MARK 3000 Test 2 -McManus

Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in A. alpha testing. B. product launch. C. test marketing. D. beta testing. E. concept testing.

A. alpha testing. Alpha testing of new products is conducted by employees, as in this case

Marketers need to think about the product offer on three levels. Which of the following levels includes associated services such as warranties, financing, support, and after-sale service? A. augmented product B. core customer value C. actual product D. modified product E. core product The augmented product includes associated services such as a warranty and a customer service line dedicated to product support.

A. augmented product The augmented product includes associated services such as a warranty and a customer service line dedicated to product support.

If many consumers in the marketplace are familiar with a brand and what it stands for and have an opinion about the brand, the brand has considerable A. awareness. B. equity. C. extension. D. integration. E. co-branding.

A. awareness. Brand awareness is familiarity with the brand and what it stands for.

If a few of Nintendo's customers are asked to try out a new video game that has not yet been released on the market, this is an example of A. beta testing. B. market testing. C. premarket tests. D. test marketing. E. concept testing.

A. beta testing. Beta testing uses potential consumers, who use the product in a real-use setting to determine its performance.

Marco tried a new fruit-flavored beverage and thought it was awful. He was especially disappointed because he had liked the dried fruit snacks marketed under the same brand name. Now he wasn't sure he even wanted to buy the snacks he had liked before. This highlights a problem in branding known as A. brand dilution. B. commingled brands. C. undifferentiated brands. D. approximated brands. E. unlicensed brands.

A. brand dilution. This is an example of brand dilution—the weakening of the core brand due to extensive or inappropriate extensions.

When a restaurant chain, Big Burgers, launches its own brand of frozen meals, this is an example of a A. brand extension. B. line extension. C. licensed brand. D. copycat brand. E. premium brand.

A. brand extension. A brand extension refers to the use of the same brand name in a different product line.

In many cases, pioneers lose their market lead and initial market share to imitators who A. capitalize on the pioneers' weaknesses. B. create similar products with reduced value to consumers. C. utilize alpha-beta testing. D. ignore patents and copyrights. E. target late maturity consumers.

A. capitalize on the pioneers' weaknesses. Although pioneers often obtain an initial market lead, later entrants into the market can sometimes overtake the pioneers by focusing on the pioneers' weaknesses.

The number of customers who discontinue their use of a service divided by the average number of total participants is called A. churn. B. customer retention. C. customer lifetime value. D. cancellation cost. E. customer loyalty.

A. churn. Churn is the number of participants who discontinue their use of a service divided by the average number of total participants. It is a measure of how much turnover a company experiences in its customer base.

Shell MasterCard, created cooperatively by Shell Oil Company and Master Card, is an example of A. co-branding. B. brand extraction. C. brand collusion. D. a generic brand. E. brand dilution.

A. co-branding. This is a co-branding arrangement, in which two brands lend their names to a cooperative venture.

Brands are assets that can be legally protected through A. copyrights and trademarks. B. financial reporting. C. brand extensions. D. generic branding. E. corporate branding strategies.

A. copyrights and trademarks. Brands can be legally protected through copyrights and trademarks.

When manufacturers try to understand what customers are looking for, they are thinking about the _______ component of the product offer. A. core customer value B. associated services C. augmented products D. product support E. quality level

A. core customer value The manufacturer is concerned with understanding the core value that the customer seeks.

Supermarkets collect information about individual customers through their use of loyalty cards and then analyze the data to look for patterns in purchases. This is an example of A. data mining. B. data recovery. C. data entry. D. data analysis. E. data modeling.

A. data mining. Data mining uses a variety of statistical analysis tools to uncover previously unknown patterns in the data or relationships among variables.

For a brand name to be effective, it needs to be A. easy for consumers to recognize and remember. B. a catchy, tongue-twisting phrase. C. a visual image containing human characters. D. generic, so it can be applied to as many products as possible. E. associated with a sports or movie superstar.

A. easy for consumers to recognize and remember. A brand name should be memorable and easy to recognize, in general.

A(n) __________ is a small group of people brought together for an intensive discussion of a topic. A. focus group B. social media site C. experiment D. data mining session E. in-depth interview

A. focus group A focus group is a small group that participates in an intensive discussion of a topic, sharing their views with the moderator and with each other.

During the __________ stage of the product life cycle, there are few but an increasing number of competitors. A. growth B. introduction C. maturity D. decline E. innovation

A. growth During the growth stage, competitors have been exposed to the product and can evaluate how it is doing in the market. Based on their observation, several may begin to participate.

Marvin is looking for data to help him with a new market research study assigned to him. When reviewing existing secondary data from a past research study, Marvin should pay careful attention to A. how the secondary data were collected. B. where the data were warehoused. C. whether the Bureau of the Census has certified the research. D. whether the data were transformed into information. E. how often primary data were substituted for secondary data.

A. how the secondary data were collected. To use secondary data appropriately, it is important to understand how and when they were collected

Victor's custom auctioneering service provides online auction selling assistance. Victor plans to conduct marketing research to determine which auction site is best for his customers. His next step is to A. identify the type of data he needs to have. B. determine the statistical software he will use. C. outline the presentation format he will use. D. collect data. E. define his privacy policy.

A. identify the type of data he needs to have. Once Victor has defined his research objectives—to determine which auction site is best—he will move on to design the research, identifying the type of data he needs and the research method he should use.

