Marketing Exam 3 (Master Set)

When Delta increases its average fares, American Airlines and United often follow with similar increases. American and United are using a(n) _______________ orientation to pricing. cost competitor demand profit none of the above

competitor

A new health club initially sets a lower membership fee to generate more sales, accepting that there will be lower profits at first. This illustrates _______________. a cost orientation a competitive orientation a demand orientation a profit orientation none of above

none of above (sales orientation)

When U.K.-based Tesco advertised that is was "Britain's Biggest Discounter," the Advertising Standards Authority in the U.K. forced the company to end the ad campaign, ruling that it was misleading because it was impossible to determine if Tesco was less expensive than its competition (e.g., Aldi and Asda) due to differences in basket items. This illustrates how _______________ can be a problem in pricing. price fixing price discrimination deceptive pricing predatory pricing none of the above

none of the above

17. A new-product strategy: a. links the new-product development process with the objectives of the marketing department, the business unit, and the corporation b. is part of an organization's overall marketing strategy c. specifies the roles new products play in the organization's overall plans d. describes the characteristics of products the organization wants to offer and the markets it wants to serve e. is accurately described by all of these

E

7. Heinz is expected to introduce more than 400 new products in the next two years. One of the products is a spicier ketchup aimed at the baby boomer market. The spicier ketchup would be considered what type of new product? a. Discontinuous innovation b. New to market c. New product line d. Lower priced e. Addition to existing product line

E

87. Microwave ovens, staplers, frozen yogurt, and purses are examples of: a. PLC line items. b. line-extendable categories. c. brand classes. d. brand groupings. e. product categories.

E

All of the following are product characteristics influencing the rate of adoption EXCEPT: a. complexity. b. compatibility. c. relative advantage. d. observability. e. distribution.

E

During the growth stage of the product life cycle: a. there is little emphasis on the distribution strategy b. demand for the product is limited to high-income consumers c. prices increase due to economies of scale d. there is decreased direct competition e. profits peak

E

In the _____ stage of new-product development, preliminary demand, cost, sales, and profitability estimates are made. a. prototype screening b. idea generation c. concept testing d. post-brainstorming e. business analysis

E

Many product failures such as Cucumber antiperspirant spray, Toaster Eggs, and Health-Sea sea-sausages most likely did not succeed because they did not conform to the product characteristic of: a. complexity. b. trialability. c. total advantage. d. observability. e. compatibility.

E

The _____ adopt a product because most of their friends have already done so, and their adoption is usually the result of pressure to conform because they rely on group norms. a. laggards b. early adopters c. early majority d. innovators e. late majority

E

You are a product manager for a manufacturer of trampolines. You have determined that the trampoline is in the maturity stage of the product life cycle. To keep your product from entering the decline stage, you should: a. use promotion to increase primary demand for trampolines b. abandon peripheral target markets for trampolines c. raise the price of your trampolines because customers are not price sensitive in this stage d. eliminate all unnecessary marketing expense e. promote trampolines heavily to dealers and customers

E

the exclusive right to use a brand or part of a brand

trademark

a product unknown to the potential buyer or a known product that the buyer does not actively seek

unsought product

a confirmation of the quality or performance of a good or service

warranty

A team-oriented approach to new-product development is referred to as: a. simultaneous product development b. synergistic product development c. commercialized product development d. synchronized product development e. parallel product development

A

Apple recently introduced a newly designed iPod nano with Multi-Touch capability, a built-in FM radio, and mix-making Genius. Since it was not trying to reach a new target market, Apple was using which new product strategy? a. Improvement or revision of existing product b. Addition to existing product line c. Discontinuous innovation d. Repositioned product e. New product line

A

The phase of the product life cycle in which healthy profits usually begin to appear is the _____ stage. a. growth b. decline c. introductory d. maturity e. commercialization

A

When the Segway Human Transporter was introduced in 2002, many people expected the product to be a phenomenal success. While the Segway is still on the market, it has never been the success so many expected. A recent Wall Street Journal article suggested that the Segway, while brilliant technologically, seemed impractical to most people since it could not be used to replace their current method of transportation. In other words, the Segway had problems with: a. compatibility. b. relative advantage. c. observability. d. trialability. e. longevity.

