Unit 2 Test Questions

You just rented your first apartment after graduating from college. You set out to purchase a new couch and chair for your apartment. Miller's furniture offers free delivery and Scotch Guard fabric protection on any couch more than $500. The free delivery and fabric protection are examples of _______.

supplemental features

Items for which buyers are willing to expend considerable effort in planning and making purchases

shopping products

declining sales, increasing expenses, and decreasing profits

signal problems that merit research

Information provided by a single marketing research firm

single-source data

Items with unique characteristics that buyers are willing to expend considerable effort to obtain

specialty products

Analysis of what is typical and what deviates from the average

statistical interpretation

A type of probability sampling in which the population is divided into groups with a common attribute, and a random sample is chosen within each group

stratified sampling

In Australia Coca-Cola launched Mother, an energy drink. However, most people did not like the taste. Rather than introducing an entirely new product, Coca-Cola decided to reposition the product. It reformulated the Mother drink and re-released it with a new marketing campaign. Refer to Scenario 11.2. By using a larger can size and different colors, Coca-Cola is changing the _______ of the product.

styling

The physical appearance of a product

styling

Ahmed enjoys going to the local zoo. He does not like the price of the zoo food and beverages, however, as they are much more expensive than food in other places. When he does buy a drink, he usually goes for the extra-large one because it comes in a souvenir cup that he gets to keep. The souvenir cup represents which of the following?

supplemental features

To delete products, companies should periodically evaluate each product to determine its impact on the overall effectiveness of the firm's product mix. This process is called a _______.

systematic review

An interview that combines the traditional focus group's ability to probe with the confidentiality provided by telephone surveys

telephone depth interview

A research method in which respondents' answers to a questionnaire are recorded by an interviewer on the phone

telephone survey

Introducing a product on a limited basis to measure the extent to which potential customers will actually buy it

test marketing

How does a product modification differ from a line extension?

the original product does not remain in the line

Developing reporting capabilities

third step in investing in marketing analytics

collecting data

third step in marketing research

Full legal name of an organization

trade name

A legal designation of exclusive use of a brand

trademark

The buyer examines, tests, or tries the product to determine if it meets his or her needs.

trial

Bert receives a phone call from a representative of a local funeral home. The sales representative let him know that he could prepurchase funeral services, which would save his family members time and money when planning his funeral. Bert did not know such a service even existed. The prepurchase of funeral services is considered a(n) _______ product.

unsought

Products purchased to solve a sudden problem, products of which customers are unaware, and products that people do not necessarily think about buying

unsought products

A condition that exists when a research method measures what it is supposed to measure

validity

Jung-hoon performed an experiment over and over again in his quest to understand buyer behavior. He always got similar results. Jung-hoon went to his manager with his results and told them that this knowledge could help them improve the company's marketing strategy. However, the manager pointed out that Jung-hoon's results do not prove an association between his outcomes and buyer behavior. In fact, the manager can think of a number of factors proven to be more effective in influencing buyer behavior. In this case, Jung-hoon's results lacked _______.

validity

A cross-functional group that creates entirely new products that may be aimed at new markets

venture team

Neveah works in research and development at a consumer products firm. She meets up with Sergio, who works in finance, Arun, who works in production, and David, who works in marketing. Together they are going to develop a new product that Neveah's department had researched. They are responsible for all aspects of developing the product. This is an example of a _______.

venture team

The various products carried by a retailer can also have dimensions of width and depth. For example, Dick's Sporting Goods carries sports clothes, shoes, exercise equipment, hunting and fishing equipment, camping supplies, and other products. Bass Pro Shop carries fishing equipment but has a larger selection of different models and brands. In this case, the product mix of Dick's Sporting Goods is _______, and the product mix of Bass Pro Shop is _______.

wide; deep

Cummins has multiple product lines that it categorizes into engines, power generation, fuel systems, turbo technologies, filtration, and emissions solutions. This would be an example of which of the following?

width of product mix

The number of product lines a company offers

width of product mix

What are the two basic types of sampling utilized by marketing researchers?

Probability and nonprobability

Which of the following companies are most likely to use individual branding?

Procter & Gamble

Those adopting new products just before the average person

early majority

The buyer considers the product's benefits and decides whether to try it, considering its value versus the competition.

evaluation

In Australia Coca-Cola launched Mother, an energy drink. However, most people did not like the taste. Rather than introducing an entirely new product, Coca-Cola decided to reposition the product. It reformulated the Mother drink and re-released it with a new marketing campaign. Refer to Scenario 11.2. Which of the following slogans should Coca-Cola use to signal to consumers that its Mother drink has been repositioned?"Mother—Great Taste and Great Energy" "Not Your Everyday Mother" "Mother Energy Drink—For Those Who Dare to Dream" "New Mother—Tastes Nothing Like the Old One" "Mother Energy Drink: Get More for Less"

"New mother--tastes nothing like the old one"

allows the product to decline without a change in the marketing strategy; no attempt is made to give the product new life.

A phase out

Instagram has an enormous amount of data on the ways its users interact with content in its app. Instagram uses sophisticated software to store and analyze the data. What are these data called?

Big data

Involves massive structured and unstructured data sources that can be used by marketers to discover unique insights and make strategic decisions

Big data

Walmart has developed a reputation for its extensive use of information to aid in management and marketing decisions. Today, Walmart leverages its point-of-sale system in the stores and measures website traffic and information gleaned using "cookies" and monitoring of social media, such as Twitter, Facebook, Instagram, and Pinterest. The Vice President of Information Technology says this "mountain of data provides significant insights for its product category leaders and other managers across the Walmart company." What type of information does Walmart utilize?

Big data

Assume that Coca-Cola has a manager for Powerade, a manager for Coca-Cola, a manager for Fairlife, and a manager for SmartWater. What types of managers are these?

Brand Managers

The Double-A of American Airlines, the peacock of NBC, and the apple with a missing bite of Apple are examples of a _______.

