Marketing exam 3

Pella Windows is a manufacturer of windows. The company has a range of window styles and finishes that can be customized to meet each customer's needs. The product is relatively complex and must be made-to-order to meet an individual customer's requirements. Which of the following statements is true regarding the factors that affect the channel choice for Pella Windows?

A shorter and more direct distribution channel is preferred.

Prairie Farms is a dairy business that offers milk, cheese, butter, ice cream, and other dairy products to grocery and convenience stores. Which type of distribution intensity would be best for Prairie Farms?

Intensive

Manuel loves to grill, so he recently purchased a new gas grill online from Costco. The grill arrived, but unfortunately, it was damaged in shipping. Several aluminum pieces were dented, and the shipping box was noticeably damaged. Manuel contacted Costco, which emailed him a shipping label. He learned that the damaged grill will be sent to a Costco warehouse. Costco will file a claim with UPS and receive reimbursement for the grill since it was insured against damage. Which business process related to supply chain management is highlighted by this example?

Returns management

Ama has a food truck where she sells coffee drinks such as espresso, lattes, and brewed coffee. She travels to various locations around the city to sell coffee beverages. Her daily fixed costs are $500, and her average price of a coffee drink is $5. Assume Ama's variable costs are $0.25 for every coffee drink she sells. How many coffee beverages does Ama need to sell to break even? Round up to the next unit. To calculate Ama's break-even price, use this formula: Break-even is calculated as: fixed costs divided by contribution margin. The contribution margin is the selling price minus variable costs. In other words, first calculate her contribution margin, then divide Ama's fixed costs by that number. a. 106 coffee beverages b. 100 coffee beverages c. 2000 coffee beverages d. 125 coffee beverages

a. 106 coffee beverages

Deon is the owner of a floral shop. He is often frustrated that Kroger and Walmart sell plants and flowers at lower retail prices than he can purchase at wholesale. Deon thinks his wholesale firm may be engaging in price discrimination. Which of the following statements best explains why Deon may pay more for his plants and flowers? a. A firm can charge different prices to different customers if the prices represent manufacturing or quantity discount savings. b. Deon's credit is not as strong as Kroger or Walmart. c. A reduction in price may be necessary to stay even with the competition. d. Price variations are justified if designed to meet fluid product or market conditions such as plants and flowers starting to wilt or die.

a. A firm can charge different prices to different customers if the prices represent manufacturing or quantity discount savings.

Appliance World is a locally owned appliance retailer. It offers a price-match guarantee to customers. Customers simply provide proof of a similar item at a lower price at a competitor, and Appliance World will match the price. Which of the following statements is true about price matching? a. A price matching strategy may result in higher prices. b. A price matching strategy may lead to higher levels of profit margin for the firm. c. A price matching strategy may result in lower levels of store loyalty. d. Price matching is most successful for products in the decline stage of the product life cycle.

a. A price matching strategy may result in higher prices.

Which of the following will most likely contribute to the failure of a product? (Select three) a. Inadequate distribution b. Poor marketing c. Superior product when compared to alternatives d. Inferior product when compared to alternatives e. Massive and expansive distribution

a. Inadequate distribution b. Poor marketing d. Inferior product when compared to alternatives

Khushi recently downloaded a new app to her smartphone. She enjoys trying new things and is usually the first person in her social group to learn about new apps. She works in the technology industry and is an avid reader of scientific journals and technology-related magazines. Which category of adoption best describes Khushi? a. Innovator b. Early adopter c. Early majority d. Late majority

a. Innovator

Nike launched its wearable fitness tracker, the FuelBand, in 2012 after Fitbit's debut in 2007. The FuelBand tracked "Fuel Points," even though customers didn't really know what this metric meant or how it was calculated. Customers also complained that you could sit at your desk waving your hand to ramp up your score. In the four years of FuelBand's existence, Nike only captured about 10 percent of the wearable market, while its rival, Fitbit, became the category leader. Based on this description, what was the primary reason for the FuelBand's failure? a. It did not offer a benefit compared to existing products. b. Nike did a poor job positioning the product to the target market. c. Nike underestimated the size of the market. d. The FuelBand's price was too high.

a. It did not offer a benefit compared to existing products.

