BCOR 350 Bal Exam 2 Spring 2018
What is a product concept?
A detailed version of a new product idea stated in meaningful consumer terms
Which of the following is a business-to-business market transaction?
A grocery store buying cereal from Kellogg's
Which of the following best describes brand equity?
A measure of the brand's ability to capture consumer preference and loyalty
For Super Bowl Sunday, a pizzeria simply increases their order of supplies from their existing suppliers. Which type of buying situation does this represent?
A modified rebuy
In which type of buying situation will a buyer usually go through all eight stages of the business buying process?
A new task buying situation
Walmart created the Great Value brand for their food products and the Equate brand for their pharmacy, health, and beauty products. Walmart does not manufacture any of these products. Which type of brand sponsorship is Walmart using?
A private brand
Which of the following correctly defines a product?
A product is anything offered to a market that might satisfy a need or want.
Which of the following forms of products are considered as services?
Airline travel
What is positioning?
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
What is the first think marketers must do when using value-based pricing?
Assess customer needs and value perceptions.
Which of the following statements is true regarding costs?
Average cost tends to decrease with accumulated production experience.
Which base of segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product?
Behavioral
____________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product.
Behavioral
____________ is a measure of the brand's ability to capture consumer preference and loyalty.
Brand equity
Duracell is well known for manufacturing and marketing batteries. Recently they launched the Duracell Powermat, which is a wireless charger for mobile devices. Which brand development strategy did Duracell use in this example?
Brand extension
____________ helps the seller to segment markets.
Branding
Which of the following-based pricing approach?
Break-even pricing
Which of the following is not considered one of the links in the service profit chain?
Buyer-seller interaction
A colleague wants to evaluate the attractiveness of a particular market segment. Which of the following would be good advice for your colleague?
Carefully consider the degree of competition and ease of entry into the segment.
Which of the following statements regarding the growth stage of the product life cycle is correct?
Companies face a trade-off between high market share and high profits.
Which of the following statements regarding concentrated marketing is correct?
Concentrated marketing involved higher-than-normal risks
Which of the following statements regarding segmentation is correct?
Consumer and business marketers use many similar variables, but business marketers use additional variables to segment their markets.
Which of the following statements regarding demographic segmentation is correct?
Consumer needs, wants, and usage rates vary closely with demographic variables.
Which of the following statements regarding individual product decisions is correct?
Customer service is an important element of product strategy.
____________ uses buyers' perceptions of value as the key to pricing.
Customer value-based pricing
Which of the following correctly identifies the three major pricing strategies used by marketers?
Customer value-based pricing, cost-based pricing, and competition-based pricing
Which factor sets the ceiling on setting a product's price?
Customer's value perceptions
____________ development focuses on finding new ways to solve customer problems.
Customer-centered new product
Which of the following statements about price is correct?
Customers have put increasing pressures on many companies
Which of the following statements regarding managing brands is correct?
Customers' engagement with brands and customers' brand experiences are they key elements in maintaining a brand's position
Which of the following statement about segmentation is true?
Different segments might require different marketing strategies or mixes.
Which of the following statements is correct regarding major influences on business to business buyer behavior?
Emotion plays an important role in business buying decisions.
Developing product specifications follows _________ in the business buyer decision process.
General need description
The first stage of the business buying decision process is problem recognition. What is the second stage?
General need description
During concept testing, who is the product concept actually tested on?
Groups of target customers
A firm improves product quality and adds new product features and models. It also shifts some advertising from building product awareness to building product conviction and purchase. At which stage of the product life cycle would this be a recommended strategy?
Growth
What is the first step of the new product development process?
Idea generation
Which of the following is true regarding the price-demand relationship?
If demand is elastic, sellers will consider lowering their price.
Which of the following statements does not apply to the description of prices?
In recent decades price factors have gained increasing importance.
Which of the following statements regarding customer value-based pricing is correct?
In using this strategy, companies often find it hard to measure the value customers attach to their product.
Age, personality, buying style, and job position are ____________ factors that can influence the buying decision process.
Individual
On the My M&Ms website buyers can place custom orders for M&Ms. They can choose their own colors, put a personalized text message on the candies, and even upload a photo to be placed on each M&M. Which targeting strategy is M&M using for My M&Ms?