Brand mark

A group of managers has been assigned the task of developing a new product. They are now in the process of determining a product idea's potential contribution to the firm's sales and profits. The managers are at what stage of the new-product development process?

Business analysis

The intangible products that many organizations use in their operations

Business services

John Deere has launched a research effort to determine the most effective advertising message to gain interest and awareness in its agricultural products among its target market members—the farming community. Its marketing research department has recommended a series of focus group interviews to be fielded across the United States. Which activity is next according to the steps in the marketing research process?

Collect Data

Which is the best way to handle the deletion of a product? Dropping the product immediately once sales start to decline Eliminating the product only if repositioning fails Discontinuing the product after it becomes a heavy financial burden Maintaining the product as long as there are loyal customers Conducting a review to determine its impact on the overall product mix

Conducting a review to determine its impact on the overall product mix

Which of the following does not apply to shopping products? Consumers are willing to expend considerable effort in planning and making the purchase. Shopping products are expected to last a long time and are typically more expensive than convenience products. Consumers are typically unaware of the product until they see it online or in a store. Marketing channel members expect to receive higher gross margins to compensate for lower turnover.

Consumers are typically unaware of the product until they see it online or in a store

Tide Pods was developed to revolutionize the detergent industry and spark new interest in Tide laundry detergent. The colorful pods launched with much fanfare. Customers like the pods because they are less messy and more concentrated than liquid detergent. Originally, the pods were placed in a clear packaging. Other competitors have also released detergent pods due to their popularity. However, since its release there have thousands of incidents with children ingesting the pods and mistaking them as candy. Because of their higher concentration, ingesting the pods can do severe damage and has even led to deaths. Procter & Gamble responded by changing the packaging so that it is no longer transparent. It also made the packages harder to open. Refer to Scenario 10.3. Tide Pods would most likely be classified as a(n) _______ product. However, suppose a hotel uses Tide Pods to wash its sheets and towels. In this case, Tide Pods would be classified as _______.

Convenience; MRO supplies

Managers at Abercrombie & Fitch are interested in determining the characteristics of shoppers who visit their store as well as identifying those consumers who spend the most and shop most often in their stores. This information will be quite helpful to Abercrombie & Fitch as it makes design changes to the store, selects merchandise, and creates advertising messages. Abercrombie & Fitch would like to identify these shoppers based on factors such as gender, age, marital status, and discretionary income. Which type of research would be most appropriate for Abercrombie & Fitch to utilize?

Descriptive Research

Olivia works at Ginger, a woman's clothing store. Olivia noticed that while the store was popular with women of all ages it was selling few of its jeggings to females over 45. While they bought tops, shorts, and dresses, rarely any sales from this group of females included jeggings. In contrast, Ginger's jeggings were highly popular among those under 45. Olivia would like to conduct research to see why this is so. Refer to Scenario 4.2. What type of research will she likely conduct?

Descriptive research

Which of the following is not one of the main uses of labeling?

Encourage multiple purchases

To ensure marketing research is reliable and valid globally, what should marketers do?

Modify data-gathering methods to allow for regional differences

As Lisa eats her morning bowl of Golden Grahams cereal, she reads about the calories, fats, carbohydrates, and vitamins she is ingesting. This information is required by the _______.

Nutrition Labeling Act

Brands initiated and owned by resellers

Private distributor brands

Tide Pods was developed to revolutionize the detergent industry and spark new interest in Tide laundry detergent. The pods launched with much fanfare. Customers like the pods because they are less messy and more concentrated than liquid detergent. Originally, the pods were placed in a clear packaging. Other competitors have also released detergent pods due to their popularity. However, since its release there have thousands of incidents with children ingesting the pods and mistaking them as candy. Because of their higher concentration, ingesting the pods can do severe damage and has even led to deaths. Procter & Gamble responded by changing the packaging so that it is no longer transparent. It also made the packages harder to open. Refer to Scenario 11.3. Melinda hates using liquid laundry detergent. She heard about Tide Pods from a friend and did some research. She likes what she learns, but she is concerned about all the incidents where children have accidentally swallowed the pods. She has two young children herself. Melinda begins weighing the pros and cons of Tide Pods versus the liquid laundry detergent. Melinda is in what stage of the product adoption process?

Evaluation

Research that allows marketers to make causal inferences about relationships between variables

Experimental research

_______ research is typically conducted when marketers need more information about a problem or want to make a tentative hypothesis more specific.

Exploratory

Kamilah is a member of a student group that is assigned to work with a local Tex-Mex restaurant to collect marketing research. The restaurant wants to determine if a new type of taco will be successful. Kamilah's group decides to organize a taste test where respondents try the new taco and fill out a survey. Questions would ask whether or not they liked the taco, what they liked or disliked about the taco, and whether they would purchase it at various price points. Refer to Scenario 4.1. What type of research is Kamilah's team collecting?

Exploratory research

MultiTech Corp. has decided that all of its products' packages should be similar. Multitech is using which of the following?

Family packaging

locating and defining problems or issues

First step in marketing research

Smithfield Foods utilized a _______ research method to learn about consumers' food purchasing habits and in-home meal preparation. It hired Trinity Research to conduct the research by gathering small groups of eight to 12 individuals in one facility and employed a moderator to guide the discussion. Representatives from Smithfield Foods were able to observe the participants' interaction, and they noticed that one individual tended to monopolize the discussion. However, they were pleased with the way the moderator was able to limit the individuals' responses and enable everyone to fully participate in the study. What type of research is this?

Focus Group

Which of the following is not an example of a secondary data source?

Focus Groups

Brands indicating only the product category

Generic brands

Your company is preparing to launch a new product next month. Since you are leading the launch effort, you have called a meeting of all stakeholders to discuss how the product should be positioned in the market. You acknowledge that the product will carry a higher price than competing products, but all the independent rating agencies have concluded that the product has superior performance characteristics relative to its competing brands. Which of the following bases for positioning should you use for this product?