Rosa was enjoying a cheeseburger at McDonald's recently and noticed another customer eating fries topped with cheese and bacon. She was intrigued and learned that the restaurant had recently introduced Cheesy Bacon Fries. She thought they looked delicious and decided to try them on her next visit. Which characteristic most likely contributed to Rosa's decision to purchase the new meal option? a. Observability b. Compatibility c. Complexity d. Trialability

a. Observability

Farmers across the world are now utilizing drones, which are revolutionizing the industry. A drone is an unmanned aerial vehicle that is guided remotely. Although drones are not new, their use in agriculture is significantly impacting the industry and targeting an entirely new market. Which type of new product is a drone in the agriculture context? a. Repositioned product b. New-to-the-world product c. Improvement of existing product d. New product line

a. Repositioned product

Nintendo launched the Wii U console in 2012 but stopped production in 2016 prior to the debut of the Nintendo Switch. The Wii U was considered a relatively complicated system. The tablet controller only worked about 15 feet away from the home base console and was not portable. In addition, there were very few new games supported by the system. During this time, both Sony and Microsoft's Xbox systems outperformed and outsold Nintendo. Based on this description, what was the primary reason for the Wii U console's failure? a. Wii U offered a poor match between product features and customer desires for portability. b. Nintendo had inadequate distribution. c. Nintendo underestimated the size of the market. d. Nintendo's Wii U was priced too high.

a. Wii U offered a poor match between product features and customer desires for portability.

Jorge is building a new home and will be selecting all new kitchen appliances. He and his wife, Mariana, will most likely be influenced by _______ when making their purchase decision since it is a complex decision. a. a salesperson b. sales promotion c. social media d. advertising

a. a salesperson

Test marketing a product happens _______. a. after development b. after commercialization c. before idea screening d. before defining new-product strategy

a. after development

Pranav is considering purchasing a new automobile. He is trying to decide between two brands-Lexus and BMW. Both are high quality, but he's heard that customers prefer Lexus due to its primary _________ that the driver is in a cocoon-like atmosphere and doesn't feel or hear any road noise. a. competitive advantage b. distinctive feature c. primary characteristic d. salient attribute

a. competitive advantage

Hugo is celebrating his thirtieth birthday and decides to create a birthday fundraiser on Facebook. Hugo recently noticed that the National Football League (NFL) is a major sponsor of the Wounded Warrior Project. Since Hugo enjoys watching NFL games, he decides to post a birthday fundraiser on Facebook to support the Wounded Warrior Project. This is an example of a promotion designed to _______ the target audience. a. connect with b. remind c. persuade d. inform

a. connect with

Products that look promising after the business analysis stage of product development then proceed to the _______. a. development stage b. idea screening stage c. new-product strategy stage d. commercialization stage

a. development stage

Anay is an account representative for Kind Bars, a snack bar made with natural ingredients. The snack bar segment faces intense competition from several brands such as NutriGrain, Clif Bar, and Lara Bar to name a few. Unfortunately, new products continue to enter the market, especially in the "health food" category. Anay meets frequently with store managers to discuss product placement and secure shelf space. Sales of Kind Bars are still increasing, thanks to an aggressive consumer promotion campaign. Based on this information, Kind Bars are in the _______ stage of the product life cycle. a. growth b. introduction c. decline d. maturity

a. growth

Old Spice's "Smell like a Man, Man" campaign has revitalized the brand. The first television ad quickly went viral. Old Spice placed print ads using the same wording and talent in targeted publications and supplemented this with a social media presence on Twitter, Instagram, and Facebook. The campaign is an example of _______ marketing communications. a. integrated b. pervasive c. cohesive d. powerful

a. integrated

Ishara owns a nail salon that sells nail polish, hand lotion, and other beauty aids. She typically doubles the cost of an item to determine her retail price. This practice is called _______. a. keystoning b. base price c. price fixing d. price skimming

