MRKT 341 Test 2 Ch 5-8

Susan has been redecorating her new condo for a year. She is carefully selecting every item. Susan finds an oriental rug that matches her color scheme and decor perfectly and purchases it immediately without engaging in comparison shopping. This is an example of a ___.

specialty product

A ____ reflects the general esteem given to the different roles of a person by society.

status

A company regularly purchases cleaning supplies from a vendor and orders relatively consistent amounts of the same products on each purchase from the same vendor. This is an example of a(n) ________.

straight rebuy

Lengthening a product line beyond its current range is referred to as product line ________.

stretching

Which of the following is most likely the final stage of the business buying decision process?

supplier performance review

A company's external sources of new product ideas include its ___.

suppliers

Business advisory services such as legal or advertising are classified under which category of industrial products?

supplies and services

Specialty products are consumer products and services that customers generally buy ___.

without making comparisons.

___ is the degree to which the results of using an innovation can be observed or described to others.

Communicability

___ is the degree to which an innovation fits the values and experiences of potential consumers

Compatibility

________ products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort.

Convenience

A child in the United States is exposed to many values including achievement and success, freedom, individualism, hard work, and material comfort. These are symbolic of American ________.

Culture

Product development usually costs the least among all the steps of the new product development process.

False

Product line filing occurs when a company lengthens its product line beyond its current range.

False

Products include only tangible objects.

False

Salon Finish is test marketing its new smoothing shampoo by assessing consumer satisfaction in laboratory stores where hair is washed and blown dry. Salon Pro is using controlled test marketing in this scenario.

False

Service variability means that the quality of services does not depend on who provides them.

False

Shopping products are purchased more frequently than convenience products

False

Since suppliers are so close to the market, they are valuable sources of information about consumer problems, marketing opportunities, and new product possibilities.

False

Specialty products are primarily purchased for use in conducting business.

False

In a sequential new product development process, which of the following is true of the product development step?

Product development is usually followed by test marketing.

Consumers are generally willing to make more effort than usual to buy specialty products.

True

Demographic factors are the most popular bases for segmenting customer groups.

True

During the decline stage of the product life cycle, product sales may plunge to zero, or they may drop to a low level where they continue for many years.

True

Even if a segment has the right size and growth and is structurally attractive, the company must consider its own objectives and resources before targeting that segment.

True

Most major new innovations are unsought until consumers become aware of them through advertising.

True

The larger the gap between expectations and performance of a product, the greater a consumer's dissatisfaction.

True

The low cost of setting up shop on the Internet makes it even more profitable to serve seemingly small niches.

True

When consumers react more favorably to a brand than to a generic or unbranded version of the same product, the brand is said to have positive brand equity.

True

While designing a customer-driven marketing strategy, marketers are likely to divide the market into smaller segments.

True

Howard Schultz, the founder of Starbucks, positioned his bistros as "a third place" between work and home where patrons could share and enjoy a cup of coffee with friends. This illustrates ________.

a core customer value

In terms of packaging functions, Tiffany & Co.'s robin egg blue boxes ________.

create immediate consumer recognition

The team-based new product development approach saves times and increases effectiveness because departments work closely together in ________.

cross-functional teams

Non-Dairy Delight, a manufacturer of soy milk, attracts new customers by adding cinnamon, pumpkin, and vanilla flavors to its traditional product. In this case, the company has developed its brand with ________

line extentions

As a result of ________, a company cannot make its product illegally similar to a competitor's already established product.

patent laws

In a straight rebuy, a buyer ___.

reorders something without any modifications

Which of the following is the means by which companies post purchase requests online and invite suppliers to bid for their business?

reverse auctions

An innovation management system would most likely be used by ________.

brand managers to collect, review, and evaluate new product ideas

Which of the following costs is most likely associated with commercialization?

building or renting a manufacturing facility

Personal sources of information normally inform the buyer, but commercial sources legitimize or evaluate products for the buyer.

False

THe business buying process tends to be shorter and less formal than the consumer buying process.

False

The amount of test marketing needed is the same for each new product.

False

The augmented product is considered the basic level among the three levels of product.

False

Tom usually buys new devices such as PDAs, DVRs, and MP3 players only after his friends and family start owning these devices. In this case, Tom is an innovator.

False

Using a differentiated marketing strategy, a company is likely to design a product and a marketing program that will appeal to the largest number of buyers

False

Which of the following statements about buying centers is true?

The buying center is not a fixed and formally identified unit within a buying organization.

Furniture is an example of a shopping product.

True

In the new product development process, the purpose of idea generation is to create a large number of ideas and the purpose of the next set of stages in the process is to reduce that number.

