Principles of Marketing-321, Ch. 11-15

Test marketing is a sample launching of the entire marketing mix. T F

T

The major drawback in using aesthetic modifications is that their value is determined subjectively. T F

T

The purpose of a marketing channel is to make products available at the right time at the right place in the right quantities. T F

T

Time spent in test marketing can benefit a firm's competitors T F

T

Using promotional efforts that encourage the trial use of some services can be an effective way for customers to assess the quality of the offered service. T F

T

Warehouse showrooms are able to sell products at low prices by passing some of their marketing functions on to consumers. T F

T

When higher-priced or technically complex business products are involved, business customers prefer to deal directly with producers rather than through intermediaries. T F

T

Wholesalers rarely handle credit for retailers and producers. T F

F

Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable. a. True b. False

False

Per-unit gross margins on convenience products are relatively high. a. True b. False

False

Long-term commitments usually characterize the relationships among channel members. T F

T

Marketing channels create several types of utility including time, place, possession, and form. T F

T

Off-price retailers seek to attract relatively affluent consumers who are price-conscious and knowledgeable about brand names. T F

T

One of the best ways to better understand customer needs and expectations is to ask contact employees. T F

T

Relatively few product ideas are put into the product development stage. T F

T

Retailers form an important link in the marketing channel because they are both marketers and customers. T F

T

Services are highly perishable and cannot be inventoried for future use. T F

T

Store atmospherics are used to create emotional effects that enhance the probability of purchasing. T F

T

Because services are intangible by nature, marketers should downplay the tangibles associated with a particular service (such as facilities or employees). T F

F

Concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions. T F

F

Discount stores are distinctive in that they usually are very service-oriented. T F

F

Firms marketing a quality product that generates strong sales can afford to keep expenses down by eliminating new-product development. T F

F

Franchised outlets are generally less successful than independently owned businesses. T F

F

Inventory decisions seldom have a strong impact on physical distribution costs and on the level of customer service provided. T F

F

Many of the so-called new products that are launched each year are in fact line extensions. T F

F

Pinpointing a target market should be done only after the selection of a marketing mix. T F

F

Quality modifications never seek to reduce product quality. T F

F

Service industries account for less than 50 percent of the U.S. gross domestic product.

F

Services are products that can be touched and felt. T F

F

Supply chain management combines two or more stages of the marketing channel under one management. T F

F

A discount house can store and transport merchandise that is purchased directly from the producer, thus eliminating the need for a wholesaler. This is an example of vertical channel integration. T F

T

A nonprofit organization may exist in an environment in which its goals are opposed by some members of society. T F

T

An example of a nonstore retailer is a vending machine. T F

T

An important question in the business analysis stage of new-product development is, "Is demand strong enough to justify entering the market and will this demand endure?" T F

T

Both production and consumption of services occur at the same time. T F

T

Conflicts with the retailer may develop if the dealer decides to place too much emphasis on competing product lines. T F

T

Convenience products usually are distributed intensively because sales of these products tend to have a direct relationship to availability. T F

T

Demand-based pricing means lower prices during times of lower demand and higher prices during times of higher demand. T F

T

Department stores are characterized by wide product mixes. T F

T

Direct marketing is the selling of products outside the confines of a retail facility. T F

T

Firms that desire to convey an exclusive image for their products may wish to limit the number of outlets available. T F

T

Functional modifications usually require that the product be redesigned. T F

T

A product line includes a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations. a. True b. False

True

A product need not be a physical product. a. True b. False

True

Communicating product benefits to consumers is very important in the introduction stage. a. True b. False

True

Sales peak in a product's maturity stage, but profits don't. a. True b. False

True

Service, repair work, and accessories may be important considerations in a consumer's decision to purchase a particular shopping product. a. True b. False

True

Supporting services, such as installation and guarantees, are part of a product. a. True b. False

True

The atmosphere and décor of a retail store, the variety and depth of product choices, the customer support, even the sounds and smells all contribute to the experiential element of its total product. a. True b. False

True

The depth of a product mix is measured by the average number of product types in a product line. a. True b. False

True