a. keystoning

Noel often watches TV late at night. During SportsCenter on ESPN, Noel saw an advertisement for Meguiar's Hybrid Ceramic Wax. It says, "Spray on. Rinse Off. Protection and durability...beyond conventional car wax. Ceramic made easy." The spot is visually appealing and shows the simplicity of the process and the customer standing back and saying, "Wow!" This is an example of a promotion designed to _______ the target audience. a. persuade b. remind c. connect with d. inform

a. persuade

Graciela is a licensed massage therapist who owns a business called Stressbusters. She is offering a special "buy two, get one free" promotion by which customers can purchase a certificate for three 60-minute massages for $120. Graciela is implementing a _______ pricing objective. a. sales maximization b. profit maximization c. market share d. target return on investment

a. sales maximization

Deon has a portable silk-screening business and sells t-shirts at sporting events such as the state track meet. His total fixed costs are $1,500 regardless of the number of shirts he produces. His variable costs are $0.75 for every shirt he makes. If he sells his shirts at $8 each, how many shirts does he need to sell at each event to break even? Round up to the next unit. To calculate Deon's break-even price, use this formula: Break-even is calculated as: fixed costs divided by contribution margin. The contribution margin is the selling price minus variable costs. In other words, first calculate his contribution margin, and then divide Deon's fixed costs by that number. a. 2000 shirts b. 207 shirts c. 189 shirts d. 1125 shirts

b. 207 shirts

Jalen is in his late thirties and has always enjoyed running. He is training for his first marathon and recently purchased a Garmin running watch to help him train and pace his workouts. He considered the pros and cons of the Garmin system, read many product reviews, and spoke with many friends who recommended the Garmin. Jalen is excited about his purchase but is wondering why he waited so long to get a running watch. He has now become a big advocate for Garmin and has been a vocal supporter of the brand. Which category of adoption best describes Jalen? a. Early adopter b. Early majority c. Late majority d. Laggard

b. Early majority

The KFC food chain operates restaurant locations around the globe and is known for its "finger-lickin' good" chicken. In India, KFC locations offer Vegetable Strips and the Potato Krisper Burger to satisfy the needs of the vegetarian market. Locations in China have a Shrimp Burger, and in Thailand they have a Shrimp Donut. Which of the following statements about global issues in new-product development is true? a. KFC has had trouble in pricing products at affordable prices to earn a profit. b. KFC has created new menu items that meet the unique needs of customers in each country. c. KFC has seen a reduction in the number of menu items offered at locations around the globe. d. KFC develops products for worldwide distribution with little market variation from one country to another.

b. KFC has created new menu items that meet the unique needs of customers in each country.

Microwave ovens are now in the maturity stage of the product life cycle. Which of the following statements is true about pricing for microwave ovens? a. Prices are generally set high during the maturity stage of a product's life cycle. b. Pricing of microwave ovens will be reduced as competition increases and high-cost firms are eliminated. c. Manufacturers can stimulate demand by offering a price reduction. d. Price may increase due to changes in demand.

b. Pricing of microwave ovens will be reduced as competition increases and high-cost firms are eliminated.

The decision to market a product is called _______. a. test marketing b. commercialization c. new-product strategy d. business analysis

b. commercialization

The stage of the PLC where sales revenue peaks due to market saturation is the _______. a. growth stage b. maturity stage c. introductory stage d. decline stage

b. maturity stage

Dr. Dre developed a new model of wireless ear buds and introduced them at a relatively low price in order to capture a large share of the market. This is an example of _______. a. price skimming b. penetration pricing c. price fixing d. predatory pricing

b. penetration pricing

If two executives from rival insurance companies met to discuss the policy premiums they would both agree to charge for automobiles, they would be engaging in _______. a. penetration pricing b. price fixing c. price skimming d. predatory pricing

b. price fixing

Longwei enjoys home improvement projects and often shops at Menards. He recently purchased a Hunter brand ceiling fan. At check-out, he was informed there was an offer by which he could send a copy of his receipt to the manufacturer and receive $10 in return. Longwei picked up the form on his way out of the store. This is an example of a _______, a type of promotional allowance. a. cash discount b. rebate c. seasonal discount d. coupon