True

Niche marketing offers small companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies

True

Reference group influence on consumer buying behavior varies across products and brands

True

Selective distortion describes the tendency of people to interpret information in a way that will support what they already believe.

True

Smaller companies may lack the skills and resources needed to serve larger segments.

True

Social class is not determined by a single factor, such as income, but is measured as a combination of occupation, income, education, wealth, and other variables.

True

The maturity stage of the product life cycle is characterized by a slowdown in sales growth.

True

According to Sigmund Freud's theory, a person's buying decisions are ___.

affected by subconscious, hidden motivations

Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called ________ segmentation.

behavioral

Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on ________.

multiple segmentation bases

A detailed version of a product idea stated in meaningful consumer terms is a ________.

product concept

Marketers typically limit their market segmentation analysis to a single variable in order to simplify the process.

False

Modifying a product is an ineffective strategy in the maturity period of the product life cycle because the product's decline is irreversible at this stage.

False

Orienting and motivating customer-contact employees and supporting service people to work as a team to provide customer satisfaction is known as social marketing.

False

People use the same products and services as they progress through each life-cycle stage

False

The business analysis stage is the final step in the new product development process.

False

The buying center consists of key decision makers from both the buying organization and the supplier.

False

The full positioning of a brand is called the unique selling proposition.

False

When a consumer learns about a new product for the first time and makes a decision to try it, the consumer is engaged in the alternative evaluation process.

False

When buying unsought products, consumers spend considerable time and effort in gathering information and making comparisons.

False

When developing a new product, concept testing should ideally be followed by the business analysis stage.

False

Which of the following statements is most likely true about the product life cycle?

Growth is a period of rapid market acceptance and increasing profits.

Which statement is most likely true about idea generation in the new product development process?

Idea generation is usually followed by procedures that reduce the total number of ideas.

___ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Positioning

Which of the following is most likely a true statement about social class?

Social clases show distinct product preferences in areas such as clothing

________ products are consumer products and services with unique characteristics or brand identifications for which a significant group of buyers is willing to make more effort than usual to purchase.

Specialty

________ is the stage where a product and its proposed marketing program are introduced into realistic market settings.

Test marketing

BerryBerry is a fruit juice company that has traditionally sold three varieties of mixed-fruit juices: DazzleBerry, AquaBerry, and GloBerry. The company wants to add more products to its product line. In this case, which of the following is an example of co-branding by BerryBerry?

The company introduces BerryBliss, a dried berry snack mix for kids

A business marketer normally deals with far fewer buyers than a consumer marketer.

True

A company or brand image should convey a product's distinctive benefits and positioning.

True

A laptop that is purchased for a graphic design studio is considered an industrial product

True

A more-for-more market offering not only offers higher quality but also gives prestige to a buyer.

True

A product is defined as anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.

True

A role consists of the activities people are expected to perform according to the people around them.

True

A small increase in consumer demand can cause a large increase in business demand.

True

An augmented product is a product that is built around the core benefit and actual product offering additional consumer services and benefits.

True

Branding has become so strong today that hardly anything goes unbranded.

True

Business and consumer marketers use many of the same variables to segment their markets.

True

Business-to-Business e-procurement lowers purchasing costs and reduces the time between order and delivery.

True

Companies that combine a customer-centered approach with team-based new product development gain a big competitive edge by getting the right new products to market faster.

True

For market segments to be beneficial for companies, they must be measurable.

True

In a straight rebuy, a buyer reorders something without any modifications.

True

In reverse auctions, companies put their purchasing requests online and invite suppliers to bid for their business.

True

In vendor-managed inventory, buyers share sales information directly with key suppliers.

True

Interpersonal factors are a major influence on business buyer behavior.

True

It's advisable for a company to fit its products into existing attitude patterns rather than attempt to change them.

True

Marketers must be caseful to guard against stereotypes when using age and life-cycle segmentation.

True

Multivariable segmentation systems merge and analyze geographic, demographic, lifestyle, and behavioral data to help companies segment their markets.

True

New communications technologies like satellite TV and social media are likely to eliminate the need for markets to be geographically segmented as clusters of countries.

True

Not all companies that use income segmentation target the affluent.

True

Product modifications are an important source of new products for organizations.

True

Subcultures are groups of people with shared value systems based on common life experiences and situations

True

Support services are an important part of a customer's overall brand experience.

True

Target and Kohl's have opened smaller-format stores designed to fit the needs of densely packed urban neighborhoods. This is an example of geographic segmentation.

True

The Consumer Product Safety Act of 1972 established the Consumer Product Safety Commission, which has the authority to ban or seize potentially harmful products and set severe penalties for violation of the law.