Individual marketing
A University is buying new overhead projectors for its classrooms. The University's Information Technology Department has been asked to provide specifications and recommendations for this purchase. The IT Department is playing which role in the University's buying center?
Influencer
_________ are members of the buying center who help define specifications and provide information for evaluating alternatives.
Influencers
Which of the following statements about new product development strategy is correct?
Innovation can be very expensive and risky.
Which of the following statements regarding the institutional market is correct?
Institutional markets have captive patrons
What are the four special service characteristics marketers must consider when designing marketing programs?
Intangibility, inseparability, variability, and perishability
Services cannot be seen, tasted, felt, heard, or smelled before they are bough. In other words, services are ____________.
Intangible
Which of the following statements about the use of digital and social media for B-to-B marketing is correct?
It allows businesses to target individuals within a business who affect buying decisions.
Choosing a differentiated targeting strategy has many benefits, but a potential downside is that ____________.
It can increase costs
In determining product quality, what are the two dimensions of quality marketers must decide upon?
Level and consistency
There is a growing segment of people who want food that tastes good and is also good for them. This healthy-living segment represents which segmentation base?
Lifestyle
When Doritos comes out with new flavors of their tortilla chips, what brand development strategy are they using?
Line extension
Business-to-business marketing involves buying and selling goods or services by which of the following?
Manufacturers, producers, retailers, wholesalers
Which of the following statements regarding the business market is correct?
Many sets of business purchases are made of one set of consumer purchases.
Which of the following descriptions best represents targeting a demographic segment?
Marketing prepackaged lunches for children
If a company finds that a new product concept is acceptable and should be moved forward, what is the next step in the new product development process?
Marketing strategy development
Which targeting strategy focuses on common consumer needs, as opposed to different needs?
Mass marketing
What are the three broad targeting strategies used by marketers?
Mass marketing, differentiated marketing, and concentrated marketing.
Most products today are in which stage of their product life cycle?
Maturity
Which of the following statements concerning new products is correct?
Modified and improved products are considered new.
Which of the following would be an appropriate strategy during the maturity stage of the product life cycle?
Modify the market, product offering, or marketing mix.
Which type of market consists of many buyers and sellers trading over a range of prices rather than a single market price?
Monopolistic competition
Which value proposition is the most difficult to sustain in the long run?
More for less
Items such as technical specifications, quantity, delivery time, return policies, and warranties are included in which stage of the buying decision process?
Order-routine specification
__________ includes the final order with the chosen supplier or suppliers and lists other required items.
Order-routine specification
Which of the following correctly defines the institutional market?
Organizations that provide goods and services to people in their care
For which service characteristic do marketers needs to pay close attention to fluctuations in demand?
Perishability
Which of the following statements regarding positioning is correct?
Positions must adapt over time to meet changing consumer needs.
Which of the following statements does NOT describe price?
Price is the only element in the marketing mix that represents costs.
According to the text, what are the three levels on which brands can be positioned?
Product attributes, desirable benefits, and beliefs and values
Which factor sets the floor on setting a product's price?
Product costs
At which stage of the new product development process is a physical product first developed?
Product development
____________ is the first stage of the product life cycle.
Product development
BMW says their cars are "The Ultimate Driving Machine". Ford trucks are "Build Ford Tough". Which type of differentiation do these examples represent?
Product differentiation
Product value analysis is an important approach to cost reduction that is used at which sage of the buying decision process?
Product specification
Which stage of the business buying decision process occurs between the supplier search and supplier selection?
Proposal solicitation
____________ segmentation divides buyers into different segments based on lifestyle or personality characteristics.
Psychographic
In which type of market does no buyer or seller have much impact on setting the going market price?
Pure competition
Beyond the nature of the market, demand, and the economy, what other factors in a firm's external environment must a company consider when setting prices?
Resellers, the government, and social concerns
One form of e-procurement is ____________ in which two companies put their purchasing requests online and invite bids.
Reverse auctions
To do e-procurement, companies can conduct __________, in which they put their purchasing requests online and invite suppliers to bid for the business.
Reverse auctions
One characteristics of services is their variability. What is the main reason for services being variable?