b. rebate

Riya recently saw an advertisement for the allergy medication Zyrtec. The ad mentioned that Zyrtec provides relief for indoor and outdoor allergies. The advertisement ended with a list of stores where customers could purchase Zyrtec. This is an example of a promotion designed to _______ the target audience. a. inform b. remind c. connect with d. persuade

b. remind

Diego works as an account representative for Red Bull. He partners with restaurants and bars to promote his product. Diego can give bar owners a small counter-top refrigerator to keep their Red Bull product cold when they place an order for five cases of product. Diego also distributes hats and T-shirts featuring the Red Bull logo for special events at local clubs. The hats, shirts, and refrigerator are examples of _______, an element of the promotion mix. a. publicity b. sales promotion c. advertising d. personal selling

b. sales promotion

Which of the following products is more likely to be diffused quickly? a. A product that is essentially the same as existing substitutes b. A product that is very complex c. A product that is easy to try on a limited basis d. A product whose benefits are hard to observe or communicate

c. A product that is easy to try on a limited basis

Nanami is a new-product development engineer with siffron, a company specializing in display solutions for retail outlets. Nanami and her team have created a new product called ModoShelf. It has removable antimicrobial tiles that can be cleaned in a dishwasher. The product is now available to grocery retailers throughout the country for fresh produce displays such as lettuce that may be prone to bacteria formation. What stage in the new-product development process best describes this example? a. Idea screening b. Development c. Commercialization d. Test marketing

c. Commercialization

Fitness trackers were first introduced as simple pedometers, but with the advent of smartphones and apps, more advanced products have been developed. Fitbit was an early entrant into this market, followed by the Nike FuelBand. The Apple iPhone incorporated activity tracking, and several companies such as Garmin joined the market as well. After only four years, Nike FuelBand exited the market. Today, Fitbit, Apple, and Garmin are all vying for market share as competition is intense. Each company utilizes aggressive advertising campaigns to persuade consumers to buy their brand. Which stage of the product life cycle best describes fitness trackers? a. Decline b. Introduction c. Growth d. Maturity

c. Growth

Charlotte enjoys trying new products and has a high need for variety. She visits Starbucks at least twice a week and rarely orders the same beverage twice. She recently noticed Starbucks's brand of coffee creamer at the grocery store and picked up the Cinnamon Dolce Latte flavor. Charlotte had never seen the item before but thinks it will be a great success. Based on this information, what stage of the product life cycle best describes the Starbucks creamers? a. Maturity b. Decline c. Introduction d. Growth

c. Introduction

Starbucks is now selling Cookie Straws in grocery stores across the United States. Starbucks describes the product as a toasted rolled wafer cookie filled with a luscious layer of rich, dark chocolatey sweetness. Cookie Straws are the first "cookie" product offered by Starbucks with placement in the cookie and cracker aisle. Which type of new product are the Cookie Straws? a. Improvements or revisions of existing products b. Addition to existing product line c. New-product line d. Repositioned product

c. New-product line

Which step in the product development process defines the types of products the organization wants to offer and the markets it wants to serve? a. Idea generation b. Idea screening c. New-product strategy d. Business analysis

c. New-product strategy

Chao-xing is consulting with a retail store that sells furniture and appliances. The store uses television and radio advertising to gain consumers' attention and to create awareness of the store. Which element of the promotion mix should Chao-xing recommend the store use to create strong desire and purchase intent among its target market of customers? a. Public relations b. Social media c. Sales promotion d. Personal selling

c. Sales promotion

Aarav lives in Houston, Texas, and is excited to try McDonald's new jalapeño salsa breakfast sandwiches. These sandwiches come in either biscuit or muffin varieties, with bacon or sausage as the meat options. The sandwiches are topped with a slice of white cheddar cheese, eggs, and a jalapeño salsa concoction. Aarav asks a store employee about the item and learns that the product is only available in Houston at select McDonald's locations. Which stage in the new-product development process best describes this example? a. Idea screening b. Commercialization c. Test marketing d. Development

