Marketing Exam #3

When manufacturers try to understand what customers are looking for, they are thinking about the ___ component of the product offer A) Core customer value B)Associated services C)Augmented Products D)Product support E)Quality Level

A) Core customer value

Brands enable customers to quickly differentiate one firm or product from another. A) True B) False

A) True

Wang tried a new fruit-flavored beverage and thought it was awful. He was especially disappointed because he had liked the dried fruit snacks marketed under the same brand name. Now he wasn't sure he even wanted to buy the snacks he had liked before. This highlights a problem in branding known as A)Brand Dilution B)Comingled Brands C)Undifferentiated Brands D)Approximated Brands E)Unlicensed Brands

A)Brand Dilution

Imagine that you are the marketing manager of a restaurant group that wants to implement a customer reward and loyalty program. You research the firm Guest Hospitailty Solutions, which offers its services to restaurant chains to develop and execute these types of programs. Guest Hospitality Solutions is a company that focuses on: A)Customer Relationship Management B)Building Brand Awareness C)Building Brand Associations D)Increasing Perceived Value E)Increasing Brand Equity

A)Customer Relationship Management

Whenever Conrado considers upgrading his personal computer system, he consults with Navin, a knowledgeable friend who always has the newest technology. For Conrado, Navin is a(n) ________ in the diffusion of innovation curve. A)Innovator B)Laggard C)Late Majority Adopter D)Early Majority Adopter E)Early Adopters

A)Innovator -He always has the latest computer technology, is likely to be among the first group to adopt a new type of computer

One key feature of the value of strong brand is that: A)It can protect the firm from compeition B)It no longer needs to be supported by advertising and promotion C)If it becomes a generic name, the brand is worth even more D)It cannot be successfully imitated by a retailer's own brand E)Competitors will typically abandon a sector altogether rather than compete.

A)It can protect the firm from compeition

Which of the following is considered part of the augmented product? A)Product Warranty B)Features C)Design D)Quality E)brand Name

A)Product Warranty

Effective packaging and labels send consumers the signal "Buy me" A)True B)False

A)True

The___stage of the product life cycle is characterized by negative or low profits A)introduction B)Leveling C)Maturity D)Growth E)Decline

A)introduction

Bev is assessing the results of a new product launch of series of e-books for her bookstore. When evaluating the results. Bev is least likely to consider A)why it took her so long to consider the new product line B)if the e-books are generating the expected level of profit C)if the e-books are generating the expected level of sales D)if her customers are interested in the new books E)If the e-books function as expected

A)why it took her so long to consider the new product line - The reasons behind any delays in introducing e-books would not be an important issue to consider during evaluation of results

What aspect of the product is being described when a used-car salesperson explains that each car comes with a one-year extended warranty and a two-year maintenance plan? A) Actual Product B) Associated services C) Product style D) Product position E) Product concept

B) Associated services

A familiar brand name always helps the sales of a product A)True B) False

B) False

For markers, one of the benefits of having achieved brand loyalty is A Recognition through industry awards B) Lower marketing costs associated with reaching loyal customers C) Increased price sensitivity among loyal customers D Greater concern about competitors actions E Few worries about copyright infringement

B) Lower marketing costs associated with reaching loyal customers

A ketchup bottle is an example of a ____ package A)Secondary B) Primary C)Brand Positioning D)Private-label E) Convenience

B) Primary

Which of the following would be part of the launch of a new product? A)Putting off any positioning aspects related to the product B)Determining the marketing budget for the first year of the product C)deciding what type of next generation products will follow D)determining how to expand current market share E)Starting to make preliminary decisions about the target market

B)Determining the marketing budget for the first year of the product

A customized mailbox for your house is an example of a convenience product A)True B)False

B)False

Although innovation strategies may not work in the long run, overriding short-term reasons compel firms to introduce new products and services. A)True B)False

B)False

When Pierre asked a few of his regular customers to test his prototype wine press, he was engaging in alpha testing. A)True B)False

B)False -In Alpha testing, the firm attempts to determine whether the product will perform according to its design and whether it satisfies the need for which it was intended. this is an example of beta testing