True

The distinction between a consumer product and an industrial product is based on the purpose for which the product is purchased.

True

The federal government has the legal authority to prevent a company from adding products through acquisitions if the acquisition threatens to lessen competition.

True

The installation of an innovation management system allows a company to collect, review, evaluate, and manage new product ideas.

True

The moral of the product life cycle is that companies must continually innovate; otherwise, they risk extinction.

True

Total quality management is an approach in which all of the company's people are involved in constantly improving the quality of products, services, and business processes.

True

Under a team-based new product development approach, company departments work closely together in cross-functional teams. Overlapping the steps in the product development process saves time and increases effectiveness.

True

Unsought products are consumer products that the consumer either does not know about or knows about but does not normally consider buying.

True

When a company decides to go international with a product, it must first figure out what products and services to introduce and in which countries.

True

GE operates a company trading site where it posts purchasing needs, invites bids, negotiates terms, and places orders. This is an example of a(n) ________.

company buying site

A brand difference is said to be preemptive if ___.

competitors cannot easily copy the difference

Denta Clean's decision to add a whitening toothpaste to its current line of toothpastes is an example of product line ________.

filling

Parvon, a cleaning product, is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely take to achieve this goal?

find new market segments for the brand

P&G was among the first to use ________ segmentation when it introduced Secret, a deodorant brand specially formulated for women's chemistry.

gender

When marketers want to promote their products and services through word-of-mouth marketing programs, they typically begin by ___.

generating person-to-person brand conversations

Companies are likely to gain ________ through speedy, convenient, or careful delivery of products.

services differentiation

Which of the following is a pure tangible good?

shampoo

Major appliances, furniture, and clothing are typical examples of ___ products.

shopping

Using ________, researchers measure consumer responses to new products and marketing tactics in laboratory stores or virtual online shopping environments.

simulated test markets

Hallmark's classic "when you care enough to send the very best" slogan appeals to which need category in Maslow's hierarchy?

social

The use of traditional business marketing concepts and tools to create behaviors that will benefit individual and societal well-being is called ___ marketing.

social

According to Maslow's hierarchy of needs, which of the following is most likely an esteem need?

status

The first part of a marketing strategy statement describes the ________ of a new product.

target market, planned value proposition, and sales goals

Under a ________ new product development approach, company departments work closely together in cross-functional groups, overlapping the steps in the product development process to save time and increase effectiveness.

team-based

Although not recommended, some marketers decide to ignore market segmentation and target the whole market with one offer. This is known as ___ marketing.

undifferentiated

Consumer products that the buyer either does not know about or knows about but does not normally consider buying are referred to as ___ products.

unsought

Shampoo marketers segment buyers as light, medium, or heavy product users. This is an example of ________ segmentation.

usage rate

A product is in the maturity stage of the product life cycle, and the company decides to modify the marketing mix. Which of the following steps is the company most likely to take?

use aggressive sales promotions

Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called ___.

user status segmentation

Consistency of a product mix refers to the ___.

ways in which the various product lines are related

In which of the following cases is little or no test marketing most likely recommended for a new product?

when the costs of developing and introducing the product are low

A company launching a new product must first decide ________.

when to launch the product

In which of the following cases is crowdsourcing used for new product development?

A company creates a forum where anyone can contribute new product ideas.

Which of the following is most likely true of a product in the maturity stage of the product life cycle?

A slowdown occurs in sales growth.

Life insurance is an example of a convenience product.

False

Which of the following is true about local marketing?

It increases manufacturing costs.

Which of the following is true of the product life cycle (PLC)?

It is generally difficult to forecast the sales level at each PLC stage.

________ marketing tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores.

Local

___ is the degree to which an innovation appears superior to existing products

Relative advantage

Which of the following is true about the introduction stage of a new product?

Sales growth tends to be slow.

___ is defined as a business strategy where business buyers prefer to buy a complete solution to a problem from a single seller rather than buying and consolidating separate products and services from several suppliers.

Systems selling

Market segments that can be effectively reached and served are said to be ___.

accessible

When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________.

actionable

Which of the following is an example of a convenience product?

candy

Which of the following is an industrial product categorized under materials and parts?

cement

Gershwin, a musical toy for toddlers, is in the maturity stage of the product life cycle, and Gershwin managers have decided to modify the product. What will Gershwin managers most likely do to achieve this goal?

change the packaging of the toy

Danko International is a multinational company that targets the BRIC countries (Brazil, Russia, India, and China) because they're fast-growing developing economies and use ___ to segment its world markets.

economic factors

A marketing firm has been assigned the task of watching trends in spending, personal income, savings, and interest rates. The marketing firm is most likely gathering information about consumers' ___.