Head-to-head competition should be the basis for positioning the product

Tide Pods was developed to revolutionize the detergent industry and spark new interest in Tide laundry detergent. The pods launched with much fanfare. Customers like the pods because they are less messy and more concentrated than liquid detergent. Originally, the pods were placed in a clear packaging. Other competitors have also released detergent pods due to their popularity. However, since its release there have thousands of incidents with children ingesting the pods and mistaking them as candy. Because of their higher concentration, ingesting the pods can do severe damage and has even led to deaths. Procter & Gamble responded by changing the packaging so that it is no longer transparent. It also made the packages harder to open. Refer to Scenario 10.3. When first released, Tide Pods caught consumers' attention because the detergent was placed into a small orange "pod" that users could throw into their washing machine. This eliminated the need to measure and pour out messier liquid detergent. Tide Pods likely represent what type of packaging?

Innovative

Which step of the marketing research process focuses on uncovering the nature and boundaries of a situation or question related to marketing strategy or implementation?

Locating and defining issues or problems

An accountant buys a supply of pencils to be used in calculating the taxes of other business firms. Based on this information, these pencils would be considered what type of product?

MRO Supplies

Maintenance, repair, and operating items that facilitate production and operations but do not become part of the finished product

MRO Supplies

The use of databases, big data, and measurement methods enabled by technology to interpret the effectiveness of a firm's marketing functions

Marketing analytics

A framework for managing and structuring information gathered regularly from sources inside and outside the organization

Marketing information system (MIS)

Tide Pods was developed to revolutionize the detergent industry and spark new interest in Tide laundry detergent. The pods launched with much fanfare. Customers like the pods because they are less messy and more concentrated than liquid detergent. Originally, the pods were placed in a clear packaging. Other competitors have also released detergent pods due to their popularity. However, since its release there have thousands of incidents with children ingesting the pods and mistaking them as candy. Because of their higher concentration, ingesting the pods can do severe damage and has even led to deaths. Procter & Gamble responded by changing the packaging so that it is no longer transparent. It also made the packages harder to open. Refer to Scenario 10.3. Tide holds a large market share in the laundry detergent industry. However, Tide has been on the market for many years. Procter & Gamble was hoping that its pods would bring new life to its product and excite consumers once more. Tide laundry detergent is most likely in what stage of the product life cycle?

Maturity Stage

Whirlpool has developed a new washing machine with new technology that can sense the needs of each load of laundry and adjust the water levels and wash actions to make clothes cleaner while being gentler on the fabric. It also has added new features such as the ability to spray detergent directly and evenly on clothes and an option to steam clean. Since its competition does not make a washing machine with these features, Whirlpool is creating _______.

Product differentiation

Exploratory research is usually associated with _______ research techniques. The data is typically shown in _______.

Qualitative; interpretations and expressive descriptions

exploratory research

Research conducted to gather more information about a problem or to make a tentative hypothesis more specific

Nari works in the production department for a manufacturer of coffee equipment. A new promising product idea the company is considering involves the development of simple pour-over coffee makers. These coffee makers would be made of wood with a cotton drip bag, similar to what is known in Costa Rica as chorreadores. Nari's firm thinks this type of product can catch on in the United States because they are exotic and environmentally friendly. Refer to Scenario 11.3. Nari's firm released the pour-over coffeemaker, and it became a hit among a niche group of avid coffee fans. For a few years sales were high. Eventually, however, sales peaked and started to decline. Nari's firm realizes the coffeemaker still has a small following of dedicated customers. They plan to move on to a more advanced pour-over coffeemaker, but in the meantime they plan to emphasize the core strengths of the current coffeemaker, including the fact that it is so sustainable. This is an example of what type of product deletion?

Run-out

Oculus, acquired by Facebook, is involved in virtual reality. Its Oculus Rift product is a virtual reality headset released to the public in 2016. Retailers including Best Buy sell the Oculus Rift for approximately $400. A few competitors have emerged to challenge Oculus Rift, including the HTC Vive, Samsung Gear, and Zeiss VR One Plus. Refer to Scenario 10.2. What type of consumer product is the Oculus Rift?

Shopping

Dick's Sporting Goods is interested in studying the product categories that consumers desire to have in the store. The company's marketing research director plans to select 1,000 customers from its database of 100,000 customers who have a loyalty card. The marketing research director will first segment the database of 100,000 customers into five regions of the United States based on geography and then use a random sampling method to select 200 customers from each region. What type of sampling method does the marketing research director plan to utilize?

Stratified

Chase Bank offers a credit card that it differentiates from competing cards by providing a toll-free phone number that connects directly with a customer service agent rather than an automated system. Chase is differentiating this credit card through _______.

Support services

During the last recession, sales for many companies plummeted. The rate of unemployment grew substantially. As a result, Procter & Gamble (P&G) decided to release a cheaper, more basic version of its Tide product. This lower-priced Tide Basic lacked some of the cleaning features of its more expensive counterpart, but P&G thought it would be good for cash-strapped consumers. P&G tried out Tide Basic in 100 stores in the South for about six months. The product failed to take off, and P&G discontinued Tide Basic. A few years later it tried again with another less expensive Tide product called Simply Tide. Refer to Scenario 11.1. What stage of the product development process was P&G in when it decided to discontinue Tide Basic?

Test marketing

to better understand a problem or a situation and/ or to help identify additional data needs or decision alternatives

The main purpose of exploratory research

Which of the following has become a significant ethical issue in marketing research with the advance of technology? The relevance of information The accuracy of information The privacy of consumers Cultural differences in technology

The privacy of consumers

When Costco offers free samples of various food items at tables throughout the store, the store is trying to stimulate which stage of the product adoption process?