Service quality depends on who provides them, as well as when, where, and how they are provided.
____________ means that the quality of services depends on who provides them as well as when, where, and how they are provided.
Service variability
What is target costing?
Setting a price and then setting costs that will ensure that the price is met.
Which of the following statements is true regarding standardizing products for international markets?
Standardization decreases product design, manufacturing, and marketing costs.
____________ reverses the usual process of first designing a new product, determining its cost, and then asking, "Can we sell it for that?"
Target costing
Which of the following statements regarding standard test marketing is correct?
Test marketing can be costly and delay commercialization of the product.
Which government agency has the authority to ban or seize potentially harmful products and set severe penalties for violation of the law?
The Consumer Product Safety Commission (CPSC)
Which of the following statements regarding the U.S. government market is correct?
The U.S. government is the largest buyer of goods and services in the world.
What are the two major components of a B-to-B marketer's buying ability?
The buying center and the buying decision process
Product planners think of products on three levels. Which of the following correctly identifies the three levels?
The core customer value, the actual product, and the augmented product
Which of the following statements regarding socially responsible product decisions is correct?
The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.
Which of the followings statements is not a difference between business markets and consumer markets?
The market is very small and limited
How is price determined using cost-plus pricing?
The price is set by adding a standard mark-up to the cost of the product.
According to the text, the most successful new products satisfy three criteria. What are these criteria?
They solve a major customer problem, are differentiated, and offer a compelling value proposition.
What is the overall purpose of differentiation?
To create superior customer value
What are perceptual positioning maps used for?
To show consumer perceptions of different brands on important product dimensions
Which of the following statements about service marketing is correct?
Training current employees better and hiring new ones with more skills can increase service productivity.
Which of the following statements is correct regarding different types of markets?
Under oligopolistic competition each seller is alert and responsive to competitors' pricing strategies and marketing moves.
What must companies do to create successful new products?
Understand its consumers, markets, and competitors and develop products that deliver superior value.
New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs, with armrests and footrests, the latest in digital sound and super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing?
Value-added pricing
On a break-even chart, the break-even volume is located ____________.
at the intersection of total revenue and total costs
Fitbit makes health and fitness tracking devices. Some of the buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep monitoring, text notification, and wireless sync to their smart phone. In serving these two very different groups, Fitbit is using ____________ segmentation.
benefits sought
The branding strategy of launching a product or service as a national or store brand is considered a ____________.
brand sponsorship
The ____________ consists of all people who are involved in an organization buying decision.
buying center
One problem with business-to-business e-procurement is that it ____________.
can erode long-standing customer-supplier relationships
Amazon and GEICO set themselves apart with their smooth-functioning direct delivery strategy referred to as ____________ differentiation.
channel
Institutional markets are ___________.
characterized by low budget, captive patrons
During the idea generation stage of the new product development process, it is important that ____________.
companies create a large number of ideas
Instead of going after a small share of a large market, a firm goes after a large share of a smaller niche segment. This type of marketing strategy is known as ____________.
concentrated marketing
Freedom from defects and consistency in delivering a targeted level of performance is an attribute of product's ____________.
conformance quality
Typically, consumers put in minimum time and effort when buying products such as laundry detergent, candy, and fast food. These types of goods are classified as ____________ products.
convenience
Charles Revson, who started Revlon, once said "We sell hope." Revson was defining the ____________ of Revlon cosmetics.
core customer value
One recent development is generating new product ideas is for a company to invite broad communities of people - such as employees, customers, and even the public at large - into the innovation process. This is known as ____________.
crowdsourcing
Through____________ a company invites broad communities of people into the innovation process.
crowdsourcing
When segmenting international markets, markets can be grouped according to language, religion, customs, and values. This type of segmentation is based on ____________ factors.
cultural
Companies should take a holistic approach to new product development. This means that the process should be ____________.
customer-centered, team based, and systematic
Unlike marketers in the consumer market, business-to-business marketers ____________.
deal with far fewer but far larger buyers
Two external factors which must be considered in pricing decisions are ____________.
demand and the nature of the market
A(n) ____________ shows the number of units the market will buy in a given time period at different prices.
