Second Half Semester Marketing

________ is the only element in the marketing mix that produces revenue. A. Price B. Place C. Variable costs D. Product E. Fixed costs

A. Price

________ are industrial products that aid in the buyer's production or operations, including installations and accessory equipment. A. Capital items B. Unsought products C. Convenience products D. Repair items E. Specialty items

A. Capital items

________ is the product life cycle period when sales fall off and profits drop. A. Decline B. Introduction C. Maturity D. Product development E. Growth

A. Decline

________ occurs when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes. A. Line extension B. Megabranding C. Internal marketing D. Co-branding E. Interactive marketing

A. Line extension

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. A. Market segmentation B. Positioning C. Differentiation D. Mass customization E. Market targeting

A. Market segmentation

________ are industrial products. A. Office supplies B. Life insurance policies C. Legal services D. Laundry detergents E. Major appliances

A. Office supplies

________ 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. A. Positioning B. Segmentation C. Differentiation D. Mass customization E. Targeting

A. Positioning

________ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. A. Specialty products B. Unsought products C. Capital items D. Shopping products E. Convenience products

A. Specialty products

For concept test, companies will frequently present customers with ________ of the concept for a reliable concept test. A. a physical presentation B. a PowerPoint slide C. a picture D. a verbal description E. a printed paragraph

A. a physical presentation

To the extent that a company can differentiate and position itself as providing superior customer value, it gains ________. A. competitive advantage B. service life C. complementary assets D. core competencies E. contingent liability

A. competitive advantage

With a(n) ________ marketing strategy, a firm goes after a large share of one or a few smaller niches. A. concentrated B. individual C. local D. mass E. differentiated

A. concentrated

Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new product innovation process? A. crowdsourcing B. outsourcing C. concept testing D. brainstorming E. idea screening

A. crowdsourcing

Which of the following is NOT one of the major variables used in segmenting consumer markets? A. ethical B. geographic C. behavioral D. psychographic E. demographic

A. ethical

Using ________ segmentation, marketers form segments of consumers who have similar needs and buying behaviors even though they are located in different countries. A. intermarket B. psychographic C. demographic D. benefit E. occasion

A. intermarket

Product mix ________ refers to the total number of items a company carries within its product lines. A. length B. width C. height D. consistency E. depth

A. length

Most products in the marketplace are in the ________ stage of the product life cycle. A. maturity B. growth C. development D. introduction E. decline

A. maturity

The full mix of benefits on which a brand is differentiated and positioned is known as the brand's ________. A. value proposition B. demand chain C. service life D. supply chain E. value stream

A. value proposition

________ marketing is more suited for products that vary in design. A. Direct B. Differentiated C. Mass D. Individual E. Local

B. Differentiated

________ consists of evaluating each market segment's attractiveness and selecting one or more segments to enter. A. Positioning B. Market targeting C. Market segmentation D. Mass customization E. Differentiation

B. Market targeting

The product development stage requires ________. A. a few hours B. a huge jump in investment C. management approval D. salespeople to contact potential customers E. financial analysis

B. a huge jump in investment

Market segments that can be effectively reached and served are ________. A. profitable B. accessible C. measurable D. actionable E. substantial

B. accessible

Companies know they cannot appeal to all buyers in the marketplace, or at least not in the same way. Reasons for this include all of the following EXCEPT ________. A. buyers are too numerous B. companies need more information to offer the right products to the right customers C. buyers are varied in their needs and buying practices D. companies vary widely in their abilities to serve different market segments E. buyers are widely scattered

B. companies need more information to offer the right products to the right customers

Which of the following is an internal source for new product ideas? A. trade magazines B. company employees C. competitors D. government agencies E. marketing research firms

B. company employees

What are the two dimensions of product quality? A. design and innovation B. consistency and level C. performance and conformance D. conformance and style E. feature and design

B. consistency and level

The fundamental asset underlying brand equity is ________, the value of customer relationships that the brand creates. A. the customer mix B. customer equity C. the service encounter D. the product experience E. service variability

B. customer equity

Product mix ________ refers to the number of versions offered for each product in the line. A. width B. depth C. consistency D. height E. length