economic situations

Brands vary in the amount of power and value they hold in the marketplace. Iconic brands like Apple, Google, and Harley-Davidson have achieved substantial brand ____

equity

In which of the following stages of the adoption process does a consumer consider whether trying a new product makes sense?

evaluation

Which of the following is an example of an industrial product grouped under capital items?

factory

Safari Unlimited recently conducted national research to generate ideas for a new line of fatigues geared to women. The company uncovered a number of ideas about clothing and accessory preferences as well as important benefits such as built-in sunblock and durability. The Safari Unlimited product development team will most likely use ________ next to arrive at a realistic number of products for the new fatigues line.

idea screening

Which of the following steps of the new product development process would most likely use an R-W-W framework?

idea screening

The distinctive yellow and blue "hands held high" logo of a local daycare distinguishes it from other establishments. The logo is prominently displayed on its building, t-shirts worn by the children, and at fundraising events. The daycare has differentiated itself through ___.

image

When firms use symbols, colors, or characters to convey their personalities, they are using ________ differentiation.

image

A product line is most likely too short if managers can ___.

increase profits by adding items

When a product is in the ________ stage, profits level off or decline because of increased marketing outlays to defend the product against competition.

maturity

When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________.

measurable

Argonaut Food Stores, a retail giant, hires better-skilled employees than its competitors by employing strategic recruitment practices. It also conducts highly specialized training programs for its employees. In this case, Argonaut has focused on gaining a strong competitive advantage through ________ differentiation.

people

World Skies' Flight 167 takes off at 50 percent capacity. The unoccupied seats cannot be stored for later sale or use. This is an example of which service characteristic?

perishability

The most effective sources of information about a product tend to be ___.

personal

Electronics International has experienced a significant decline in sales for SweetTunes, its MP3 player, during the past two years. In response, the company has reduced its advertising and sales expenditures for SweetTunes in an attempt to improve short-run profits. Which term best describes Electronics International's strategy for SweetTunes?

product harvesting

The style, ease of use, and multi-blade technology of Gillette's Fusion razor system is a ___ that has favorably impacted consumer perceptions about other new products sold by the company.

product image

Clorox sells five major product lines including cleaning, household, lifestyle, professional, and international. Together the product lines make up Clorox's ________.

product mix

During which stage of the business buying decision process is a buyer most likely to conduct value analysis by carefully studying components to determine if they can be redesigned, standardized, or made less expensively?

product specification

Some companies are now appointing ________, whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems.

product stewards

GenX, a manufacturer of sport motorcycles, is seeking a new supplier of motorcycle headlamps and brake lights. After searching trade directories, GenX invites five different suppliers to make formal presentations about how their solutions can create greater value for GenX than competing solutions. GenX is currently in the ________ stage of the business buying process.

proposal solicitation

Bass Pro Shops recognizes that outdoors enthusiasts are a diverse group. Likely segments include hunters, campers, and boaters. What is this segmentation method called?

psychographic

A shoe company's ads feature the members of a popular country music band. Product sales increase significantly among the band's fans. From the fans' viewpoint, the band is a ___.

reference group

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance departments work in cross-functional groups to save time and money in the new product development process. From this description, it can be inferred that Fantastic Flavors uses a(n) ________ approach.

team-based new product development

Which of the following is an example of a shopping product?

television

27) Foods International is developing a new gluten-free, chili-flavored pretzel. The marketing strategy for the product has already been developed and presented to top management. Several prototypes were also formulated by the company's R&D team. The final prototype is now being tested rigorously to ensure that it passes FDA standards. Once approved, the next step will most likely be ________.

test marketing

If a product passes both the concept test and the product test, the next step is most likely to be ________.

test marketing

Silkskin Cosmetics is advertising its newest line of eye makeup. Made from all-natural ingredients, the products are hypoallergenic. Silkskin is selling the products in specially designed tubes that make application easier. Which of the following is a core customer value for Silkskin's line of eye makeup?

the desire for having beautiful eyes

What is the most important consumer buying organization in society?

the family

Product mix length refers to the ___.

total number of items a company carries within its product lines

Which of the following is an approach where firms target a whole market based on common consumer needs?

undifferentiated marketing

___ is a discomfort caused by postpurchase conflict.

Cognitive dissonance

________ are tradition-bound, suspicious of changes, and adopt an innovation only when it has become something of a tradition itself.

Lagging adopters

___ occurs when a company uses its existing brand name for new forms, colors, sizes, ingredients, or flavors of an existing product category

Line extention

___ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior.

Market segmentation

Which of the following statements is most likely true about unsought products?

Marketers use aggressive advertising to convince consumers to buy unsought products.

