are merged into a new brand. D. It is not a recommended strategy for companies that possess high brand equity. E. It is a process in which a firm develops new products within the same product category.

It enables new products to profit from the recognition that a brand already enjoys (For example, McDonald's extended its brand beyond convenience and Happy Meals to include healthier items such as salads, yogurt parfaits, and premium coffee)

Healpro, a painkiller, is a low-cost product developed by S&V, a popular retail chain in the United States. It is sold exclusively in S&V stores. In this case, Healpro is an example of a: manufacturer brand. private label brand. captive brand. generic label brand. category label brand.

Private Label brand (Private label brands, sometimes referred to as store brands, are products developed by a retailer and sold only by that specific retailer)

Which of the following exemplifies service failure as a result of an unanticipated external cause? The flight was overbooked and people had to be pushed to the next flight. A passenger kicked Marcy's seat during the duration of the flight from New York to Seattle. The game was cancelled due to a hurricane. The Uber driver got lost and the customers missed the performance. The employee didn't know how to correct the self-checkout machine, so customers had to wait until another employee could repair it.

The game was cancelled due to a hurricane.

The specific combination of goods, services, or ideas that a firm offers to its target market is referred to as: inventory. a load. stock. supply. a product.

a product

The iPhone's smartphone is well-regarded as a stylish phone with several colors and sizes. This is an example of which product component? actual product component core product component augmented product component benefits product component advantages product component

actual product component (involves the form of the product itself such as the brand, features, quality, style, size, color, and packaging)

A company needs to simplify a product before sales will increase; it does this because: an easier-to-understand product will diffuse faster. consumers can try it without significant expense. people will not buy complex products. if people see others using a product is will diffuse quickly. it will then be more compatible.

an easier to understand product will diffuse faster

Thuan came home from school talking about the fidget spinner that his school friends are playing with and buying. This example best illustrates which stage of the consumer adoption process? awareness interest evaluation trial adoption

awareness

Which of the following accurately represents the order of steps in the consumer adoption process? interest, comparison, evaluation, trial, and adoption. awareness, evaluation, trial, adoption, and feedback. interest, evaluation, comparison, trial, and adoption. awareness, interest, evaluation, trial, and adoption. awareness, research, comparison, evaluation, and adoption.

awareness, interest, evaluation, trial and adoption

The name, term, symbol, design, or any combination of these that identifies and differentiates a firm's products is termed as: sales orientation. product definition. marketing mix. valuation. brand.

brand

A company's attempt to rebuild its brand image and increase positive perceptions of its brand is an example of: brand revitalization. cobranding. brand promotion. brand perception. brand imaging.

brand revitalization (Revitalization often begins with an investment in rebuilding trust with consumers)

Which of the following is an example of a convenience product? breath mints appliances cars gardening supplies internet service

breath mints (convenience products are often purchased frequently and are rather inexpensive to buy)

Which of the following characteristic is unique to services? tend to be reused by consumers. are the same each time they are used. cannot be possessed. may be stored later for use. are usually produced and consumed at different times.

cannot be possessed

All of the following represent advantages of a product line extension except: easy company and brand may recognition. customer loyalty. efficient manufacturing of goods. certain market acceptance of the new product. advertisement of the new product alongside existing products.

certain market acceptance of the new product

In what ways can customer complaints about a service benefit a firm? Complaints confirm that service recovery is not integral to a firm's success. Complaints tell a company how to address a service failure. Complaints can draw more customers to a company's website. Complaints confirm that service failure is outside of a company's control. Complaints can identify disloyal customers.

complaints tell a company how to address a service failure

Apple iPhone's overall benefits of communication, information, and connection represent which product component? core product component augmented product component actual product component benefits product component advantages product component

core product component (The core product component relates to the basic benefit obtained by customers of the product)

Mountain Dew's efforts to maintain a youthful, energetic, and extreme brand for its consumers helps the firm to develop a successful branding strategy by: creating a consistent brand image. delivering a quality product. creating a consistent brand messaging. capturing feedback. generating a new target market.

creating a consistent brand image (In order for a firm to create a consistent brand image, all of its marketing decisions, promotions, and employees should reinforce the brand by providing a consistent experience for consumers)

In which stage of the product life cycle is the price usually the lowest? introduction beginning growth maturity decline

decline

This process gives marketers a way to figure out who will likely buy their product over a period of time, plan an appropriate marketing mix, and forecast potential sales. diffusion time to market planned obsolescence distribution circulation

diffusion

Marketers seek to gain this type of adopter's acceptance because this adopter tends to be an opinion leader who is willing to talk to other people about his/her purchase experiences. This type of adopter is referred to as a(n) innovator. early adopter. laggard. late majority. early majority.

early adopter

Keisha is in the market for a new tablet computer. She has spent quite a bit of time gathering information and thinking about the purchase. She has asked her friends for opinions about the models they own and is happy that she has a wide variety of models from which to choose. Keisha is most likely what type of adopter? innovator early adopter laggard late majority early majority

early majority

Which of the following is an example of a pure good? satellite radio a haircut paper towels an airline flight a restaurant meal

paper towels

Firms that want to maintain or improve their competitive position in the marketplace must maintain the success of their existing product line. true or false

false

Marketing services are intangible and therefore do not yield as much revenue generation as marketing products. true or false

false

The customer was dissatisfied with her Uber experience because the driver was late due to heavy traffic. This is not considered a service failure because it is not something the Uber driver could control. true or false

false

Diffusion gives marketers a way to figure out who will least likely purchase their product over a period of time, plan an appropriate marketing plan, and forecast lost sales. true or false

false (opposite)

