Marketing 240 (Ch.10-12)- Rich Brown
A specific version of a product that can be designated as a distinct offering among an organization's products is called a _____. a. brand equity b. brand loyalty c. service mark d. product item
d
Judy decides to gift her brother a guitar for his birthday. In this case, the guitar is an example of a _____. a. business product b. consumer product c. major equipment d. brand mark
b
A _____ confirms the quality or performance of a good or service. a. warranty b. blueprint c. bar code d. persuasive label
a
Aleesha refuses to buy any toothpaste other than her preferred brand, Blassey, manufactured by Blassey's Inc. If Blassey's toothpaste is not available in her neighborhood store, she drives to another store rather than buying a different brand. Based on this information, which of the following statements is true? a. Aleesha has strong brand loyalty toward Blassey's Inc. b. Blassey's Inc. lacks individuality. c. Blassey's Inc. has benefitted from planned obsolescence. d. Aleesha only buys products from convenience stores.
a
Firms increase the depth of the product lines to a. attract buyers with different preferences. b. reduce the number of market segments. c. diversify risk across many product lines. d. invest more in production and marketing.
a
For a long time, baking soda was used only as a cooking ingredient. Recently, Nails & Hammer Co., a construction firm, began marketing baking soda as an odor absorbent. The company promoted its use in absorbing odors in homes. In this scenario, which of the following categories of new products does baking soda belong to? a. Repositioned products b. New-to-the-world products c. Existing products d. Lower-priced products
a
In a product development process, which of the following is a disadvantage of test marketing? a. It exposes the new product and its marketing mix to competitors before its introduction. b. It prevents management from evaluating alternative strategies. c. It leads to problems in assessing how well various aspects of the marketing mix fit together. d. It cannot be used to test established products
a
In the context of the new-product development process, preliminary figures for demand, cost, sales, and profitability are calculated in the _____ stage. a. business analysis b. concept testing c. test marketing d. idea screening
a
New-to-the-world products: a. represent the smallest category of new products. b. are usually not profitable. c. are offered at a lower price, but provide performance similar to competing brands. d. are slightly changed versions of existing products.
a
Sammy's Soups markets just one product: canned soup. However, it markets 27 different varieties of canned soup. Based on this information, it is evident that Sammy's Soups has a a. deep product line but a narrow product mix. b. narrow product line and a wide product mix. c. broad product line and a wide product mix. d. narrow product line but a deep product mix.
a
The U.S. service economy: a. accounts for a significant portion of the U.S.'s economic output. b. is easily distinguishable from manufacturing firms. c. is mostly composed of landscaping, salon, and daycare service businesses. d. is shrinking.
a
The Weston Candy Company is known for its inexpensive chocolates. To appeal to a more upscale market, it introduces a new line of premium chocolates that are made from the world's finest cocoa. This is an example of _____. a. quality modification b. planned obsolescence c. product placement d. functional modification
a
The _____ is a biological metaphor that traces the stages of a product's acceptance, from its introduction to its decline. a. product life cycle b. new-product development process c. concept test d. diffusion process
a
The company that owns Tulips Nation, a famous national clothing brand, is planning to market and sell its products worldwide. After some deliberation, the management decided to retain its brand name across international markets as well. The strategy adopted by Tulips Nation is an example of a(n) _____. a. one-brand-name strategy b. same-brand strategy c. individual branding strategy d. co-branding strategy
a
The rate of acceptance and diffusion of a new product will be faster when the a. benefits of using the product can be observed by others. b. product is different from existing values. c. product is complex to understand and use. d. product can be tried only on a limited basis.
a
Unlike convenience products, shopping products are a. usually expensive. b. bought by consumers regularly and without much planning. c. distributed in one or a very few outlets in a geographic area. d. widely distributed.
a
In the context of new-product ideas, _____ goes beyond applied research by converting applications into marketable products. a. product modification b. product development c. concept testing d. simulated market test
b
Which of the following best defines a product line? a. It refers to a group of closely related product items. b. It is a particular product feature that distinguishes the product from its competitors. c. It is a brand that obtains at least one-third of its earnings from outside its home country. d. It refers to the value of a company or brand name.
