Marketing Exam 2
Best Buy provides its "Geek Squad" service to support sales of its computers and software. Providing such "value-added" to customers helps accomplish which of the following?
-Helps differentiates Best Buy from competing resellers -Provides Best Buy with a source of competitive advantage -Generates added sales revenue -Allows Best Buy to better compete with Internet resellers (All of the above)
When all or most of the product items in a firm's product mix bear the same brand name, the branding strategy is called brand extension.
false Rationale: This is a family branding strategy. Brand extension is a special case of family branding in which the family brand is employed on new products in new and generally unrelated product categories.
Keurig is famous for its state-of-the-art coffee maker, but the company also makes other small appliances, such as an ice cream maker. Each product bears the Keurig name and carries on the Keurig reputation for high quality. Keurig uses _____ branding.
family
Today's smart phones are highly evolved extensions of the older communications and computer technologies. The core function and benefit of smart phones is still that they permit people to communicate with other people. Smart phones when initially introduced as a product category were ___________.
Dynamically continuous innovations
____________ generally arises when two or more product ideas are combined in such a way that customers face some re-learning with respect to the new product's functions and usage.
Dynamically continuous innovations
____________ innovations are significant improvements on their parent innovations, but not nearly as disruptive in terms of the amount of re-learning involved to adopt the innovation for personal use. Examples include notebook computers, DVRs, commercial and military jet aircraft, and digital photography.
Dynamically continuous innovations
Controlled test markets are most likely to be conducted for which type of new product innovation?
Dynamically continuous innovations.
Which of the following features are generally part of the affective brand?
Emotions and higher level associations
Which of the following is not considered a type of organizational market?
Employees of non-profit organizations who buy products for personal consumption.
The 'level of product' that most closely represents the 'extra utility' provided by services such as credit, warrantees, delivery, post-sale service, etc. is called the:
Enhanced product
Additives such as NutraSweet, a chemical sweetener, are combined with other ingredients to make food products. In the process, they lose their distinct identities. One can no longer tell NutraSweet from other ingredients used to make candy bars or soft drinks. NutraSweet is a:
Fabricating material.
The presence of a known brand on a product helps the consumer in a number of ways, including providing immediate knowledge of the price charged for the brand.
False Rationale: Branding does not provide immediate knowledge of prices. Prices are set by resellers using a number of criteria. Branding can, however, suggest a probable price range to be expected.
Jennifer is marketing manager for a major consumer goods firm. She is interested in determining if market opportunity exists for the sales of a new brand of organic, gluten free line of ready-made dinners. Jennifer knows that the market for ready-made dinners is very large and heterogeneous and wants to more precisely pinpoint those customers within this market that are most likely to respond favorably to the new brand. Apparently, Jennifer is interested in how to best promote her new brand.
False. Jennifer should be more interested in market segmentation at this point
When all or most of a firm's product mix features the same brand name, the branding strategy is called:
Family branding
Product categories most appropriate for segmenting consumers of those products into usage rate segments include:
Fast food, snacks, and beverages
Some firms find it attractive to target "niches" because:
Firms can gain a competitive advantage by 'specializing' on serving the more narrowly defined needs of customers in niches.
The requirement that market segments be "actionable" includes
Firms have the financial resources to target the market segments desired Firms' employees possess the necessary skill sets to capture sales in the desired segments There exist adequate media channels to communicate with customers in targeted segments There exist proper distribution channels to move products into the hands of consumer in targeted segments
Ongoing NPD programs in firms are important for all of the following reasons
Firms' older existing products eventually enter decline Firms can use NPD efforts to create points of differentiation with their competitors Firms can use NPD efforts to create sustainable competitive advantages over other firms. Strong NPD programs yielding creative new products increases the firm's ability to compete in global markets.
Sellers of organizational products generally try to ultimately target key decision makers with their sales presentations. However, they must first get through the various clerks, administrative assistants, and lower-level purchasing personnel who are performing which role in the buying center?
Gatekeeper
Developing an NPD protocol is a major component of which stage in the NPD process?
Go-to-market strategy
Consistent with the ___________ most intangible services contain a product component, just as many tangible products contain a service component. There may be no such thing as either a pure service or pure product.
Goods-services continuum.
Campbell's Soup company recently ran a series of ads on TV in which a variety of new recipes for its soups were featured. This strategy generally is employed for products that are at the ______ stages of the PLC.
Growth & maturity.
You are the brand manager for Tide (P&G brand) and are considering ways to revive lagging sales. Recognizing that your brand and the product category as a whole are 'mature,' you are examining several strategic options. Which of the following is least likely to be a viable alternative to accomplish your sales goals?
Harvest the brand.
The classification scheme for consumer products divides these products into three basic categories defined by:
How much effort is expended in the purchase process
_____________ measures how much the demand for a product changes (up or down) as the price for that product increases or decreases.
Price elasticity of demand
Due to shortages in raw materials, all firms in the micro-chip industry increased their prices to their customers. Yet demand for chips did not change. This suggests that the demand for micro-chips is _____________ under these conditions.
Price inelastic
When total revenue (price x quantity sold) decreases as price decreases, demand is said to be ____________ .
Price inelastic
Probably the single most important invention in history that changed the world forever was the ___________ .
Printing press
Sony Corporation conducted a series of consumer use tests in the 1990's in which consumers were given samples of its experimental digital camera. Participants were instructed to use the camera for all their picture-taking for the next 30 days. At the end of that time, participants were asked to a focus group session in which they were encouraged to elaborate on their usage experiences. Sony hoped that ideas for product modifications would emerge from the focus group that could be incorporated into the camera's final design. Sony was most likely employing which new product idea generation technique?
Problem analysis.
A firm that wants to sustain its revenues should engage in new product development because:
Products inevitably pass through a life cycle that culminates in the demise of the product
Which of the following is least representative of the installation as an organizational product?
Purchase decisions tend be solely the responsibility of purchasing agents.
Which of the following is not a role performed in a firm's buying center?
Purchasing agent
In a firm's buying center, the deciders for products purchased on straight rebuy bases generally are _________ .
Purchasing agents
To effectively segment markets, several conditions must be met. However, segments being accessible via communications and distribution channels is the exception.
Rationale: False. This condition is necessary.
Normally geographic roll-out for a new product begins in geographic areas distant from the product's original test market locations in case further test marketing may be required for fine-tuning the marketing mix as commercialization progresses.
Rationale: Feedback: False. Roll-out normally occurs first in those areas closest to the test locations to reduce costs and provide added incremental testing.
A furniture manufacturer may choose to buy wood and other materials from a producer who, in turn, agrees to furnish its office with furniture produced by the manufacturer. This situation is an example of ___________ .