A

_____ embrace products relatively early in the product life cycle, are likely to be community oriented, and often are opinion leaders themselves. a. Early adopters b. Innovators c. Early majority d. Late majority e. Laggards

A

_____ evaluate new-product ideas usually before any prototype has been created. a. Concept tests b. Simulated market tests c. Market tests d. User tests e. Venture analyses

A

Jeni's Splendid Ice Creams is famous for its unusual flavors, such as Wildberry Lavender, Goat Cheese with Red Cherries, and Sweet Corn and Black Raspberries . Which of the following product characteristics would most likely influence the market success of these flavors? a. Compatibility b. Comparability c. Complexity d. Tangibility e. Competitive advantage

A COMPATIBLE

Convenience products include all of the following except: deodorant. soft drinks. chewing gum. aspirin. All of the above are convenience products.

All of the above are convenience products.

a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores (p.

shopping product

Heinz is expected to introduce more than 400 new products in the next two years. One of the products is a spicier ketchup aimed at the baby boomer market. The spicier ketchup would be considered what type of new product? A discontinuous innovation. A new product line. An addition to an existing product line. A style modification. None of the above.

An addition to an existing product line.

12. Dial Corporation has introduced Dial Basics, a premium soap product with an emphasis on value. Dial Basics would be an example of which strategy to create a new product? a. New-to-the-world product b. New product line c. Repositioned product d. Addition to a current product line e. Lower-priced products

B

A dominant characteristic of the late majority is: a. deliberateness b. skepticism c. respect of others d. cheerfulness e. optimism

B

In the _____ stage of new-product development, the technical feasibility of manufacturing the new product is examined as a prototype is produced. a. screening b. development c. market testing d. concept testing e. business analysis

B

The first stage of the new-product development process is: a. screening and concept testing b. establishing the new-product strategy c. exploring opportunities d. developing a business analysis e. the building of a prototype

B

_____ are eager to try new ideas and products. They typically have higher incomes, are better educated, and are more cosmopolitan than other categories of adopters. a. Early adopters b. Innovators c. Early majority d. Late majority e. Laggards

B

_____ is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. a. Use testing b. Test marketing c. Concept testing d. Laboratory testing e. Discontinuous innovation

B

13. _____ occurs when an existing product is targeted toward new market segments. It is another type of new-product development because the product is new to that segment. a. Brainstorming b. Diffusing c. Repositioning d. Screening e. Reciprocity

C

6. When P&G began marketing Tide Free & Gentle, which is dye- and perfume-free, this represented which new product category? a. Repositioning strategy b. New product line c. Addition to existing product line d. Discontinuous innovation e. Revision of existing products

C

After the research team at Nabisco had generated more than two dozen new-product ideas for a substitute for partially hydrogenated oils that tastes the same but has zero trans fat, the company formed a committee to analyze whether the product ideas were consistent with the organization's new-product strategy. This is called: a. business analysis b. diffusion c. idea screening d. test marketing e. idea generation

C

In which stage of the product life cycle do marginal competitors start dropping out of the market? a. Introduction b. Growth c. Maturity d. Decline e. Shake-out

C

Liz tends to adopt new products sooner than a lot of other people, but she weighs the pros and cons before buying. She does considerable product research, but her friends don't really look to her for information. She really deliberates before she makes a purchase. Liz is best described as a(n): a. innovator b. early adopter c. early majority d. late majority e. laggard

C

Oakley, a manufacturer of protective eyewear for various kinds of sports, has introduced sunglasses that play music. The glasses weigh just a few ounces and can hold up to 120 songs. These sunglasses would be an example of a(n): a. repositioning strategy b. new product line c. addition to existing product line d. discontinuous innovation e. revision of existing products

C

Oakley, the manufacturer of protective eyewear for sports enthusiasts, has recently introduced Oakley's Thump, UV sunglasses that allow the wearer to store and listen to 120 different songs. Which of the following product characteristics would likely exert the greatest influence on the market success of these new glasses? a. Compatibility b. Comparability c. Complexity d. Tangibility e. Competitive advantage

C

The product characteristic affecting the rate of adoption characterized by the degree to which a product is perceived as superior to existing substitutes is: a. compatibility b. complexity c. relative advantage d. product differentiation e. competitive advantage

C

Which of the following adopters is MOST likely to become an opinion leader? a. Luddite b. Early majority c. Early adopter d. Proactive adopter e. Innovator

C

The final stage in the new-product development process is: a. product testing b. market testing c. commercialization d. product prototyping e. simulated marketing

C WHETHER U DECIDE TO MARKET THE PRODUCT

The length of the introductory stage of the product life cycle for a new product is largely determined by: a. the size of the product b. the product's marketing mix c. the efficiency of the test marketing d. product characteristics, such as advantages over substitute products e. the size of the market

