MKG 300 Test 3

A firm which makes stereo radios and CD players for car manufacturers who install them directly in their new cars is selling: A) component parts. B) supplies. C) component materials. D) installations. E) accessory equipment.

A) component parts

A marketing manager wants to know why her sales are down. She talks with several sales reps and finds that a competitor has introduced a successful new product. This "research" seems to be part of A) the situation analysis. B) the problem solution stage. C) obtaining problem-specific data. D) the data interpretation stage. E) the problem definition stage of the research process.

A) the situation analysis

Which of the following is less likely to happen as a product moves through the later stages of the product life cycle? A. Place - move toward selective distribution. B. Promotion - build selective demand. C. Price - meet competition. D. Competitive situation - Heading toward pure competition. E. Product - Some drop out.

A: Place- move toward selective distribution

. A carefully designed package may: A) raise total distribution cost. B) provide more "promotion" effect--and at a lower cost--than advertising. C) enhance the product by making it easier or safer to use. D) offer product information that helps consumers buy. E) All of the above are true.

All the above

Fresher Foods Co. manufactures and sells a variety of dairy products under the Fresh Farm brand name. It decides to introduce a new line of organic jams and preserves under the Tru Flavor Preserves brand name. For its new line, Fresher Foods is using ______.

An individual brand

A new product idea will move through the early stages of the life cycle more quickly when it has all of the following characteristics, EXCEPT: A) A greater comparative advantage of the new product over those already on the market. B) It is difficult to use. C) It is easy to communicate. D) It can be tried on a limited basis.

B) it is difficult to use

Regarding "marketing research" and "marketing information systems":

B) marketing information systems make information more available and more accessible. Although not every firm has one, MIS use is growing rapidly.

Wilbur Donald has had good experience using Crest toothpaste and he is in the habit of buying it. His level of brand familiarity for Crest is ______.

Brand preference

Which of the following is NOT a convenience product? A. a staple. B. an impulse product. C.a business product. D. an emergency product E. all of the above are convenience products.

C: a business product

_____ are one widely used form of qualitative questioning in marketing research. Select one: a. Situation analyses b. Experimental research studies c. Focus group interviews d. Direct observations of customers e. Telephone surveys

C: focus group interviews

E-commerce jewelry retailer SparklesNow announces a contest inviting its regular online members to submit contemporary jewelry designs. Winning designs and entries are chosen based on ratings and comments from other members. SparklesNow is using ______ to get new ideas from customers.

Crowdsourcing

A consumer is most likely to want and expect help from a salesperson when shopping for A) a regularly unsought product. B) an impulse product. C) a staple. D) a heterogeneous shopping product. E) a homogeneous shopping product.

D) a heterogeneous shopping product

As a product moves through its product life cycle: A. a firm should change its target market--but not its marketing mix. B. the competitive situation moves toward monopoly. C. industry profits keep increasing along with industry sales. D. customers' needs and attitudes may change. E. All of the above are true.

D) customer's needs and attitudes may change

Which of the following is a benefit of branding from the perspective of the manufacturer? A. Brands improve a company's image B. Brands speed acceptance of new products C. Brands reduce selling time and effort, especially for the new products marketed uinder the same name D. All of these are benefits to the manufacturer

D: all of these are benefits to the manufacturer

Which of the following is usually NOT true about business products?

Demand for consumer products is derived from business products.

Why is brand rejection a big concern for service-oriented businesses?

Hard to control the quality of service

Customers see ______ products as different and want to inspect them for quality and suitability.

Heterogeneous shopping products

Which of the following statements about using the Internet to gather secondary information is FALSE?

Information on the Internet is readily available and very reliable

______ are a boom-or-bust business.

Installations are a boom-or-bust business. During growth periods, firms may buy installations to increase capacity. But during a downswing, sales fall off sharply

Identify the true statement about the role of focus groups in marketing research.

It usually involves a professional moderator.

Why is brand rejection a big concern for service-oriented businesses?