Reciprocity
Hismanal is a drug that will eliminate all of your seasonal allergy complaints without making you drowsy. In terms of currently available allergy remedies that do make many people drowsy, Hismanal has greater ______ for allergy sufferers, which should speed its diffusion rate.
Relative advantage
The requirement that a new product (innovation) perform in a superior manner at fulfilling customers' needs (as compared to existing products) means that the new product possesses higher ____________ .
Relative value
Governmental agencies normally use ___________to solicit qualified suppliers to submit bids for needed products and services. The request typically contains all purchasing requirements, specifications, and deadlines that must be satisfied
Requests for proposals
The Department of the Navy in its efforts to better equip its SEAL teams to fight the global war on terrorism want to design a silent, maneuverable, defensible underwater delivery system. There are only a few firms that are qualified to build such systems. The Navy will probably employ negotiated contracting for the purchase and will initiate the process using:
Requests for quote
One of the difficulties with using family branding is that the strategy:
Requires a great emphasis on consistent quality.
Wholesaling middlemen and retailers are considered to be part of the _____________ organizational market.
Reseller
__________ normally do not transform products in any way. Usually, products are sold to the next supply chain member without any modification.
Resellers
_____________ is the traditional organization for new product development, is a linear structure in which individual departments work their portion of the project and then hand-off the results to the next department to begin their part.
Sequential product development.
Which of the following is not a component of the services marketing mix?
Service quality.
Jill is a very deliberate buyer. She is very risk averse and is always careful to ensure that she makes the best decision possible for her precious dollars. Jill prefers to buy known brands because:
She knows what to expect in terms of quality and performance. It saves her time and makes the decision process easier
Which of the following is LEAST likely to contribute to the general increase in profits experienced by products that have entered the growth phase of the PLC?
Spending on advertising and other forms of promotion tends to be drastically reduced during this stage.
Decisions for organizational products that are usually made by purchasing agents and for which the purchase order may simply be placed with existing vendors that usually supplies these products is the:
Straight rebuy
James is a purchasing agent for Peterbuilt and has responsibility for purchasing and stocking MRO items employed to maintain Peterbuilt's office facilities. James normally automatically reorders from the same vendors when supplies run low. This is an example of what type of organization purchase decision?
Straight rebuy decision
With the searching for and qualifying vendors stage of the organizational decision process, vendors are often selected from pre-approved vendor lists. This probably is most often encountered with:
Straight rebuy decisions
New product development (NPD) is essential because it leads to ___________.
Sustainable points of differentiation Sustainable competitive advantages
Organizational buyers often seek to purchase "total solutions" to their procurement problems by contracting with a single vendor who, may in turn, subcontract aspects of the contract to other vendors. This trend is called __________ .
System buying
When the US Navy contracts with a single weapons system manufacturer for a new complex carrier defense system and that manufacturer subcontracts production of some components of the system to other manufacturers, the Navy is engaging in ________________ .
System buying
Organizational buyers benefit from __________ because it substantially reduces the cost of maintaining inventory of MRO items, reduces the time spent on supplier selection decisions, and offers price protection over the term of the contract.
Systems contracting
UNT typically procures its entire supply of Maintenance, Repair, and Operating (MRO) items, requiring that the supplier track inventory and automatically restock items as required. UNT has engaged in:
Systems contracting
_______________ applies to marketing supplies of Maintenance, Repair, and Operating (MRO) items. Firms contract with suppliers of these items to provide for their entire MRO needs.
Systems contracting
Assume the US Navy contracts with a single weapons system manufacture for a new complex carrier defense system and that manufacturer subcontracts production of some components of the system to other manufacturers. Manufacturers that provide these contracting services to the Navy are said to be engaged in:
Systems selling
Which of the following is least characteristic of the purchasing decisions classified as new task?
The decision process is generally quick and often dominated by purchasing agents
When new products are being introduced, marketers must structure or influence consumers' basic knowledge or understanding of the benefits delivered by the brand. Marketing managers therefore are focusing on structuring aspects of the core values of the physical brand.
True
The part of the brand that consists of words, letters, and/or numbers that can be vocalized is called the brand name.
True Rationale: The brand name is brand identifier that is verbalized.
Consumers are buying _______________ goods when they switch between brands of convenience goods out of boredom or the desire to change. Purchases may have been preplanned in that consumers "knew" they were going to purchase a specific product or brand but changed their minds in-store, deciding to try something different.
Variety-seeking
Al works as a cement finisher for a parking lot repaving company. He is suspicious of innovation and innovators. He was one of the very last people in the small Western city in which he lives to buy a microwave oven. When it comes to the adoption of microwave ovens, Al is in the _____ category.
laggards
Dial Company introduced liquid soap in 1988. Today competition in the industry is intense. The manufacturers of liquid soap are adopting a defensive positioning strategy and intensive product distribution. Their promotions appeal to brand loyalty. From this information, you know that liquid soap is in the _____ stage of its product life cycle.
maturity
When marketers measure the types of communications and promotional media consumers prefer they are assessing their
mediagraphics
Tara Foods of Georgia produces a wide range of peanut butters and food extracts, but does not sell any of its output under its own brand name. Tara evidently produces __________ .
middlemen's brands
From a consumer's point of view, a major benefit of branding (i.e. the fact that products carry identifiable brands) is that it increases price competition for products.
false Rationale: Price competition tends to be reduced by branding because individual brands can develop differentiated positions that make it harder for consumers to directly compare prices.
Middlemen stock and sell producers' brands mainly because their margins tend to be higher than for their own private label brands. Type: True or False
false Rationale: This is False. Margins are typically higher for the retailer's own private label brands.
Jill is a very deliberate buyer. She is very risk averse and is always careful to ensure that she makes the best decision possible for her precious dollars. Jill prefers to buy known brands because it makes it easier to compare prices.
false Rationale: False because branding tends to make direct price comparisons harder since individual brands can be differentiated from one another in terms of benefits, features, services, promotional associations, etc.
Cannibalization of sales is most likely to be greater with the brand extension strategy.
false Rationale: False. Cannibalization is likely to greatest when using flanker branding since these brands exist in same the same product line.
When Excedrin introduced its new Excedrin Migraine into its product line of pain relievers, it was introducing a flanker brand
false Rationale: False. It was introducing a line extension.
Retailers such as Kroger market their own private label brands primarily to encourage consumers to comparison shop.
false Rationale: False. Private label brands typically provide added value to customers and generate substantial revenue for retailers.
The makers of Rollerblade ran a series of ads with the headline "What's in a name? Everything." Based solely on the headline, the ad probably was attempting to rejuvenate sales for the declining brand.
false Rationale: False. The ad was intended to remind consumers that the Rollerblade brand is trademarked and should not be confused with other brands of inline skate.