___ are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others.

Opinion leaders

Which of the following is a disadvantage of a team-based approach to new product development?

Organizational confusion and tension are likely to affect the process.

___ is the process by which people select, organize, and interpret information to form a meaningful picture of the world.

Perception

___ refers to the unique psychological characteristics that distinguish a person or group.

Personality

___ segmentation factors divide buyers into different groups based on social class, lifestyle, or personality characteristics.

Psychographic

Which of the following is true of the growth stage of the product life cycle?

Sales start climbing quickly.

___ means that consumers are likely to remember good points made about a brand they favor and forget the good points made about competing brands.

Selective retention

Which of the following is most likely a true statement about services?

Service industries vary greatly

___ refer to a form of product that consists of activities, benefits, or satisfactions offered fro sale that are essentially intangible.

Services

___ products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

Shopping

Which of the following is most likely a true statement about shopping products?

Shopping products are purchased less frequently than convenience products.

Which of the following is a desirable quality for a brand name?

The name should translate easily into foreign languages

Alice is shopping for a new car, and she has narrowed her decision to a Honda Accord and a Toyota Camry. Both sedans have similar features and prices, but Alice decides to purchase the Honda based on her intuition. Which of the following situations would most likely cause Alice to experience postpurchase dissonance?

The price of the Toyota Camry falls due to an increase in demand.

________ can describe a product class, a product form, or a brand.

The product life cycle concept

Which statement about convenience products is most likely true?

They are bought by consumers frequently and with minimal comparison

Which of the following is true of perceptual positioning maps?

They are used to analyze consumer perceptions of a brand relative to competing products.

Which of the following is true of product positioning?

To simplify the buying process, consumers are likely to position products in their minds.

Many marketers now embrace a ___ strategy, integrating ethnic and cross-cultural perspectives within their mainstream marketing.

Total Market

A brand extension gives a new product instant recognition and faster acceptance

True

Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product?

business analysis

Which of the following types of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance?

channel differentiation

During the ________ stage of the product life cycle, product sales may plunge to zero, or drop to a low level where they continue for many years.

decline

Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry's most likely segments the consumer market based on ________ variables.

demographic

Flurrbies, a line of winter accessories by a leading fashion label, quickly fell in and out of favor with customers. Flurrbies represents an example of a ________.

fad

Which of the following is a social factor that influences consumer buying behavior

family

The new product development process usually starts with ___.

idea generation

Becca wants to buy a new coat. She asks her friends to recommend a store and/or a style of coat. She looks for sale advertisements for coats in newspapers and also visits nearby stores to check if she can find something in her budget. In this case, Becca is most likely in the ________ stage of the buyer decision process.

information search

Doggie World concept tested an idea for a new chew toy that would entertain dogs while simultaneously cleaning their teeth. Dog owners were pleased with the results. The next stage in developing the new product concept is ___.

marketing strategy development

The second part of a marketing strategy statement describes the ________ of a new product.

planned price, distribution, and marketing budget

Company and brand positioning should be summed up in a ___.

positioning statement

Jeff is in the process of buying a new car. He carefully analyzes the features that he wants in a car, and perceives significant differences in price, quality, and features among three of his favorite models. He rates the models on each factor and ranks them in the order of his preference. To which of the following stages of the buyer decision process will Jeff most likely proceed next?

purchase decision

Many companies are taking a ___ approach today, viewing quality as an investment and holding quality efforts accountable for bottom-line results.

return-on-quality

Colonial furniture has been in existence since the 1600s and continues to adorn homes today. According to the product life cycle concept, it would be described as a ________.

style

When a market segment is large or profitable enough to serve, it is termed ________.

substantial

Manufacturers rely on distributors and suppliers as internal sources of new product ideas.

False

Which of the following is a psychographic characteristic of a consumer?

lifestyle

Service variability means that ___.

service quality depends on when, where, and how they are provided

___ are the most affluent and brand conscious demographic segment in the US

Asian Americans

Which of the following statements is most likely true about the new product development process?

Customers, competitors, distributors, and suppliers are major sources of new product ideas.

Which of the following is an example of licensing?

Berry, a fruit juice company, uses a well-known cartoon character to promote the company's line of children's products and pays the creator of the cartoon character a fee.

BerryBerry is a fruit juice company that has traditionally sold three varieties of mixed-fruit juices: DazzleBerry, AquaBerry, and GloBerry. The company wants to add more products to its product line. In this case, which of the following is an example of co-branding by BerryBerry?

BerryBerry teams up with SFX, a sporting goods company, to introduce a line of energy bars called BerryBerry SFX.

________ involves using an existing brand name for a new product category.

Brand extention

________ involves a review of the sales, costs, and profit projections for a new product to determine whether they satisfy a company's objectives.