Chen was called in to meet with his boss, Amira. He was afraid he was going to be fired for the mistake he had made dealing with an important customer of the store. Instead, Amira explained that he had handled the situation well, listening to the customer and finding a fair solution. Amira told him that, even more important, working the way he did to correct the error could result in A)A smaller empowerment gap B)Increased customer purchases and positive word of mouth C)A full refund for the customer D)A larger service gap E)Less instrumental support

B)Increased customer purchases and positive word of mouth

For years, the Mogul Sheraton, a four-star hotel overlooking the Taj Mahal in India, offered free elephant and camel rides to hotel visitors. Few customers took advantage of this service. This is an example of a __________ gap in services marketing. A)seniority B)Knowledge C)standards D)delivery E)communication

B)Knowledge

Denny always liked REI outwear, so when he was shopping for a winter coat, he ordered one from REI without thinking too much about it. The demonstrates how ___ facilites purchases A)Private labels B)brands C) actual products D) Core customer values E) Associated services

B)brands

Rafael and Luisa live in the United States. Rafael recently asked for Luisa's cell phone number, but Luisa said she didn't own a cell phone. Luisa would probably be considered a(n) ________ in the diffusion of innovation process. A)Innovator B)laggard C)Late majority adopter D)early majority adopter E)early adopter

B)laggard

A marketing professor in Boston, Massachusetts, maintains a museum of failed consumer products, Most new products in this museum failed during the ___ stage new product development, when they are introduced to a limited geographic area. A)Pretesting B)Product Launch C)Test Marketing D)Product Development E)Concept Testing

C) Test marketing -As the first group to adopt a new product, innovators help the product gain initial market acceptance

In services marketing, the saying "where the rubber meets the road" refers to whether or not a(n)_____ gap exists. A)Knowledge B)Quality C)Delivery D)Standards E)Empowerment

C)Delivery

Marketers with luxury brands use brand extension cautiously in order to avoid A)Brand licensing fees B)Exclusive cobranding arrangements C)Diluting the core brand D)Private-Label Branding disputes E)Product Line extension limitation

C)Diluting the core brand

By the time BMW got into the mini-SUV market, sales had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the __________ diffusion of innovation group. A)Innovator B)Laggard C)Late Majority D)Early Majority E)Early Adopter

C)Late Majority

Which of the following is a characteristic of products in the maturity stage of the product life cycle? A)Laggards are major focus of marketing efforts. B)Price competition is minimal C)Marketing costs increase as firms defend their market share D)The market may become saturated because of developing competition E)Manufacturing costs decrease because of streamlining production

C)Marketing costs increase as firms defend their market share -Marketing costs increase as companies defend their market share in the maturity stage.

Which of the following are recommended strategies for service recovery? A)Attending mediation B)Finding a solution beneficial to the company at any cost C)Resolving problems quickly D)Silencing an irate customer before the individual makes any angry outbursts E)Providing alternate scenarios for why this not the company's problem

C)Resolving problems quickly

Because service are intangible, it is often difficult for customers to determine how a service meets their expectations, which marketers call A)Service Perceptions B)Service efforts C)Service quality D)Service Aspirations E)Service feedback

C)Service quality -Service quality is the customer's perception of how well delivered service meets expectations.

Because services are___, it is often difficult for marketers to convey the benefits to consumer A)heterogeneous B)inseparable C)intangible D)perishable E)substantial

C)intangible -Intangibility refers to the fact that, unlike products, services cannot be touched, tasted,seen or possessed.

When Blu-Ray disc players were new, they could cost around $1,000 and there were a limited number of discs available that would play on them. Stef and Garth waited, concerned with limited availability of discs and wishing for more choices in the market. By the time they purchased a Blu-Ray disc player, sales had leveled off and prices had declined significantly. Stef and Garth were part of the ________ diffusion of innovation group. A)innovator B)laggard C)late majority D)Early Majority E) early adopter

C)late majority -The late majority is the last big group to enter a new product market. By the time the late majority enters the market, sales tend to level off or may be in decline.