When automotive dealers emphasize the quality of their friendly and expert service at dealerships, comfortable and clean waiting rooms at service facilities, liberal financing options, and no pressure sales, they are attempting to influence customers' perceptions of the core values level of brand.
false Rationale: Marketers are attempting to structure perceptions of the enhanced brand.
The affective brand consists of the basic benefits, features, and quality delivered by the product.
false Rationale: The affective brand captures the consumer's emotions and usage associations.
The failure of 'New Coke' illustrates the danger of ignoring the importance of the enhanced brand with respect to its contribution to the consumer's overall brand image.
false Rationale: The failure of New Coke is traced to research failing to recognize the importance of the affective brand.
Which of the following is characteristic of the modified rebuy in organizational purchasing?
-A limited number of alternative products and/or vendors will be considered -The decision is generally triggered by a change in some environmental event -"Out suppliers" may try to trigger the modified rebuy by attempting to get buyers to consider the merits of their offerings over the merits of products currently used -Can evolve from purchases that previously were new task or straight rebuy All of the above
Organizational buyers are more likely to buy direct from the manufacturers of products when:
-The products are complex and expensive pieces of equipment that may require custom design and installation. -The organizational buyer purchases in very large volumes (c and d above are correct)
Which stage in the family lifecycle is associated with consumers who prefer sports cars, recreational products, entertainment, and fashion clothing?
young singles
Beta tests during NPD normally use:
Actual consumers during normal use.
__________ means that the demand for organizational goods and services is ultimately a function of the demand for consumer goods and services.
Derived demand
Once new product ideas are screened to weed out poor promising ideas, the next step is to:
Develop the ideas into workable 'product concepts' for possible testing with consumers
In commoditized markets, the likelihood of price and market share wars can be reduced if firms successfully ______________ their brands through their NPD efforts.
Differentiate
Cannibalization of sales is most likely greater with which of the following branding strategies?
Flanker branding. (correct)
Which of the following best explains why the Kroger supermarket chain markets its own line of canned fruits and vegetables under the Kroger private label?
Kroger can sell its brands at prices below those of producers' brands and still earn satisfactory profits.
James is a purchasing agent for Peterbuilt and has responsibility for purchasing and stocking MRO items employed to maintain Peterbuilt's office facilities. James normally automatically reorders from the same vendors when supplies run low. However, the current vendor has not been performing as expected. Deliveries have been delayed and quality of some items has not been up to speed. James probably will initiate a(n):
Modified rebuy decision
Apple computers have been characterized as "works of art" rather than just computers. Apple's focus on design aesthetics and functionality has proven a key ingredient to Apple's success. Apple is doing a great job of managing the ____________ level of product.
Physical
Organizational buyers often seek to purchase "total solutions" to their procurement problems by contracting with a single vendor who, may in turn, subcontract aspects of the contract to other vendors. Vendors who provide such services are said to be engaged in:
Systems selling
using NPD teams
The teams are cross-functional with personnel drawn from multiple departments in the firm. Suppliers and customers may be team members. The use of teams transforms the NPD process into a holistic process. Each team member has an equal stake and remains on the team for the duration of the process.
Examine the image. "Tony the Tiger" best illustrates which of the following?
a trade character Rationale: Trade characters are animated brand marks used to identify a specific Firm's brand.
Jeremy runs a SCUBA diving shop in Cozumel, Mexico. Jeremy has tailored his diving operation to serve serious divers preferring deeper diving profiles and longer dives. His marketing program is geared specifically to attract this type of diver. Jeremy is using a ___________ targeting approach to target marketing
concentrated targeting approach
Clothing manufacturer Van Heusen produces lines of its apparel specifically targeted to consumers who visit its factory outlet stores. These lines are slightly lower in quality and sell at significantly lower price points. In terms of NPD, these additional product lines are categorized as _____________.
continuos innovations
In-store stimuli such as end-of-aisle displays, shelf coupons, or free samples are often enough to stimulate purchases of ____________ goods.
convenience
In which of the adopter categories will opinion leaders most likely be found?
early adopters
____________ are products which consumers use up and must restock quickly. Alternatively, a unique need might arise that requires immediate satisfaction, such as an umbrella on a rainy day. Consumers are generally more concerned with time and place utility when making purchases for _____________ goods. These purchase conditions make consumers less price sensitive and willing to pay more to obtain the product when and where it is needed.
emergency
When new products are being introduced, marketers must structure or influence consumers' basic knowledge or understanding of the benefits delivered by the brand. Marketing managers therefore are focusing on structuring aspects of the ___________.
extended brand
Like many characters created for commercials, the Chihuahua in the Taco Bell commercials has appeared on T-shirts, caps, cups, and posters--some licensed, many not. Soon some other commercials will capture the attention of the American consumer, and some other character(s) will appear on T-shirts, caps, cups, and posters. These commercial-derived products are examples of:
fads
The totality of synaptic associations in a consumer's mind that hold all the feelings, images, sensations, experiences, and other content representing a brand is called brand position.
false Rationale: The totality of association in the consumer's mind for a brand is called the brand schema and it is responsible for determining the brand's image and position in the consumer's mind.
Which of the following is not true about leasing arrangements made by organizational buyers for products?
lease agreements typically cover a longer timeframe than purchases of equivalently products.
When Excedrin introduced its new Excedrin Migraine into its product line of pain relievers, it was introducing a:
line extension
Lucas is marketing manager for Monster, a producer of energy drinks. A primary market segment targeted by Monster is the fitness market. Lucas estimates that the size of this market exceeds $6.3 billion per year. In addition, Lucas estimates that Monster can garner 12% of this market, or $.756 billion. The upper estimate of $6.3 billion is the _______________ for all energy drinks.
market potential
_______________ can be viewed as the process of aggregating together "similar" consumers or organizations based on similarities in their consumption, demographic, attitudinal, and psychographic characteristics.
market segmentation
With respect to the diffusion of innovations, the combined categories Early Majority and Late Majority are said to comprise the _____________ for a given product.
mass market
The large, heterogeneous market from which specific submarkets (market segments) are drawn is also called the:
mass market or total product market
Mined products, forestry products, and agricultural products are typically classified as:
raw materials
_____________ is the process of strategically changing the brand's current image or personality.
repositioning
Consumers typically possess very strong brand preferences for ______ goods. When such brand preferences exist, the consumer will accept no substitutes. "Exclusive distribution" is most associated with the distribution of ____________ goods.
speciality
Candice insists on buying only Revlon cosmetics. Rather than purchasing other brands when Revlon is not available, Candice will postpone her purchase or drive substantial distances to find her preferred brand. To Candice, Revlon is what marketers refer to as a
specialty product
__________ are regularly purchased and consumed for basic lifestyle maintenance. Consumers typically restock these goods when visiting supermarkets. These goods routinely end up on shopping lists.
staple
Management is in the _____________ stage of the new-product development process when it estimates market demand and prepares cost estimates for the new product. Detailed financial projections associated for proposed new products that build on the product's are made during which stage of the new product development process?
strategic business analysis
A trademark is any brand identifier that is given legal protection because, under the law, it has been developed and adopted by one seller.
true Rationale: Firms can trademark any name, design, symbol, sound or other descriptor that uniquely identifies their brands.