About 50 consumers are participating in a focus group moderated by marketers. They are asked to list terms and phrases that occur to them when they hear the brand name, 'Rotomatix'. The marketers of the brand use the consumers' responses to gain insight into what consumers think of the brand. This scenario is a typical example of: A. projective association. B. ad hoc feedback. C. quantitative feedback. D. free association. E. audience optimization.

free association (These responses give marketers insight into what consumers think of the firm's brand and whether those associations are consistent with the firm's marketing mix strategies)

Quincy enjoyed the ambiance of the theater and found its ushers to be friendly and knowledgeable. This is a matter of: technical quality. functional quality. evaluative goodness. inseparability. objective excellence.

functional quality

Which of the following refers to the creation of a new or significantly improved product offering for product marketers? innovation expectation tradition diffusion adoption

innovation

Devon is considered to be tech-savvy by his friends. He is willing to take risks when it comes to trying new products and is always the first in his group to get the latest gadget. What type of product adopter is Devon? innovator early adopter laggard late majority early majority

innovator

When both the service provider and the customer are present during the service delivery, this is known as intangibility. homogeneity. heterogeneity. perishability. inseparability.

inseparability (production and consumption are simultaneous, therefore inseparable)

Because services have no physical substance and cannot be touched, stored, or possessed like goods, they are said to be homogenous. intangible. inseparable. perishable. heterogenous.

intangible

The inseparability of services make which of the following most important? price of the services whether or not the service provider can guarantee quality how long the service lasts standardization interaction between customer and service provider

interaction between customer and service provider

All of the following characterizes service quality except: it offers an evaluative perspective. it identifies technical quality. it identifies functional quality. it is an objective measure of goodness or excellence. it is a standardized benchmark.

it is a standardized benchmark

Which of the following is the main reason that firms seek to innovate their products? maintain or advance market positioning. increase awareness in the broader marketplace. avoid the product offerings of competitors. increase revenue. sustain standardization.

maintain or advance market positioning

Companies use the Service Gaps Model to: train employees to provide customers with excellent service. bridge the gap between good service and excellent service. inform customers of the gaps in the company's ability to provide service. achieve an objective measure of goodness or excellence. manage gap between customer expectations and perceptions.

manage gap between customer expectations and perceptions.

At which stage of the product life cycle are sales the highest? maturity decline introduction growth development

maturity

Which of the following products most likely has an objective measure of goodness or excellence? frozen yogurt from Red Mango gym membership at Crossfit memory subscription to Dropbox coffee from Starbucks haircut from Supercuts

memory subscription to Dropbox (objective measure outside universally agreed upon standard)

If Dell, which currently does not offer an e-reader, decided to enter the market with one, this e-reader would be classified as: new-to-the-market. product line extension. revamped product. new category entry. product line improvement.

new category entry (new to the company, but not to the marketplace)

New products that represent the smallest percentage but carries the most potential (and risk) for the company introducing them are referred to as: new-to-the-market products. new category entries. repositioned products. product line extensions. revamped products.

new-to-the-market products

All of the following represent stages in the product life cycle except: maturity. introduction. growth. obsolescence. decline.

obsolescence (introduction, growth, maturity, and decline- 4 stages)

Technical quality of a service is based on the evaluation of the service: objectivity. output. process. perspective. input.

output

Services cannot be stored, inventoried, reused, or returned, which makes them heterogenous. inseparable. homogenous. perishable. intangible.

perishable

Brand has the closest association to _____ in a firm's marketing mix. place production product promotion price

product

Apple produces the iPhone, iPad, Macbook Pro, Apple Watch, and Apple TV. As a group, these items represent a: product line. marketing mix. product mix. marketing line. marketing class.

product line

Every time Tess brings her bike in for service, the work is done well and her bike is ready to be picked up at the promised time. In regard to service quality, this is a function of: empathy. tangibles. assurance. responsiveness. reliability.

reliability

Within which product category would a product labeled "new and improved" be classified? new-to-the-market product revamped product product line extension new category entry remanufactured product

revamped product

When a customer perceives the quality of a service encounter as negative, it is referred to as: service quality. heterogeneity. knowledge gap. service gap. service failure.

service failure

Companies use this to understand the differences between customers' perceptions of a service outcome and the customers' initial expectations. Dimensions of Service Quality Characteristics of Service Service Gaps Model SWOT Analysis Tangibility Spectrum

service gaps model

Products that require high consumer involvement in the purchase process are called: specialty products. convenience products. unsought products. shopping products. uncommon products.

speciality products (These purchases tend to be expensive, purchased infrequently, and specific. Specialty products are usually one of a kind or rare)

A guiding principle of service recovery is that: the customer is always looking for a reason to complain. the company should apply the same recovery strategy to all service failures. the customer tends to over exaggerate a service failure. the customer is always right. the company should wait until enough customers complain.

the customer is always right

The highest level of risk in new-product development occurs when: the product fails to meet the needs of customers supplier cost savings are not achieved. an inadequate supply of materials delays production. the product takes sales away from existing products. competitors copy products and sell them at a lower price.

the product fails to meet the needs of customers

Which of the following describes why services are considered to be inseparable? They cannot be reused. They cannot be stored or possessed. They are different every time they are created. They cannot be manufactured in bulk. They are produced and consumed at the same time.

they are produced and consumed at the same time

Leonardo wants to join a new health club. His friend belongs to a club that Leonardo read about on social media. He decides to use his friend's free guest passes to try out the club and see if it meets his needs. This situation illustrates which stage of the consumer adoption process? trial awareness interest comparison adoption

trial

The marketers at Garnier included a sample of its new hair conditioner within the pages of the latest Vogue magazine. National sales increased dramatically within a few weeks, an example of this product's: observability. compatibility. trialability. complexity. competitive advantage.

trilability

A service failure needs to be remedied even if the company believes that the customer is wrong. true or false

true