BNAD 303 Exam 3 Review

Ryan is on his way to work when he realizes he has a flat tire. He swings into Sam's Club and has a new tire installed. Ryan's purchase of a new tire in this situation is considered to be a) an industrial good b) an unsought good c) a shopping good d) a convenience good e) a specialty good

Unsought good

What is using two or more brands on one product?

Co-branding

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

Commercialization

What is the practice of hiring a foreign firm to produce a designated volume of the domestic firm's product or a component of it to specification?

Contract Manufacturing

What are initiated by producers to ensure that producers are identified with their products at the point of purchase?

Manufacturer brands

What is a name, term, design, symbol or other feature that identifies one seller's product as distinct from those of other sellers?

A brand

Which of the following characteristics distinguish online media from traditional marketing?

Addressability, interactivity, accessibility, connectivity, and control

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.

Aesthetic, quality, and functional changes

According to the text, a product is defined as a) anything the customer receives in an exchange. b) the physical object the customer receives in an exchange. c) the service that is rendered to a customer. d) the idea that the customer receives in an exchange. e) goods and services the customer receives in an exchange

Anything the customer receives in an exchange

One of the fastest-growing areas in mobile technology is the creation of ______ that help consumers to access more information about businesses

Applications

As Jessica enters Audio Jetz car electronics department, she is asked by the salesperson if she has seen the new plug-in cell phones 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? a) Awareness b) Interest c) Evaluation d) Trial e) Adoption

Awareness

What is tracking consumer's website surfing behavior, compiling clickstream data and IP information called?

Behavioral targeting

______ are web-based journals in which writers can editorialize and interact with other Internet users.

Blogs

What are firms that are international from their inception?

Born globals

Verizon encourages customers to post reviews on its company website or Facebook page in the hopes of increasing the company's a. target market. b. credibility. c. market share. d. reach. e. image.

Credibility

In India, the price of a Big Mac from McDonald's is $4 (US dollars) as opposed to China which is $3 (US dollars). Which of the following do you think accounts for the difference in price?

Currency exchange control

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

Customer services

Dish Network cut back advertising expenditures to minimum levels and reduced the number of channel members for its industrial satellite product. These actions indicate that its product is in the ____ stage of its life cycle. a) introduction b) growth c) maturity d) early e) decline

Decline

Quality modifications are changes that relate to a product's:

Dependability and durability

What is stage 2 mode of entry into international markets?

Export via independent representatives (agents)

The extent of Raytheon's participation in global business is selling the batteries it manufactures to companies in Spain. In this case, Raytheon is a(n)

Exporter

What is the sale of products to foreign markets?

Exporting

What is branding all of a firm's products with the same name or part of a name?

Family branding

What are some examples of sociocultural forces?

Family, religion, education, health, recreation, language, country of origin

A special form of licensing in which one company grants another company the right to market its product in accordance with its standards in exchange for a financial commitment is called

Franchising

What is an agreement among nations to reduce worldwide tariffs and increase international trade?

General Agreement on Tariffs and Trade (GATT)

What can proper environmental analysis of international markets do?

Generate financial rewards, increase market share, heighten customer awareness of products

What are brands indicating only the product category?

Generic brands

In which stage of the product life cycle do profits begin to decrease? a) Introduction b) Growth c) Maturity d) Decline e) Recovery

Growth

Marissa, a product manager, thinks her company's InstaCup coffee maker is currently in the growth stage of the product life cycle. If so, the profits for the InstaCup coffee maker ___ and the number of competitors ____. a) are negative; is growing b) have peaked; is growing c) are declining; is growing d) have peaked; is declining e) are declining; is declining

Have peaked; is growing

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

Idea generation

Frito-Lay, which is widely known for producing chips and other snack products, tried to introduce Frito-Lay lemonade. The reason this new product failed is likely because of a) poor timing. b) the failure to match product offerings to customer needs. c) technical problems. d) overestimation of market size. e) ineffective branding.

Ineffective branding

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.

Innovative benefits to consumers

Who are the first adopters of new products?