Market potential is the _________ bound on sales for all firms in a given industry of a product sold to a specific market in a specified period of time.
upper
The biggest potential drawback to the co-branding strategy is:
The risk of damaging a brand name if the cooperative endeavor fails. The possibility that the new co-branded product does not "fit" with the consumers' the image of either partnering brand.
Procter & Gamble produce and market Zest, Safeguard, Camay, and Lava brand bar soaps, among other personal care products. Zest is a refreshing "morning wake-up" soap. Safeguard is positioned as antibacterial. Camay is a gentle cleansing soap. Lava is for tough cleaning jobs. These different brands illustrate the use of:
a multiple brand strategy
Market segmentation is the process of subdividing heterogenous consumer or organizational markets into more homogeneous submarkets.
true
Mediagraphics is a category of variables commonly used to profile market segments once these segments are created.
true
One of the difficulties with using family branding is that the strategy requires a great emphasis on consistent quality.
true
Positive brand equity allows firms to launch new products more easily.
true
The 'level of product' that is associated with the product's brand name, features, style, inherent quality and reliability, and functionality is called the:
physical product
Products purchased for use in business operations, or for resale to other organizations, or as a part employed in the production or another product are referred to as:
Organizational products
When products are purchased that will be used to operate an organization or will be made into products, these products are called ______________ .
Organizational products
When BP buys drilling equipment and ships for the exploration, extraction, and shipment of oil it is in which type of organizational market?
Other producer
All of the products offered for sale by a firm characterize its:
Product mix.
A 24V battery-powered hand drill made by Black & Decker that is sold to a small manufacturer is best classified as:
Accessory equipment
___________ is a more structured form of brainstorming session in which the characteristics and functions of a specific product (e.g. a screw driver) are presented to the group and the task is to brainstorm ways to improve on those characteristics and functions.
Attribute listing.
Often conducted in a focus group setting, ______________is usually a customer-based process in which consumers are asked to elucidate on issues they have encountered using certain products or brands.
Attributed listing.
Apple's Newton PDA and McDonalds' Arch Deluxe both were new product failures primary due to:
Bad timing of launch. Both were launched before the market was ready for them.
Which of the following is the most likely reason the advertiser ran the Rollerblade ad below?
Because the brand is in danger of becoming 'generic' and the ad emphasizes the equity associated with brand ownership.
The ____________ in organizations consists of all people involved in the decision making process, formally or informally, for products and services that may be purchased by the firm.
Buying centers
In contrast to the buying center in a firm which tends to operate more on an informal basis, _____________ are formally tasked by management to engage in the decision process for risky and expensive products or services that may be purchased by the firm.
Buying committees
Because many consumers see no differences between products at the basic level, proper management of the ___________ level of product allows the firm to differentiate its product from those of competitors.
Enhanced product
The general purpose of the branding strategy called "over-branding" is to:
Change a brand's name gradually over time.
When microwave ovens were introduced in the early 1960s, they were slow to be adopted. Although the ovens scored very high on relative advantage, they were deemed to be inconsistent with the wife's role in the kitchen and perceptions on how food should be prepared. Which of the following factors that influence how rapidly new products diffuse was most likely the culprit?'
Compatibility
Dupont's Quallofil is an insulating material used in multiple applications. One natural application is as the insulating material in sleeping bags. Quallofil is considered to be a:
Component part.
For which of the following situations is a test market least likely to be needed?
Consumer acceptance of the new product is uncertain. Sales and profit potential are difficult to estimate. Costs of developing consumer interest and trial are uncertain. A major investment is required in the new product's production and marketing. The new product is a line extension in the firm's existing portfolio. (correct)
Which of the following is not correct? Good brand names should:
Exploit verbal traps
Product use test (user tests) are normally conducted during which stage of NPD?
Prototype development
Which of the following firms engage extensively in brand licensing?
Harley-Davidson
Which answer is correct? Positive brand equity can:
Increase the "share of mind" space enjoyed by the branded product. Be used by firms to launch new products more easily. Charge higher prices and not lose market share.
Which of the following is an unlikely management strategy to use for a product in the decline stage of its product life cycle?
Increase the depth of the product line by adding new line extensions or flanker brands.
The requirement that a new product (innovation) be reasonably easy to understand and use means that the new product possesses ____________ .
Low complexity
Procter and Gamble makes extensive use of multiple branding for items in most of its product lines. Which of the following is least likely to be an advantage of this strategy?
Makes it easier and cheaper to launch new products due to the common image associated with all P&G brands.
____________ are used by the federal government for the purchase of complex products that must be custom designed for specialized government applications. These products often require extensive research, development, and custom tailoring to satisfy government needs.
Negotiated contracts
Most new product failures resulting from overestimating demand probably can be traced to ____________ .
Poorly conducted marketing research or no research.
The firm's primary purpose for segmenting larger markets into more homogeneous submarkets in which members share common consumption, demographic, psychographic, and attitudinal characteristics is that members of such segments tend to:
Prefer similar products possessing similar product features, attributes, and benefits. Respond similarly to a given promotional messages React similarly to the same pricing strategies Prefer to buy through the same distribution channels
he need to reposition a brand arises in all of the following situations:
The brand is not sufficiently differentiated from competing brands Key market demographics and / or psychographics change. Current sales are insufficient to justify the current position
A mass-marketing strategy is most likely to work when:
The product being marketed is in the early stages of its product life cycle The product being sold is not easily differentiated from other brands of the same product Little competition exists from other brands Market segments exist but are too small to effectively target individually
Which of the following would not be considered as an example of an organizational market?
The CEO of Home Depot buys appliances for his personal residence
According to the text, what can be said about the general quality of products made in the US today?
The delivery of high quality now is viewed as a necessary condition to effectively compete in industries.
Most new product ideas come from:
The firm's own employees and supply chain partners.
Alpha tests during NPD normally use:
The firm's own employees.
The 'core values' component of the basic product is most closely associated with:
The fundamental benefits that the product delivers to buyers.
The distinct lettering that identifies a brand is generally referred to as:
The logo or logotype Rationale: The distinctive lettering is the logo or logotype. The logo is part of the overall brand mark.