Trial

Quinn is the new marketing analyst for a sporting goods retailer. He quickly discovers that the accounting team has a file of fixed data on customer transactions that is isolated from the rest of the organization. Quinn suggests the data should be shared to relevant departments to tackle problems and provide solutions. Refer to Scenario 4.3. In response to Quinn's call to action, management requests all departments contribute their fixed data files to a large pool of data that is openly available to all departments. What is this pool called? Choose the best answer.

a data lake

Quinn is the new marketing analyst for a sporting goods retailer. He quickly discovers that the accounting team has a file of fixed data on customer transactions that is isolated from the rest of the organization. Quinn suggests the data should be shared to relevant departments to tackle problems and provide solutions. Refer to Scenario 4.3. What is the fixed data Quinn discovered called?

a data silo

Many marketers collecting information turn to LexisNexis. LexisNexis contains articles on a variety of topics as well as cases and news documents. LexisNexis would most likely be considered which of the following?

a database

Despite his daughter's urging, Fred refuses to purchase a flat-screen television. His old, boxy television is working just fine, according to him. Fred is likely _______.

a laggard

DVD players have been declining for years. Recognizing that DVD players are a thing of the past, those who manufactured DVD players have not attempted to make any changes but are letting them live out the remainder of their lives. The makers of DVD players have new technology to explore and do not want to waste resources trying to prolong the life of an obsolete technology. This is an example of _______.

a phase-out

Equipment that does not become part of the final physical product but is used in production or office activities

accessory equipment

The buyer purchases the product and can be expected to use it again

adoption

In Australia Coca-Cola launched Mother, an energy drink. However, most people did not like the taste. Rather than introducing an entirely new product, Coca-Cola decided to reposition the product. It reformulated the Mother drink and re-released it with a new marketing campaign. Refer to Scenario 11.2. In repositioning the product, Coca-Cola changed the taste of the product. It also changed the look of the product with a larger can size and different colors. This is an example of a(n) _______ modification.

aesthetic

Changes to the sensory appeal of a product

aesthetic modifications

The buyer becomes aware of the product.

awareness

A name, term, design, symbol, or any other feature that identifies one marketer's product as distinct from those of other marketers

brand

If Ruth were hired by Procter & Gamble and given total marketing responsibility over Tide Free and Gentle Liquid Laundry Detergent, she would hold the position of _______ manager.

brand

The marketing and financial value associated with a brand's strength in a market

brand equity

Using an existing brand to brand a new product in a different product category

brand extension

When Dyson, best known for its revolutionary vacuum cleaner, introduced the Dyson Supersonic hair dryer, it used _______.

brand extension

The degree of brand loyalty in which a customer strongly prefers a specific brand and will accept no substitute

brand insistence

An agreement whereby a company permits another organization to use its brand on other products for a licensing fee

brand licensing

A customer's favorable attitude toward a specific brand

brand loyalty

The person responsible for a single brand

brand manager

The part of a brand not made up of words

brand mark

The part of a brand that can be spoken

brand name

The degree of brand loyalty in which a customer prefers one brand over competitive offerings

brand preference

A customer's awareness that the brand exists and is an alternative purchase

brand recognition

Oculus, acquired by Facebook, is involved in virtual reality. Its Oculus Rift product is a virtual reality headset released to the public in 2016. Retailers including Best Buy sell the Oculus Rift for approximately $400. A few competitors have emerged to challenge Oculus Rift, including the HTC Vive, Samsung Gear, and Zeiss VR One Plus. Refer to Scenario 10.2. In terms of brand loyalty, at this stage of the product life most consumers will probably have _______ for the Oculus Rift.

brand recognition

Evaluating the potential contribution of a product idea to the firm's sales, costs, and profits

business analysis

Which of the following would be an example of accessory equipment? Iron ore Pencils Printing press Coca-Cola syrup Calculator

calculator

Most wine comes in similarly shaped bottles or, occasionally, boxes. However, Stack Wine offers its wine in four-pack cups. While a traditional winemaker is likely to adopt _______ packaging, Stack Wine has adopted _______ packaging.

category-consistent; innovative

Interactions that result in satisfied customers who use a service repeatedly over time

client-based relationships

Using two or more brands on one product

co-branding

Karissa works for a company that sells sour cream. Sales are down, so she begins a research project. First, she develops a hypothesis that consumers perceive Greek yogurt as a healthier alternative to salsa. She ensures that her research techniques are both reliable and valid. The next step for Karissa is to _______.

collect data

Deciding on full-scale manufacturing and marketing plans and preparing budgets

commercialization

The Amazon Echo is a voice-enabled smart speaker. It has been in development since 2010. It was introduced in 2014 but only to Amazon Prime members for purchase. Amazon expanded in 2015 and became the Echo available in stores nationwide. What stage in the product development process was Amazon Echo in 2015?

commercialization

Maria works for an artificial intelligence company powered by big data. A new client calls Maria and explains they have an extremely large quantity of structured data across multiple systems. Specifically, the client needs Maria's company to link, match, and transform data across systems. What is the client requesting help with?

complexity

Items that become part of the physical product and are either finished items ready for assembly or products that need little processing before assembly

component parts

Your local oil change place provides free coffee, comfortable seating, and a variety of magazines in the waiting room. These are examples of _______.

experiential benefits

Nari works in the production department for a manufacturer of coffee equipment. A new promising product idea the company is considering involves the development of simple pour-over coffee makers. These coffee makers would be made of wood with a cotton drip bag, similar to what is known in Costa Rica as chorreadores. Nari's firm thinks this type of product can catch on in the United States because they are exotic and environmentally friendly. Refer to Scenario 11.3. Nari is working with a team to determine the feasibility of the product. Together with her team, she shows a small group of avid coffee customers a written description as well as a photo of the proposed product. She hopes to determine whether they would buy the product and what they think about it. Nari and her team are at what stage in the product development process?

concept testing

Seeking potential buyers' responses to a product idea

concept testing

The new product team at a clothing manufacturer has generated many ideas for styles of new clothes and assessed whether the new clothes are consistent with the manufacturer's objectives and resources. During the assessment, several new ideas were rejected. The next step in the new-product development process is _______.

concept testing

Research designed to verify insights through objective procedures and to help marketers in making decisions

conclusive research

Miles recently stayed at the Hyatt. He loved the experience. The staff was so nice, and the rooms were clean. The concierge was extremely helpful. He decided to stay there when he returned on his next business trip. However, the next time he stayed there, there were different staff members who were not very friendly or helpful. Also, the housekeeping staff did not change the towels in his room. The only thing he found to be the same was the concierge. This Hyatt seems to lack _______.

