Marketing Final Chp 11,12,19
T o F The point at which marginal revenue equals marginal cost is the breakeven point
False
T o F concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions
False
Products are classified as being business or consumer products according to the
buyer's intended use of the product
If Norwegian Cruise Lines increased the price of its 7 day cruise package by 10% and, as a result, experienced a 20% decline in customer bookings, Norwegian's demand would be
elastic
Brand Preference is the strongest form or degree of brand loyalty
false
t o f Buyers want to exert only minimal effort to obtain shopping products
false
Increasing the quality of a product may
give a firm an advantage over competing brands
In which stage of the product life cycle do profits begin to decrease
growth
Of the following choices, which would be the easiest brand name to legally protect
Tarzink Yogurt
At what point does a firm maximize profit
The point at which marginal cost equals marginal revenue
T o F A brand name is the part of the brand that is spoken
True
T o F A product's classification can influence its price, distribution, and promotion
True
T o F Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price
True
T o F Price is the most easily adjusted ingredient in the marketing mix
True
T o F Price is the value that is exchanged for products in a marketing transaction
True
T o F The buyer's intent can determine whether an item is classified as a consumer or business product
True
T o F Use of the product is the most important means of distinguishing consumer products from business products
True
T o F the purpose of the pricing concept is to quantify and express the value of items in a market exchange
True
T o FThe major drawback in using aesthetic modifications is that their value is determined subjectively
True
T o f factors affecting pricing decisions can include demand, distribution, and the way in which the product is promoted
True
T o f profits decline in the maturity stage, largely because of increased competition
True
4 major stages of a product life cycle include
introduction, growth, maturity, decline
The major drawback to using aesthetic modifications is
that the value of the modification is determined subjectively
Price is a key element in the marketing mix because it relates directly to
the generation of total revenue
The width of a product mix is measured by the number of product
lines a company offers
The major characteristic of a private brand is that
manufacturers are not identified on the product
When Cameron was visiting family in Missouri, he ate a flavor of Boulder Canyon Kettle Chips he had never seen before. He went home to Virginia and couldn't find the flavor. Which is most likely why he could not find the flavor at home?
He was visiting a city being used as a boulder canyons test market
The General Auto Insurance advertises its automobile insurance as "For a great low rate you can get online, go to the General and save some time!" General is engaging in
Price competition
What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level?
Screening
Early in the commercialization phase, marketers must make decisions about
warranties, repairs, and replacement parts
T o F Marketers have little influence over shaping consumers concepts or perceptions
False
T o F Product design is the process of creating and designing products so that consumers perceive them as different from competing products
False
T o F Product mix refers to a related group of products in the product line
False
T o F Profits for a firm are computed as follows: Profits = Total Revenue- Fixed costs
False
T o F Test marketing should be conducted when a product has been given a low probability of success
False
T o F The marketing mix should be left alone during the maturity stage of the product life cycle, tampering with it may bring an early death to the product
False
T o F during the growth stage, promotion costs rise as a percentage of total sales
False
T o F fixed costs vary with the number of units produced or sold
False
T o F the core product element of the total product can include installation, delivery, training, and financing
False
T o F venture team members usually come from the same functional areas within the firm
False
T o f a firm that competes on a price basis is unable to change prices frequently
False
T o F Barter is the oldest form of exchange
True
T o F Brand and product managers operate cross- functionally
True
T o F Business analysis provides a tentative sketch of a product's profitability
True
T o F Communicating product benefits to consumers in very important in the introduction stage
True
T o F Costs are a major issue when establishing price
True
T o F Designing a product that customers perceive as different from competing products is an example of product differentiation
True
T o F Laggards are the last to adopt a new product and usually distrust new products
True
T o F The major drawback in using aesthetic modifications is that their value is determined subjectiely
True
T o F The purpose of the pricing concept is to quantify and express the value of items in a market exchange
True
T o F New products are classified solely as innovations that have never been sold by any organization
false
T o F Obtaining a specialty product involves a considerable amount of comparison activity
false
T o F delivery, installation, financing, repair, warranties, and guarantees are all examples of product features
false
T o FLine extensions are less common than other new products because line extensions are more expensive and more risky.
false
T o f a run out approach to product deletion lets the product decline without changing the marketing strategy
false
The test marketing stage
is a sample launching of the entire marketing mix.
At the breakeven point
the money a company brings in from selling products equals the amount spent producing the products
Louis is reading the online report of the tuition and fees he owes for this semester of college. Since he has signed up for online banking, he pays the amount immediately. The amount Louis just paid is considered to be
the price
During the maturity stage
some competitors are forced out.
A product mix is best described as
all products offered by a firm
T o F Customers always interpret a higher price to mean higher quality
False
T o F Disruptive innovations involve completely new technologies
False
T o F Electricity is an example of a product that is price elastic
False
T o F Process materials are used directly in the production of products
False
The owner of Big Jim's Motorcycles is opening a new retail location. Which of the following is most likely to be a fixed cost for Big Jim's Motorcycles?
Building rent
Which of the following is not a business product?
Calculators bought to help individuals complete their personal federal income tax forms
The 3 levels of brand loyalty from strongest to weakest are
Insistence, preference, recognition
________refers to how a product is conceived, planned, and produced
Product design
A product line is defined as
a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations.
The three major ways to modify a product include
aesthetic, quality, and functional changes
The jolly green giant used by the Green Giant Company facilitates the development of
brand associations
Marianna tells Rajesh that she likes his team's idea about a new three lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. She is asking Rajesh to proceed to which stage of the new- product development process?
business analysis
After building a prototype of his new device, Brad is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the ____ phase of the new-product development process.
product development
If Umbro faces a standard demand curve that exists for most products, as it raises the price of its soccer balls, the
quantity demanded goes down
Which is an example of disruptive innovation
razor blade
Compared with other phases of the new product development process, the largest number of new product ideas is rejected during the ---- phase
screening
Price is
the value that is exchanged for products in a marketing transaction
T o F The buyers intent can determine whether an item is classified as a consumer or a business product
true