Ads and packaging for Vaseline always present the brand as Vaseline brand petroleum jelly because
The manufacturer hopes that by linking the brand name with a name for the product category, the Vaseline brand will be protected from becoming generic in use
The breadth or width of a firm's product mix refers to:
The number of product lines carried.
Which answer is not correct: Brands tell customers:
The price of a product
Because services are simultaneously produced and delivered, they cannot be separated from the persons who deliver them. The quality of the service and utility (value) delivered to customers result from the efforts of those who perform the service. This reflects which characteristic of services?
Their inseparability
___________ is employed by manufacturers and their suppliers to reduce or control the costs of component parts and other materials via a careful study of how processes, procedures, and parts might be redesigned and/or standardized across a range of products the manufacturer may produce.
Value analysis
Frito Lay test marketed a new flavored potato chip fundamentally identical to Procter & Gamble's Pringles line of chips. Sales were disappointing as revenues were not even high enough to cover the product's costs. Frito Lay decided not to commercialize the product primarily because the were afraid the product would be a(n) _______________ ?
absolute failure
When producers of beer brands, such as Coors Light, Bud Light, and Miller Lite depict their brands being consumed in festive party settings they are attempting to structure or manage the ________ level of brand.
affective
The failure of 'New Coke' illustrates the danger of ignoring the importance of the _______________ with respect to its contribution to the consumer's overall brand image.
affective brand
Suppose a chain of hair salons decides to locate its stores only in the suburbs. This would be an example of the use of a _________ segmentation base.
geographic
Cappio was the first canned ready-to-drink coffee on the market. It had to create the demand for the product category. As soon as demand for the product was shown to exist, Coke and Pepsi began promoting their own brands of canned, ready-to-drink coffee. During which stage of the product life cycle would you expect to see competitors like Coke and Pepsi entering the market for this product?
growth
Developing selective demand for brands is a fundamental objective of the _______________ stage of the PLC.
growth
The nested segmentation process employed by Caterpiller to segment its markets is based on
hierarchical structures analysis
Purchases for ____________are unplanned. Decisions to buy the product type and brand are made on the spur of the moment as consumers are ostensibly shopping for other products.
impulse
__________ refers to an overall process whereby inventions are transformed into commercial products that can be sold profitably.
innovation
Customers in the __________ adopter category, on average, possess higher discretionary incomes, are often higher in social status, and more knowledgeable about new products. These adopters are most willing to take more consumption-related risks. However, this category is less likely to contain opinion leaders that influence others to buy.
innovators
Within the fitness market, dedicated bodybuilding clubs exist that amount to "sweat shops" serving the needs of amateur and professional bodybuilders. These clubs focus on traditional free weights with limited machines, support facilities, and services. This market represents:
niche
___________ are individuals who have a strong propensity to pass on both positive and negative word-of-mouth communications to other consumers. Olivia is current president of the American Marketing Association student chapter at UNT. She is an extremely intelligent and outgoing leader. Other students in the marketing degree program at UNT look to her for advice a range of academic and professional issues. Olivia, apparently, is a(n) ___________.
opinion leader
The primary pricing strategy(ies) employed by firms during the introductory stage of the PLC is (are):
penetration pricing
With respect to product mix terminology, the range of brands within each of a firm's product lines are called:
product items
Taken together, all individual product items produced and sold by Nabisco comprise its:
product mix
A single firm's potential unit or dollar sales for a specific product to a specific target segment during a specified period of time is that firm's:
sales potential
To effectively segment markets, the following conditions must be met:
segments should be "homogeneous within" and "heterogeneous between" Segments must be large enough to be profitable Segments must be accessible via communications and distribution channels Firms must have adequate resources to target these segments
__________ entail the performance of specialized activities by individuals or organizations for purposes of benefiting other entities (usually customers).
services
Consumers are most likely to engage in 'extensive' decision making for ___________ goods. _______ generally include clothing, jewelry, automobiles, electronics, homes, major appliances, small appliances, recreational equipment, and gifts.
shopping
The level of product that is most closely associated with brand image is:
total product
A _____ is any brand identifier that is given legal protection because, under the law, it has been developed and supported by one seller.
trademark Rationale: Firms can trademark any name, design, symbol, sound or other descriptor that uniquely identifies their brands.
Last week Janet purchased her first bottle of Excedrin Migraine. She wanted to see if the product's pain-relieving benefits were any better than those of the brand she currently uses. Janet is most likely in the ___________ stage of the new product adoption process.
trial
The fact that both SIC and NAICS codes group similar companies together allows marketers to use these codes to:
-Treat some SIC and NAICS categories as market segments for their products -To directly target individual firms possessing a given code by cross-referencing SIC or NAICs with lists of companies possessing those codes obtained from other secondary data sources -To estimate the market potential for their products by combining data from SIC or NAICS with data from other secondary data sources that identify specific firms possessing the proper SIC or NAICS codes. All of the above
With respect to the buying center in a firm, personnel who actually operate equipment that may be purchased probably perform which role in the buying center?
-User -Influencer (a and c above)
Assume Kellogg's is planning to produce and market a line of DVDs. Which of the following brand strategies would Kellogg's be LEAST likely to use?
A family brand with the Kellogg's name.
advantages of mass-marketing
A large pool of potential customers exists Scale economies in production and marketing can potentially be obtained Scale economies, if achieved, can yield low prices Firms still can differentiate their brands from those of competitors via creative promotion
Consider the overall market for beverages in the US. This market consists of both alcoholic and non-alcoholic drinks. Within the alcoholic portion of the market there are a large range on different types of alcoholic drinks, including wines, beers, hard liquors, etc. In addition, each of these later alcoholic lines of beverages can be further subdivided. For example, beers can be, as a minimum, divided into ales and lagers, with many subcategories within these broader groups. If one is seeking to enter the beer brewing business and is conducting an MOA, they might define the category of ales to be:
A macro-segment
Consider the overall market for beverages in the US. This market consists of both alcoholic and non-alcoholic drinks. Within the alcoholic portion of the market there are a large range on different types of alcoholic drinks, including wines, beers, hard liquors, etc. In addition, each of these later alcoholic lines of beverages can be further subdivided. For example, beers can be, as a minimum, divided into ales and lagers, with many subcategories within these broader groups. If one is seeking to enter the beer brewing business and is conducting an MOA, within the category of ales exists the subcategory of English ales which might be considered:
A micro-segment or niche
The term AIO stands for
AIO measures assess consumers' lifestyles.
______________ includes most office equipment, such as printers, computers, copy machines, and office mailing equipment. These products are often expensed when purchased rather than being depreciated over time.
Accessory equipment.
The stage of the organizational decision process in which proposals are compared against one another and against the specifications is the __________ stage.