consistency of quality

Buckyballs was marketed as a desk toy made up of small magnetic spheres. Adults could play with the magnetic spheres and create different shapes. Labeling on Buckyballs packaging clearly stated that this product should be kept away from children. As concerns for safety grew, Buckyballs placed even more warning labels on the packaging. Despite this fact, thousands of children who thought the magnets were candy ingested them. The magnets could cause fatal complications inside the body. If more than one was swallowed, they could attract one another inside the stomach, creating tearing and other complications. Despite all the warnings, the Consumer Product Safety Commission ruled the product was too dangerous and filed a lawsuit. Though Buckyballs magnets were discontinued, they have since returned under the name Zen Magnets. Refer to Scenario 10.1. How should Buckyballs classified?

consumer product

Relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort

convenience products

Combines the words crowd and outsourcing and calls for taking tasks usually performed by a marketer or researcher and outsourcing them to a crowd, or potential market, through an open call

crowdsourcing

Libby is part of an online group of people who act as sounding boards for new ideas from one of her favorite companies. Libby does not interact much with the other people in her group, but she provides her own insights about proposed products. Libby is part of a(n) _______.

customer advisory board

Small groups of actual customers who serve as sounding boards for new-product ideas and offer insights into their feelings and attitudes toward a firm's products and other elements of its marketing strategy

customer advisory boards

The level of interaction between provider and customer needed to deliver the service

customer contact

Human or mechanical efforts or activities that add value to a product

customer services

A file of fixed data that is in one department isolated from the rest of the organization

data silo

A collection of information arranged for easy access and retrieval

database

The stage of a product's life cycle when sales fall rapidly

decline stage

Around the holidays, airline tickets tend to increase. What type of pricing are the airlines most likely using to determine how much they will charge customers at this time?

demand-based pricing

Quality modifications are changes that relate to a product's _______.

dependability and durability

Belle Meade sells different kinds of wine. Under its white wine product line, it sells four products—Carriage House White, Celebration Riesling, Race Day White 2016, and Lady's Cuvee. This is an example of _______.

depth of product mix

The average number of different product items offered in each product line

depth of product mix

Research conducted to clarify the characteristics of certain phenomena to solve a particular problem

descriptive research

Olivia works at Ginger, a woman's clothing store. Olivia noticed that while the store was popular with women of all ages it was selling few of its jeggings to females over 45. While they bought tops, shorts, and dresses, rarely any sales from this group of females included jeggings. In contrast, Ginger's jeggings were highly popular among those under 45. Olivia would like to conduct research to see why this is so. Refer to Scenario 4.2. Now that Olivia has located and defined the problem, the next step in the marketing research process is to _______.

design the research project

Packaging can provide all the following functions, except _______.

determine the price to be charged for the product

Identifies old technologies that can be exploited in new ways or develops new business models to give customers more than they've come to expect from current products in a specific market

disruptive innovation

Descriptive research (does/does not) provide sufficient information to allow researchers to make casual inferences

does not

Careful choosers of new products

early adopters

Big Burgers BBQ has been testing a number of new menu items in its restaurants as part of a turnaround strategy, including sales of kombucha, breakfast served at all hours, and premium chef-crafted sandwiches. Big Burgers BBQ is conducting _______ research which allows it to make causal deductions about relationships.

experimental

Research that provides marketing managers with information regarding evidence of a cause-and-effect relationship is called _______.

experimental research

Branding all of a firm's products with the same name

family branding

All cans of Campbell's soup feature a red and white label as a major element of their design. This is an example of _______.

family packaging

Smart Ones TV dinners come in red boxes with many of the same elements. Each box features the giant "Smart Ones" brand name at the top. This is an example of _______.

family packaging

Using similar packaging for all of a firm's products or packaging that has one common design element

family packaging

reporting research findings

fifth step in marketing research

defining what to measure and which tools to use

first step in investing in marketing analytics

A small group of 8-12 people who are brought together to participate in an interview that is often conducted informally, without a structured questionnaire, to observe interaction when members are exposed to an idea or a concept

focus group

L'Oréal is considering developing a new line of protein-free shampoo and conditioner. Before the company invests too many resources, it would like to collect consumer insights to determine what customers are looking for in shampoo and conditioner and whether its protein-free products will catch on. The company brings together a group of ten consumers plus a moderator to direct discussion. L'Oréal is most interested in the unique insights it could collect through group interaction. This is known as a _______, which is a part of _______ research.

focus group; exploratory

Implementing the campaign and analyzing the results

forth step in investing in marketing analytics

interpreting research findings

forth step in marketing research

When automakers started installing Bluetooth in cars, this was an example of _______.

functional modification

Changes affecting a product's versatility, effectiveness, convenience, or safety

functional modifications

The stage of a product's life cycle when sales rise rapidly and profits reach a peak and then start to decline

growth stage

Seventh Generation is developing a new type of organic body wash that is going to be higher in price than the competition but provides superior performance characteristics compared to other organic body wash brands. It should most likely use _______ positioning for the new body wash.

head-to-head

Variation in quality

heterogeneity

An informed guess or assumption about a certain problem or a certain set of circumstances

hypothesis

Annalise is performing a marketing research study on restaurant menu items containing cauliflower as a feature ingredient. She believes this study will prove that consumers are increasingly attracted to cauliflower because of its rise in popularity on social media and reported connection to health benefits. Annalise is developing a(n) _______.

hypothesis

The Red Cross raises money to help people survive natural and manmade disasters. The Red Cross can best be described as a(n) _______.

idea

Samsung wants to add features to the upcoming version of its Galaxy S smartphone. It has asked its engineers and other employees to submit possibilities for new features. Samsung is currently in the _______ phase of the new-product development process.

idea generation

Seeking product ideas that will help organizations to achieve objectives

idea generation

Phases of the new-product development process?

idea generation, screening, concept testing, Business analysis, product development, test marketing, commercialization