a
Which of the following statements is true of informational labeling? a. It helps consumers make proper product selections from a variety of choices. b. It uses words such as "new," "improved," and "super" as these are extremely persuasive. c. It focuses on a promotional theme or logo, and consumer information is secondary. d. It increases consumers' cognitive dissonance after a purchase.
a
_____ is when a product or company attempts to give the impression of environmental friendliness whether or not it is environmentally friendly. a. Greenwashing b. Cooperative branding c. Global branding d. Persuasive labeling
a
_____ refers to the follow-up activities that a service firm might engage in after a customer transaction. a. Postpurchase communication b. Internal marketing c. Word-of-mouth communication d. Nonprofit organizational marketing
a
from a worldwide perspective, which of the following statements is true of global marketers? a. They design their products to meet regulations in their major markets. b. They do not focus on meeting smaller markets' requirements. c. They develop products that are common across all markets and populations. d. They believe that all products have the potential for global market penetration without modification.
a
Which of the following statements are true about global services marketing? (Check all that apply) a. U.S. service industries have been successful in global markets because of their competitive advantages. b. The service offered in global markets may change based on consumer preferences. c. The United States is the world's largest exporter of services. d. The marketing mix elements will remain standard in all global markets.
a,b,c
In the context of the new-product development process, laboratory tests are often conducted on prototype models in the _____ stage. a. screening b. development c. test marketing d. business analysis
b
A _____ may be defined as everything, both favorable and unfavorable, that a person receives in an exchange. a. warranty b. product c. label d. trademark
b
A _____ product is a relatively inexpensive item that merits little shopping effort. a. major b. convenience c. shopping d. specialty
b
A product unknown to a potential buyer or a known product that a buyer does not actively seek is referred to as a(n) _____. a. accessory equipment b. unsought product c. homogenous shopping product d. convenience product
b
A small grocery store chain is looking to enhance its relationship marketing. If executives at the company want to reach a structural level of relationship marketing, they should: a. during checkout, give customers coupons for items they regularly purchase. b. offer grocery delivery to customers with orders placed through a mobile app that saves previous shopping lists for convenience. c. offer a loyalty card in which customers earn points to save on fuel at select gas stations. d. send the customer a $10 off $100 purchase coupon in the mail.
b
Addiso, an energy drink, was extremely popular in the early 2000s. It suffered a decline in its sales because of rising competition in the market. As a result, the manufacturers modified the product's packaging from its regular cylindrical bottle to an interesting triangular-shaped package. This led to an increase in sales. In this scenario, the modified product belongs to the category of a. additions to existing product lines. b. improvements or revisions of existing products. c. repositioned products. d. new-to-the-world products.
b
Because services are inseparable, they cannot be tried before they are purchased. To counteract this, a service firm might: a. offer discounted service prices at off peak times. b. offer a guarantee for the customer's complete satisfaction. c. offer free coffee and tea in the waiting room. d. use a robot to standardize the service.
b
In the context of adopters who participate in diffusion, which of the following individuals is most likely to be a part of the early majority? a. Evan, who obsesses over new gadgets and purchases them on the day they are launched in the market b. Stephen, who always purchases a product after conducting an in-depth research on its pros and cons c. Farhan, who buys his first desktop computer when laptops and tablets are already being widely used d. Mike, who buys an iPhone as all his friends own one and he does not want them to consider him poor
b
In the context of adopters who participate in diffusion, which of the following statements is true of innovators? a. They are characterized as being deliberate and skeptical. b. They are worldly and active outside their community than other categories. c. They tend to be suspicious of new products and alienated from a rapidly advancing society. d. They have the longest adoption time and the lowest socioeconomic status.
b
In the context of new-product development, which of the following is a global strategy adopted by many multinational corporations? a. They adopt global strategies during the commercialization stage rather than the development stage. b. They develop every product for potential worldwide distribution. c. They do not make any changes to a product's design to accommodate global regulations. d. Their products are common across all markets and populations.