Innovators

Sales of Schwinn's apartment-sized exercise machine have experienced a steady climb; however, the profits have been negative. The Schwinn exercise machine is most likely in the ____ stage of the product life cycle. a) decline b) growth c) initial d) maturity e) introduction

Introduction

What are shopping products?

Items for which buyers are willing to expend considerable effort in planning and making purchases; they are less frequent purchases with available substitutes

A business partnership between a domestic firm and a foreign firm is known as

Joint Venture

While Alec's grandfather still prefers using a land line, he just bought his first cell phone. Alec's grandfather is most likely oriented toward the past and is a member of the ____ group. a) non-adopters b) laggards c) innovators d) late adopters e) late majority

Laggards

Who are the skeptics who adopt new products when they feel it is necessary?

Late Majority

Sara Lee Corporation manufactures desserts, breads, pantyhose, meats, and a variety of other products. These products make up Sara Lee's product a) line. b) item. c) mix. d) width. e) depth.

Mix

Firms that have operations or subsidiaries located in many countries are referred to as a) multinational enterprises. b) strategic alliances. c) joint ventures. d) international marketers. e) export alliances.

Multinational enterprises

During the introduction stage of a successful product, profits are usually a) at their highest point. b) negative and decreasing. c) negative and increasing. d) positive and increasing. e) declining.

Negative and increasing

What is stage 1 mode of entry into international markets?

No regular export activities

____ includes any attempt to intentionally conduct dishonest activities online. a. Racketeering b. Online spam c. Digital identity theft d. Online fraud e. Online bribery

Online fraud

What is it called when advertisers pay only when a consumer clicks on an ad or link from a search engine page?

Paid search (aka search engine advertising)

What are some legal and ethical issues in marketers gathering information?

Personal privacy, fraud, misappropriation of copyrighted property

What are initiated and owned by a reseller?

Private distributor brands

Schwinn has developed a new bicycle that has the strongest and lightest-weight frame of any bicycle outside of those made for racing. In addition, Schwinn has added several new features to its bike that are attractive to individuals who work as "bike messengers" in large, urban cities. Since no other company makes a bike that has these specific attributes, Schwinn is creating: a) commercialization. b) consistency of quality. c) level of quality. d) product positioning. e) product differentiation.

Product differentiation

What is dumping?

Selling products at unfairly low prices

Digital media have created opportunities for companies to

Target specific markets

What has made international marketing easier, faster, and more affordable?

Technological advances

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

Test marketing

Which of the following best defines the interest stage in the product adoption process? a) The buyer tries to find the product in a retail store. b) The buyer considers the benefits and determines whether to try the product. c) The buyer tries the product to determine its usefulness. d) The buyer seeks information and is receptive to learning about the product.

The buyer seeks information and is receptive to learning about the product

What is self-reference criterion (SRC)?

The unconscious reference to one's own cultural values, experiences, and knowledge

To make intangible products more tangible or real to the consumer, marketers often a) use low prices on intangible goods. b) use symbols or cues to help symbolize product benefits. c) use external reference prices. d) use multiple channels of distribution. e) offer more support services with such products.

Use symbols or cues to help symbolize product benefits

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

Venture team

Functional modifications are changes that affect a product's:

Versatility, effectiveness, convenience or safety

What is when an organization uses one of its existing brands to brand a new product in a different product category?

Brand extension

What is the degree of brand loyalty in which a customer prefers one brand over competitive offerings?

Brand preference

What is international marketing?

Developing and performing marketing activities across national boundaries

What is the degree of brand loyalty in which a customer strongly prefers a specific brand and will accept no substitute?

Brand insistence

What is an agreement whereby a company permits another organization to use its brand on other products for a licensing fee?

Brand licensing

What is the part of the brand that is not made up of words, such as a symbol or design?

Brand mark

What is the part of a brand that can be spoken, including letters, words and numbers?

Brand name

What is the degree of brand loyalty in which a customer is aware that a brand exists and views the brand as an alternative purchase if their preferred brand is unavailable?