Analyzing proposals
The need to reposition a brand arises in all of the following situation
Perceptual mapping shows that the brand is not sufficiently differentiated from competing brands Current sales are insufficient to justify the current position
The totality of synaptic associations in a consumer's mind that hold all the feelings, images, sensations, experiences, and other content representing a brand is called:
Brand Schema (correct) Rationale: The totality of association in the consumer's mind for a brand is called the brand schema and it is responsible for determining the brand's image and position in the consumer's mind.
The part of the brand that consists of words, letters, and/or numbers that can be vocalized is called the:
Brand name Rationale: The brand name is a brand identifier that is verbalized.
Corrs the soft drink violated ___________ when it named its soft drink and used a logo font very similar to that of Coors beer.
Brand trademark law and regulations
Which of the following is a major benefit of branding to marketers?
Branding can aid in developing loyalty to the Firm's products. Branding makes it easier to introduce new products. Branding helps create barrier against successful imitation by competitors. Branding makes it possible for Firms to charge higher prices
In 1990, Coors launched Coors Rocky Mountain Spring Water, attempting to leverage its images of beer brewed with Rocky Mountain spring water. The product failed because:
Consumers simply did not want the product. Coors means beer, not water.
things learned from product use tests in the NPD process
Consumers' initial sensory reactions to sensations of color, speed, durability, reliability, and functionality of the product. Early use experiences that provide information about the basic functionality of the product in use. Knowledge of whether the actual benefits delivered by the product match those intended by designers.
Apple's introduction of the iPhone X can be considered a _____________ . Most private label products added to retailers' product portfolios are derived from existing brands already produced by other firms. Such "new to the firm" products are examples of __________.
Continuous innovation
Bush's Baked Beans recently decided to reposition itself to parents as a "vegetable" that kids will eat and love. In terms of NPD, this repositioning attempt is categorized as a(n) _____________. The Chevrolet Camaro and Ford Mustang have undergone major redesigns in the last decade to improve sales, profits, market share, and brand image. In terms of NPD, these repositioning attempts are categorized as _____________.
Continuous innovations
By far the most common category of new products is the ___________.
Continuous innovations
Line extensions, flanker brands, and brand extensions are classified as:
Continuous innovations
Which of the following products is characterized by the requirement for 'intensive distribution.'
Convenience goods.
Lumber companies, such as Weyerhaeuser, that buy trucks, bulldozers, and other equipment for forest harvesting and milling are engaged in the production of lumber products that will be sold commercially. Such companies are categorized as _______________ .
Other producers or business users
The classification scheme for new products is based on:
Degree of consumer learning or 're-learning' required for the new product.
Individual firms in an industry usually cannot successfully raise prices for their products if other firms in the industry do not follow suit. If only one firm raised its prices it probably would result in buyers of the firm's products shifting their purchases to competing sellers. Any single firm that raises price will suffer a decline in sales. This scenario reflects the fact that:
Demand at the industry level tends to be price inelastic while demand for the products made by individual firms in that industry is price elastic
category of variables commonly used to profile market segments once these segments are created
Demographics Psychographics Mediagraphics Geographics.
When P&G adds a new laundry detergent (a flanker brand) to its existing line of detergents it has changed the ___________ of its product mix.
Depth
Consumer demand for personal computers or smart devices ultimately determines the demand for the parts and materials involved in the manufacture of each product. This is an example of ________ .
Derived demand
The rate at which new products are adopted by users throughout a particular market, population, nation, or global region is ____________.
Diffusion
When first introduced, products such as VCRs, PCs, automobiles, aircraft, and electricity were ____________.
Discontinuous innovations
____________ are new products that require customers to learn new things, acquire new experiences, and adapt their current consumption behaviors before they can be properly used.
Discontinuous innovations
____________ are usually based on new technologies, provide dramatically different solutions to existing consumption-related problems, and require that consumers learn new ways of solving old problems.
Discontinuous innovations
Standard test markets are most likely to be conducted for which type of new product innovation?
Discontinuous innovations.
geographic roll-out of new products
Distribution of the new product occurs incrementally from one geographic area to the next Each incremental step in the roll-out process amounts to an additional test of the new product's viability Each incremental step in the roll-out process provides funding to help finance additional roll-out
Which of the following is not among the types of buying decisions made within organizations?
Dynamic rebuy
Check sheets' and weighted point evaluation models are most likely to be employed in which stage of the new product development process?
Idea screening.
Value analysis is most likely to occur at which stage in the organizational decision process for products?
Identification of specifications
With respect to straight rebuy decision for office or janitorial supplies, all that may be required is identification of quantities needed. Which stage of the purchasing decision process is implied?
Identification of specifications
three steps in the market segmentation process described in the text
Identify segmentation bases or variables to be used. Create market segments using the segmentation "bases" that have been identified. Profile customers in market segments.
To reverse a downward trend in sales, Mazda introduced its MPV minivan. Mazda positioned its van as a cross between a standard minivan and a sport utility vehicle. Mazda knew that it needed to use a market segmentation strategy to correctly target the MPV. The first thing Mazda had to do when it segmented the automobile-buyer market was to:
Identify the current and potential needs of the market (assuming that a benefit segmentation base is desirable).
The use of the family lifecycle for segmenting markets for some products is particularly attractive because:
Individual stages in the lifecycle contain consumers with similar demographic characteristics and consumption preferences
Melissa is an engineer with Peterbuilt and regularly participates with others to determine specifications for parts and materials that will be used in Peterbuilt's production processes. Melissa' role in the buying center at Peterbuilt is that of a(an):
Influencer
Supervisory personnel, research and design specialists, and engineers who assist in determining specifications and defining other criteria for use during the purchase decision-making process usually perform which role in the buying center?
Influencer
adopter categories responsible for the spread of innovations (new products)?
Innovator Early adopter Early majority Late Majority
________ consist of capital items, such as buildings, dams, and major production line equipment. These products are typically expensive, capitalized on balance sheets, depreciated over time, and contribute substantially to the firm's scale of operations. When a trucking company buys more trucks to haul goods for its customers or an airline company buys more jet-liners to ferry people from place to place they are purchasing ___________ .
Installations.
Distributors' brands are owned and primarily marketed (promoted) by:
Intermediaries (middlemen)
In some cases, governmental agencies may use mailing lists of firms that have previously contacted governmental buying offices and indicated their desire to be included in future solicitations. Based on these mailing lists, ______________ are sent directly to interested firms.
Invitations to bid
The gasoline-electric vehicle marketed by Honda apparently is viewed negatively by many Texans because it doesn't fit their expectations of power and performance. Apparently, the new Honda may be slow to diffuse in the market because:
It lacks value compatibility.
How might Whirlpool benefit if appliances it manufactured were sold at Sears under the Kenmore brand name?