Marketing research often focuses on...

identifying and defining market opportunities or changes in the environment

an unprofitable product, is the best strategy when losses are too great to prolong the product's life.

immediate drop

The real value of marketing research is measured by _______.

improved decision-making ability

The real value of marketing research to the organization can be measured best by _______.

improvements in the ability to make decisions

A personal interview that takes place in the respondent's home

in-home (door-to-door) interview

SC Johnson is a consumer goods manufacturer. The company's product mix includes home cleaning products, air care, pest control, home storage, and auto care. The president of marketing at SC Johnson would like to add laundry products to its product mix. SC Johnson would be _______.

increasing the width of its product mix

A policy of naming each product differently

individual branding

Kenzo is someone who likes to have the latest technology. He likes being the first of his friends to have the newest gadget and is willing to take risks with his spending. He is most likely a member of the _______ group.

innovator

Ways to delete a product

phase out, run out, immediate drop

A cereal manufacturer has decided to delete one of its brands of cereal that is not satisfying enough customers. It will delete the cereal by letting it decline and not changing its marketing strategy in a process called _______.

phase-out

Sulbha loves to try new products because she gets a thrill from it. Even though some of the products she adopted turned out to be failures, Sulbha is willing to take the risk. She needs to be the first one to own the newest products! Her cousin Melanie, however, is generally suspicious about new products. For instance, when the iPad first came out, Melanie was highly skeptical. Even when Sulbha assured her that it was a good product, Melanie was not certain. Finally, after a few years and lots of encouragement from Sulbha, Melanie decided to purchase the newest iPad. Sulbha is most likely in the _______ category, while Melanie is most likely in the _______ category of product adopters.

innovator; late majority

First adopters of new products

innovators

Being produced and consumed at the same time

inseparability

It is difficult for surgeons to standardize each type of surgery performed because the patient must be present and involved in the surgery. Because of differences in bodies, each surgery will be somewhat different. This illustrates which of the following unique features of services?

inseparability

The strongest form of brand loyalty is brand _______.

insistence

Facilities and nonportable major equipment

installations

A service is not physical and therefore cannot be touched

intagibility

Fidelity Investments is one of the largest mutual fund and brokerage services providers worldwide. It has various offices in cities across the United States. In each office customer, contact personnel have a well-groomed, professional appearance. The inside of the office is clean and attractive. These visible cues are an attempt to deal with the problem of _______ common to service organizations.

intangibility

Traveler's Insurance uses an umbrella in its name to symbolize protection. The symbol provides a cue to overcome which aspect of a service?

intangibility

Marketers should identify and be aware of ethical issues that can influence research. Marketing research requires understanding of acceptable activities that ensure the _______ of gathering, analyzing, and reporting data.

integrity

The buyer seeks information and is receptive to learning about the product.

interest

Alec collected primary and secondary data for his marketing research project. After collecting data to test his hypothesis, Alec needs to _______.

interpret the research finding

Sales of a new type of breakfast food have been increasing steadily, but profits have been negative. The breakfast food is most likely in the _______ stage of the product life cycle.

introduction

Oculus, acquired by Facebook, is involved in virtual reality. Its Oculus Rift product is a virtual reality headset released to the public in 2016. Retailers including Best Buy sell the Oculus Rift for approximately $400. A few competitors have emerged to challenge Oculus Rift, including the HTC Vive, Samsung Gear, and Zeiss VR One Plus. Refer to Scenario 10.2. In which stage of the product life cycle is the Oculus Rift likely to be?

introduction stage

The initial stage of a product's life cycle—its first appearance in the marketplace—when sales start at zero and profits are negative

introduction stage

four stages of product life cycle

introduction, growth, maturity, and decline

Providing identifying, promotional, or other information on package labels

labeling

The last adopters, who distrust new products

laggards

Skeptics who adopt new products when they feel it is necessary

late majority

Colleen thinks the meal she ate at Outback Steakhouse was high in quality. However, she found a dinner she had last week at a five-star restaurant to have much higher quality. This example points out that the dimension of _______ is relative and may be difficult to describe without having a basis of comparison.

level of quality

Kira loves Mexican food. She saw an ad for a new Mexican restaurant that touted its affordable prices. She went in to eat but thought the food was way too salty. Kira thought perhaps it was just a fluke. She tried the restaurant again, but the food tasted just as bad. For Kira the restaurant has a low _______.

level of quality

Development of a product closely related to one or more products in the existing product line but designed specifically to meet somewhat different customer needs

line extension

When Cheetos developed a new "cheesy" flavor, Cheddar Jalapeno Crunchy Cheetos, it was an example of a _______.

line extension

Doritos has expanded beyond its original Nacho Cheese flavor to Cool Ranch, Jacked, Spicy Sweet Chili, and Salsa Verde, to name a few. These are examples of _______.

line extensions

A research method in which respondents answer a questionnaire sent through the mail

mail survey

Jerry works for a pharmaceutical company that wants to conduct a survey about substance abuse. Since this is a sensitive topic, he wants respondents to feel comfortable sharing their responses and to eliminate interviewer bias. Consumers are most likely to remain anonymous through which survey method?

mail surveys

Adidas sells its shoes and clothing in various retail outlets. Adidas is a _______ brand.

manufacturer

All the elements, units, or individuals of interest to researchers for a specific study

population

Data observed and recorded or collected directly from respondents

primary data

Data compiled both inside and outside the organization for some purpose other than the current investigation

secondary data

A research method that involves interviewing a percentage of individuals passing by "intercept" points in a mall

shopping mall intercept interview

Buckyballs was marketed as a desk toy made up of small magnetic spheres. Adults could play with the magnetic spheres and create different shapes. Labeling on Buckyballs packaging clearly stated that this product should be kept away from children. As concerns for safety grew, Buckyballs placed even more warning labels on the packaging. Despite this fact, thousands of children who thought the magnets were candy ingested them. The magnets could cause fatal complications inside the body. If more than one was swallowed, they could attract one another inside the stomach, creating tearing and other complications. Despite all the warnings, the Consumer Product Safety Commission ruled the product was too dangerous and filed a lawsuit. Though Buckyballs magnets were discontinued, they have since returned under the name Zen Magnets. Refer to Scenario 10.1. What type of brand was Buckyballs?