c. Test marketing

Subway, a chain known for its fresh, made-to-order sandwiches, has launched the Green Goddess Tuna Melt in more than 3,000 U.S. restaurants. The sandwich features flaked tuna blended with mayo, topped with shredded mozzarella cheese, and toasted on nine-grain bread. It is then layered with fresh spinach, tomatoes, onions, and green goddess dressing. Subway is the first national quick-service restaurant chain to use green goddess dressing on a sandwich. Subway's offering of the Green Goddess Tuna Melt is an example of a(n) _______ type of new product. a. improvement or revision of existing product b. repositioned product c. addition to existing product line d. new-product line

c. addition to existing product line

Products that supplement a firm's established product line would be considered _______. a. new product lines b. lower priced products c. additions to existing product lines d. repositioned products

c. additions to existing product lines

Kemi is a brand manager for Post Cereal and is working with his team to plan marketing strategies and tactics for Grape-Nuts. The cereal has been in production since 1897 and has a loyal following of customers. However, the sales have seen a downward trend, and there are many competing products offering similar benefits. Based on this information, Grape-Nuts is likely in the _______ stage of the product life cycle, and any new customers would be classified as _______, according to the diffusion of innovation stages. a. decline; late majority b. maturity; late majority c. decline; laggards d. growth; early majority

c. decline; laggards

The stage of the product life cycle (PLC) where profits peak is the _______. a. maturity stage b. decline stage c. growth stage d. introductory stage

c. growth stage

Caterpillar is a well-known manufacturer of earth-moving equipment. The company is also associated with producing high-quality equipment that is durable and long-lasting. In addition, Caterpillar dealers provide excellent customer service by stocking parts to repair equipment and reduce machine downtime. All these factors lead to high customer satisfaction. Based on this information, demand for Caterpillar equipment will likely be classified as _______. a. elastic b. necessary c. inelastic d. premium

c. inelastic

Alberto works for PepsiCo and is on the marketing team for Gatorade. The company has been concerned about Gatorade sales. Sales are still increasing, but at a slower rate. Gatorade has reduced prices but still maintains a dominant position in the market. Based on this description, Gatorade is in the _______ stage of the product life cycle. a. introduction b. growth c. maturity d. decline

c. maturity

Products that are new and improved versions of existing products would be considered _______. a. lower priced products b. additions to existing product lines c. revisions of existing products d. new-to-the-world products

c. revisions of existing products

Hyundai is introducing a new model of its popular mid-sized sedan, the Sonata. The Sonata competes with Toyota's Camry retailing at $25,050, the Mazda 6 selling for $24,720, and the Honda Accord with a retail price of $24,650. Hyundai plans to price the Sonata at $24,600. This is an example of the _____ pricing strategy. a. price fixing b. predatory pricing c. status quo d. price skimming

c. status quo

Elijah owns a tour company near a lake that provides kayak rentals. One of his competitors rents kayaks for $25 per day or $8 per hour. Elijah decided to lower his prices in order to use _______ as his pricing objective and be in line with his competition. a. sales maximization b. market share c. status quo pricing d. profit maximization

c. status quo pricing

Jack is the owner of a car wash. His location offers an automatic car wash option and two self-service car wash bays. He views the car wash business as an investment and strives to control expenses. His goal is to achieve a 20 percent profit on his investment, and he sets his prices in order to achieve this goal. Jack is implementing a _______ pricing objective. a. market share b. profit maximization c. target return on investment d. sales maximization

c. target return on investment

A good reason to invest in new-product development is _______. a. to let competitors offer better alternatives b. to rely on existing products forever c. to sustain company growth d. to cut research and development budgets

c. to sustain company growth

Graciela is a professional portrait photographer who often orders canvas prints and other custom products from Artsy Couture. Graciela regularly receives e-mail notices from Artsy Couture with special incentives such as 20 percent off her next order. Graciela feels appreciated by Artsy Couture as one of its top customers, and she has developed a sense of loyalty to the company. Graciela's experience with Artsy Couture provides an example of why the _______ business process is important to supply chain managers.