Business analysis

___ involves enlisting or even creating opinion leaders to serve as brand ambassadors who spread the word about a company's products.

Buzz Marketing

Fads are characterized by their ________.

C) unusually high sales and rapid decline

___ occurs when two established brand names of different companies are used on the same product.

Co-branding

Laundry detergent, candy, magazines, and fast food are purchased frequently by customers. They are examples of ___ products.

Convenience

___ is the degree to which an innovation may be tried on a limited basis.

Divisibility

Line extensions occur when a company extends existing brand names to new or modified products in a new category

False

A business buyer typically makes the greatest number of decisions in a straight rebuy situation and the fewest in a new-task situation.

False

A company buying a product with modified specifications faces a new-task situation.

False

A market segment with powerful suppliers controlling the prices is more attractive than a segment with less powerful suppliers.

False

A segment is more attractive if it is easy for new competitors to enter the market.

False

A sequential product development approach is team-oriented, enabling firms to bring products to market very quickly.

False

According to Maslow's theory, safety and social needs must be fulfilled after self-actualizaiton needs.

False

Acquisitions are not considered a source of new products for organizations.

False

An abstract presentation of a product concept is likely to increase the reliability of the concept test.

False

Cian, an automobile manufacturer, offers a new car model with features comparable to that of another popular brand. However, the Cian model is priced lower than its competitor and includes a longer warranty. Cian is most likely following a more-for-the-same strategy.

False

Companies today are moving away from target marketing and toward mass marketing.

False

Concept testing typically follows the marketing strategy development phase of the new product development process.

False

Consumers rarely compare shopping products before purchasing them.

False

Corporate image marketing consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people

False

Cupcake Gourmet, a high-end bakery in Manhattan, segments its customers according to those who frequent their store regularly, those who visit infrequently, and those who have never visited. This is an example of usage-rate segmentation.

False

Demographic variables are generally more difficult to measure than most other types of variables.

False

During concept testing, a product is evaluated by management without any input from external sources.

False

Early mainstream adopters are opinion leaders in their communities and adopt new ideas early but carefully.

False

Early mainstream adopters are venturesome and typically try new ideas at some risk.

False

It's important for a market pioneer to choose a launch strategy that is consistent with competitive positioning strategies.

False

Light users are often a small percentage of a company's market but account for a high percentage of total consumption

False

Delta, an American video game manufacturer, targets teens between the ages of 13 and 18, providing free game trials and applications. The firm's marketing approach exemplifies ________ segmentation.

age and life-cycle

One reason demographic variables are the most popular bases for segmenting customer groups is because they ________.

are easier to measure than other variables

A ___ describes a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea.

attitude

The marketing manager at Frizzles' Eateries targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of low-fat, low-calorie meals that appeal to dieters. Frizzles' approach is best reffered to as ___.

benefit

A ___ is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.

brand

Which of the following terms is used to describe a specific mix of human traits that may be attributed to a particular brand?

brand personality

Which of the following is an industrial product categorized under supplies and services?

coal

Which of the following sources of product information can marketers control completely?

commercial

Introducing a new product into the market is called ________.

commercialization

Electric cars are not considerably different or difficult to drive relative to gas-powered cars. However, this is not aligned with the perceptions or conceptual concerns held by the public about the new technology. This will likely slow the adoption rate due to the ________ of the innovation.

complexity

Unlike other car rental agencies that are based in airports to serve travelers, Wheelz-On-Rent has a network of neighborhood offices. The firm strives to serve people who need car rentals for reasons other than vacation, such as when their own cars are being repaired. Wheelz-On-Rent caters to a small share of the large car rental market. From this description, it can be concluded that Wheelz-On-Rent most likely practices ________.

concentrated marketing

The full positioning of a brand is referred to as the ___.

concentrated strategy

The stage in which product ideas are presented to groups of target consumers physically or symbolically is referred to as ___.

concept testing

Evans and Hills, a beverages manufacturing company, has developed a new line of specialty teas and is seeking regular input from the test marketing process. To facilitate this process, the firm uses BuyerScan, a software that generates store-by-store, week-by-week reports on the actual sales of tested products and the impact of in-store and in-home marketing efforts. Which of the following approaches does this scenario illustrate?

controlled test markets

A company adding new features to a product will most likely compare each feature's value to customers with its ________.

cost to the company

Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton is using ________ to generate new product ideas.

crowdsourcing

The McDonald's corporate brand name and golden arches can be classified as ___ that may potentially stimulate an individual's attention and decision about whether or not to dine at the restaurant.