manufacturer brand

Brands initiated by producers

manufacturer brands

Investing in _______ involves the following four steps: (1) defining what to measure and which tools to use; (2) collecting data; (3) developing reporting capabilities; and (4) implementing the campaign and analyzing the results.

marketing analytics

Jacob runs a software company with mountains of data across multiple databases. He wants to interpret the effectiveness of his firm's marketing functions using databases, big data, and measurement methods enabled by technology in order to make better marketing decisions. What is Jacob interested in?

marketing analytics

Allstate Insurance has a smart computer system that enables the calculation of insurance premiums for automobiles within minutes, and consumers can obtain an accurate quote from the Allstate Insurance website and make a decision as to whether or not they would save money or receive more benefits by being an Allstate customer. The Allstate system requires individuals to enter the make, model, and year of their automobile, whether they own or rent their home, their age, gender, and driver's license number. Based on this information, the Allstate system can accurately calculate the insurance premium for the potential customer. This is an example of a _______ system.

marketing decision support

Customized computer software that aids marketing managers in decision making

marketing decision support system (MDSS)

Justina Krasnova is a product manager for Krispy Kreme and works with the product development team to develop new products. Justina has been engaged in a variety of _______ activities to stay well-informed of consumer trends, monitor flavor preferences, and determine the potential for success of new products.

marketing research

SAP HANA is a relational database management system created by SAP. To sell its product, SAP promotes the importance of the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities. What is this called?

marketing research

Heinz changed the packaging of its ketchup, switching from a glass bottle to a plastic bottle. Since the bottle was squeezable, consumers had an easier time getting ketchup out of the bottle. This change in packaging is a strategy that can most likely help boost sales in the _______ stage of the product life cycle.

maturity

In which stage of the product life cycle do sales reach their peak?

maturity

The stage of a product's life cycle when the sales curve peaks and starts to decline as profits continue to fall

maturity stage

A run-out strategy of product deletion _______.

may focus on intensifying marketing efforts in a core market

Procter & Gamble manufactures detergent, diapers, razors, toothpaste, toilet paper, and a variety of other products. These products make up Procter & Gamble's product _______.

mix

Product deletion can best be described as the process of deleting a product from the product mix when it _______.

no longer satisfies enough customers

A sampling technique in which there is no way to calculate the likelihood that a specific element of the population being studied will be chosen

nonprobability sampling

Trader Joe's wants to study how its customers over age 65 shop. It sets up a mock store made to look exactly like a normal store and invites older consumers to shop in the authentic-feeling environment. Researchers record what they see and use this to develop a report for Trader Joe's marketing department. What type of data collection practice is being used here?

observation

Mario, a marketing researcher for a popular dog food brand, is watching people in a Petco to see how long customers tend to linger in front of certain items of interest. Mario is engaging in _______ to collect _______ data.

observation; primary

The practice of reducing prices of services used during slow periods in order to boost demand

off-peak pricing

A variation of the shopping mall intercept interview in which respondents complete a self-administered questionnaire displayed on a computer monitor

on-site computer interview

A research method in which respondents answer a questionnaire via email or on a website

online survey

The BASF Company sent its chemical customers an invitation to an online survey via email. The final question of the survey asked, "Please provide one suggestion to help us better serve your needs." This is an example of a(n) _______ question.

open-ended

The inability of unused service capacity to be stored for future use

perishability

A research method in which participants respond to survey questions face-to-face

personal interview survey

Max works for Mountain Dew and has been told the soda company wants to test a new beverage idea on some of its consumers. The budget Max is given is much higher than Max estimates he will need, and he has plenty of time to complete the survey. He would like to collect very accurate data and wants to encourage respondents to be highly detailed in their responses. He plans to ask probing follow-up questions. Which survey method is best for Max?

personal interview surveys

Most research comes from ___________ sources

secondary

A massive online retailer often uses data on customer demographics, interests, and behavior and wants to learn more about its best customers. It decides to track its customer's online behavior to offer more personalized services with the shopper's consent. The retailer clearly outlines how the data will be used. The retailer sells its data, including personally identifiable data, to a third-party marketing research agency. What ethical issue in marketing research is at play here?

privacy

A type of sampling in which every element in the population being studied has a known chance of being selected for study

probability sampling

Huy Fong is buying peppers and vinegar to make its iconic Sriracha sauce. For Huy Fong, these are best described as _______.

process materials

Materials that are used directly in the production of other products but are not readily identifiable

process materials

The stages buyers go through in accepting a product

product adoption process

Eliminating a product from the product mix

product deletion

Procter & Gamble is in the process of eliminating products from the product mix because they no longer satisfy a sufficient number of customers. This is best described as _______.

product deletion

How a product is conceived, planned, and produced

product design

Nari works in the production department for a manufacturer of coffee equipment. A new promising product idea the company is considering involves the development of simple pour-over coffee makers. These coffee makers would be made of wood with a cotton drip bag, similar to what is known in Costa Rica as chorreadores. Nari's firm thinks this type of product can catch on in the United States because they are exotic and environmentally friendly. Refer to Scenario 11.3. Nari is working with a team to develop the product. It has identified a sustainable teak wood and designed a unique cotton drip bag for the coffee maker. It has also identified several potential manufacturers in Central America. Nari's company is currently working on the _______ for the pour-over coffee maker.

product design

Determining if producing a product is technically feasible and cost effective

product development

Creating and designing products so that customers perceive them as different from competing products

product differentiation

Specific design characteristics that allow a product to perform certain tasks

product features

A specific version of a product that can be designated as a distinct offering among a firm's products

product item

The progression of a product through four stages: introduction, growth, maturity, and decline

product life cycle

A group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations

product line

Herbalife24 includes products developed for athletes in Canada. Herbalife is a weight management and nutrition products company known for marketing products to customers for a healthier lifestyle. Athletes are just one of the groups that Herbalife targets. Herbalife24 is most likely a _______.