customer relationship management

Divit is an organic farmer and sells his fresh produce at weekly farmers' markets in his community. During the summer, he sold watermelons for $3 each. One Saturday, he sold all 50 of the watermelons he had picked. How much revenue did Divit earn from selling his watermelons? a. $50 b. $180 c. $120 d. $150

d. $150

Misaka is a social media manager for a family-owned restaurant. The owner has shared with her the overall marketing objectives for the restaurant. What should Misaka do with this information? a. Identify potential influencers who could help promote the restaurant b. Allocate the firm's marketing budget to specific social media outlets c. Determine which social media outlets are most appropriate for the restaurant d. Develop a social media promotional plan consistent with the overall objectives

d. Develop a social media promotional plan consistent with the overall objectives

Which group of adopters is an important link to the late majority and helps new products reach a tipping point in diffusion? a. Early adopters b. Laggards c. Innovators d. Early majority

d. Early majority

Lay's potato chips hold a contest called "Do Us a Flavor," in which customers pitch new flavor combinations of the popular Lay's potato chip for the chance to win $1 million. Contestants submit flavor ideas on the "Do Us a Flavor" website. They choose a catchy title, select up to three ingredients, create a quick pitch, and design the bag. What stage of the new-product development process is described by this stage of the Lay's contest? a. Test marketing b. Commercialization c. Idea screening d. Idea generation

d. Idea generation

BMW has announced changes to its 3-series models for the upcoming year. The changes include reduced weight, improved aerodynamics, and enhanced driving dynamics. In addition, consumers will have the option of purchasing the vehicle with or without all-wheel drive. How would you classify BMWs 3-series vehicles? a. New-product lines b. New-to-the-world products c. Repositioned products d. Improvements or revisions of existing products

d. Improvements or revisions of existing products

Catarina recently downloaded Snapchat. She is a mom to two daughters, who are 11 and 13. The girls recently began using Snapchat and love playing with the filters to take selfies, and they encouraged their mom to get Snapchat too so they can share fun photos with each other. Catarina feels like she is the last one in her friend group to use Snapchat, as most of her friends have been using it for several years. Catarina has very few apps on her smartphone, because she is skeptical of companies and concerned about privacy issues. Which category of adoption best describes Catarina? a. Early majority b. Late majority c. Innovator d. Laggard

d. Laggard

Noroa is a working parent with three busy teenagers, but she tries to prepare a healthy meal every night for dinner. She has recently seen lots of Instagram, Pinterest, and Facebook posts about using an Instapot or a Crock-Pot. She feels somewhat left out since she doesn't own either. However, she takes some time to review the products and decides to purchase a Crock-Pot, which is in the decline stage of the product life cycle. Which category of adopter best describes Noroa? a. Early adopter b. Innovator c. Early majority d. Laggard

d. Laggard

Hormel has extended its reach into the snack food market and recently unveiled a new product line. Hormel's Natural Choice snacks come in four varieties, each in 2-ounce packs containing ham, turkey, or chicken paired with white cheddar cheese and either pretzels, almonds, or blueberries covered in chocolate. Their retail price is $1.50 to $2.00 each. Which of the following is the most appropriate marketing activity for Hormel to utilize to gain acceptance of the new products? a. Lower the prices of the product to undercut competition b. Utilize aggressive advertising for Hormel and its line of Natural Choice snacks c. Rely on word-of-mouth recommendations by consumers who try the product d. Offer samples of the new products in retail grocery stores

d. Offer samples of the new products in retail grocery stores

Laqueta is shopping at Dick's Sporting Goods and notices a display for Yeti beverage containers. She likes the various colors and prefers to use a reusable container to reduce her use of plastic. She has read about how the Yeti container keeps beverages hot or cold for several hours. Laqueta is impressed with the product and thinks it will be a real improvement over her current Tervis tumbler. She decides to buy the Yeti product. Which characteristic most likely contributed to Laqueta's decision to purchase the new option? a. Complexity b. Observability c. Compatibility d. Relative advantage