cues

Sleek Designs Inc. is producing its first eReader. The company is striving to overcome some of the issues communicated by customers about competitive products including screen glare and product bulkiness. Sleek Designs Inc. is using a ________ approach in their new product development process.

customer-centered

Which of the following is a commercial source of product information?

dealer Web sites

A product life cycle has five distinct stages: product development, introduction, growth, maturity, and ________.

decline

Lilly's, a furniture retailer, sells low-end furniture and accent pieces that are targeted toward lower-income consumer groups. Lilly's most likely segments the consumer market based on ________ variables.

demographic

Pediacertain Pet Supplies, a pet-food company, divides the pet market according to the pet owners' gender, occupation, income, and family life cycle. In this case, which of the following variables has the company used for market segmentation?

demographic

Corning produces Gorilla Glass screens that are used in the production of laptops, tablets, and smartphones. Corning promotes its product to final consumers to increase business demand for digital devices made with the specialized, toughened glass. This illustrates ________.

derived demand

If men and women respond dissimilarly to the marketing efforts for a root beer-flavored malt beverage, they are considered ________ market segments.

differentiable

Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ________ marketing.

differentiated

Marque, a high-end maker of designer watches, has started making inexpensive watches to take advantage of enormous growth rates in low-end market segments. Marque is most likely engaging in ___.

downward stretching

A ___ becomes a motive when it is directed toward a particular stimulus object.

drive

Fred's faith in Asics, his favorite brand of running shoes, makes him consider other offerings introduced by Asics. Fred is not a risk-taker, and he tends to evaluate each new product carefully before adopting it. Fred is an opinion leader in his social networking community and best described as a(n) ________.

early adopter

Devon is in the market for a new car. She is seriously considering either a Honda Civic or Toyota Corolla because they both have excellent quality and safety ratings and are comparable in price. Devon is in the ________ stage of the buyer decision process.

evaluation of alternatives

Gulf Coast, a wholesale shrimp distributor, groups its customers by regions in the United States, such as Midwest, Northeast, and Southwest. For each region, Gulf Coast tailors a different set of advertisements and promotions. The supplier is segmenting its market according to ________.

geographic location

In the ________ stage, a firm most likely faces a trade-off between high market share and high current profit.

growth

Compared with undifferentiated marketing, differentiated marketing is more likely to lead to ___.

higher costs of doing business

Which type of market segmentation is generally used by marketers who sell luxury products targeted to the affluent segments of a population?

income

A product line is most likely too long if managers can ___.

increase profits by dropping items

The marketing manager of Refresh Inc., a leading producer of soft drinks, is considering a differentiated marketing strategy. An important consideration is weighing increased sales against ___ before selecting this strategy.

increased costs

At the extreme, micromarketing becomes ___ insofar as products and marketing programs are tailored to the needs and preferences of customers.

individual marketing

A doctor performing hip surgery on a patient illustrates how a service can be produced and consumer simultaneously. This an example of which service characteristic?

inseparablility

Zappos recognizes the importance of the buyer-seller interaction. They only hire people with an innate "passion to serve" and they go through four weeks of customer loyalty training. This is referred to as ________ marketing.

interactive

In which of the following stages of the adoption process does a consumer seek information about a new product?

interest

Producers of popular beverages often partner with global music channels to target consumers through a variety of promotional events and advertisements. This approach to marketing is referred to as ________ segmentation.

intermarket

Orienting and motivating customer-contact employees and supporting service people to work as a team to provide customer satisfaction is known as ________ marketing.

internal

The Dairy Bar, a national soft-service ice cream retailer, buys cones from Cones & More. Cones & More is an important resource for marketplace information. They're considered a ___ source of new product ideas for the Dairy Bar.

internal

Which link in the service profit chain emphasizes superior employee selection and training?

internal service quality

Companies like 3M, Google, Sony have ___ that encourage employees to develop new ideas.

intrapreneurial programs

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features?

introduction

A market segment is less attractive when ___.

it contains powerful suppliers who can control prices

A successful niche marketing strategy relies on a firm's ________.

knowledge of customer needs

Stores offering low-quality alternatives to luxury products at low prices most likely follow a ________ positioning strategy.

less-for-much-less

Which of the following is an example of an unsought product?

life insurance

Which of the following is a personal factor that influences a consumer's buying behavior

life-cycle stage

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy?

market segmentation, market targeting, differentiation, and positioning

When Goodyear sells replacement tires to final consumers, its potential market includes millions of car owners around the world. But its fate in business markets depends on getting orders from only a handful of large automakers. This represents the difference in ________ between business and consumer markets.

market structure

When a company interacts one-on-one with large numbers of customers to create customer-unique value by designing products and services tailor-made to individual needs, it is following ________.