Randall wants to do an online survey of college professors about the factors that influence their textbook selection. He would like to use a structured survey but is not sure what responses to include for each question. Randall could use __________ to help him develop his survey. A. in-depth interviews B. experiments C. surveys D. observation E. primary data mining

A. in-depth interviews In-depth interviews are a good way to collect detailed opinions from a small number of individuals.

Consumers might not realize that Old Spice health and wellness products and Iams pet nutrition products are made by the same company—Procter & Gamble. Old Spice and Iams are known as A. individual brands. B. family brands. C. corporate brands. D. traditional brands. E. registered brands.

A. individual brands. Old Spice and Iams are individual brands, separate brand names for different product lines

Whenever Donald considers upgrading his personal computer system, he consults with Jeremy, a knowledgeable friend who always has the newest technology. For Donald, Jeremy is a(n) __________ in the diffusion of innovation curve. A. innovator B. laggard C. late majority D. early majority E. early adopters

A. innovator Jeremy, who always has the latest computer technology, is likely to be among the first group to adopt a new type of computer. This makes him part of the innovator group.

Which of the following is the correct sequence of new product adopters in the diffusion of innovation curve? A. innovators, early adopters, early majority, late majority, laggards B. early adopters, early majority, innovators, late majority, laggards C. innovators, early majority, early adopters, innovators, late majority, laggards D. early majority, late majority, early adopters, innovators, laggards E. innovators, late majority, early adopters, early majority, laggards

A. innovators, early adopters, early majority, late majority, laggards The diffusion of innovation curve spreads through the population over a period of time and generally follows a bell-shaped curve made up of innovators, early adopters, early majority, late majority, and laggards.

Which of the following types of data would be the best choice for Wendy's fast food restaurants if the headquarters office wants to know how many hamburgers versus chicken sandwiches it has sold in past years? A. internal secondary data B. external secondary data C. survey responses D. focus group data E. primary data

A. internal secondary data Internal secondary data are based on a company's day-to-day operations.

During the __________ stage of the product life cycle, sales are low and profits are small or negative. A. introduction B. leveling C. maturity D. growth E. decline

A. introduction The introduction stage, the first stage of the product life cycle, is marked by low sales and small or negative profits.

One key feature of the value of a strong brand is that A. it can protect the firm from competition. B. it no longer needs to be supported by advertising and promotion. C. if it becomes a generic name, the brand is worth even more. D. it cannot be successfully imitated by a retailer's own brand. E. competitors will typically abandon a sector altogether rather than compete.

A. it can protect the firm from competition. Strong brands protect the firm somewhat from competition because the brand differentiates the firm's products, making customers more loyal.

After reviewing the existing data on seasonal spending by his company's customers, Marvin decided he needed new information collected to address his research questions. Marvin will need __________ data to address the questions in his market research study. A. primary B. secondary C. mined D. syndicated E. warehoused

A. primary Because existing secondary data do not answer his questions, Marvin may need to collect primary data.

When a research team has gathered data for specific research needs, this is known as A. primary data. B. data mining. C. secondary data. D. data recovery. E. data modeling.

A. primary data. Primary data are those data collected to address specific research needs. Secondary data are data that were originally obtained for another purpose but that may assist in answering the research question.

Suppose that Walgreens (a major drug store chain) wants to introduce its own brand of cough medicine that is similar in contents and packaging to a national brand, but at a lower cost. What kind of brand would Walgreens be introducing? A. private-label brand B. counterfeit brand C. premium brand D. national brand E. manufacturer brand

A. private-label brand Private-label brands are products developed by retailers.

A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products. A. product line B. product mix C. product mix breadth D. line extension E. brand extension

A. product line A product line is a subset of the product mix, a collection of associated items that consumers either use together or consider to be related to each other.

Which of the following is NOT part of the "actual product" level of the product offer? A. product warranty B. features C. design D. quality E. brand name

A. product warranty The "actual product" is made up of the brand name, quality level, packaging, and features and design. The product warranty is one of the associated services included in the augmented product.

Which of the following is NOT one of the important functions of labels on products and packages? A. protecting against damage to the product B. providing consumer information to assist in purchasing C. identifying the brand and building brand image D. promoting the brand or complementary brands E. listing ingredients

A. protecting against damage to the product The package might protect against damage to the product, but that is not a function of the label.

Which of the following provides the information needed to confirm insights and help managers to pursue appropriate courses of action? A. quantitative research B. qualitative research C. observation research D. in-depth interviews E. social media monitoring

A. quantitative research Quantitative research aims to confirm insights and offer decision-making guidance to managers.

Once a marketing researcher is ready to move beyond preliminary insights to specific, informed questions, the researcher is ready to conduct A. quantitative research. B. data warehousing. C. syndicated marketing surveys. D. qualitative research. E. research design.

A. quantitative research. Qualitative research is often done in part to obtain preliminary insights. Once this is complete and the researcher understands the research topic, the project can proceed to conduct quantitative research, attempting to obtain definitive answers to the research questions.

Bob and George live in the United States. Bob recently asked for George's cell phone number, but George said he didn't have one. George would probably be considered a(n) __________ in the diffusion of innovation process. A. innovator B. laggard C. late majority D. early majority E. early adopter

B. laggard Cell phones are almost fully diffused through U.S. consumer markets. Anyone who does not have at least a basic cell phone at this point would probably be considered a laggard, a member of the last group of adopters of new products.

