Marketing Exam 2

A ________ pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth. A. cost-based B. target costing C. value-based D. value-added E. competition-based

C

Fads are characterized by their ________. A. enduring nature that spans several generations B. low rates of adoption by consumers C. unusually high sales and rapid decline D. basic and distinctive modes of expression that seldom become unpopular E. non-attainment of the last two stages of the product life cycle

C

If a product passes both the concept test and the product test, the next step is most likely to be ________. A. marketing strategy development B. product development C. test marketing D. business analysis E. concept development

C

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. A. manufacturing chain B. distribution center C. marketing intermediary D. value delivery network E. disintermediation system

D

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________. A. corporate vertical marketing system B. contractual VMS C. direct marketing system D. horizontal marketing system E. administered VMS

D

A(n) ________ is considered a marketing intermediary. A. customer B. producer C. manufacturer D. wholesaler E. advertiser

D

Product mix length refers to the ________. A. number of versions offered for each product in the line B. ways in which the various product lines are related C. number of different product lines the company carries D. total number of items a company carries within its product lines E. total market share captured by the entire product line

D

Retailers must decide on three major product variables: product assortment, services mix, and ________. A. store location B. store layout C. self-service offerings D. store atmosphere E. store ambience

D

Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers. A. self-service B. full-service C. off-price D. limited-service E. convenience

D

True or False: When the goal of the shopping experience is for customers to complete a task, the store should be designed using an exciting atmosphere with fast music, bright lighting, and bright colors.

False

True or False: Something as simple as color choices can impact customer behavior?

True

In which of the following cases is crowdsourcing used for new product development? A. company creates a forum where anyone can contribute new product ideas. B. company hires a marketing agency to generate new product ideas. C. company reviews the sales, costs, and profit projections of an existing product. D. company depends on its R&D department to come up with new ideas. E. company partners with a design agency to create a few prototypes

A

Producers use marketing intermediaries because they ________. A. create greater efficiency in making goods available to target markets B. supply inexpensive raw materials for manufacturing products C. provide technical expertise for faster production D. monitor day-to-day activities during production E. form a part of the company's direct channel

A

Rent, electricity, and executive salaries that do not vary with production or sales level are referred to as ________ costs. A. fixed B. variable C. break-even D. target E. promotional

A

The relationship between the price charged for a product and the resulting demand level can be shown in a(n) ________. A. demand curve B. supply curve C. elastic demand slope D. break-even chart E. inelastic demand slope

A

The stage in which product ideas are presented to groups of target consumers physically or symbolically is referred to as ________. A. concept testing B. concept development C. test marketing D. marketing strategy development E. crowdsourcing

A

Which of the following is true of a conventional distribution channel? A. it has each channel member acting as a separate business unit trying to maximize its own profits. B. it consists of producers selling their products directly to customers without the use of intermediaries. C. it has one channel member owning the other channel members. D. it is a distribution channel where a producer is the owner of all the other channel members. E. it has all members of the channel working together as a single organization.

A

Which of the following is true of logistics? A. companies can gain a powerful competitive advantage by using improved logistics to enhance customer service or lower prices. B. the cost savings to a company and its customers due to improved logistics is typically nominal. C. less than 5 percent of an average product's price is accounted for by shipping and transport. D. the cost of logistics is considerably less than advertising. E. shaving off a small fraction of logistics costs has very little impact on savings.

A

________ includes all the activities involved in selling goods and services to those buying them for resale or business use. A. Wholesaling B. Sole sourcing C. Franchising D. Crowdsourcing E. Showrooming

A

________ occurs when a company uses its existing brand name for new forms, colors, sizes, ingredients, or flavors of an existing product category. A. Line extension B. Co-branding C. Private labeling D. Brand extension E.Clustered branding

A

In which of the following situations is a producer guaranteed full control over product sales? A. corporate marketing channel B. direct marketing channel C. contractual distribution channel D. horizontal marketing system E. an administered marketing system

B

Service variability means that ________. A. the evaluation of services is subjective and changes from customer to customer B. service quality depends on when, where, and how they are provided C. services cannot be stored for later sale or use D. services cannot be seen, tasted, felt, heard, or smelled before they are bought E. services can be separated from their providers

B

The new product development process usually starts with ________. A. idea screening B. idea generation C. concept development D concept testing E. market strategy development

B

When thinking of the store as a package, which of the following is true? A. facilitates the service delivery B. it conveys expectations C. it provides information D. it facilitates interaction among customers E. it facilitates interactions between customers and employees

B

Which type of retailer typically carries deep product assortments of narrow product lines? A. self-service retailers B. specialty stores C. warehouse clubs D. discount stores E. factory outlets

B

Which wholesaler channel function is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost? A. bulk breaking B. selling and promoting C. buying and assortment building D. warehousing E. risk bearing

B

________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. A. sole sourcing B. retailing C. manufacturing D. procurement E. warehousing

B

Under ________, the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies. A. pure competition B. monopolistic competition C. oligopolistic competition D. a pure monopoly E. pure monopsony

C

When a product is in the ________ stage, profits level off or decline because of increased marketing outlays to defend the product against the competition. A. production B. decline C. maturity D. test marketing E. conception

C

When demand hardly changes with a small change in the price of a product, the demand for the product is best described as ________. A. elastic B. flexible C. inelastic D. variable E. cyclical

C

________ involves a review of the sales, costs, and profit projections for a new product to determine whether they satisfy a company's objectives. A. Vendor analysis B. Portfolio analysis C. Business analysis D. SWOT analysis E. Concept analysis

C

________ is the sum of all the values that customers exchange for the benefits of having or using a product or service. A. payroll B. profit C. price D. cost E. salary

C

________ refer to a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible. A. Co-brands B. Line extensions C. Services D. Pure products E. Horizontal extensions

C

Which of the following is most likely a true statement about services? A. Services can be stored for later sale or use. B. Service quality is not dependent on the provider. C. Services can be easily separated from their providers. D. Service industries vary greatly. E. Demand fluctuation has little to no impact on service providers.

D

Which of the following statements is most likely true about the product life cycle? A. throughout the product introduction stage, sales are zero. B. the growth stage is the longest stage of the product life cycle. C. profits are nonexistent in the growth stage. D. growth is a period of rapid market acceptance and increasing profits. C. maturity is the period when sales fall off but profits continue to rise.

D

________ involves using an existing brand name for a new product category. A. Line extension B. Co-branding C. New branding D. Brand extension E. Multibranding

D

________ products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. A. Shopping B.Specialty C. Capital D. Convenience E. Unsought

D

A ________ is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service. A. prototype B. paradigm C. framework D. patent E. brand

E

A company's external sources of new product ideas include its ________. A. managers B. salespeople C. engineers D. manufacturing staff E. suppliers

E

Establishing prices for razor blades that must be used with a razor blade system is known as ________ pricing. A. by-product B. market-penetration C. product line D. product bundle E. captive-product

E

Which link in the service profit chain emphasizes superior employee selection and training? A. healthy service profits and growth B. satisfied and loyal customers C. greater service value D. satisfied and productive service employees E. internal service quality

E