product line

If Kimberly-Clark's Cottonelle brand of toilet paper offered you a position where you would have total marketing responsibility for all of its flushable wipes, this position would probably hold the title of _______.

product manager

The person within an organization responsible for a product, a product line, or several distinct products that make up a group

product manager

The total group of products that an organization makes available to customers

product mix

Change in one or more characteristics of a product

product modification

Creating and maintaining a certain concept of a product in customers' minds

product positioning

During the last recession, sales for many companies plummeted. The rate of unemployment grew substantially. As a result, Procter & Gamble (P&G) decided to release a cheaper, more basic version of its Tide product. This lower-priced Tide Basic lacked some of the cleaning features of its more expensive counterpart, but P&G thought it would be good for cash-strapped consumers. P&G tried out Tide Basic in 100 stores in the South for about six months. The product failed to take off, and P&G discontinued Tide Basic. A few years later it tried again with another less expensive Tide product called Simply Tide. Refer to Scenario 11.1. P&G marketed Tide Basic as a detergent that could perform the basic functions of its signature Tide products at a lower price to the consumer. This was an attempt to create a concept of the product in customers' minds. This is referred to as _______.

product positioning

Advisory boards provide _______________ exploratory information

qualitative

Exploratory research deals with _______________ research techniques

qualitative

Focus groups are a common technique associated with ______________ research

qualitative

Characteristics of a product that allow it to perform as expected in satisfying customer needs

quality

During the last recession, sales for many companies plummeted. The rate of unemployment grew substantially. As a result, Procter & Gamble (P&G) decided to release a cheaper, more basic version of its Tide product. This lower-priced Tide Basic lacked some of the cleaning features of its more expensive counterpart, but P&G thought it would be good for cash-strapped consumers. P&G tried out Tide Basic in 100 stores in the South for about six months. The product failed to take off, and P&G discontinued Tide Basic. A few years later it tried again with another less expensive Tide product called Simply Tide. Refer to Scenario 11.1. P&G had to modify its Tide product to appeal to this new demographic. What type of product modification did it make?

quality modification

Changes relating to a product's dependability and durability

quality modifications

Three ways to modify products?

quality, functional, and aesthetic

A nonprobability sampling technique in which researchers divide the population into groups and then arbitrarily choose participants from each group

quota sampling

Kamilah is a member of a student group that is assigned to work with a local Tex-Mex restaurant to collect marketing research. The restaurant wants to determine if a new type of taco will be successful. Kamilah's group decides to organize a taste test where respondents try the new taco and fill out a survey. Questions would ask whether or not they liked the taco, what they liked or disliked about the taco, and whether they would purchase it at various price points. Refer to Scenario 4.1. An auditorium is filled with several hundred potential participants. Kamilah's group chooses to divide the population into groups based on gender and race to ensure that representative categories of respondents are included. This is likely an example of _______.

quota sampling

The _______ sampling method ensures all units in a population have an equal chance of appearing in the sample.

random

A form of probability sampling in which all units in a population have an equal chance of appearing in the sample, and the various events that can occur have an equal or known chance of taking place

random sampling

Basic natural materials that become part of a physical product

raw materials

A condition that exists when a research technique produces almost identical results in repeated trials

reliability

Shasta Soda is developing a new beverage product and has completed taste tests in four different markets across the United States to identify consumers' perceptions of the new product as well as their willingness to buy. The results provide similar feedback in all test markets that consumers enjoy the taste, believe it to be refreshing, and are highly likely to purchase the product. Since the researchers obtained consistent results across these four markets about these measurement items, the research has _______.

reliability

Years ago, Old Spice was marketed to older men. In 2010, the company came out with new commercials and advertisements through the "The Man Your Man Could Smell Like" campaign that featured athlete Isaiah Mustafa and was geared towards younger customers. Through _______, Old Spice was able to boost sales and reach a new demographic.

repositioning

An overall plan for obtaining the information needed to address a research problem or issue

research design

exploits any strengths left in the product. Intensifying marketing efforts in core markets or eliminating some marketing expenditures, such as advertising, may cause a sudden jump in profits. This approach is commonly taken for technologically obsolete products, such as older models of computers. Often, the price is reduced to get a sales spurt.

run-out

Buckyballs was marketed as a desk toy made up of small magnetic spheres. Adults could play with the magnetic spheres and create different shapes. Labeling on Buckyballs packaging clearly stated that this product should be kept away from children. As concerns for safety grew, Buckyballs placed even more warning labels on the packaging. Despite this fact, thousands of children who thought the magnets were candy ingested them. The magnets could cause fatal complications inside the body. If more than one was swallowed, they could attract one another inside the stomach, creating tearing and other complications. Despite all the warnings, the Consumer Product Safety Commission ruled the product was too dangerous and filed a lawsuit. Though Buckyballs magnets were discontinued, they have since returned under the name Zen Magnets. Refer to Scenario 10.1. "Keep Away from Children" was placed on the label of Buckyballs packaging for _______ purposes.

safety

A limited number of units chosen to represent the characteristics of a total population

sample

The process of selecting representative units from a total population

sampling

"Does this new product idea meet our company's overall objectives?" is a question that marketers would most likely ask during the _______ phase of the new-product development process.

screening

Choosing the most promising ideas for further review

screening

Method is a nontoxic, biodegradable cleaning supplies company. Suppose one of the employees on the production team at Method got an idea for the company to expand into biodegradable plastic wrap. He has heard about new technologies that could make this possible. Method has the resources to invest in this new product, but after considering it, the production managers nixed the idea because it did not fit well with its product mix. What stage of the product development process was Method in?

screening

Pinnacle Corp. is going through the new product development process and is selecting ideas with the greatest potential for development for further review. Pinnacle is in which phase of the new product development process?

screening

collecting data,

second step in investing in marketing analytics

designing the research project

second step in marketing research