When John began helping his favorite uncle Burton with his finances, he discovered his uncle was still renting a rotary-dial telephone from the phone company. Uncle Burton had paid thousands of dollars in rental fees over the previous forty years. Uncle Burton is a(n) __________ in the diffusion of innovation process for telephones. A. innovator B. laggard C. late majority D. early majority E. early adopter

B. laggard Uncle Burton is a laggard—a consumer who either adopts the innovation long after nearly the entire population has done so, or who never adopts it at all—when it comes to telephone technology.

Which of the following is NOT one of the four product life cycle stages? A. introduction B. location C. maturity D. growth E. decline

B. location The four stages of the product life cycle are introduction, growth, maturity, and decline.

For marketers, one of the benefits of having achieved brand loyalty is A. recognition through industry awards. B. lower marketing costs associated with reaching loyal customers. C. increased price sensitivity among loyal customers. D. greater concern about competitors' actions. E. few worries about copyright infringement.

B. lower marketing costs associated with reaching loyal customers. Brand loyal customers are already convinced of the brand's value. It is not necessary to spend large sums of money to build awareness and preference for the brand among these customers.

The decision to delete a product is never taken lightly because, generally, manufacturers have A. offered the product line to other firms for purchase. B. made substantial investments in product development and manufacturing. C. promised consumers they will maintain the product. D. used brand repositioning to improve results. E. federal standards that must be met when taking products off the market.

B. made substantial investments in product development and manufacturing. Firms invest in developing new products, and they will not walk away from that investment lightly

Whether they like them or not, most U.S. automobile customers are familiar with and have an opinion about American-made cars. This familiarity makes it easier for consumers to A. meet their self-actualization needs. B. make purchase decisions. C. consider repositioning their opinions. D. pursue generic alternatives. E. negotiate discounts.

B. make purchase decisions. Familiarity with brands helps consumers to make purchase decisions because they are aware of what the brands stand for and can use this information to make an appropriate choice.

Even if they succeed, new-to-the-world products are A. not always profitable. B. not adopted by everyone at the same time. C. sometimes copycat brands. D. not subject to the law of first movers. E. typically very short-lived.

B. not adopted by everyone at the same time. The adoption of an innovative product or service spreads through the population over a period of time and generally follows a bell-shaped curve (called the diffusion of innovation curve). If a product succeeds, that means it is profitable.

__________ is the process by which ideas are transformed into new products and services that will help firms grow. A. Beta testing B. Concept testing C. Innovation D. Reverse engineering E. Competition

C. Innovation Without innovation, firms would have only two choices: to continue to market current products to current customers or to take the same products to other markets. New product development opens up greater opportunities.

The process by which the use of a new product or service spreads throughout a market group is referred to as A. new product introduction. B. lead user dispersion. C. diffusion of innovation. D. the product life cycle. E. product development diffusion.

C. diffusion of innovation. The adoption of an innovative product or service spreads through the population over a period of time and generally follows a bell-shaped curve (called the diffusion of innovation curve). The product life cycle is a related but different concept that traces sales (not initial adoption) of a product throughout its life.

Marketers with luxury brands use brand extension cautiously to avoid A. brand licensing fees. B. exclusive co-branding arrangements. C. diluting the core brand. D. private label branding disputes. E. product line extension limitations.

C. diluting the core brand. If brand extensions are not executed carefully, they can dilute the core brand by damaging its associations and equity.

The value of a brand is often calculated by assessing the A. difference between brand equity and brand liability. B. corporate profitability divided by the monthly brand earnings. C. earning potential of the brand over the next 12 months. D. effect of brand dilution if it occurred. E. average product line depth.

C. earning potential of the brand over the next 12 months. Earnings potential over the next year offers a rough estimate of a brand's value.

One of the potential benefits to a firm of introducing new-to-the-world products or services is A. cost savings. B. late majority marketing. C. establishing a completely new market. D. the ability to avoid paying pioneers for new product development. E. capitalizing on existing consumer preferences.

C. establishing a completely new market These new products can establish a completely new market or radically change both the rules of competition and consumer preferences in a market.

Which of the following is NOT a stage in the product life cycle? A. introduction B. growth C. evaluation D. maturity E. decline

C. evaluation The product life cycle is made up of introduction, growth, maturity, and decline

Digital billboards embedded with ________ software can identify passersby and then display ads targeted to them, based on their age, gender, and attention level. A. social media B. neuromarketing C. facial recognition D. Internet tracking E. data mining

C. facial recognition Consumers have little control over facial recognition software that allows companies to detect demographic information based on their appearances.

Martin has hired a market research company to bring together a small group of soft drink consumers and get feedback on the three new advertising slogans his firm is considering. The market research firm might conduct a(n) __________ to provide the information Martin has requested. A. industry survey B. experiment C. focus group D. observational study E. primary data mining analysis

C. focus group Focus groups are a good way to collect the feelings or opinions of a group of individuals when you do not need in-depth responses from each individual.

Tyree is concerned about a competitor's new line of outdoor barbeque grills that provide most of the same features as his products. Tyree might consider using __________ to gather qualitative information from consumers about the competitor's offerings. A. industry surveys B. experiments C. focus groups D. observation E. primary data mining

C. focus groups Focus groups are a good way to collect the feelings or opinions of a group of individuals when you do not need in-depth responses from each individual.

Nora is deciding whether to purchase brand name sneakers or a store brand. She has purchased other shoes with the same brand name in the past but was only marginally satisfied. In this situation, Nora is likely to purchase the store brand sneakers because they offer A. more brand awareness. B. higher degrees of brand loyalty. C. greater perceived value. D. a better brand image. E. more product line depth.