B. depth

Which of the following is NOT a common variable used by both consumer and business marketers while segmenting markets? A. benefits sought B. operating characteristics C. loyalty status D. usage rate E. geographic location

B. operating characteristics

Service ________ means that services cannot be stored for later sale or use. A. variability B. perishability C. inseparability D. consistency E. intangibility

B. perishability

Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and delivered by ________. A. product packaging B. product attributes C. branding D. support services E. product labels

B. product attributes

In the ________ stage of the new product development process, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them. A. concept development and testing B. product development C. idea generation D. product activation E. product design

B. product development

Price setting is usually determined by ________ in large companies. A. the sales department B. product managers C. external stakeholders D. non-executive employees E. top managers

B. product managers

Advertising campaigns involving issues ranging from health care, education, and environmental sustainability to human rights and personal safety can be classified under ________ marketing. A. corporate image B. social C. place D. person E. internal

B. social

Which of the following is included in the third part of the marketing strategy statement? A. marketing budget B. the planned long-run sales C. the product's planned price D. the planned value proposition E. distribution strategy

B. the planned long-run sales

Price setting is usually determined by ________ in small companies. A. the sales department B. the top managers C. divisional managers D. product managers E. the marketing department

B. the top managers

________ can be a poor predictor of a person's health, work or family status, needs, or buying power. A. Education B. Ethnicity C. Age D. Religion E. Occupation

C. Age

________ represent(s) consumers' perceptions and feelings about a product and its performance. A. Product lines B. Design C. Brands D. Product attributes E. Labeling

C. Brands

________ is the process by which firms interact one-to-one with masses of customers to design products and services tailor-made to individual needs. A. Differentiated marketing B. Micromarketing C. Mass customization D. Product diversification E. Local marketing

C. Mass customization

________ show(s) consumer perceptions of a company's brands versus competing products on important buying dimensions. A. Market targeting B. Market segmentation C. Perceptual positioning maps D. Differentiation E. Positioning

C. Perceptual positioning maps

________ are the major marketing factors in the sale of most manufactured materials and parts. A. Branding and packaging B. Public relations and brand management C. Price and service D. Branding and advertising E. Sales promotion and advertising

C. Price and service

________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying. A. Shopping products B. Convenience products C. Unsought products D. Specialty products E. Capital items

C. Unsought products

Style simply describes the ________ of a product. A. quality B. utility C. appearance D. long-term benefits E. durability

C. appearance

While advertising campaigns can help create name recognition, brand knowledge, and perhaps even some brand preference, brands are not maintained by advertising but by ________. A. brand sponsorships B. brand awareness C. brand experiences D. line extensions E. brand differentiation

C. brand experiences

Introducing a new product into the market is called ________. A. segmentation B. co-marketing C. commercialization D. simulation E. test marketing

C. commercialization

A detailed version of a new idea stated in meaningful customer terms is called a product ________. A. image B. lining C. concept D. solution E. proposal

C. concept

A label can identify, promote, and ________ the product. A. sell B. brand C. describe D. package E. assemble

C. describe

A good brand name should most likely be ________. A. long B. conventional C. distinctive D. complex E. trendy

C. distinctive

Who can pass along information about new concepts or techniques to use in new products? A. salespeople B. suppliers C. distribution channels D. competitors E. customers

C. distribution channels

Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits? A. introduction B. decline C. growth D. product development E. maturity

C. growth

Even when competing offers look the same, buyers may perceive a difference based on ________ differentiation. A. channel B. people C. image D. services E. price

C. image

A ________ consists of all the product lines and items that a particular seller offers for sale. A. value chain B. line extension C. product mix D. store brand E. supply chain

C. product mix

A ________ consists of a set of buyers who share common needs or characteristics that the company decides to serve. A. citizen-action group B. customer franchise C. target market D. marketing channel E. distribution channel

C. target market

________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product. A. Geographic B. Age and life cycle C. Gender D. Behavioral E. Psychographic

D. Behavioral

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines. A. Geographic B. Benefit C. Behavioral D. Gender E. Occasion

D. Gender

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods. A. Occasion segmentation B. Psychographic segmentation C. Benefit segmentation D. Geographic segmentation E. Demographic segmentation

D. Geographic segmentation

Which of the following is NOT likely to be a question asked in the new product screening process? A. Is there a real need and desire for the product? B. Does the product offer a sustainable advantage? C. Does the product fit the company's overall growth strategy? D. How many items will the company sell in the first two years? E. Is there a clear product concept?

