Marketing Test 3
Jacob rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service and utilities. His fixed costs are $100,000 and his profit last year was $20,000. For Jacob, the break-even point is: 1) 1,250. 2) 1,000. 3) 250. 4) 80. 5) It cannot be determined from the information provided.
1,250.
FC=$10,000, sales Price=$60, VC =$20, breakeven is: • 100 units • 4,000 units • 250 units • 500 units
250 units
Price is $100, VC is $20, FC is $100,000, annual profit is $20,000 the contribution per unit • 1250 • 250 • 1000 • 80
80
A company manufactures and sells outdoor games. The games are sold for $250 per unit. The company estimates that its average variable costs is $150. It figures its fixed costs to be $85,000 per year. Sales for the previous year were $125,000. How many games does the company need to sell to break-even? 1) 500 games 2) 1,250 games 3) 850 games 4) 2,500 prints 5) 400 games
850 games
If Pillsbury developed a new chive-flavored crescent roll, it would not be considered a new product since it is an extension of their current product line. True or False
False
True or False: A product mix breadth is a group of associated items that consumers tend to use together or think of as part of a group of similar products.
False
True or False: A skimming price strategy tends be effective in a price-sensitive market because it discourages competitors from entering the market.
False
True or False: Brands that have developed loyal customers have a higher price elasticity of demand.
False
True or False: Jenny owns a boutique. Since sales are stable, Jenny feels it is time she had a 25 percent increase in her salary. If Jenny takes this increase in compensation, it will decrease the break-even quantity of gowns she needs to sell on a monthly basis.
False
True or False: Late Majority are a critical group of new product adopters because they help the product gain market acceptance.
False
True or False: Nike sells shoes, clothing, and athletic gear. These represent the depth of Nike's products.
False
True or False: Old Spice repositioned its products from a Baby Boomer generation to a much younger target market. Since the brand was already introduced in the market, Old Spice deodorant would not be an example of a new product. True or False
False
True or False: Private-label brands are developed and managed by manufacturers.
False
True or False: Test marketing refers to customers who modify existing products according to their own ideas to suit their specific needs.
False
True or False: The maturity phase of the product life cycle is characterized by greatly reduced competition.
False
Kyle, who is an expert in electronic products, purchased a 3D television right after they were available in the marketplace. He paid over $7,000 for it. Kyle would be considered which category of product adopters? 1) lead consumer 2) early majority 3) innovator 4) diffusers 5) early adopter
Innovator
Name the most common reason why new products fail:
No discernible benefits
Which of the following is the best example of a family brand? 1) Lifesavers Soda, Coca-Cola, and Diet Coke 2) KFC/Taco Bell fast foods 3) Kellogg's Special K and Famous Amos Chocolate Chip Cookies Correct Response 4) Tostitos Multigrain Scoops and Tostitos Chunky Salsa 5) Cadillac, GMC, and Chevrolet
Tostitos Multigrain Scoops and Tostitos Chunky Salsa
Which of the following is the best example of a family brand • Kellogg's special k and famous chocolate chip cookies • Tostitos Multigrain scoops and Tostitos chunky salsa • KFC/taco bell fast foods • Cadillac, GMC and Chevrolet
Tostitos Multigrain scoops and Tostitos chunky salsa
True or False: A company's product mix consists of its various product lines.
True
True or False: A firm would decrease its product mix breadth if it eliminated a product line.
True
True or False: If a firm is engaged in monopolistic competition, it should seek a way to differentiate itself.
True
True or False: In many cases, pioneers lose their market lead and initial market share to imitators who capitalize on the pioneers' weaknesses.
True
True or False: Jake is a loyal Busch customer. Loyal customers like Jake require lower marketing expenditures, benefiting the Anheuser-Busch company.
True
True or False: The more familiar customers are with a brand, the easier their decision-making process will be.
True
True or False: When price decreases and total revenue falls, demand is inelastic. True or False
True
Question 16 1 / 1 point The Taco Bell advertising effort of "Live Mas," which is Spanish for "Live More," is meant to suggest a lifestyle aspiration. If consumers make a connection between the Taco Bell brand and this promotional effort, then Taco Bell has created 1) brand ownership. 2) brand dilution. 3) brand loyalty. 4) a brand extension. 5) a brand association.
a brand association.