It's hard to control the quality of service. (A business traveler who gets a dirty room in a Hilton Hotel in Caracas, Venezuela, might not return to a Hilton anywhere. Yet it's difficult for Hilton to ensure that every maid does a good job every time.)

The national law which is primarily concerned with regulating product warranties is the ______.

Magnuson-Moss Act

Health Care Products Company has noticed that in one of its product-markets industry sales have leveled off and competition has been tougher than ever. This product-market appears to be in the ______ stage of the product life cycle.

Market maturity

Which of the following qualities of packaging would not be likely to turn a casual customer into a loyal buyer?

Packaging can make the key difference in a new marketing strategy when it meets customers' needs better. For example, a package that makes the product safer to use, more convenient to store, more resistant to spoilage, or easier to identify delivers important value to customers. The fact that a package may promote the brand at the point of purchase, while good promotion, would not likely enhance the customer experience in a way that fosters brand preference or brand insistence.

Competitors that begin to see the success of a new product or product category typically ______.

Produce more of that product and start declining production of old product

Because firms must be developing new products all the time, which of the following statements is true?

Product improvements come rapidly in the market growth stage. One new invention may make possible many new products that replace old ones and in general product life cycles are getting shorter. Although life cycles keep moving in the developed economies, many advances bypass most consumers in less-developed economies. all the above

Which of the following statements about the idea evaluation step is FALSE?

Product tests with customers are used to revise the early versions of the product.

The Magnuson-Moss Act:

Says that producers must proved a clearly written warranty if they choose to offer any warranty

What is the likely goal of a situation analysis?

The goal is to build on strengths as much as possible while reducing weaknesses.

Which of the following statements about "new products" is FALSE?

The process should have top management support

Concerning product life cycles ______.

The stages usually have varying lengths

When final consumers are willing to spend much time and effort comparing quality and style-with brand and price being less important-the product is ______.

a heterogeneous shopping product

Luke Flaherty wants to buy an electric drill for some jobs around his home. Deciding that all such drills are similar, he reads all the advertisements in his Sunday paper in search of the best price. For Luke, these drills are ______.

a homogeneous shopping product

Sumitomo Bank, a large bank in southern California, has just purchased 120 high-speed telephone fax machines (costing about $1,300 each) to speed communications among its many offices. The purchase was made by the purchasing manager, who expects the machines to last about five years. In this case, the fax machines are:

accessories

When moving into the market maturity stage of the product life cycle, a firm might be able to obtain a competitive advantage ______. A. with lower production costs. B. by being more successful at promotion. C. by having a slightly better product than competitors. D. all of the above. E. none of the above.

all the above

Secondary data

all the above research data that has previously been gathered and can be accessed by researchers. common sources of existing secondary data include data collected by government public services departments, libraries, internet searches and censuses,

While shopping in a local supermarket, Jolene Partin came upon an aisle display of cookies and had to have some-immediately. By the time she got to the checkout counter with the rest of her selections, all the cookies were gone. In this case, the cookies were:

an impulse product

Consumer product classes

are based on how consumers think about and shop for products.

Which of the following would probably be treated as a capital item by a large clothing manufacturer?

computer-controlled fabric cutting machines

PepsiCo is evaluating an idea for a new "clear cola" by using focus groups made up of young adults to suggest brand names for the proposed product. This is an example of ______.

concept testing

Building quality into services can be ______.

continuous improvement Server linked to service Training is crucial Empowerment works

______________ are products a consumer needs but isn't willing to spend much time and effort shopping for.

convenience products

When new product ideas are chosen based on ratings and comments from customers, this process is called ______.

crowdsourcing

The big difference between the consumer products market and the business products market is

derived demand

When a marketing manager is doing similar research projects in different markets around the world, he or she should:

establish basic guidelines at the outset to compare different research projects

When using __________, researchers compare the responses of two or more groups that are similar except on the characteristic being tested.

experimental method

The scientific method in marketing research

forces researchers to use an orderly process

Gavan and Rebekah want to buy a flat-screen TV. They look at several brands in several different stores before finally deciding on a Sharp. This set was the most expensive model they saw, but they felt it had better colors and would be more reliable. In this case, this TV is ______.

heterogeneous shopping product

The big cost of poor quality is the cost of ______.

increases cost

Which of the following statements about intranet is true?

intranets are web-based It can be used by trusted business partners with a password It secures proprietary information stored within the corporate local area network.