D. How many items will the company sell in the first two years?

The ________ requires sellers to provide detailed nutritional information on food products. A. Commodity Futures Modernization Act of 2000 B. Glass-Steagall Act C. Fair Packaging and Labeling Act of 1966 D. Nutritional Labeling and Educational Act of 1990 E. Federal Trade Commission Act of 1914

D. Nutritional Labeling and Educational Act of 1990

________ marketing consists of activities undertaken to create, maintain, or change the attitudes and behaviors of target consumers toward an organization. A. Location B. Concentrated C. Social network D. Organization E. Niche

D. Organization

________ is a new product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage. A. Team-based product development B. Horizontal integration C. Vertical integration D. Sequential product development E. Simultaneous product development

D. Sequential product development

________ refers to how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments. A. Product positioning B. Targeted marketing C. Market segmentation D. Value proposition E. Niche marketing

D. Value proposition

A product idea is ________. A. the testing of new product concepts with groups of target consumers B. the way consumers perceive an actual or potential product C. the knowledge and awareness of a product among consumers D. a possible product that the company can see itself offering to the market E. a detailed version of the new product idea stated in meaningful consumer terms

D. a possible product that the company can see itself offering to the market

The ________ of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way. A. depth B. length C. height D. consistency E. width

D. consistency

Which of the following processes does value-based pricing reverse? A. good-value pricing B. everyday low pricing C. high-low pricing D. cost-based pricing E. value-added pricing

D. cost-based pricing

At which stage in the PLC do profits increase as promotion costs are spread over a large volume, and as the firm enters new market segments? A. decline B. harvest C. introduction D. growth E. maturity

D. growth

New product development starts with ________. A. concept development B. idea screening C. concept testing D. idea generation E. test marketing

D. idea generation

A company can install a(n) ________ management system to collect, review, evaluate, and manage new product ideas. A. customer relationship B. quality C. content D. innovation E. supply chain

D. innovation

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. A. the dominant firm model B. a pure monopoly C. pure competition D. monopolistic competition E. oligopolistic competition

D. monopolistic competition

The winning value proposition would be to offer ________. A. more for more B. same for less C. same for more D. more for less E. more for the same

D. more for less

Which of the following is a significant challenge presented by the product life cycle? A. recognizing the stages as a product goes through them B. evaluation of results C. increased expenses D. new product development E. increased competition

D. new product development

Product attributes include all of the following EXCEPT ________. A. features B. quality C. style D. price E. design

D. price

Underpriced products ________. A. produce more revenue than they would if they were priced at the level of perceived value B. mostly offer higher value than those with a high markup price C. sell poorly in the global marketplace D. produce less revenue than they would if they were priced at the level of perceived value E. are characterized by rapidly declining demand

D. produce less revenue than they would if they were priced at the level of perceived value

An attractive product idea must be developed into a ________. A. product strategy B. brand placement C. brand personality D. product concept E. concept alternative

D. product concept

Which of the following refers to the course that a product's sales and profits take over its lifetime? A. product mix B. service life C. marketing mix D. product life cycle E. total product process

D. product life cycle

A ________ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges. A. multibrand B. private brand C. new brand D. product line E. line extension

D. product line

In a ________, new products and marketing tactics are tested online in a virtual shopping environment. A. controlled test market B. standard test market C. survey D. simulated test market E. focus group

D. simulated test market

The strongest brands are positioned on ________. A. good packaging B. desirable benefit C. service inseparability D. strong beliefs and values E. product attributes

D. strong beliefs and values

As a manufacturer increases the price, ________. A. the profit margin shrinks B. efficiency drops C. competition is minimized D. the break-even volume drops E. the total costs increase