Brand recognition

What is a duty levied by a nation on goods bought outside its borders and brought into the country?

Import tariff

What is the purchase of products from a foreign source?

Importing

What is a branding strategy in which each product is given a different name?

Individual branding

What is a guaranteed constant in the global business environment?

Instability

Walgreen's has set up a website that enables customers to converse with the company and communicate their needs and wants. This is an example of a(n) ____ website. a. accessible b. controlled c. linked d. addressable e. interactive

Interactive

What is an alternative to direct investment that requires a licensee to pay commissions or royalties on sales or supplies used in manufacturing?

Licensing

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.

Line extensions

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

Market manager

When Clorox introduced bleach in a no-drip bottle, the firm was taking action consistent with its product being in the ____ stage of the product life cycle. a) introduction b) growth c) stabilization d) maturity e) decline

Maturity

Due to increasing consumer demand, many television networks are creating ____ of their shows. a. podcasts b. wikis c. virtual realities d. digital characters e. imitations

Podcasts

Caterpillar, maker of large construction equipment in the U.S., would like to better understand factors that would affect its ability to export its products to various countries. Which of the following forces determine how trade barriers affect Caterpillar's marketing efforts?

Political and legal

Special interest groups and regulatory bodies are ______ forces that must be taken into account in international marketing. a) socioeconomic b) technological c) economic d) social and ethical e) political and legal

Political and legal

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

Product development

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

Product development

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

Product manager

___ ___ refers to the decisions and activities intended to create and maintain a certain concept of the product in customers' minds

Product positioning

A brand's market share and profitability may be strengthened by ___ ____ of existing products which requires changes in perception and usually changes in product features.

Product repositioning

What are business products?

Products bought to use in a firm's operations to resell or to make other products; purchased to satisfy the goals of the organization

What are consumer products?

Products purchased to satisfy personal and family wants and needs

When is licensing an attractive alternative?

Resources for direct investment are not available; product is outside the core competency of a company; foreign country is politically unstable

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

Screening

Aesthetic modifications are changes to a product's:

Sensory appeal

Sam's Club has developed a website that allows employees to create a profile and connect with co-workers for the purpose of getting acquainted and building a work related network. This is an example of a a. virtual reality. b. podcast. c. recruiting tool. d. social network. e. employment opportunity.

Social network

Which of the following best defines the interest stage in the product adoption process? a) The buyer tries to find the product in a retail store. b) The buyer considers the benefits and determines whether to try the product. c) The buyer tries the product to determine its usefulness. d) The buyer seeks information and is receptive to learning about the product. e) The buyer uses objective sources to learn about the product.

The buyer seeks information and is receptive to learning about the product

Which of the following would be a benefit to a franchiser, such as Jiffy Lube, in expanding into international marketing?

The franchiser does not have to put up a large capital investment.

One trend that has caused consumer-generated information to gain importance is a. the recession. b. the globalization of companies. c. the increase in store brands. d. the increase of consumers using digital media to publicize their own product reviews. e. the increase in consumer buying power.

The increase of consumers using digital media to publicize their own product reviews

What is the full legal name of an organization referred to as?

Trade name

What is a legal designation of the exclusive use of a brand?

Trademark

What is a company that links buyers and sellers in different countries?

Trading company

When Fiat offers to let qualified buyers test drive the new Fiat Doblo Van, the dealer is trying to stimulate which stage of the product adoption process? a) Awareness b) Interest c) Evaluation d) Trial e) Adoption

Trial

What are user-created, 3-D worlds with their own economies, currencies, lands and residents that allow businesses to reach customers in a creative, fun way?

Virtual sites

What does the VIEW Model for Developing Product Packaging represent?

Visibility, Information, Emotional Appeal, Workability

What is an innovative digital marketing tool to personalize websites, alert users to company information and spread product awareness?

