Chapter 11 Business Quiz

Business products are classified into two categories. Large, expensive items with long life spans are called _____ products, and; smaller, less expensive items with short life spans are called _____ products.

capital; expense

Radial tires installed on four-wheel drive vehicles are examples of:

component parts

Finding a place to live in Mumbai, India, has been getting harder these days for people who are not vegetarians. Vegetarianism is a centuries-old custom among the Indian population, but the requirement is becoming more obvious as non-vegs are being segregated from vegs. A real estate broker in Mumbai who will only rent or sell a home to a vegetarian as defined that group as its:

target market

_____ segmentation is based on what the product will do rather than on consumer characteristics.

Benefit

_____ is the set of values, ideas, attitudes, and symbols created to shape human behavior.

Culture

_____ is the ratio of benefits to the sacrifice necessary to obtain those benefits.

Customer value

_____ is the division of markets into different groups

Market segmentation

_____ is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

Marketing

_____ is a strategy that focuses on forging long-term partnerships with customers.

Relationship marketing

A company in Maine builds portable drilling platforms used to locate new oil fields underwater. To build a platform, the company had to construct a specially designed dock with a large permanently-placed crane able to lift a twenty ton structure on to its floating base. This expensive dock and crane are examples of:

installations

Ocean Spray first introduced cranberry juice drinks. Then it introduced Cranapple (a cranberry and apple juice mix) also sold under the Ocean Spray brand. This is an example of a:

line extension

In which stage of the product life cycle are you most likely to find the manufacturer using a line extension strategy?

maturity

Mike and Ike, the fruit-flavored chewy candies, needed a major facelift. The brand had a small but loyal core of "munchers." A relatively small brand, it needed visibility to take on share leaders like Starburst and Skittles. The company changed its packaging and developed contests all geared to 12- to 17-year-olds. The makers of Mike and Ike have modified its _____ strategies.

product and promotion

The _____ is the person who develops and implements a complete strategy and marketing program for a specific product or brand.

product manager

One never knows the connections that can be made when singles get together to do the laundry. As such, Whirlpool is taking its laundry appliances to the social scene by hosting Spin Cycle events that will give singles a chance to meet, mingle and have some good clean fun while playing laundry-themed games that can earn them Whirlpool prizes. Whirlpool is using these events as part of its _____ strategy.

promotion

Expense items that have undergone little or no processing and are used in the manufacture of end products are called:

raw materials

Wultec International Inc., a Canada-based manufacturer, produces end-of-line packaging equipment, such as wrapping machinery, which is used in warehouses to cover pallets and protect their contents. Wultec end-of-line packaging equipment, when purchased for warehouse use, is an example of which type of business product?

accessory

Which of the following is a step in the new-product development process?

all of the above

A recent seminar on attracting retail customers addressed the following fact: "Time is on the mind of the consumer. If you ask anybody you know, 'Would you rather have an extra day off or an extra day's pay?' people in America would take the time off 2-to-1." This topic indicates that these retailers supported a need for more _____ segmentation to reach the time-poor consumer.

benefit

A relatively inexpensive item that requires very little shopping effort is called a _____ product.

convenience

A basic form of market segmentation that uses such variables as age, education, and income is called:

demographic

Shenshen Zhongxing Telecom (ZTE) is a Chinese company that is the only telecommunications company in China that produces and markets an inexpensive camera phone to sell to middle class Chinese living in urban areas. Because ZTE targets a single segment within a limited geographical area, it can be said to have a(n):

niche competitive advantage

Jay Pontiac, an auto dealer, wanted to develop a service reminder program in the form of brochures that could be sent to individual customers. On the cover of each individualized brochure was an image of the customer's vehicle, the customer's name, and vehicle model name. Inside was the vehicle's estimated current mileage at the time of the mailing. Recommended services for that vehicle based on the estimated mileage were also included. Detailed service information was provided in the service history section of the brochure. On the back of the brochure were four coupons directly related to the service recommendations. Jay Pontiac used:

one-to-one marketing

Which of the following is an expense item for an independent bookstore?

order forms

With a _____ policy, a company offers new products at a low price in the hope of achieving a large sales volume.

penetration pricing

Which of the following is considered an expense item for a dentist's office?

peroxide for whitening teeth

A pharmaceutical company with headquarters in India sells fluconazole, the generic version of Pfizer's anti-fungal drug Diflucan internationally for significantly less money than many U.S. generic drug manufacturers. The generic drugs industry in this country needs to rethink its _____ strategy to stay competitive.

pricing

Aldi is a no-frills grocery chain. It sells grocery staples right out of crates and boxes. By controlling expenses, Aldi customers can expect to save 30 to 50 percent compared to Kroger customers. The supermarket chain's emphasis on maintaining its cost competitive advantage means the company's top management is often concentrating on its _____ strategy.

pricing

A (n) _____ is any good or service that satisfies wants, along with its perceived attributes and benefits.

product

The first step in the new products planning process is:

setting new-product goals