d. Relative advantage

Rowena has a Costco membership and enjoys the opportunity to try items at the store. On a recent visit, an associate was offering samples of a quick meal, "Brown Rice & Quinoa," that can be microwaved or boiled to heat and cooks in 90 seconds. After sampling the item, Rowena decided to purchase it. Which characteristic most likely contributed to Rowena's decision to purchase the new meal option? a. Relative advantage b. Observability c. Compatibility d. Trialability

d. Trialability

Burger King launched a new menu item called the Impossible Whopper, a burger made with a plant-based, protein-filled patty. Burger King has offered a garden vegetable patty burger in the past, but its new Impossible Whopper looks and tastes like meat. The Impossible Whopper is classified as a(n) _______ according to the chapter's categories of new products. a. improvement or revision of existing products b. new-to-the-world product c. repositioned product d. addition to existing product lines

d. addition to existing product lines

In order to maximize profits for a new product, marketers will ideally _______. a. customize the product for each different market b. engineer the products in a way that is hard to modify c. assume that regulatory environments are the same worldwide d. create products that require little or no modification when sold globally

d. create products that require little or no modification when sold globally

Miguel's favorite beverage is Pepsi, which normally costs $1.39 for a two-liter bottle. Occasionally, his local grocery store offers three 2-liter bottles of Pepsi for $3. Due to the savings, Miguel stocks up and buys six bottles since he has room to store them in his pantry. This is an example of the _______ concept. a. supply b. status quo c. quality d. demand

d. demand

Because product development can be time consuming and expensive, companies want to _______. a. develop products that disregard the regulatory environment in different countries b. develop products that require expensive modifications c. develop unique and specific products for each market, regardless of market size d. develop products that are marketable worldwide

d. develop products that are marketable worldwide

Leon is planning a trip to attend alumni weekend at the university at which he received his degree. He was shocked to learn that hotel rooms for alumni weekend are now priced at least three times the typical cost. He spoke with a customer service agent who told him that the hotel uses a computer algorithm that changes the price of a room based on room availability and the number of inquiries the hotel is receiving about rooms. This is an example of _______ pricing. a. flexible b. value-based c. predatory d. dynamic

d. dynamic

The stage of the PLC where companies focus on increased distribution among wholesalers and retailers is the _______. a. maturity stage b. introductory stage c. decline stage d. growth stage

d. growth stage

After ideas have been generated, the next step in the product development process is _______. a. test marketing b. new-product strategy c. commercialization d. idea screening

d. idea screening

Starbucks's corporate office in Seattle offers Cold Pop, a beverage stand open to employees and visitors. It's open three days a week and serves about 200 drinks a day for $5 per beverage. Cold Pop serves potential new menu items, and employees who purchase the new items also get to vote on the item. Based on the number of votes and positive comments that the new products receive, Starbucks employees begin analyzing the business opportunity for the product. The opportunity to sample and vote on menu prototypes for Starbucks represents the _______ stage of the new-product development process. a. idea generation b. test marketing c. development d. idea screening

d. idea screening

In the business analysis stage, _______. a. ideas are generated from a variety of sources, such as customers and distributors b. ideas are screened for fit with the organization's new-product strategy c. ideas are commercialized d. ideas are evaluated by projecting cost, sales, and profitability

d. ideas are evaluated by projecting cost, sales, and profitability

Misaki is an account executive for Canon Business Solutions. She has a company vehicle and travels to meet with customers in her market territory, which covers a 120-mile radius of her home office. She drives approximately 2,000 miles per month and uses premium gasoline. The price of gasoline has no impact on the number of miles Misaki travels for work. Therefore, gasoline for Misaki is classified as having _______ demand. a. premium b. elastic c. necessary d. inelastic

d. inelastic

Taco Bell recently announced it was debuting a new menu item. Commercials for the new product feature the item and state the product will be available in stores at the end of the month. The primary goal of this promotional message is to _______ the target audience. a. connect b. persuade c. remind d. inform