b
Many multinational companies have found that they need to alter their products to meet regulations or consumer preferences in other countries. Unilever discovered that customers in emerging markets such as Indonesia, Pakistan, and Sri Lanka have use for their products, but may not be able to afford a full-size bottle of shampoo or bar of soap. As a result, when Unilever looks at new-product development for these countries, they probably: a. sell the same size products at a much lower price. b. sell single-serve packets of shampoo or soap at a low price. c. do not sell products in these countries at all. d. develop new scents of shampoo to meet customer preference.
b
Normally, the longest stage of the product life cycle is the _____. a. decline stage b. maturity stage c. growth stage d. introductory stage
b
Private label products bring 10 percent higher profit margins, on average, than manufacturers' brands because a. heavy advertising by a manufacturer negatively impacts its consumer loyalties. b. overhead cost is low and there are no marketing costs in private labels. c. private label products are sold only to a niche target market. d. private labels sell products of superior quality.
b
Product mix width refers to the number of a. market segments a firm is willing to target or serve. b. product lines an organization offers. c. competitors present in the market for a particular product item. d. product items in a product line.
b
The exclusive right to use a brand or part of a brand is known as _____. a. a blueprint b. a trademark c. brand equity d. a service mark
b
Vilante Corp., a television manufacturing firm, observes that its profits are declining because of slow sales. Therefore, it begins to promote the product to its consumers and dealers to maintain its market share. To distinguish its products from its competitors, it redesigns its television models stylistically. It also increases the product warranty from one year to three years. In this scenario, Vilante's products are in the _____ stage of the product life cycle. a. growth b. maturity c. decline d. introductory
b
Which of the following is a difference between an express warranty and an implied warranty? a. A manufacturer that promises an express warranty must meet minimum quality standards, whereas a manufacturer that promises implied warranty does not have to meet any quality standards. b. An express warranty is a written guarantee, whereas an implied warranty is an unwritten guarantee that a good or service is fit for the purpose for which it was sold. c. An express warranty is a simple statement, whereas an implied warranty consists of extensive documents written in technical language. d. A manufacturer must offer full refund under the terms and conditions of an express warranty, whereas no such refund is provided for an implied warranty
b
Which of the following is true of an organization's product mix width? a. All product items in a product mix follow a standard marketing strategy. b. Firms increase the width of their product mix to diversify risk. c. A wide product mix decreases sales and profit-making potential. d. A wide product mix means that the product line is deep.
b
Which of the following is true of simultaneous product development? a. The functional teams proceed through highly structured, sequential stages. b. All relevant functional areas participate in all stages of the development process. c. It allows firms to lengthen the product development process. d. It increases the costs involved in the product development process.
b
Which of the following refers to a personal information source? a. Managing the tangible items associated with a service b. Someone consumers admire or can relate to personally c. A concrete symbol of the service offering d. A follow-up activity that a service firm engages in
b
Which of the following statements defines a supplementary service? a. It is a service that can be stored or inventoried. b. It is a group of services that supports or enhances the core service. c. It is the most basic benefit a customer is buying. d. It is a service with consistent inputs and outputs.
b
Which of the following statements is true of brainstorming? a. Objective evaluation of ideas is advanced by group members. b. Its goal is to get a group to think of unlimited ways to solve a problem. c. Group members advocate criticism of an idea when it is ridiculous. d. The sheer quality of ideas generated during the process is what matters.
b
Which of the following statements is true of customized services? a. They are more efficient than standardized services. b. They respond to individual customers' needs. c. They usually command a relatively lower price. d. They are less flexible than standardized services.
b
Which of the following statements is true of heterogeneous shopping products? a. Decisions made in choosing heterogeneous shopping products are often highly group-oriented. b. Prices, quality, and features vary greatly from product to product. c. Consumers are satisfied picking up the lowest-priced brand. d. Consumers find it easy to compare heterogeneous shopping products.
b
Which of the following statements is true of specialty products? a. Customers do not actively seek specialty products. b. Brand names and quality of service are often very important. c. Products are available at multiple locations due to global distribution. d. Products are usually unknown to potential buyers.