In the idea generation stage of the new-product development process, ______.

many new business ideas in business markets come from competitors firms need a continuous flow of ideas

Industry profits are largest in which of the following product life cycle stages?

market growth

Total industry profits reach their maximum during the ______ stage of the product life cycle.

market growth

In the _____ stage of the product life cycle, organizations focus on building primary demand.

market introduction

Juan Quito is a marketing manager at Branded Food Co.; when he wants to have an interface with a data warehouse and DSS, Juan has to review his ________, the up-to-the-minute marketing data on his computer screen, which is organized in an easy-to-read format and customized to his area of responsibility.

marketing dashboard

Managers at Wayzata Communications, an Internet service provider, want access to a continual flow of information about their market-available whenever they need it. Wayzata managers need a(n)

marketing information systems

A __________ is an organized way of continually gathering, accessing, and analyzing information that marketing managers need to make ongoing decisions.

marketing information systems (MIS)

Use of family brands

marketing practice involving the use of a single brand name for the sale of two or more related products

Isaac, a marketing manager, performs Internet searches and customer surveys to develop and analyze new information about a market his company is planning to enter. Identify the procedure that Isaac is following to get the desired information.

marketing research

Regarding accessory equipment, which of the following is NOT true?

multiple buying influence is less important in the purchase of an installation than with accessory equipment

Which of the following is NOT likely to be included in a research proposal?

preliminary recommendations on how to solve the problem

Seeking to stop declining sales for an established mouthwash, a sales manager suggests that new coloring be added to the product and a major promotion effort be started for the "new" product. The Federal Trade Commission would ______.

probably not approve of this at all because the product doesn't meet the FTC's definition of "new"

Sales of a producer's wax paper food-wrap are declining fast. The advertising manager-looking for a way to attract attention to the brand-suggests changing the package somewhat and promoting it as a "new" product. The Federal Trade Commission would ______.

probably would not approve this

In the market introduction stage of the product life cycle, ______.

promotion is likely to be needed to build primary demand.

What is the significance of the observing method in marketing research?

researchers try to see or record what the subject does naturally. They don't want the observing to influence the subject's behavior.

New-product specialists at Whirlpool buy washing machines made by other firms and take them apart to look for new ideas. This is called ______.

reverse engineering

The _____ is a decision-making approach that focuses on being objective and orderly in testing ideas before accepting them.

scientific method

In the _____ step of the new-product development process, a marketing manager evaluates how well the idea fits with the company's objectives.

screening

Which of the following is NOT a secondary data source?

secondary data is data that is public/existing information collected by others examples of NON secondary data includes (in depth interviews, surverys, focus groups, social media mentoring)

Which of the following is most consistent with the marketing research process discussed in the text?

secondary data is often all we need to solve our problems

What is the role of a researcher when seeking problem-specific data through qualitative research?

seeks for subjects to share their honest thoughts in a topic without interference

Vision Co. manufactures and sells tea, coffee, desserts, shoes, and sporting goods. All of these products are its ______.

sold with a family brand

Which of the following is not an accurate characterization of the idea evaluation stage of the new-product development process?

stage does not involve the development of a prototype of the product. Prototypes are used during the development stage-Step 4 of the new-product development process.

Which method of data collection is typically best when you want respondents to quickly answer a small number of fairly simple questions?

telephone interviews

The big advantage of qualitative research in marketing is:

the in-depth responses it provides

During the sales decline stage of the product life cycle, ______.

the rate of sales decline of the product life cycle is largely governed by how rapidly consumer tastes change or substitute products are adopted

Customers view regularly unsought products as

undesirable but not unsold forever

In the context of marketing research, which of the following is the most common ethical issues?

using data that isn't true or complete