C. greater perceived value. Since Nora's past experience with name brands has been marginal, she might prefer to buy the store brand, which is probably less expensive and might therefore provide better value.

Procter & Gamble is a huge national brand manufacturer. By having leading brands like Tide and Crest, P&G A. can monopolize store brands. B. has greater opportunity to dictate retail pricing. C. has greater control over marketing strategy. D. can increase brand dilution. E. can eliminate any local competition.

C. has greater control over marketing strategy Brand ownership gives the owner greater control over marketing strategy—the ability to position the brand and to establish the marketing mix.

Concept testing is important because it can A. help the firm to refine the promotional plans. B. lead to immediate rollout of the final product. C. help a firm avoid the costs of unnecessary product development. D. reduce the potential loss of sales during the decline stage. E. increase product development costs.

C. help a firm avoid the costs of unnecessary product development. Concept testing is performed ahead of actual product development, to obtain reactions of potential customers to the idea.

Zan wants to collect considerable information about the current opinions of his ten most important customers. Zan will probably use the __________ research method. A. social media monitoring B. experimental C. in-depth interview D. primary data mining E. observation

C. in-depth interview In-depth interviews are a good way to collect detailed opinions from a small number of individuals.

Using __________, researchers ask questions, listen to and record responses, and ask additional questions based on initial responses. A. questionnaires B. experiments C. in-depth interviews D. primary data mining E. observation

C. in-depth interviews In-depth interviews allow participants to give detailed responses and allow researchers to ask follow-up questions based on initial responses to planned questions.

One important purpose of a brand is to A. sell advertising space. B. minimize product line depth needed to be effective. C. increase consumer recognition and awareness of product offerings. D. inform product packaging. E. meet government regulations.

C. increase consumer recognition and awareness of product offerings. Brands help consumers know what products are available under that name.

A major disadvantage of primary data collection is A. it can only be accessed through syndicated databases or unstructured data mines. B. it cannot be tailored to meet specific research needs. C. it takes more time to collect than secondary data and is more costly. D. it is too general to meet researchers' and managers' needs. E. it does not offer behavioral insights that can be obtained from secondary data.

C. it takes more time to collect than secondary data and is more costly. Primary data collection can be expensive and time-consuming, but it can also be tailored to the precise needs of the research.

One of the disadvantages of secondary research is ______, whereas one of the disadvantages of primary research is often ________. A. cost; outdated information B. time required for collection; sources not original C. potential bias; cost D. outdated information; information not relevant to data needs E. sophisticated training required to obtain it; potential bias

C. potential bias; cost Both primary data and secondary data have certain inherent and distinct advantages and disadvantages.

The diffusion of innovation theory is useful to marketers in helping them A. adjust to the performance life cycle. B. avoid the cost of concept testing. C. predict which types of customers will buy their product immediately and later. D. predict how long it will take for a new product to gain market acceptance. E. forecast sales for a new product.

C. predict which types of customers will buy their product immediately and later. The diffusion of innovation theory sheds light on the types of customers who buy products during different stages. It does not predict exactly when these stages in the diffusion process will occur, nor does it forecast sales.

A __________ package is the one a consumer uses. A __________ package is used by retailers to display and sell the product. A. secondary; primary B. generic; private label C. primary; secondary D. corporate; manufacturer's E. co-branded; licensed

C. primary; secondary The primary package is the package the consumer uses (for example, a toothpaste tube), whereas the secondary package is used by retailers to display the product (for example, the box the toothpaste tube comes in).

Zappos is a successful online shoe company. One of the difficulties in running a shoe company is the need to have significant __________, a large number of items in each product line. A. brand equity B. product line breadth C. product line depth D. product mix depth E. product mix breadth

C. product line depth Product line depth is the number of items in a product line. Zappos promises its customers a huge selection, and so it must maintain great product line depth.

The complete set of all products offered by a firm' is called its A. product line. B. product categories. C. product mix. D. product breadth. E. product line depth.

C. product mix. The product mix is the complete set of all the firm's offerings.

Firms spend millions of dollars annually to build brand equity, that recognizing brand equity contributes to A. product mix breadth. B. corporate stakeholder relations. C. profitability. D. brand liability. E. perceived brand personality.

C. profitability. Brands are assets that can produce profits if brand equity is built successfully.

Before the development of computer-assisted design software, many firms handcrafted __________, wooden or clay models that served as rough physical representations of a new product. A. premarket tests B. blockbusters C. prototypes D. storyboards E. designer models

C. prototypes Today, prototypes are often created with the assistance of computers, but wooden or clay models were often used in the past.

Another name for brand repositioning is A. strategic brand alteration. B. change management. C. rebranding. D. perception tracking. E. brand scaling.

C. rebranding. Efforts to change the brand's focus or image are referred to as brand repositioning or rebranding

One of the advantages of selling specialty goods and services is that when consumers want them, they will A. question the price. B. consider many alternatives. C. search for them. D. perceive greater performance risk. E. expect them to be offered conveniently.

C. search for them. Specialty products are those for which customers show such a preference that they will invest effort in finding them.

Company sales invoices, census data, and trade association statistics are examples of A. primary data. B. data mines. C. secondary data. D. tertiary data. E. qualitative data.

C. secondary data. These are all examples of secondary data—data that were collected for another purpose but that can be helpful in answering questions.