Which of the following brand strategies is being used when the Dairy Bar decides to add a new flavor of ice-cream to its menu? 1) a copycat brand 2) a multi-brand 3) a line extension 4) a premium brand 5) a brand extension
a line extension
Brand extension is a popular marketing strategy because it 1) separates out the cost of brand extension from brand intention. 2) guarantees success for a new product. 3) allows the firm to spend less on creating brand awareness and associations. 4) avoids the problem of brand dilution. 5) allows the firm to discontinue complementary products.
allows the firm to spend less on creating brand awareness and associations.
Brands can be owned by 1) any firm in the supply chain. 2) wholesalers and retailers only. 3) manufacturers only. 4) retailers only. 5) private-label generic retailers only.
any firm in the supply chain
A few customers are asked to try out a new video game that has not yet been released yet • Concept testing • Beta testing • Premarket tests • Test marketing
beta testing
The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service is called ________________ ___________________
brand equity
Chapter 12: In many cases pioneers lose their market lead and initial market share to imitators who • Utilize alpha-beta testing • Ignore patents and copyrights • Capitalize on the pioneers' weaknesses • Create similar products with reduced value to consumers
capitalize on the pioneers; weaknesses
Which of the following in not one of the five C's of pricing? • Cost • Company objectives • Channel members • Collaboration
collaboration
Sally wants to start a lemonade stand. She calculates she needs 75 glasses at $6/glass • Consumer demand • Target return pricing
consumer demand
The more substitutes that exist in a market • The greater the income elasticity for each product • The easier it is to utilize a target profit pricing strategy • Consumers are more sensitive to changes in price of a product
consumers are more sensitive to changes in price of a product
Milk and bread are examples of _______ goods because consumers don't evaluate a lot of alternatives • Ritual goods • Specialty goods • Convenience goods • Impulse gods
convenience goods
When manufacturers try to understand what customers are looking for, they are thinking about the _______ component of the product offer. 1) augmented products 2) core customer value 3) associated services 4) quality level 5) product support
core customer value
Firms either position themselves for a niche market of loyal consumers or they exit the market • Introduction • Leveling • Decline • Growth
decline
If the price for a product increases, the demand for the complementary product will Correct Answer 1) decrease. 2) become more elastic. 3) increase. 4) become more inelastic. 5) stay the same.
decrease
If the price for a product increases, the demand for the complementary product will • Decrease • Increase • Become more elastic • Become more inelastic
decrease
________________ is the process by which the adoption of an innovation spreads.
diffusion
The process by which the use of a new product or service spreads throughout a market group is • Diffusion of innovation • Product development diffusion • New product introduction • Lead user dispersion
diffusion of innovation
New-to-the-world products, where the product category itself is new, are also called: 1) diffusion innovation 2) differentiated innovations 3) discontinuous innovations 4) repositioned products 5) ingenious offerings
discontinuous innovations
The distribution for a specialty product would generally include: 1) distribution as private brands 2) distribution to a large geographic area 3) distribution through mail 4) distributed to a several outlets in a single geographic area 5) distributed to only a few stores in the geographic area
distributed to only a few stores in the geographic area
The following are all characteristics that influence the rate at which a product is adopted except: 1) complexity 2) distribution 3) relative advantage 4) observability 5) compatibility
distribution
Few new products can be profitable until this large group buys them • Early adopter • Late majority • Laggard • Early majority
early majority
Break-even analyze is useful because it allows managers____ • Determine relationship between price and quantity demanded • Estimate quantity need to sell at given price to break even
estimate quantity need to sell at given price to break even
Brands that have developed loyal customers have a higher price elasticity of demand • Ture • False
false
For market penetration pricing to work, the product must be perceived as ground-breaking • True • False
false
Nike sells shoes, clothing and athletic gear. These represent the depth of Nike's products • True • False
false
Pure competition: firms competing for customers in a market with differentiated products • True • False
false
The 1st group of buyers who want to be the first with new products is known as early adopters • True • False
false
Nora is deciding whether to purchase brand-name sneakers or a less expensive store brand • Higher degrees of brand loyalty • More product line depth • A better brand image • Greater perceived value
greater perceived value
Dan is especially price sensitive. He has been known to line up on "Black Friday" (the day after Thanksgiving) at 4 a.m. to be among the first to buy sale items. Dan would likely respond to a(n) _______ pricing strategy. 1) prestige 2) premium 3) everyday low price 4) price skimming 5) high/low
high/low
P&G own both old spice and Iams. This would be an example of • Individual brands • Traditional brand • Family brands • Umbrella brands
individual brands
Two of the many products owned by Proctor and Gamble include Old Spice health and wellness products and Iams pet nutrition products. This would be an example of which branding: 1) family brands. 2) corporate brands. 3) traditional brands. 4) individual brands. 5) umbrella brands.