b
_____ is the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. a. Business analysis b. Test marketing c. Concept testing d. Idea screening
b
_____ occurs when a company cannot recoup its development, marketing, and product costs and the company actually loses money. a. Relative product failure b. Absolute failure c. Development failure d. Perceived failure
b
_____ processing describes services that use technology or brainpower directed at a customer's assets. a. People b. Information c. Possession d. Mental stimulus
b
______ means that services are less standardized and uniform than tangible goods—there is some variability of services. a. Intangibility b. Heterogeneity c. Inseparability d. Perishability
b
A company will most likely market its product under a different name in a new market if a. the company markets only one product. b. the product requires universal identification in all its markets. c. there is difficulty in pronouncing the product name in the new market. d. the product does not have any competition in the new market.
c
A product: a. is the brand name, logo, and slogan of a company. b. may only be a tangible item. c. is everything the customer receives in an exchange. d. is the service that a customer receives after purchasing an item.
c
A service firm can create a strong organizational image by a. using real customers in its advertisements. b. simulating positive word-of-mouth communication among customers. c. managing the physical environment of the service facility. d. engaging in follow-up activities to get customer feedback.
c
Diggit D, an electronics manufacturing company, believes that its competitor, Digit Dee, has copied Diggit D's name and product lines in order to mislead people and benefit from their name. Diggit D is likely to file a case against Digit Dee under the law governing _____. a. persuasive labeling b. greenwashing c. trademark infringement d. co-branding
c
In the context of service processes, which of the following is true of possession processing? a. It describes services that use brainpower directed at a customer's assets. b. It refers to services that are directed at people's minds. c. It occurs when services are directed at customers' physical belongings. d. It takes place when a service is directed at a customer.
c
In the product development process, _____ eliminates ideas that are inconsistent with an organization's new-product strategy or are obviously inappropriate for some other reason. a. test marketing b. business analysis c. screening d. brainstorming
c
In thinking about relationship marketing in services, the least effective level of relationship marketing in the long term is: a. social. b. customization. c. financial. d. structural.
c
In thinking about target markets for nonprofit organizations, which of the following is true? a. The target markets of nonprofit organizations are generally difficult to reach. b. Nonprofit organizations must compete against for-profit organizations for a target market's attention. c. Customers in a nonprofit's target market may be reluctant or strongly opposed to receiving their services. d. Nonprofit organizations segment their target markets by demographics only, making income the main factor in their marketing efforts.
c
The decision to commercialize a product involves _____. a. additive manufacturing b. discontinuous innovations c. building inventories d. concept testing
c
The purpose of packaging is to a. protect a brand name from being declared a generic product name. b. secure the right of a company to use a brand or part of a brand. c. protect products from breakage, spoilage, light, and other conditions. d. even out seasonal sales patterns.
c
The service offering can be viewed as a bundle of activities that includes the _____ service, which is the most basic benefit the customer is buying. a. supplementary b. heterogeneous c. core d. inseparable
c
The universal product code (UPC) is a a. series of numbers that uniquely identifies a company's product line after obtaining a trademark. b. name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products. c. series of thick and thin vertical lines read by computerized optical scanners that match codes with brand names, package sizes, and prices. d. name that identifies a product by class or type and therefore cannot be trademarked.
c
Unlike the one-brand-name strategy, the strategy of using a different brand name in different markets a. provides greater ease in coordinating promotion from market to market. b. provides for greater identification of a product from market to market. c. is more useful when a marketer wants the brand to appear as a local brand. d. is more useful when a company mainly markets one product.
c
When a firm plans to enter a foreign market with an existing product, a one-brand-name strategy a. benefits companies that market a wide variety of products. b. facilitates the identification of the product as a local brand. c. provides for greater identification of the product from market to market. d. makes it more difficult to identify the products from market to market.
c
When you dine at a restaurant and order a hamburger, the implied warranty could be: a. that it is made with 100% grass-fed beef, as stated on the menu. b. that it comes with the toppings described on the menu. c. that it is edible. d. that your complete satisfaction is guaranteed.
c
Which of the following statements best defines the term diffusion? a. It is the process by which a product is perceived as new by a potential adopter. b. It is the process of developing a prototype of a new product. c. It is the process by which the adoption of an innovation spreads. d. It is the process of deciding whether or not to market a product.