McDonald's recently introduced a Favorites Under 400 Calorie Menu as part of an attempt to reverse the perception that McDonald's sells only unhealthy food. Suppose that McDonald's, as a follow-up, collects and analyzes social media posts from Facebook, Twitter, and similar sites, hoping to understand whether consumer perceptions are improving. This would be an example of A. quantitative research. B. an online focus group. C. sentiment mining. D. neuromarketing. E. an experiment.

C. sentiment mining. Sentiment mining is the collection and analysis of social media posts to gain insights into consumer thoughts and opinions.

A typical focus group has ________ members. A. 2-4 B. 4-6 C. 6-8 D. 8-12 E. 12-15

D. 8-12 In focus group interviews, a small group of persons (usually 8 to 12) come together for an intensive discussion about a particular topic.

When a product is successful in the introductory stage of the product life cycle, A. it moves directly into the maturity stage. B. it is most likely to begin to launch spinoffs. C. competition becomes less important. D. it may start to see profits toward the end of this stage. E. marketing costs increase significantly.

D. it may start to see profits toward the end of this stage. A product that is successful in the introductory stage may begin to see profits toward the end of this stage.

Eric is a sales rep for an established building materials manufacturer. Business is good, but he is concerned that the company has spent little on new product development and has not created a new product in over five years. Without new products, Eric can only market to his current customers or A. diversify. B. intensify his prototyping. C. expand his early adopter market segment. D. market the same products to similar customers. E. focus on concept testing.

D. market the same products to similar customers. Without innovation, firms would have only two choices: to continue to market current products to current customers or to take the same products to other markets. New product development opens up greater opportunities.

Cathy has used Olay beauty products for years, even though there are many competitors on the market. She plans to purchase a recently introduced micro-sculpting cream from Olay's regenerist line. Olay is in the _________ stage of the product life cycle. A. introduction B. growth C. evaluation D. maturity E. decline

D. maturity Although P&G does come out with new variations of the Olay product, it is in the maturity stage because P&G must defend its market share against fierce competition

Where on a product's packaging would one most likely find nutrient content and country of origin? A. inside the secondary package B. inside the primary package C. on the company website D. on the label E. on the store shelf display

D. on the label Product labels may highlight specific ingredients, vitamin content, nutrient content, and country of origin.

Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because A. brands protect corporate copyrights. B. consumer loyalty can be bought for less now compared to the past. C. brand equity can only be obtained by means of product line depth. D. people already know what the brand means. E. well-known brands are less likely to introduce brand extensions.

D. people already know what the brand means. Once a brand has established strong associations with its name, the firm may be able to spend less on promoting new products since consumers already recognize the brand and know what it stands for.

From charitable giving to medical records to Internet tracking, consumers are more anxious than ever about A. secondary data retrieval systems. B. exploitation by foreign marketers. C. their ability to get credit cards. D. preserving their right to privacy. E. the unstructured nature of market research.

D. preserving their right to privacy. Consumers are becoming increasingly concerned about privacy.

For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university's product mix. A. brand associations B. family brands C. co-brands D. product lines E. private label brands

D. product lines For the university, these would be product lines. Within each product line would be specific majors.

Social media monitoring, in-depth interviews, and focus groups are all __________ research methods. A. quantitative B. data warehousing C. syndicated marketing D. qualitative E. structured

D. qualitative Qualitative research methods include observation, in-depth interviewing, focus groups, and social media monitoring.

Recently, the number of students enrolled in the marketing program dropped while enrollment in the psychology program increased. The chair of the marketing department will probably use __________ as a first step to gain a better understanding of why enrollments are changing. A. experimental research B. data warehousing C. syndicated data D. qualitative research E. structured questionnaires

D. qualitative research Qualitative research can be conducted to investigate the research problem to gain preliminary insights and more clearly formulate the research objectives.

After defining objectives and research needs, the next step in the marketing research process involves A. research evaluation. B. data collection. C. data analysis. D. research design. E. report writing.

D. research design. The second step in the research process, after defining objectives, is to design the research

Brands that are owned by ___________ are called private-label brands. A. manufacturers B. wholesalers C. supply chain specialists D. retailers E. manufacturer's reps

D. retailers Brands owned by retailers are called store brands, house brands, own brands, or private-label brands.

__________ occurs when the brand extension adversely affects consumer perceptions about the attributes of the core brand. A. Corporate branding B. Brand extraction C. Brand collusion D. Brand personality destruction E. Brand dilution

E. Brand dilution This is the definition of brand dilution.

________ can be defined as raw numbers or other factual information that, on its own, has limited value. A. Statistics B. Charts and graphs C. Marketing research D. Formulas E. Data

E. Data This describes data. When the data are interpreted, they become information, which results from organizing, analyzing, and interpreting data and putting them into a form that is useful to marketing decision makers.

__________ research is a type of quantitative research that manipulates variables to help determine cause and effect. A. Descriptive B. Syndicated C. Manipulative D. Focus group E. Experimental

E. Experimental Experimental research manipulates a variable to determine cause and effect. The challenge is in controlling other variables to make sure that the cause-and-effect relationship is not affected by other changes.

Which of the following is NOT true regarding secondary packaging? A. It can provide information to consumers not found on the primary packaging. B. It is important to the retailer in terms of convenience in handling. C. It can be an important positioning tool to convey the brand image. D. It can allow for cost efficiencies due to larger order and shipment sizes. E. It is of little value to the average consumer.

E. It is of little value to the average consumer. Secondary packaging—the wrapper or exterior carton that contains the primary package—fills many roles, including all of those listed here. It is therefore of value to the consumer.