It would allow Whirlpool to use its production resources more effectively. It would allow Whirlpool to increase plant capacity. It would allow Whirlpool to generate additional sales volume. It would allow Whirlpool to utilize its working capital more effectively.
Procter & Gamble individually brands most of its products. P&G's detergent line is comprised of a number of brands including Tide, Cheer, Dash, Ivory Snow, Gain, Era, and Bold. Quite possibly, one brand's sales may be cannibalizing sales from another brand in the same product line and reducing profits across the entire line. P&G may need to reposition one or more brands to reduce cannibalization. This scenario illustrates which of the following situations in which repositioning may be necessary?
Key market characteristics have changed Sales are insufficient to justify the current position
Ford motor company purchases anti-freeze in bulk from DuPont Corporation. This anti-freeze is placed in the radiators of its new cars prior to their being shipped to the dealers. The anti-freeze is:
Manufactured or component part.
In which type of market do firms purchase a wide range of parts, raw materials and, often, services that are used to produce new products,
Manufacturer market
Manufacturers of national brands generally will also produce products under private labels. This is done because:
Manufacturers of national brands often cannot sell all their output under their own brands.
Middlemen stock and sell producers' brands for all of the following reasons except:
Margins tend to be higher than for private label brands. Rationale: Margins for producers' brands generally are lower than for private label brands due to the higher costs of packaging, promoting, and supporting these brands.
The large, heterogeneous market from which specific submarkets (market segments) are drawn is called
Mass market or total product-market
According to Strutton and Thompson, which of the following levels do exist within a brand?
Metaphysical brand characteristics
insufficient sales and changing demographics in a brands currently targeted market may suggest the brand needs to be repositioned. Which of the following brands were repositioned as a result of these critical market changes?
Miller High Life beer Marlboro cigarettes Pepsi Mercedes All of the above were repositioned. (correct)
Insufficient sales and changing demographics in a brands currently targeted market may suggest the brand needs to be repositioned. All but one of the following brands were repositioned as a result of these critical market changes. Which one is the exception?
Miller High Life beer Marlboro cigarettes Pepsi Mercedes Nike (correct)
Decisions in organizations for complex, high-risk, first-time purchases of major equipment and production installations fall into which buy class?
New Task
The preferred approach to organizing for NPD is:
New product development teams.
Acquiring information about alternative vendors and products during the organizational decision process is probably is most difficult for:
New task decisions
According to the characteristics of a good brand name, is "Betty Crocker" a good name for cake mixes? Assume that you have never heard of this brand before.
No, because it suggests nothing about the product. (correct)
Consumable production supplies, such items as sandpaper, welding rods, emery cloth, and solvents are considered to be(The 'convenience goods of the industrial market):
Operating supplies
When total revenue (price x quantity sold) increases as price decreases, demand is said to be ____________ .
Price elastic
Mass marketing (as contrasted with market segmentation) is most likely to be a viable strategy when:
The product is in the introductory stage of the life cycle. Few competitors exist, the product is rather undifferentiated, and consumers' wants & needs are rather basic or simple with respect to the product in question.
Which of the following is the most common reason why new product innovations fail?
The product possesses insufficient relative advantage for existing products
Probably the single-most important factor for speeding the new product adoption and diffusion process and assuring the product's success is
The product's relative value compared to existing products.
Consumers cannot judge the quality of a service encounter prior to its actual delivery. As a result, consumers often seek out cues in the service-delivery environment in order to predict the level of service they can expect. This reflects which characteristic of services?
Their intangibility
When you work out at a health club, you receive no takeaway, except perhaps feelings of accomplishment, exhaustion or both. This reflects which characteristic of services?
Their intangibility
The first four steps in the new product development process are particularly critical because:
These steps deal with ideas or 'concepts on paper' and are the least expensive.
"niches" as market segments
They are the smallest operational market segment Consumers in niches are more similar to one another in terms of purchase-related characteristics than consumers in other market segments Consumers within a given niche tend to respond similarly to a given marketing program (marketing mix) Niches tend to attract less competition than other types of market segments.
metric used to gauge performance of a specific NPD project i.e., specific new product
Time to break-even. Profitability (NPV, operating profits) Market share obtained. Performance to budget.
Which of the following is least likely true of straight rebuy decisions in organizations?
Top management directs the decision process
A major drawback to Whirlpool for producing private label version of its appliances for retailers, such as Sears, who also sell the Whirlpool brand is that some of Whirlpool's sales of its own brand will probably be cannibalized.
True
The credit card industry is generally regarded as the first industry to extensively employ the co-branding strategy.
True
Alka-Seltzer recently brought back the animated character Speedy Alka-Seltzer as its spokesperson. "Speedy" best illustrates the brand mark form of brand identifier for the Alka-Seltzer brand?
false
Modern branding, as we commonly know it today, actually began with Henry Ford and his Model T.
false
The distinct lettering that identifies a brand is generally referred to as the brand mark.
false
BIC introduced its line of disposable pens in 1959. It subsequently introduced lines of disposable lighters and razors in the 1970s. BIC apparently used the multiple-branding strategy to launch these later products.
false Rationale: False. BIC used a brand-extension strategy.
Firms that have well-known brands that are highly differentiated have little ability to charge higher prices than those charged by competitors.
false Rationale: False. Just the opposite is true. Highly differentiated brands generally have superior value that connotes the ability to charge higher prices.
When marketers select key elements of the physical, enhanced, and affective brand levels to emphasize in their promotions, they are attempting to structure the "position" of the brand in consumer's minds.
true
Manufacturers of national brands generally will also produce products under private labels. This is done because the Sherman Anti-Trust Act and other Federal laws require manufacturers to accept private label contracts in order to preserve industry competition and provide consumers with a better choice of products.
false Rationale: False. Manufacturers of national brands take on private label contracts because they often cannot sell all their output under their own brands.
Procter and Gamble makes extensive use of multiple branding for items in most of its product lines. This strategy makes it easier and cheaper to launch new products due to the common image associated with all P&G brands
false Rationale: False. Multiple branding makes it more difficult to launch new brands because there is no apparent link between the brands that support a common image.
Ads and packaging for Vaseline always present the brand as Vaseline brand petroleum jelly because the producer does not want consumers to forget that Vaseline is a petroleum jelly.
false Rationale: False. The producer is linking the brand with the name of the product category in an attempt to forestall the Vaseline brand from becoming declared as generic.