D. the break-even volume drops

In industrial markets, ________ typically has the final say in setting the pricing objectives and policies of a company. A. the sales staff B. the production manager C. the HR department D. top management E. the sales manager

D. top management

________ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation. A. Geographic B. Occasion C. Psychographic D. Benefit E. Demographic

E. Demographic

________ products are those products purchased for further processing or for use in conducting a business. A. Specialty B. Unsought C. Shopping D. Convenience E. Industrial

E. Industrial

________ positioning involves meeting consumers' lower performance or quality requirements at a much lower price. A. More for less B. More for the same C. More for more D. Same for less E. Less for much less

E. Less for much less

________ involves adding more items within the present range of the product line. A. Brand extension B. Upward product line stretching C. Market diversification D. Downward product line stretching E. Product line filling

E. Product line filling

________ refers to the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs. A. Brand image B. Brand equity C. Brand personality D. Product labeling E. Product quality

E. Product quality

________ segmentation divides buyers into different segments based on lifestyle or personality characteristics. A. Demographic B. Geographic C. Occasion D. Benefit E. Psychographic

E. Psychographic

________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics. A. Occasion B. Demographic C. Geographic D. Benefit E. Psychographic

E. Psychographic

________ refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. A. Individual marketing B. Local marketing C. Segmented marketing D. Niche marketing E. Undifferentiated marketing

E. Undifferentiated marketing

As production workers become better organized and more familiar with equipment, the average cost per unit tends to decrease with the ________. A. increase in derived demand B. decrease in the economies of scale C. increase in primary demand D. increase in the diseconomies of scale E. accumulated production experience

E. accumulated production experience

When an effective program can be designed for attracting and serving a particular segment, the segment is best described as ________. A. competitive B. measurable C. accessible D. differentiable E. actionable

E. actionable

Target return pricing uses the concept of a(n) ________, which shows the total cost and total revenue expected at different sales volume levels. A. demand curve B. BCG matrix C. experience curve D. SWOT analysis E. break-even chart

E. break-even chart

Brand ________ refers to how highly consumers regard and respect the brand. A. knowledge B. relevance C. conformance D. differentiation E. esteem

E. esteem

Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition? A. adoption B. maturity C. product development D. decline E. growth

E. growth

Which of the following stages of the PLC is characterized with high promotional expenditures that result from an effort to create consumer awareness? A. decline B. maturity C. growth D. product development E. introduction

E. introduction

The major product line decision involves product ________, the number of items in the product line. A. line conformance B. features C. packaging D. line depth E. line length

E. line length

A(n) ________ chooses a strategy consistent with the intended product positioning. To gain market leadership requires correct decisions from the beginning. A. harvester B. laggard C. brand evangelist D. early adopter E. market pioneer

E. market pioneer

When the size, purchasing power, and profile of a market segment can be calculated, the market is ________. A. substantial B. actionable C. profitable D. competitive E. measurable

E. measurable

Product improvements, product modifications, and original products can all be classified as ________. A. product extensions B. prototypes C. blueprints D. test products E. new products

E. new products

Because of ________, a company cannot make its product illegally similar to a competitor's already established product. A. anti-monopoly laws B. the Consumer Product Safety Act C. product liability D. product warranties E. patent laws

E. patent laws

Which of the following stages of the new product development process occurs immediately after the completion of the business analysis for the product or service? A. idea screening B. marketing strategy development C. product activation D. product design E. product development

E. product development

What is included in the first part of a marketing strategy statement? A. distribution strategy B. long-run sales goals C. product longevity D. promotional mixes E. target market description

E. target market description

Acquisition refers to ________. A. investments made in a country's businesses by foreign citizens, often in the form of stocks B. an agreement between two or more commercial companies to produce a common product C. the development of original products, product improvements, product modifications, and new brands through the firm's own product development strategies D. a partnership between two companies to produce a product in different countries by sharing risks E. the buying of a whole company, a patent, or a license to produce someone else's product

E. the buying of a whole company, a patent, or a license to produce someone else's product

In the context of behavioral segmentation, markets segmented by ________ can be categorized into light, medium, and heavy product users. A. occasion B. benefits sought C. loyalty status D. user status E. usage rate

E. usage rate