individual brands.
10% increase in price of cigarettes resulted in a 2% decrease in Q demanded _____price elasticity • Income effect • Elastic • Inelastic • Cross price
inelastic
In the _________________ stage of the product life cycle, the primary promotion objective is to generate consumer awareness and motivate consumers to try the product.
introduction
The main objective is to generate consumer awareness and motivate consumers to try the product • Introduction phase • Growth phase • Maturity phase • Decline phase
introduction phase
Which is not a characteristic of products in the maturity stage of the product life cycle? • Marketing costs increase as firms defend their market share • Laggards are a major focus of marketing efforts • Price competition is intense
laggards are a major focus of marketing efforts
Nancy only breaks down and buys a new product after most of her friends and family have adopted it. She deliberates on the decision and is often skeptical of marketing. Her reference group heavily influences her buying decision. Nancy is best described as a(n): 1) innovator 2) early adopter 3) early majority 4) late majority 5) laggard
late majority
____ pricing tactics lower the price of a product below the store's cost • Loss leader • Fixed • Cost based • Zone
loss leader
For marketer one of the benefits for having achieved brand loyalty is • Few worries about copyright infringement • Lower market costs associated with reaching loyal customers • Increased price sensitivity among loyal customers • Greater concern about competitors
lower market costs associated with reaching loyal customers
Ryan is a sales rep for an established paper supply company. Business is good, but he is concerned that the company has spent little on new product development and has not created a new product in over five years. Without new products, Ryan can market his current products only to his current customers or 1) intensify his prototyping. 2) expand his early adopter market segment. 3) diversify. 4) market the same products to similar customers. 5) focus on concept testing.
market the same products to similar customers.
Doritos is most likely in which stage of its product life cycle? 1) introduction 2) growth 3) maturity 4) decline 5) fad
maturity
Marginal competitors will start dropping out of the market during the __________________ stage of the product life cycle. 1) maturity 2) growth 3) introduction 4) decline 5) laggard
maturity
The ____________ stage of the product life cycle normally has the longest stage. 1) maturity 2) growth 3) introductory 4) decline 5) development
maturity
If a firm in a purely competitive market can differentiate its product or service, it becomes part of a(n) _______ market. 1) monopolistic competition 2) duopoly 3) oligopolistic competition 4) pure competition 5) monopoly
monopolistic competition
Another name for a manufactures brand is a __________ brand • National • Extended • Private label • Systematic
national
Name the most common reason why new products fail: • Poor promotion • Overestimation of market size • Improper pricing • No discernible benefits
no discernible benefits
For which of the following is demand likely to be least sensitive to price increases? ______ 1) prescription drugs 2) restaurant meals 3) spring break vacations 4) a specific brand of cereal 5) theater tickets
prescription drugs
A demand curve shows the relationship between _______in a period of time • Price and elasticity • Price and demand • Income and demand • Price and costs
price and demand
The growth phase is always dynamic which of the following does not occur in this phase? • Profits increase as sales increase • Price competition with protracted price wars erodes profits
price competition with protracted price wears erodes profits
If a new product concept gets positive evaluations during concept testing, next step for firm: • Product development • Brainstorming • Market testing • Reverse engineering
product development
One of the difficulties in running a shoe company is the need to have significant_____ • Product mix depth • Brand equity • Product line depth • Product line breadth
product line depth
During a recent shopping trip, Laura noticed that the retailer offered a variety of products, including food, clothing, cosmetics, appliances, tires and more. Further, Laura noticed the retailer also offered a variety of different products within each product grouping. Each product grouping at the retailer is an example of a(n) __________; all of the product groups together constitute the retailer's __________. 1) product tangibility; product unit 2) product line; product mix 3) product mix; product line 4) product mix; product unit 5) product unit; product tangibility