With respect to market segmentation, the 80-20 principle has been applied to segmenting markets based on ________ rates.
usage
Products purchased as 'routine decisions' are generally:
convenience
When automotive dealers emphasize the quality of their friendly and expert service at dealerships, comfortable and clean waiting rooms at service facilities, liberal financing options, and no pressure sales, they are attempting to influence customers' perceptions of the _____________ level of brand.
enhanced
A product's core benefits and physical characteristics comprise the ______________ level of product.
basic
Being too quick to criticize new product ideas is considered to be one the biggest pitfalls of _______________ .
brainstorming
BIC introduced its line of disposable pens in 1959. It subsequently introduced lines of disposable lighters and razors in the 1970s. BIC apparently used which branding strategy to launch these later products?
brand extension
There are many products sold that bear the Harley-Davidson brand, however Harley-Davidson does not manufacture these products. Instead, Harley-Davidson allows other manufacturers to use its brand name in return for royalties on the sales of these products. Harley-Davidson is apparently employing a ______________ strategy.
brand licensing
When marketers select key elements of the physical, enhanced, and affective brand levels to emphasize in their promotions, they are attempting to structure the ______________ of the brand in consumer's minds.
position Rationale: Marketers attempt to create the brand's position when emphasizing key characteristics and association for brand in their promotions.
Buyers can elevate their social status, or social class positions, by purchasing and displaying _____________ goods that "lesser" others can directly or indirectly observe, but probably cannot purchase for themselves. ______________ goods are things or experiences that are valuable largely because other people cannot have or enjoy them. Examples include expensive paintings, sculptures, very expensive fine wines, and extremely expensive stays in luxury hotels.
positional
A ________ is a concise statement of the proposed new product's characteristics and desired market position. This statement includes identification of the relevant target market; the desired product or brand image; the key functions and benefits the product will provide; and the specific attributes or characteristics that will deliver these functions and benefits.
product concept
Colgate produces a wide range of toothpastes, mouthwashes, toothbrushes, and related oral care products. With respect to product mix terminology, each of these categories of products within Colgate's portfolio are considered to be a(n):
product line
With respect to product mix terminology, a firm's closely related product items in terms of characteristics and function are referred to as:
product lines
"Mass marketing" is most consistent with the ____________ concept.
production
Google has in place a set of procedures that generally guide future new product developmental efforts. These procedures summarize the roles of proposed new products in the firm's existing product portfolio; establishes tentative revenue, market share, and profitability goals for the new product; and tentatively sets aside resources that may be needed to produce, promote, and distribute the new offering. These procedures are called the new product development ____________ .
protocol
During which stage of NPD is a demonstrable and reproducible version of the physical product developed?
prototype development
Patricia extensively compared brands and prices for SLR camera equipment prior to finally deciding on the Nikon D300. Pat essentially has treated camera equipment as a ___________ good.
shopping
Consider the overall market for beverages in the US. This market consists of both alcoholic and non-alcoholic drinks. Within the alcoholic portion of the market there is a large number of different types of alcoholic drinks, including wines, beers, hard liquors, etc. In addition, each of these later alcoholic lines of beverages can be further subdivided. For example, beers can be, as a minimum, divided into ales and lagers, with many subcategories within these broader groups. If one is seeking to enter the beer brewing business and is conducting an MOA, they might define the entire beer market as :
the mass market or total product market
A major advantage of using family branding is that it makes it less expensive to introduce new, related products.
true
A major potential drawback to the co-branding strategy is the risk of damaging a brand name if the cooperative endeavor fails
true
A major potential drawback to the co-branding strategy is the risk that consumers may not perceive that the new co-branded product does not fit their images of one or both partnering brands.
true
Because data are easily collected, readily available in secondary sources, and often are highly correlated with consumer wants and needs, demographic segmentation is the most commonly employed segmentation base used in marketing applications.
true
Brands capture the meanings, images, sensations and experiences that people associate with a person, place or idea.
true
Candice is the marketing manager for a consumer goods firm. Based on results from a market segmentation study, Candice has decided to segment the firm's market into 'usage rate' or 'consumption rate' segments. The results of the study identified a sizable 'heavy half' that Samantha decided to target because she has always assumed that the most profit potential exists with this segment. Samantha may be guilty of committing the majority fallacy.
true
Coke insists that wait-staff in restaurants selling only Pepsi products ask patrons if "Pepsi will be OK?" when the customer requests a "Coke." This is done primarily to help prevent the "Coke" brand from becoming declared as generic.
true
Colorado Rocky Mountain Winery bottles a line of wines sold at a number of price points, based on the quality of the wine. Based on studies of its customer base, the winery knows that customers prefer different qualities of wines depending on when they are consumed. Its cheaper wines are targeted to casual consumption situations, while the more expensive wines are expected to be consumed in special situations. Colorado Rocky Mountain Winery is apparently segmenting its customers based on usage occasion.
true
For an invention to become an innovation requires that the invention be capable of offering better solutions to recognized consumer problems.
true
Harley-Davidson's positive brand equity allows it to employ brand licensing as a means of increasing its revenue base.
true
In the arena of new product development, the number of "inventions" exceeds the number of "innovations."
true
Industry size assessed, for example, by number of employees is a likely way of segmenting organizational markets.
true
Keurig is famous for its state-of-the-art coffee maker, but the company also makes other small appliances, such as an ice cream maker. Each product bears the Keurig name and carries on the Keurig reputation for high quality. Keurig uses "family" branding.
true
Tara Foods of Georgia produces a wide range of peanut butters and food extracts, but does not sell any of its output under its own brand name. Tara Foods evidently produces private label brands.
true
The advantages of brand extension as a strategy are most closely related to those of family branding.
true
The benefit segmentation base is most consistent with the tenets of the marketing concept. In other words, if you are a strong advocate of the marketing concept, the benefit segmentation base will be most consistent with your "philosophy of doing business?"
true
The brand names Acura, Quick Metal, Duracell, and Compaq were developed by a technique with which words and part-words (called morphemes) were combined and tested to create the names.
true
The general purpose of the branding strategy called "over-branding" is to change a brand's name gradually over time.
true
The physical brand consists of the core values delivered by the brand plus the physical characteristics of the brand.
true
There are many products sold that bear the Harley-Davidson brand, however Harley-Davidson does not manufacture these products. Instead, Harley-Davidson allows other manufacturers to use its brand name in return for royalties on the sales of these products. Harley-Davidson is apparently employing a brand licensing strategy.
true
To effectively segment markets, firms must have adequate resources to target those segments.
true
To reverse a downward trend in sales, Mazda introduced its MPV minivan. Mazda positioned its van as a cross between a standard minivan and a sport utility vehicle. Mazda knew that it needed to use a market segmentation strategy to correctly target the MPV. The first thing Mazda had to do when it segmented the automobile-buyer market was to identify the current and potential needs of the market (assuming that a benefit segmentation base was desirable).
true
When Excedrin introduced its new Excedrin Migraine into its product line of pain relievers, it was introducing what is called a line extension
true