c
Which of the following statements is true of a product? a. Consumer products and industrial products are differentiated based on price. b. The marketing process differs depending on whether the product marketed is a good or a service. c. It may be a tangible good, a service, an idea, or any combination of these three. d. An excellent distribution channel and a persuasive promotion campaign can compensate for an inferior product.
c
Which of the following statements is true of brand loyalty? a. The best generator of repeat sales is unsatisfied customers. b. Brand loyalty is influenced only by the price of a product. c. Brand identity is essential to develop brand loyalty. d. Brand loyalty is not affected by product quality.
c
Which of the following statements is true of branding? a. It enables manufacturers to reduce manufacturing and shipping costs. b. It protects goods as they move through packaging channels. c. It allows marketers to distinguish their products from their competitor's products. d. It reinforces the exclusive right of a company to manufacture a particular product line.
c
Which of the following statements is true of commercialization? a. It refers to limited introduction of a product. b. It refers to the launch of a new product. c. It refers to the decision to market a product. d. It refers to the adoption of an innovation.
c
Which of the following statements is true of packaging? a. It restricts manufacturers from marketing products in specific quantities, such as ounces. b. It increases cognitive dissonance of consumers after product purchase. c. It holds contents together and protects goods as they move through the distribution channel. d. It groups products of similar characteristics and functions produced by different manufacturers.
c
Which of the following types of co-branding has advertised or marketed products together to suggest usage? a. Cooperative branding b. Captive branding c. Complementary branding d. Ingredient branding
c
You've just joined a marketing and sales fraternity on campus. At your first meeting you met Robert, who is also a huge Green Bay Packers fan. Robert suggests you get together to watch the game the on Sunday. You ask for Robert's cell phone number and he replies that he doesn't own a cell phone. Robert is likely: a. a late adopter. b. an innovator. c. a laggard. d. an early adopter.
c
_____ is the degree to which a new product is consistent with existing values and product knowledge, past experiences, and current needs. a. Complexity b. Trialability c. Compatibility d. Observability
c
A _____ identifies goods in terms of class or type and cannot be trademarked. a. service mark b. private label c. store brand d. generic product name
d
A difference between a consumer product and a business product is that, unlike a business product, a consumer product is a. used to manufacture business goods or services. b. used to facilitate an organization's operations. c. resold to other consumers. d. bought to satisfy an individual's personal wants.
d
Bethnik Blu, a high-quality paints manufacturer, markets its paints as eco-friendly products that contain no traces of harmful petrochemical byproducts. In this scenario, Bethnik Blu is implementing _____ in order to sell its products. a. individual branding b. brand equity c. global branding d. greenwashing
d
How does the product life cycle concept help marketing managers? a. It shows marketers the appropriate marketing strategies to sell a new product. b. It tells marketers the length of a product's life cycle. c. It suggests how to position a product to extend its life cycle. d. It helps marketers forecast future events and suggest appropriate strategies.
d
In the context of the product life cycle, which of the following is true of a product's growth stage? a. Instead of stimulating demand for a specific brand, demand for the product is stimulated. b. Emphasis switches from aggressive brand advertising to primary demand promotion. c. Profits rise and remain at their peak throughout the phase. d. Competition intensifies as more competitors enter the market
d
In the new-product development process, which of the following statements is true of the development stage? a. Preliminary figures for demand, cost, sales, and profitability are calculated for the first time. b. A group thinks of unlimited ways to vary the product or solve a problem. c. Ideas that are inconsistent with an organization's new-product strategy are eliminated. d. The marketing department should decide on the product's packaging, branding, labeling, and so forth.
d
Nike recently released the Air Jordan XXXII basketball shoe. This shoe style is in its 32nd iteration and would be considered: a. a new product line. b. a repositioned product. c. an addition to an existing product line. d. an improvement or revision of an existing product.
d
One of the reasons for new-product failures is that the products a. are promoted continuously at regular intervals. b. do not match their features with the competitors' products. c. are test marketed in locations isolated from the media. d. offer no discernible benefits compared to existing products.