Widgets

One company markets such diverse products as Rosarita Mexican foods, Max Factor cosmetics, and Samsonite luggage. These various offerings exhibit this firm's product mix a) width. b) depth. c) length. d) volume. e) dimension

Width

A ____ is a type of software that creates an interface that enables users to add or edit the content of some types of websites. a. bing b. digital diary c. blog d. podcasting e. wiki

Wiki

Which of the following agreements provides a forum for tariff negotiations, reducing trade restrictions, resolution of international trade problems, and ground rules for international trade?

World Trade Organization

You have just completed a two-day offsite meeting with your marketing team. During the meeting, you solidified your company's strategy for distributing, promoting, pricing products, and understanding the needs and desires of your customers by utilizing digital media marketing tactics. Which of the following statements best describes what you just accomplished? a. You developed your company's marketing concept. b. You developed your company's go-to-market strategy. c. You developed your company's e-marketing strategy. d. You developed your company's marketing mix strategy. e. You developed your company's product distribution strategy.

You developed your company's e-marketing strategy.

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

Business analysis

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

Concept testing

A major trend that has caused consumer generated information to gain importance is

Consumers' tendencies to trust other consumers over corporations

What are ads that are determined by the content on the webpage?

Content ads

Consumers who act as ____ are becoming increasingly important to online marketers as a conduit for addressing consumers directly. a. creators b. critics c. collectors d. joiners e. spectators

Creators

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 a) width. b) depth. c) length. d) volume. e) life cycle.

Depth

____ uses the Internet, mobile, and interactive channels to develop communication and exchanges with customers.

Digital marketing

High Plains Furnishings, a furniture manufacturer in southern Montana, markets its furniture products in markets within the United States. It has also found several niche target markets in Finland, Chile, and Argentina. High Plains Furnishings is engaging in

Domestic marketing and limited exporting

Who are the people who adopt new products early, choose new products carefully, and are viewed as "the people to check with" by later adopters?

Early Adopters

Who are the individuals who adopt a new product just prior to the average person?

Early Majority

When Starbucks decided to expand into the international markets of India, Japan, and Argentina, management realized that there would be significant differences in the standards of living, credit, buying power, and income distribution in those countries. Starbucks is currently examining the ____ forces in its environmental analysis.

Economic

The United States' prohibition against importing cigars from Cuba is an example of a(n) a. health control. b. quota. c. embargo. d. exchange control. e. import control.

Embargo

Sales usually start to decline during the __________ stage of the product life cycle. a) beginning of the termination b) end of the growth c) beginning of the decline d) beginning of the growth e) end of the maturity

End of the maturity

What is stage 4 mode of entry into international markets?

Establishment of international production/manufacturing facilities

What is stage 3 mode of entry into international markets?

Establishment of one or more sales subsidiaries internationally

When an individual considers whether a product will meet certain criteria that are critical for meeting his or her needs, in what stage of the product adoption process is this individual? a) Interest b) Awareness c) Evaluation d) Trial e) Adoption

Evaluation

Government restrictions on the amount of a particular country's currency that can be bought or sold are known as a. embargoes. b. quotas. c. exchange controls. d. import controls. e. balance of trade controls.

Exchange controls

What is including in the 4-E Framework for Online Media?

Excite, educate, and experience go into engage which go to customers

In China, the price of imported Scotch is $30 per glass as opposed to Scotch from China which is $3. Which of the following do you think accounts for the difference in price?

Import tariff

If Germany, in an attempt to bolster the sales of its own auto manufacturers, decided to limit the number of automobiles that could be brought in from other countries, Germany would be using a(n) a. embargo. b. boycott. c. exchange control. d. import tariff. e. quota

Quota

IHOP is active on Facebook, Twitter, and YouTube in order to communicate with its customers, conduct a video contest, and generally find out the customers' likes and dislikes. IHOP in this example, is engaging in ____ marketing. a. distance b. relationship c. multiple-phase d. experiential e. community

Relationship

What are convenience products?

Relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort

A specialty product: A) requires minimal effort to purchase. B) is purchased frequently. C) requires purchase planning, and the buyer will not accept substitutes. D) is generally less expensive than other items in the same product class. E) prompts the purchaser to make comparisons among alternatives

Requires purchase planning, and the buyer will not accept substitutes