d. inform

The first group to adopt new products are called _______. a. late minority b. laggards c. early adopters d. innovators

d. innovators

Verizon recently launched a campaign giving steep discounts on the new iPhone to new customers. In addition, new users will receive unlimited data plans. This is an example of a promotion designed to _______ the target audience. a. connect with b. inform c. remind d. persuade

d. persuade

Uber has been accused of using _______ pricing in which it charges fares at a very low price with the intent of driving competitors out of business or out of a market. a. price fixing b. price skimming c. penetration pricing d. predatory pricing

d. predatory pricing

Dhruv is shopping at Men's Wearhouse for a new suit. The salesperson shows him that there are basically three levels of quality based on the material and wool content. The top-of-the line suits retail for $1500 each and are ordered according to the customer's measurements. The medium-level suits retail for $750 each, and the base level suits are $450 each. Men's Wearhouse is using a _______ pricing approach. a. bait pricing b. price bundling c. flexible pricing d. price lining

d. price lining

The latest model of the Google Pixel smartphone is introduced at a relatively high price compared to competing products. Previous editions of the Google Pixel phone are then priced at a discount. This is an example of a pricing strategy called _______. a. price fixing b. predatory pricing c. penetration pricing d. price skimming

d. price skimming

Zari works at a car dealership. She specializes in used vehicles. She receives an inventory report that lists the cost of each vehicle and the asking price. If Zari sells a car at an amount more than the vehicle cost the dealership to acquire, she has earned a _______. a. bonus b. commission c. promotion d. profit

d. profit

The Peninsula Hotels group is one of the world's leading hotel chains. It operates prestigious luxury properties in ten major cities across the globe such as Hong Kong, New York, Chicago, Beverly Hills, and Paris. The hotel is known for luxurious amenities and exceptional service. Room rates vary from $1,100 per night for a room with a king bed to over $5,000 per night for a two-bedroom suite. The Peninsula Hotels group is most likely implementing a _______ pricing objective. a. target return on investment b. sales maximization c. market share d. profit maximization

d. profit maximization

Bombas socks are available only through the company's website, www.bombas.com. Bombas is using the _____ channel system to make its products available to consumers.

direct

A variety of factors can affect the accuracy of forecasts during business analysis. For example,____________markets like soft drinks are easier to forecast. But forecasting the size of_______________markets is more of a challenge.

established new or niche

Alicia is interested in purchasing a set of ear buds to use with her laptop and smartphone. She visits Best Buy and notices that the prices vary from $10 to several hundred dollars. Alicia prefers wireless ear buds and compares the Skullcandy model that costs $90 to a similar pair from Beats by Dre that cost $119. She decides to purchase the Beats brand because she believes it's a higher quality set. In this case, Alicia has been influenced by the _______ effect of price

information

Zion visited the website of B&H Photo, an online retailer with a location in New York City. He was interested in purchasing a new lens for his camera. It was in stock and could be shipped free to his home via FedEx and arrive in two days. Zion's experience with B&H Photo provides an example of how the _______ business process is important to supply chain managers.

order fulfillment

Jo Malone is a designer fragrance company. Its perfume and cologne products are available at a limited number of stores including Sephora and Nordstrom. Jo Malone is using a(n) _______ distribution intensity.

selective

Ansh is a supply chain management specialist with Toyota. He is currently reviewing supplier contracts and is interested in reducing the environmental impact within the supply chain. He is hoping that by sourcing materials closer to manufacturing facilities and reducing air shipments, Toyota's supply chain can be more efficient, cost-effective, and environmentally sound. This is an example of _______.

sustainable supply chain management

Misaki is an account manager with Office Depot who works in the healthcare sector. Recently, Southwest Medical Center selected Office Depot as a preferred supplier. Misaki worked with her technology team to create a Web portal or intranet. The portal enables all departmental staff at the Medical Center who have the authority to order office supplies and receive special pricing. The use of the Web portal provides _______ integration that connects managers across both firms via both hardware and software systems used to exchange information.

technology and planning