The growth phase of the product life cycle is always dynamic. Which of the following does NOT occur in this phase? A. Profits increase as sales increase. B. Profits increase as economies of scale are attained. C. Some new competitors may enter the market with similar products. D. Some competitors will exit in an industry shakeout. E. Price competition with protracted price wars erodes profits.

E. Price competition with protracted price wars erodes profits. Price competition and price wars are more likely to emerge in the maturity stage.

Which of the following is NOT one of the guidelines for developing a market research questionnaire? A. The layout should be professional and easy to follow. B. Questions should only address one issue at a time. C. Questions should be sequenced appropriately. D. Questions should use vocabulary respondents are familiar with. E. Sensitive questions should be asked first.

E. Sensitive questions should be asked first. Sensitive questions should be avoided altogether unless they are absolutely necessary.

Which of the following scenarios is NOT a reason a firm would eliminate an item within a product line? A. The firm decided to refocus marketing efforts elsewhere. B. The firm must respond to evolving markets. C. The product undermined its own brand. D. The product being eliminated is unprofitable. E. The firm has decided to capture new markets.

E. The firm has decided to capture new markets. All of these are reasons firms might decide to delete a product from a product line, except the desire to capture new markets.

Caroline needs to find information about income and age distribution in Orange County, California. The best source of secondary research of use to Caroline is likely to be A. door-to-door surveys. B. focus group interviews. C. syndicated data. D. sales invoices at public libraries. E. U.S. census data.

E. U.S. census data. She could purchase syndicated data, but census data should address Caroline's need for income and age distribution information.

Early personal computers cost several thousand dollars, allowing competitors A. to focus on creating demand for their brand. B. to promote alternative brands in that product category. C. to spend less on introductory advertising. D. to focus on making improved versions. E. to introduce lower-priced alternatives.

E. to introduce lower-priced alternatives. Because the pioneer is the first product in the market, it often has a less sophisticated design and may be priced relatively higher, leaving room for better and lower-priced competitive products.

Zappos.com, an online shoe store, worked to overcome the problem of new product __________ with its easy, no-hassle return procedure. A. relative advantage B. compatibility C. observability D. complexity E. trialability

E. trialability Trialability refers to a consumer's ability to try a new product before buying it. By making returns easy, consumers are able to try the shoes with the confidence that they can return them if they do not fit.

Samples are often used for new products when __________ will influence the diffusion of the product. A. relative advantage B. compatibility C. observability D. complexity E. trialability

E. trialability Trialability refers to a consumer's ability to try a new product before buying it. Samples make this process easier.

Which of the following is an unstructured question? A. "What are the most important characteristics for choosing a brand of shampoo?" B. "How satisfied were you with your last shampoo purchase: very unsatisfied, unsatisfied, neutral, satisfied, or very satisfied?" C. "Were you happy with the quality of the shampoo you purchased (Yes/No)?" D. "On a scale from 1 to 5 (with 1 being very unimportant and 5 being very important), how important is fragrance when choosing a shampoo?" E. "How many brands of shampoo have you purchased in the past year: 0, 1, 2, 3, 4, 5, or more than 5?"

A. "What are the most important characteristics for choosing a brand of shampoo?" Unstructured questions are open-ended and allow respondents to answer in their own words.

Which of the following types of research would be considered quantitative research? A. Experimental research B. Observational research C. Focus group research D. Social media monitoring E. In-depth interviews

A. Experimental research Experimental research manipulates a variable to establish cause-and-effect relationships. As a form of quantitative research, it is typically numeric/statistical in nature and can be used to confirm insights.

Which of the following is NOT a characteristic of products in the maturity stage of the product life cycle? A. Laggards are a major focus of marketing efforts. B. Price competition is intense. C. Marketing costs increase as firms defend their market share. D. The market may become saturated because nearly all potential customers have adopted the product. E. To increase the customer base, firms consider entry into new markets and new market segments.

A. Laggards are a major focus of marketing efforts. The late majority, not laggards, should be the focus of marketing efforts in the maturity stage.

Which of the following adopter categories refers to the last large group of buyers to enter a new product market? A. Late majority B. Early majority C. Laggards D. Early adopters E. Innovators

A. Late majority Late majority is the last large group of buyers to enter a new product market. Laggards buy after the late majority, but they are not a large group, and some of them never enter the market at all.

Which of the following statements is NOT one of the guidelines provided by the American Marketing Association for conducting marketing research? A. Personal information about research participants should not be shared, EXCEPT with a designated member of senior management. B. Selling or fundraising should not be conducted under the guise of conducting research. C. Researchers should not misrepresent data. D. Clients and suppliers should be treated fairly. E. Researchers should not omit pertinent data.

A. Personal information about research participants should not be shared, EXCEPT with a designated member of senior management. Sharing of personal information without a participant's explicit permission is unethical and should not take place under any circumstances. The other four provisions are included in the AMA's guidelines.

Which of the following statements best describes secondary data? A. Secondary data are pieces of information that have been collected prior to the start of the focal research project. B. Secondary data are those data collected to address specific research needs. C. Secondary data collection is always extremely time consuming and expensive. D. Secondary data will always meet the researchers' needs. E. Secondary data includes only qualitative research.

A. Secondary data are pieces of information that have been collected prior to the start of the focal research project. Secondary data can be quick to access and relatively low cost. The secondary research may not be the most current information available, since the data are not intended for the researchers' specific needs.

