Marekting Exam 2
When Doritos comes out with new flavors of its tortilla chips, what brand development strategy does it employ?
Line extention
________ involves dividing a market into smaller segments of buyers with distinct needs or behaviors that might require separate marketing strategies.
Market Segmentation
When the size, purchasing power, and profiles of a market segment can be determined, the market segment is said to be ________.
Measurable
Which of the following statements concerning new products is correct?
Modified and improved products are considered new.
Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on ________.
Multiple segmentation bases
Bill thought he had received the best deal on his riding mower. Shortly after the purchase, Bill started to notice certain disadvantages of his new riding mower as he learned more about other riding mowers available in the same price range. Bill is in which of the following stages of the buyer decision process?
Post purchase behavior
Electronics International has experienced a significant decline in sales for SweetTunes, its MP3 player, during the past two years. In response, the company has reduced its advertising and sales expenditures for SweetTunes in an attempt to improve short-run profits. Which term best describes Electronics International's strategy for SweetTunes?
Product Havesting
In the ________ stage of new product development, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them.
Product development
Bose promises "better sound through research." This is an example of ________.
Product differentation
Clorox sells five major product lines including cleaning, household, lifestyle, professional, and international. Together the product lines make up Clorox's ________.
Product mix
_______ refer to a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible.
Services
Nailit Cosmetics is advertising its newest line of nail polishes. Nailit is selling the products in specially designed bottles that make application easier, made from anon-toxic, water-based nail polish with amazing summer colors. Which of the following is a core customer value for Nailit's line of polishes?
The desire to have beautiful nails
To create successful new products, a company must _______.
Understand its consumers, markets, and competitors and develop products that deliver superior value
A detailed version of a product idea stated in meaningful consumer terms is a ________.
Product concept
Which of the following correctly defines a product?
A product is anything offered to a market that might satisfy a need or want.
The marketing manager at Frizzles' Eateries targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of low-fat, low-calorie meals that appeal to dieters. Frizzles' approach is best referred to as ________ segmentation.
Benefit
The website leftyslefthand.com markets products to left-handed consumers only. Which targeting strategy does this represent?
Concentrated marketing
Firms that manufacture seasonal products target their consumers primarily through ________ segmentation.
Occasion
Which of the following is a personal factor that influences a consumer's buying behavior?
Occupation
Consumers can obtain information from any of several sources. Which source is the most effective in that they legitimize the product?
Personal Sources
________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Positioning
At which stage of the new product development process is a physical product first developed?
Product Development
Which of the following is an example of a convenience product?
Candy
Socially responsible target marketing would classify which of the following as an especially vulnerable target market for harmful or controversial products?
Children
Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Goldtone is using ________ to generate new product ideas.
Crowdsourcing
What is the nature of demand in business markets?
Demand in business markets is derived demand.
A marketing firm has been assigned the task of watching trends in spending, personal income, savings, and interest rates. The marketing firm is most likely gathering information about consumers' ________.
Economic situations
Which type of market segmentation has long been used in clothing, cosmetics, toiletries, and magazines?
Gender
________ segmentation calls for dividing the market into different nations, regions, states, counties, cities, or even neighborhoods.
Geographic
Byron Tied 2 Bowties groups its customers by regions in the United States, such as Midwest, Northeast, and Southwest. For each region, Byron Tied 2 Bowties creates a different set of advertisements and promotions. On which of the following segmentation variables does the firm divide itsmarket?
Geography
Sales are rising rapidly, competitors are growing in number and the customers are early adopters. Which stage of the PLC does this describe?
Growth
Compared with undifferentiated marketing, differentiated marketing is more likely to lead to ________.
Higher costs of doing business
At which stage of the new product development process is crowdsourcing used?
Idea Generation
A chiropractor adjusting the spine of a patient illustrates how a service can be produced and consumed simultaneously. This is an example of which service characteristic?
Inseparability
Service _______ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought.
Intangibility
Amazon recognizes the importance of the buyer-seller interaction. They only hire people with an innate "passion to serve" and they go through weeks of customer loyalty training. This buyer-seller interaction is referred to as ________ marketing.
Interactive
Zappos recognizes the importance of the buyer-seller interaction. They only hire people with an innate "passion to serve" and they go through four weeks of customer loyalty training. This buyer-seller interaction is referred to as ________ marketing.
Interactive
Service marketing requires ________. This means that the service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction.
Internal marketing
Bass Pro Shops recognizes that outdoors enthusiasts are a diverse group. Likely segments include hunters, campers, and boaters. What is this segmentation method called?
Psychographic
Dividing buyers into groups based on social class, lifestyle, or personality characteristics is called ________ segmentation.
Psychographic
A shoe company's ads feature the members of a popular country music band. Product sales increase significantly among the band's fans. From the fans' viewpoint, the band is a ________.
Reference group
__________ refers to the degree to which innovation appears superior to existing products.
Relative Advantage
Which of the following is a social factor that influences consumer buying behavior?
Roles and Status
Which of the following is true about the introduction stage of a new product?
Sales growth tends to be slow
A(n) ________ reflects the general esteem given to the different roles of a person by society.