d
The gap model of service quality a. traces the stages of a service's acceptance from its introduction to its decline. b. links service quality with the objectives of a business unit and a corporation. c. categorizes an organization's services into four groups based on their importance and effect on the growth of the organization. d. identifies areas that can cause problems in service delivery and influence customer evaluations of service quality.
d
The goal of internal marketing is to: a. offer financial incentives to employees who refer their friends and family to purchase the company's services. b. offer customers special rewards in an effort to earn their loyalty. c. remind employees of the company's service expectations through internal training and memos. d. treat and reward employees well so that they provide excellent customer service.
d
The research and development (R&D) team of DataCom Corp., a software firm, holds a meeting to discuss potential ideas for new products. In the meeting, the moderator encourages everyone to share their ideas, no matter how trivial they may seem. He warns members against criticizing any idea and asks them to focus on offering plenty of ideas. In this scenario, the R&D team of DataCom is engaged in _____. a. idea screening b. beta testing c. concept testing d. brainstorming
d
When all the containers and boxes of a product line have a common look while still being able to keep their individual identities, it is considered to have _____. a. brand equity b. equivalent quality c. package uniformity d. brand loyalty
d
When consumers search extensively for a particular item and are very reluctant to accept substitutes, that item is a(n) _____. a. shopping product b. convenience product c. unsought product d. specialty product
d
Which of the following is a characteristic of early adopters? a. They are less eager to try new ideas. b. They are more influenced by global marketers. c. They rely less on group norms and values. d. They are more oriented to the local community.
d
Which of the following is true of a concept test? a. It is accurate in predicting the success of new products that create new consumption patterns. b. It is often used at the development stage to rate product alternatives. c. It is used to evaluate new products after their prototypes have been created. d. It is considered a fairly good predictor of success for line extensions.
d
Which of the following statements is true of a new-product strategy? a. It is the last stage of a formal new-product development process. b. It refrains from adopting ideas suggested by customers and competitors. c. It is limited to product development and does not play a role in overall marketing strategy. d. It provides general guidelines for generating, screening, and evaluating new-product ideas.
d
Which of the following statements is true of a warranty? a. It helps retailers rapidly and accurately prepare records of consumer purchases and track sales. b. It focuses on a promotional theme or logo, while consumer information is secondary. c. It gives a company the exclusive right to use a brand or a part of a brand. d. It protects a buyer and gives essential information about a product
d
Which of the following statements is true of absolute failure? a. It occurs when a product achieves sales and market share goals but fails to achieve profit goals. b. It results when a company sells its products at bargain prices to make a profit. c. It results when a product returns a profit but fails to achieve sales, profit, or market share goals. d. It occurs when a company fails to recoup its development, marketing, and production costs.
d
Which of the following statements is true of convenience products? a. Distribution of such products is often limited to one or a very few outlets in a geographic area. b. Marketers of convenience products often use selective, status-conscious advertising. c. They are more expensive than shopping products. d. Consumers buy these products regularly, usually without much planning.
d
Which of the following statements is true of laggards? a. They want to be opinion leaders. b. Their views about the future heavily influence their decisions. c. They have a worldly outlook. d. Their independence is rooted in their ties to tradition.
d
Which of the following statements is true of the business analysis stage of the new-product development process? a. The firm should start sketching a marketing strategy. b. Established products are test marketed to assess new marketing strategies. c. Objective evaluation of ideas is postponed. d. For the first time, costs and revenues are estimated and compared.
d
Which of the following statements is true of the decline stage of the product life cycle? a. Firms spend heavily on advertising to educate consumers about the product's benefits. b. Manufacturers undertake heavy consumer promotion because of stiff competition. c. Companies lengthen product lines to appeal to additional market segments. d. The rate of decline is governed by how rapidly substitute products are adopted.
d
_____ refers to changes in a product's versatility, effectiveness, convenience, or safety. a. Family branding b. Style modification c. Co-branding d. Functional modification
d
_____-oriented pricing is a price strategy that involves varying the price of a service with different market segments' ability to pay. a. Revenue b. Market c. Operations d. Patronage
d