________ is another term for private-label brands. A. Store brands B. Off brands C. Manufacturer brands D. National brands E. Experiential brands

A. Store brands Private-label brands are also referred to as retailer or store brands

When a company launches a new product line with an existing brand name, this is known as A. a brand extension. B. a line extension. C. a multi-brand. D. a new brand. E. co-branding.

A. a brand extension. A brand extension refers to the use of the same brand name for a new product line.

Which of the following brand strategies is being used when the local ice cream shop decides to add a new flavor to its menu? A. a line extension B. a brand extension C. a copycat brand D. a premium brand E. a multi-brand

A. a line extension A line extension is the use of the same brand name within the same product line and represents an increase in a product line's depth.

The manager of a company selling baby products asks you to conduct research into the question, "Is life expectancy getting longer in Kuwait?" The problem with this research objective is that A. it is irrelevant to the baby products company. B. it is already known and available from the U.S. Bureau of the Census. C. it will lead to a set of unstructured questions. D. it is a research question that probably cannot be answered with any level of accuracy. E. it is a question related to another culture.

A. it is irrelevant to the baby products company. The sale of baby products would not seem to be related to the life expectancy in Kuwait. If the company wanted to sell baby products in Kuwait, the birth rate in Kuwait would be a potentially relevant piece of information.

Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products, because they know that their customers crave the latest and greatest games. They use this information to create new products that primarily provide the benefit of A. keeping up in a market where sales come mostly from new products. B. satisfying the changing needs of former customers. C. avoiding market penetration from products that have been on the market for a long time. D. creating diversification and reducing risk. E. taking advantage of a long product cycle.

A. keeping up in a market where sales come mostly from new products. Since customers crave the latest and greatest, this indicates that most sales come from new products, requiring game manufacturers to keep up with that trend.

Which of the following best describes when Johnson & Johnson introduces a travel-sized package for its existing baby oil product? A. line extension B. brand extension C. brand dilution D. rebranding E. co-branding

A. line extension A line extension is the use of the same brand name within the same product line and represents an increase in a product line's depth.

The marketing research process follows five steps, and researchers A. may not always go through them in the exact sequence if the situation changes or new information is discovered. B. should maintain the integrity of the process by following each step sequentially and thoroughly. C. often collect data before defining the research objectives. D. should be prepared to present the results before completing the analysis if they are under a great deal of pressure to meet a deadline. E. may follow the process by completing all steps at once instead of planning the process first.

A. may not always go through them in the exact sequence if the situation changes or new information is discovered. In some cases, marketing researchers may move back and forth between the steps of the process, perhaps designing follow-up studies based on earlier data collection.

One of the key characteristics of brainstorming sessions is A. no idea is immediately accepted or rejected. B. everyone must come up with ideas. C. the first idea is almost always the best idea. D. only the marketing team is included in these sessions. E. the manager should always make the final decision.

A. no idea is immediately accepted or rejected. A brainstorming session is a meeting whose objective is to generate as many ideas as possible. For this reason, no idea is immediately accepted or rejected.

When consumers are unable to articulate their experiences, __________ becomes particularly useful in understanding consumers' preferences. A. observation B. surveying C. in-depth interviewing D. primary data mining E. a focus group

A. observation Observation is especially helpful if people are unable to explain their experiences and preferences. Instead of asking them to think about these issues, people's actual behavior can be observed.

Qualtrics, Surveymonkey, and Zoomerang are examples of A. online survey software. B. biometric data companies. C. data warehouses. D. syndicated data companies. E. focus group programs.

A. online survey software. Diverse online survey software, such as Qualtrics, Surveymonkey, and Zoomerang, makes it very easy to draft an online survey, using questions from existing survey libraries.

Data collection begins A. only after completing the research design process. B. after determining whether there are any objections. C. whenever the researcher wants to. D. after creating the presentation format. E. after analyzing the data.

A. only after completing the research design process. It is important to design the research before data collection begins to ensure that the correct data are collected using appropriate methods.

A restaurant chain is working to improve the quality of its food and service. It recruits customers who agree to respond to customer satisfaction surveys once every three months over the next two years, to track its progress. What kind of data is the restaurant chain collecting? A. panel data B. internal secondary data C. focus group data D. external secondary data E. scanner data

A. panel data This is an example of using a panel—a group of consumers who provide information over a period of time. These are primary, not secondary, data because the data are being collected specifically to measure progress in improving satisfaction.

Relatively few consumers like to go to the dentist. Dental insurance plans that pay for regular checkups increase the __________ of dental care by reducing the cost to the consumer. A. perceived value B. brand awareness C. brand loyalty D. generic positioning E. brand extension

A. perceived value The perceived value of a good or service is the relationship between its benefits and its costs. By reducing the cost, the value will be seen to be greater.

Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the products. The national consumer panel Lorraine is part of is engaged in A. premarket testing. B. product launch. C. test marketing. D. product development. E. concept testing.

A. premarket testing. Panels of this type are often used for premarket testing, which often combines product sampling with surveys collecting consumers' reactions to the product.

In one test before product launch, customers try a sample product and are then surveyed to understand whether they would buy/use the product again. This is known as A. premarket testing. B. market testing. C. alpha testing. D. concept testing. E. pre-launch testing.

A. premarket testing. Premarket tests are conducted to determine whether the customer will buy/use the product again. This is done to allow the firm to evaluate the product's likely success before committing to the cost of a test market.