Status
At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance departments work in cross-functional groups to save time and money in the new product development process. From this description, it can be inferred that Fantastic Flavors uses a(n) ________ approach.
Team-based new product development
Which of the following is an example of a shopping product?
Television
Foods International is developing a new gluten-free, chili-flavored pretzel. The marketing strategy for the product has already been developed and presented to top management. Several prototypes were also formulated by the company's R&D team. The final prototype is now being tested rigorously to ensure that it passes FDA standards. Once approved, the next step will most likely be ________.
Test Marketing
What determines if a buyer is satisfied or dissatisfied with a purchase?
The relationship between the consumer's expectations and the product's perceived performance
Jeff is in the process of buying a new car. He carefully analyzes the features that he wants in a car, and perceives significant differences in price, quality, and features among three of his favorite models. He rates the models on each factor and ranks them in the order of his preference. To which of the following stages of the buyer decision process will Jeff most likely proceed next?
purchase decision
Which type of consumer products are frequently purchased with little planning, little comparison or shopping effort, and low customer involvement?
Convenience Products
The marketing manager at Arbor's Delicatessen targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of low-fat, low-calorie meals that appeal to dieters. Arbors' approach is best referred to as ________ segmentation.
Benefit
A ________ is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.
Brand
Which of the following costs is most likely associated with commercialization?
Building or renting a manufacturing facility
________ is the degree to which an innovation fits the values and experiences of potential consumers.
Compatibility
Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry's most likely segments the consumer market based on ________ variables.
Demographic
A company's external sources of new product ideas include its ________.
Distributors
The Learning Institute recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Learning Institute managers will most likely use ________ next to arrive at a realistic number of ideas to adopt.
Idea Screening
A product line is most likely too long if managers can ________.
Increase profits by dropping items
Age, personality, buying style, and job position are ________ factors that can influence the business buying decision process.
Individual
A company launching a new product at the commercialization stage of new product development must first decide on ___________.
Introduction timing
In a _________, the business-to-business buyer reorders something without modifications.
Straight rebuy
Which of the following statements is true regarding managing service quality?
Unlike product quality, service quality will always vary
Fads are characterized by their ________.
Usually high sales and rapid decline
The quality of services depends on who provides them as well as when, where, and how they are provided. Which characteristic of services does this describe?
Variability
Which of the following is considered part of an augmented product rather than that of an actual product or core customer value?
Warranty
In which of the following cases is little or no test marketing most likely recommended for a new product?
When the costs of developing and introducing the product are low
In the early 1970's, Gary Dahl sold pet rocks. The product had a short, temporary period of unusually high sales driven by consumer enthusiasm and immediate product popularity, but then sales declined very quickly. The PLC sales pattern for pet rocks is known as ______.
A Fad
Howard Schultz, the founder of Starbucks, positioned his bistros as "a third place" between work and home where patrons could share and enjoy a cup of coffee with friends. This illustrates ________.
A core customer value
Kidcomp, an American computer-manufacturing firm, targets children below the age of ten by providing free games and applications. The firm's marketing approach is reflective of ________ segmentation.
Age and life cycle
Which of the following terms is used to describe a specific mix of human traits that may be attributed to a particular brand?
Brand personality
Which of the following types of marketing involves creating opinion leaders to serve as brand ambassadors to spread the word about a company's products?
Buzz marketing
Heeltoe, a boutique that caters to the footwear needs of women, manufactures two different lines of footwear based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged women, and the other line targets younger professionals and homemakers. Heeltoe most likely segments the consumer market based on ________ variables.
Demographic
Identifying, describing and promoting the product are three functions of ______.
Labeling
This adopter group is skeptical and only adopts new products after a majority of people has tried it.
Late mainstream
Stores offering low-quality alternatives to luxury products at low prices most likely follow a ________ positioning strategy
Less-for-much-less
In determining product quality, what are the two dimensions of quality marketers must decide upon?
Level and conformance
When we see Hello Kitty on children's clothing, Disney characters on lunchboxes, and Sponge Bob Squarepants on breakfast cereals, which form of brand sponsorship is being used?
Licensing
Which of the following is a personal factor that influences a consumer's buying behavior?
Life-cycle stage
Which of the following statements is true regarding product life cycle curves?
Marketers do not know the exact shape and length of their product's life cycle in advance.
When Dr. Lawncare developed his revolutionary new solar powered lawnmower, he knew that during the introductory stage of the product lifecycle ___________.
Sales would be slow and profits non-existent
Susan has been redecorating her new condo for a year and searching for the perfect rug. She is carefully selecting every item. Susan finds a rug that matches her color scheme and décor perfectly and purchases it immediately without engaging in comparison shopping. This is an example of a(n) ________.
Specialty product
If a segment is large enough or profitable enough to serve, it is ________.
Substantial
According to the model of buyer behavior, what is in a buyer's black box?
The buyer's characteristics and the buyer's decision process
A baby boomer decides to purchase a BMW to impress others with her success. This illustrates the importance of understanding the role of ________ in the marketing process.
Motive
Which of the following would be an appropriate strategy during the maturity stage of the product lifecycle?
Modify the market, product offering and marketing mix.
Which of the following strategies is most likely to be followed by firms that position themselves as caterers of the best products at economical prices?
More-for-less