product line; product mix
Each product grouping at the retailer: _________ all products grouped together constitute retailer's: • Product tangibility; product unit • Product mix; product line • Product line; product mix • Product mix; product unit
product line; product mix
Everyday low prices provide value to consumers by • Creative use of referencing pricing • Continually offering items on sale • Reducing their search costs
reducing their search costs
Inkjet printer gained rapid acceptance in the marketplace primarily because of their... • Compatibility • Relative advantage • Complexity • Trialability
relative advantage
Brian is trying to sell a new line of ultrasound imaging equipment. Unlike existing technology, these machines are compact, creating the potential for general practice physicians to have and use them in their offices. These new products diffused rapidly because of their 1) relative advantage. 2) associated services. 3) trialability. 4) observability. 5) compatibility.
relative advantage.
Brands that are owned by _______ are called private-label brands • Retailers • Supply chain specialists • Wholesalers • Manufacturers
retailers
_______taking apart and creating an improved product that doesn't infringe on competitor's patents • Selective dissection • Creative destruction • Reverse engineering • Redistribution
reverse engineering
Increase a business's local market share from 15-30 percent. They're using what orientation? • Competitive • Sales • Product development • Profit
sales
Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of 1) creating diversification and reducing risk. 2) avoiding market saturation from products that have been on the market for a long time. 3) satisfying the changing needs of current and new customers. 4) reduction in cost of ingredients. 5) keeping up in a market where sales come mostly from new products.
satisfying the changing needs of current and new customers.
I searched online for a computer until I found 1 for sale. This is an example of a ______ product • Shopping • Unsought • Business • Convenience
shopping
Paul wanted a new computer. He searched online until he found one for sale. Paul is considering a computer as a ______________ consumer product. 1) shopping 2) unsought 3) business 4) convenience 5) specialty
shopping
You search a long time considering alternatives. This backpack represents what type of product? • Shopping • Unsought • Routine • Convenience
shopping
Which of the following markets is most likely to be characterized by oligopolistic competition in the United States? 1) soybeans 2) men's clothing 3) electrical service to the home 4) pens and pencils 5) smartphone service providers
smartphone service providers
Company wants 20% return on investment from all sales. They are using what pricing strategy? • Status quo • Target return • Target profit • Sales orientation
target return
McDonald's often markets new product in select outlets when they do this they are engaged in • Product development • Pretesting • Concept testing • Test marketing
test marketing
Because there are many firms in monopolistic competition markets • Producers don't have to consider reactions of rival firms • The many competitors will focus on product differentiation
the many competitors will focus on product differentiation
A marketing strategy for a product considered to be a "convenience good" would be: 1) to have the product available at many outlets 2) fewer retail outlets than other types of products 3) prices higher than other types of products 4) products with little competition (limited substitutions) 5) a limited budget for promotion
to have the product available at many outlets
Zappos.com, an online shoe store offers an easy, no hassle return procedure. This relates to • Relative advantage • Compatibility • Complexity • Trialability
trialability
Zappos.com, an online shoe store, offers an easy, no-hassle return procedure. This relates to the _______ of its products. 1) complexity 2) trialability 3) compatibility 4) relative advantage 5) observability
trialability
A high/low pricing strategy relies on promotion of sales lower prices to encourage purchases • Ture • False
true
Ch. 14 Rarely is the lowest-price product offering the dominant brand in a given market • True • False
true
The introduction stage of the product life cycle is characterized by negative or low profits • True • False
true
True or False: Brand dilution occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold.
true
When a sales person calls you to sell a cemetery plot, this is most likely what type of product? • Shopping product • Unsought product • Convince product • Line extension
unsought product