demand curve
Business-to-business marketers will sometimes promote their goods directly to consumers. This is because demand is ____________.
derived
If men and women respond similarly to the same marketing mix, they do not constitute distinct, identifiable segments. Gender would not be effective base for segmentation in this example because the segments are not ____________.
differentiable
According to the text, one result of technology is that the new space for engaging business customers is ____________.
digital and social media
A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity is called a(n)____________.
fad
When a company lengthens a product line by adding more items within that lines current range, they are ___________.
filling the line
Hospital purchasing agents should prefer __________.
food vendors with low prices and quality products
The strategy of ____________ means that the firm attempts to offer the right combination to offer the right combination of quality and good service at a fair price.
good-value pricing
Profits increase during the ____________ stage of the product life cycle.
growth
In the decline stage of the product life cycle, some companies continue to offer the product but reduce various costs, hoping that sales hold up. This is known as ____________ the product.
harvesting
Retailers such as Macy's and JC Penny charge higher prices on an everyday basis, but run frequent promotions to lower prices temporarily on selected items. This is an example of _____________.
high-low pricing
New product development starts with ____________.
idea generation
Materials and parts, capital items, and supplies and services are groups of ____________ products.
industrial
Service quality greatly depends on the quality of the buyer-seller interaction during the service encounter. This is known as ____________.
interactive marketing
When segmenting international markets, marketers often can form segments of consumers who have similar needs and buying behaviors even though they are located in different countries. This is called ____________.
intermarket segmentation
Business markets have demand that ____________.
is inelastic
The rapidly expanding use of e-procurement in business-to-business deals provides several advantages; however, one of the disadvantages is __________.
it pits suppliers against one another
Psychographic segmentation divides buyers into different segments based on ____________.
lifestyle and personality
The process of evaluating each market segment's attractiveness and selecting one or more market segments to enter is called ____________.
market targeting
The goal of the competition-based pricing is _____________.
not to match or beat competitors' price
The amount of money charged for a product is its ____________.
price
Price is the only part of the marketing mix that ____________.
produces revenue
Marketers should carefully consider public policy issues and regulations regarding all of the following except ____________.
product development
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 are called a(n) ____________.
product line
The number of items in a product line represents the ___________ and the total number of product lines a company carries represents the ____________.
product line length; product mix width
If a company adds a new product line to its existing portfolio, it has increased its ____________.
product mix width
Under ____________, the market consists of many buyers and sellers trading in a uniform commodity.
pure competition
When Dr. Footcare development and launched a revolutionary new walking shoe, he knew that during the introductory stage of the product life cycle (PLC) ____________.
sales would be slow and profits nonexistent
The step in designing a customer value-driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market ____________.
segmentation
Furniture, major appliances, clothing, and hotel services are classified as ____________ products.
shopping
Mothers Against Drunk Driving (MADD) runs advertising campaigns aimed at stopping drunk driving and preventing underage drinking. This is an example of ____________.
social marketing
A business buying situation in which the buyer reorders something without any modifications is known as a __________.
straight rebuy
Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a(n) ____________ approach to new product development.
systematic
In the B-to-B market, one strategy is to offer a complete solution to a buyer's problems. This is called ____________.
systems selling
To succeed in France, McDonalds had to ____________.
tailor their operations to local French preferences
Market ____________ evaluates each market segment's attractiveness and selects one or more segments to serve.
targeting
If the product passes both the concept test and the product test,the next step is ____________.
test marketing
Internal factors that affect pricing include ____________.
the company's overall marketing strategy, objectives, and marketing mix.
The U.S. government usually awards contracts to ____________.
the lowest bidder
The winning value proposition by discount stores such as Walmart and Best Buy can be categorized as ____________.
the same for less
Using a(n) ____________ marketing strategy, a firm might decide to ignore market segment differences.
undifferentiated
Blood donations to the Red Cross are considered ____________ products.
unsought
The full mix of benefits on which a brand is differentiated and positions is called a(n) ____________.
value proposition
Luxury automobile manufacturers typically add quality, services, and other features to differentiate their offers and thus support their higher price. This is an example of ____________.
value-added pricing
One of the disadvantages of product and service standardization for international market is ____________.
varying worldwide market