D

The process of converting applications for new technologies into marketable products is called: a. basic research b. product modification c. marketing development d. product development e. correlation analysis

D

65. Leon is not very quick to purchase innovative products when they come out, but after a while he breaks down and buys if after most of his friends have bought it. He gets most of his information from them when he decides to buy something. He is very skeptical of marketing, so he trusts his friends more than anything. Leon is best described as a(n): a. innovator b. early adopter c. early majority d. late majority e. laggard

D

A European dairy that is famous for its rich ice creams has introduced basil-, tomato-, fennel-, and oregano-flavored ice creams. In the process of developing these new flavors, the dairy surveyed world-famous chefs to determine which nontraditional flavors had the greatest level of marketability. This survey would have happened during which stage of the product development process? a. Concept testing b. Brainstorming c. Basic research d. Idea screening e. Applied research

D

A company has learned that members of its target market are likely to collect more information and evaluate more brands than early adopters. They are cautious and thoughtful and do not try the product without asking someone else. The customers' dominant characteristic is deliberateness. In terms of the diffusion process, these customers are most likely: a. innovators b. early minority c. laggards d. early majority e. late majority

D

All the brands that satisfy a particular type of need such as shaving products, laundry detergent, soft drinks, and furniture make up a(n): a. product life cycle stage. b. primary group. c. adopter category. d. product category. e. reference group.

D

In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are bound to tradition. They tend to have the lowest socioeconomic status, are suspicious of new products, and are alienated from a rapidly advancing society. They are called: a. generics. b. late majority. c. decliners. d. laggards. e. luddites.

D

A European dairy that is famous for its rich ice creams has introduced basil, tomato, fennel, and oregano-flavored ice creams. In the process of developing these new flavors, the dairy surveyed world-famous chefs to determine which nontraditional flavors had the greatest level of marketability. This survey would have happened during which stage of the product development process? Concept testing Brainstorming Basic research Idea screening None of the above

Idea screening

Global Packaging Considerations

Labeling Aesthetics Climate

Subway's image was damaged when its primary product endorser, Jared Fogle, was convicted of various sex-related felonies and went to prison. What does this scenario illustrate about public relations/publicity? Public relations/publicity is a less expensive tool than advertising. Public relations/publicity is mass-mediated, like advertising. Marketers can not control the timing of messages delivered via public relations/publicity. Marketers can not control the content of messages delivered via public relations/publicity. None of the above.

Marketers can not control the content of messages delivered via public relations/publicity.

_______________ target ultimate consumers while _______________ target members of the marketing channel. Trade sales promotions, institutional advertisements Trade sales promotions, product advertisements Trade sales promotions, advocacy advertisements Trade sales promotions, pioneering advertisements None of the above.

None of the above (Consumer sales promotion, Trade sales promotion)

Global Branding Considerations

One name Modify or adapt one name Different names in different markets

Which of the following statements about supply and demand is true? Demand is the quantity of a product that will be offered to the market by a supplier or suppliers at various prices for a specified period. Supply is the quantity of a product that will be sold in the market at various prices for a specified period. Price equilibrium is reached when demand and supply are equal. A price above equilibrium results in a shortage because demand will be greater than supply. None of the above statements about demand and supply are true.

Price equilibrium is reached when demand and supply are equal.

________________ use aggressive personal selling and trade advertising to convince a wholesaler or retailer to carry and sell particular merchandise, while _______________ stimulate consumer demand to obtain product distribution. Marketing strategies, promotion strategies Promotion strategies, marketing strategies Pull strategies, push strategies Push strategies, pull strategies None of the above

Push strategies, pull strategies

_______________ involves adding a fixed percentage to the cost of all items in a specific product category. Target profit pricing Target return-on-sales pricing Target return-on-investment pricing Standard markup pricing None of the above

Standard markup pricing

Which of the following has the lowest level of "trialability"? Organic dog food. Low-fat ice cream. Surgically implanted hearing aids. A new air freshener None of the above

Surgically implanted hearing aids.