mass customization

Marketing the same product to a huge customer base without any customization is referred to as ___.

mass marketing

Cement is an example of an industrial product that is categorized under ___.

materials and parts

Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the product life cycle.

maturity

The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________.

micromarketing

A business buyer is considering a change in product specifications, terms, and possibly suppliers. This buying situation is referred to as a ___.

modified rebuy

Appliances Galore is continually updating its line of refrigerators to reflect market trends and customer needs. Although the product class is in the maturity stage of the product life cycle, they maintain healthy sales of their line of refrigerators by continually ________.

modifying the product

Household Storez, a local retail store, claims to offer better products at lower prices than other retail stores. In this case, the firm's positioning reflects a ________ value proposition.

more-for-less

Which of the following strategies is most likely to be followed by firms that position themselves as caterers of the best products at economical prices?

more-for-less

Rad, a manufacturer of luxury watches, charges a higher price for its products than its competitors. Despite the high prices, the brand is popular among customers for its quality and service in comparison to cheaper alternatives available in the market. In this case, Rad offers a(n) ________ value proposition.

more-for-more

Using a(n) ________ positioning strategy, companies can attack the more-for-more strategy of another firm by offering a brand of comparable quality at a lower price.

more-for-the-same

A baby boomer decided to purchase a BMW to impress others with her success. This illustrates the importance of understanding the role of ___ in the marketing process.

motive

Sportware, a leading shoe manufacturer, markets sneakers under the brand name "Athletix" and dress shoes under the brand name "Cameo" in order to target the two different market segments. What branding strategy is most likely being used by Sportware?

multibrands

Xenon, a leading consumer-electronics manufacturing company, markets its products under the company's own brand name. In this case, Xenon has sponsored its products by promoting them as ________ brands.

national

Which of the following is the first stage of the buyer decision process?

need recognition

Product mix width refers to the ___.

number of different product lines the company carries

Product mix depth refers to the ___.

number of versions offered for each product in the line

Bakeries and coffee bistros that offer pumpkin-flavored items only during the autumn season target their consumers primarily through ________ segmentation.

occasion

A&B's Smarter Planet campaign markets A&B as a company that provides innovative solutions that improve the world's IQ. This activity of A&B is an example of ___ marketing.

organizational

Which of the following is considered a major influence on business buyer behavior?

organizational factors

Which of the following terms best describes the process of designing and producing a container or wrapper for a product?

packaging

Zeal is a popular automobile brand, and its positioning statement reads as follows: "For upscale American families who require large vehicles, Zeal is the automobile of choice." Which of the following mandatory elements is missing from the positioning statement?

point of difference

Which of the following includes the target segment of a product, the category to which the product belongs, and the product's point of difference from other members in the category?

positioning statement

Bill thought he had received the best deal on his riding mower. Shortly after the purchase, Bill started to notice certain disadvantages of his new riding mower as he learned more about other riding mowers available in the same price range. Bill is in which of the following stages of the buyer decision process?

postpurchase behavior

Simone bought two bottles of wine from two vineyards in Bordeaux. When asked for an opinion on the quality of the wines, she later mentioned that the Pontet Canet tasted like alcoholic grape juice, but the Chateau Margaux had a crisp taste that she really enjoyed. Which of the following stages of the buyer decision process do Simone's remarks reflect?

postpurchase behavior

Fred's, a national supermarket chain, sells its own brand of items across all categories. Such items are considered ________ brands.

private

Harper Farms raises chickens. For years, it has used wooden coops for hauling its poultry to market. When the owner, Jane Harper, went to reuse some of her coops, she noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced. Which stage of the business buying decision process was Harper in when she decided to replace her old coops?

problem recognition

Eastline, a manufacturer of outdoor patio furniture, positions its products as superior in weatherproofing and durability, this is an example of ______ differentiation.

product

Flores Fashions promotes its clothing by emphasizing the durability and quality of the fabrics it uses. The company has positioned its brand based on ________.

product attributes

In the ________ stage of new product development, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them.

product development

Taco Bell test marketed Doritos Locos Tacos for three years and developed 45 prototypes. Once the decision was made to launch the new taco shell, it moved into the ________ stage of the new product development process.

product development

Bose promises "better sound through research." This is an example of ________.

product differentiation

The third part of a marketing strategy statement describes the ________ of a new product.

sales, market share, and profit goals

Which positioning strategy offers value for consumers by providing the same brands as competitors at a lower price?

same-for-less

Which of the following needs in Maslow's hierarchy is generally satisfied last?

self-actualization

Under a ________ product development approach, one company department works to complete its stage of the product development process before passing the new product along to the next department and stage.

sequential