One of the categories of products for which brand extension is especially logical is A)Generic Goods B)Generic Services C)Commodities D)Complementary Goods E)Licensed Brands

D)Complementary Goods

The diffusion of innovation curve begins with innovators. Who follows that group? A)Prototypers B)Laggards C)Late Majority D)Early Majority E)Early Majority

D)Early Majority -The diffusions of innovation curve follows a bell-shaped curve innovators,

When consumers associate a brand with a certain level of quality and familiar attributes, allowing consumers to make quick decisions, the brand A)Establishes novelty B)Is the only one the consumer will consider C)Reduces delivery costs D)Facilitates purchasing E) Creates brand dilution

D)Facilitates purchasing

When Kraft's Philadelphia cream cheese changed its packaging from round to oval to ensure front-facing displays that can't spin and to fit more into the same shelf space, this was a subtle way in which the firm ________ its product. A)Sustained B)Branded C)Repositioned D)Individualized E)Privatized

D)Individualized

Liam relocated to take a new job, and when he got sick he needed to find a doctor. He discovered during the visit that he didn't like the one he had chosen, and he knew he'd never go back to that doctor. From a marketing perspective, his situation highlights one of the key differences between products and services, known as A)Intangibility B)Professional Competence C)Perishability D)Inseparability E)Heterogeneity

D)Inseparability

___Products that create new markets can add tremendous value to firms A)mature B)reverse engineered C)Prototype D)New-to-the-world E)Copycat

D)New-to-the-world

Returnable packaging, use of 3D printing, and flexible packaging are examples of A)Recycled Packaging B)Environmental Packaging C)Responsible Packaging D)Sustainable Packaging E)Green Packaging

D)Sustainable Packaging

A company has a new concept for a lightweight bicycle that can be easily folded and taken with you inside a building or on public transportation. The company Is currently engaged in concept testing. The most important question during this phrase of product development pertains to A)the cost of research and development B)the price of the final product C)the cost to manufacture the product D)marketing and advertising costs E)The respondents purchase intentions if the product were made available

E) The respondents purchase intentions if the product were made available

The ABC car manufacturing company is advertising its new hybrid vehicle. It understands that its competition, Toyota's hybrid car, the Prius, is known for being economical, a good value, stylish, and good for the environment. Toyota has the advantage of A)Copyrights and trademarks B)Brand awareness C)Brand extensions D)Generic branding E)Brand associations

E)Brand associations

Which of the following is included in the four product life cycle stage? A)Brainstorming B)Stagnation C)Prototyping D)Innovation E)Decline

E)Decline

When marketers state that services are____, they are referring to the fact that services cannot be stored for use in the future. A)Intangible B)inseparable C)heterogeneous D)durable E)Perishable

E)Perishable --Perishability refers to the fact that services cannot be for use in the future.

As a promotion technique, samples are often used for new products when __________ will influence the diffusion of the product. A)relative advantage B)Compatibility C)Observability D)Complexity E)Trialabilty

E)Trialabilty -Trialability refers to a consumer's ability to try a new product before buying it. Samples make this process easier.

When Nestle manufactures toffee. fruit snack and jellybeans, or when Schwann designs bicycles, each company's core question is A)How do we know how good a brand is or how much equity is has? B)What makes a brand? C)How do we produce this product in the least expensive manner? D)What are the different branding strategies firms use? E)What are customers looking for?

E)What are customers looking for?

During the ___ stage of the product life cycle, firms either position themselves for niche segment of diehard consumers or they completely exit the market. A)introduction B)leveling C)maturity D)growth E)decline

E)decline

___gap always results in a service failure A)recovery B)standards C)knowledge D)communication E)delivery

E)delivery Even if there are no other gaps, a delivery gap always results in a service failure and they can be reduced when employees are empowered to spontaneously act in the customers' and the firms best interests when problems or crises are experienced

Zoe recently bought Voice over Internet Protocol (VoIP) phone service. A few of Zoe's friends bought VoIP before she did, but many other friends were interested in Zoe's opinions of the new phone service. Zoe is a(n) ________ in this product category. A)innovator B) laggard C)late majority adopter D)early majority adopter E)early Adopter

E)early Adopter