The soft drink, candy, and snack vending machines found in the Business building at University of Texas at Arlington are examples of: automatic vending. self-service technologies. direct retailing. direct marketing. none of the above.

automatic vending.

a series of thick and thin vertical lines (bar codes) readable by computerized optical scanners that represent numbers used to track products

Universal Product Code (UPC)

The break even point is: the point where gains equal losses. the point when an investment will generate a positive return. the point where sales or revenues equal expenses. the point where total costs equal total revenues or sales. all of the above.

all of the above.

a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products

brand

the value of a company or brand name

brand equity

consistent preference for one brand over all others

brand loyalty

the elements of a brand that cannot be spoken

brand mark

that part of a brand that can be spoken, including letters, words, and numbers

brand names

a brand manufactured by a third party for an exclusive retailer, without evidence of that retailer's affiliation

captive brand

Manufacturers use _______________ off the list price to encourage retailers to pay their bills quickly. quantity discounts functional discounts cash discounts seasonal discounts none of the above

cash discounts

placing two or more brand names on a product or its package

co-branding

a relatively inexpensive item that merits little shopping effort

convenience product

47. The main goal of the global product development process is to:

develop every product for potential worldwide distribution and adaptation to other countries Multinational companies develop each product for potential worldwide usage, with minor unique requirements incorporated.

For products such as Rolls-Royce automobiles, only one or a few dealers within a given area can distribute the product. This illustrates: intensive distribution. selective distribution. limited distribution. exclusive distribution. none of the above.

exclusive distribution.

a written guarantee

express warranty

marketing several different products under the same brand name

family branding

Typically _______________ costs include items such as rent, utilities, insurance, administrative salaries, and the depreciation of the physical plant and equipment. variable costs total costs marginal costs fixed costs none of the above

fixed costs

identifies a product by class or type and cannot be trademarked

generic product name

a brand that obtains at least a one-third of its earnings from outside its home country, is recognizable outside its home base of customers, and has publicly available marketing and financial data

global brand

In Chinatown in New York city, consumers can purchase counterfeit versions of Rolex watches and Prada handbags that are very difficult to distinguish from the real thing. This illustrates: dual distribution. non-traditional channels. gray marketing channels. reverse channels. none of the above.

gray marketing channels.

using different brand names for different products

individual braanding

a type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase

informational labeling

A magazine ad for Orville Redenbacher's PopCorn states that the sponsor's brand has three more cups of popcorn in every microwavable bag than PopSecret Popcorn. This message: is meant to stimulate primary demand using delayed response, institutional advertising. is meant to stimulate secondary demand using delayed response, institutional advertising. is meant to stimulate primary demand using delayed response, product advertising. is meant to stimulate secondary demand using delayed response, product advertising. None of the above.

is meant to stimulate secondary demand using delayed response, product advertising.

Radio, television, and newspapers are examples of _______________ in the communication process. encoding decoding message channels feedback channels none of the above

message channels

Best Buy, Target, and WalMart sell CDs at about half the suggested retail price of music companies to draw customers to their store. The motivation for using such _______________ is to attract customers in hopes that they will buy other, more expensive products once they are in the store. everyday low pricing penetration pricing price skimming loss leader pricing none of the above

loss leader pricing

the brand name of a manufacturer

manufacturer's brand

Boar's Head deli meats is sold in many grocery stores and restaurants, while Archer Farms deli meats is owned by Target and only available there. Boar's Head is a(n) _______________ brand, while Archer Farms is a(n) _______________. captive, manufacturers' captive, private manufacturers', private manufacturers', captive none of the above

manufacturers', private

A house priced at $799,000 is likely to be perceived by potential buyers as "something over $700,000 rather than "about $800,000. This is why sellers often use _______________. penetration pricing prestige pricing pricing skimming above market pricing none of the above

none of the above (psychological pricing)

Wal*Mart buys the products it sells in large quantities directly from manufacturers of those products. This illustrates a(n) _______________ marketing channel. direct manufacturer producer supplier None of the above

none of the above (retail)

a type of package labeling that focuses on a promotional theme or logo, and consumer information is secondary

persuasive labeling

The _______________ of a retail store helps determine the store's image and positions the retail store in consumers' rminds. promotion presentation place price none of the above

presentation

a brand name owned by a wholesaler or a retailer

private brand

everything, both favorable and unfavorable, that a person receives in an exchange

product

a specific version of a product that can be designated as a distinct offering among an organization's products

product item

a group of closely related product items

product line

the number of product items in a product line

product line depth

adding additional products to an existing product line in order to compete more broadly in the industry

product line extension

a group of closely related product items

product mix

changing one or more of a product's characteristics

product modification

the practice of modifying products so those that have already been sold become obsolete before they actually need replacement

product obsolescence

the number of product lines an organization offers

product width mix

a trademark for a service

service mark

a particular item for which consumers search extensively and are very reluctant to accept substitutes

specialty product