A toothpaste tube is an example of a ________ package. A. primary B. secondary C. brand positioning D. private-label E. convenience

A. primary A primary package is the one the consumer uses, such as a toothpaste tube

Ella had been using an imported brand of shampoo for several years, but she could no longer find it anywhere. As she was considering what kind of shampoo to try, she was surprised to see ads for Procter & Gamble's Head & Shoulders being promoted as a glamorous health-oriented product. She had always thought of Head & Shoulders as an anti-dandruff shampoo. The new ads suggest that Head & Shoulders has been A. rebranded. B. reformulated. C. licensed to a premium shampoo manufacturer. D. extended as a brand. E. co-branded.

A. rebranded. Head & Shoulders has been rebranded (also referred to as brand repositioning) to give it a health-oriented image. Although that it may have been reformulated, it is equally likely that the rebranding consists strictly of changes in positioning and marketing communications.

Which of the following is NOT one of the benefits to a firm of new product development? A. reduced costs of production. B. satisfying the changing needs of current and new customers. C. avoiding market saturation from products that have been on the market for a long time. D. creating diversification and reducing risk. E. keeping up in a market where sales come mostly from new products.

A. reduced costs of production. Production costs are actually likely to rise due to new product development. The remaining items are potential benefits of new product development.

Inkjet printers were a big improvement over the dot matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their A. relative advantage. B. compatibility. C. observability. D. complexity. E. trialability.

A. relative advantage. Inkjet printers offered a substantial relative advantage compared to dot matrix printers.

Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their A. relative advantage. B. compatibility. C. observability. D. complexity. E. trialability.

A. relative advantage. These operating systems enjoyed a substantial relative advantage compared to DOS.

Laura prefers Sony products and will only purchase alternatives when there are no Sony products available. Laura's brand loyalty means she is most likely A. relatively insensitive to price. B. uninformed about the product category. C. product category committed. D. a brand equity investor. E. a savvy consumer.

A. relatively insensitive to price. Because Laura is loyal to Sony, she is likely to stay with the brand even if the price rises or if competitors offer cheaper options. This means that she is less price sensitive.

In questionnaire design, a question such as, "When was the first time you went to a dentist?" suffers from the problem of a question that A. respondents cannot easily or accurately answer. B. respondents are reluctant to answer because the information is sensitive. C. leads respondents to a particular response. D. asks two questions at once. E. is complex and something respondents may be unfamiliar with.

A. respondents cannot easily or accurately answer. It may be difficult for a respondent to remember his or her first dentist office visit, which means that responses to the question will probably not be reliable

Brian is trying to sell a new line of ultrasound imaging equipment. Unlike existing technology, these machines are compact, creating the potential for general practice physicians to have and use them in their offices. Brian is trying to identify innovators in his market, knowing these customers will A. spread positive word of mouth to other physicians. B. buy one for each office in their practices. C. reposition his products. D. create demand among the late majority. E. not need any service or support when using the product.

A. spread positive word of mouth to other physicians. As the first group to adopt a new product, innovators help the product to gain initial market acceptance. Innovators may recommend the product to friends, creating word-of-mouth referrals.

When conducting a research study attempting to understand what features were most important to automobile consumers, Gary's Research Company used a questionnaire containing __________ questions, with a predetermined set of response options. A. structured B. in-depth interview C. observational D. free-form E. unstructured

A. structured A structured questionnaire consists of closed-ended questions and predetermined response alternatives.

Which of the following is a systematic means of collecting information from people by using a questionnaire? A. survey B. experiment C. scanner study D. in-depth interview E. focus group

A. survey A survey is a systematic means of collecting information from people by using a questionnaire.

Malcolm is the campaign manager for a congressional candidate. He wants to know how voters across his district feel about recent sexual harassment scandals involving politicians. Malcolm will most likely use __________ to gather this type of data. A. surveys B. observation C. experiments D. voter registration data E. census data

A. surveys A survey would be an efficient way to determine voters' feelings in this case.

Quantitative research offers a means to confirm ideas through A. surveys or experiments. B. in-depth interviews. C. data mining. D. qualitative research. E. informal analysis.

A. surveys or experiments. Quantitative research produces data that can be used to confirm ideas through statistical testing

If a marketing researcher has to collect data under severe time constraints, which of the following types of data sources would probably be available soonest? A. syndicated data B. focus group data C. experimental data D. panel data E. survey data

A. syndicated data

In questionnaire design, a question such as, "Do anti-lock braking systems reduce car accidents?" suffers from the problem of a question A. that respondents cannot easily or accurately answer. B. that respondents are reluctant to answer because the information is sensitive. C. that steers respondents to a particular response. D. that asks two questions at once. E. that is one sided, presenting only one side of an issue.

A. that respondents cannot easily or accurately answer. Respondents are unlikely to have sufficient information to answer the question.

Benefit-cost analysis in market research weighs A. the benefits of answering questions against the cost of the research. B. the benefit of qualitative research against the cost of quantitative research. C. the benefit of primary data research against the cost of secondary data research. D. the benefit of a data warehouse against the cost of syndicated data. E. the benefit of internal secondary data against the cost of external secondary data.

A. the benefits of answering questions against the cost of the research. Every research project must be evaluated to ensure that the benefits of obtaining answers exceed the cost of getting those answers.

Blogs represent valuable sources of marketing research insights, but they are also a challenge for firms because A. they include both positive and negative commentary. B. they are expensive for firms to use. C. they are affiliated with companies, which biases their comments. D. they tend to be shy about putting their opinions out in cyberspace. E. they are unreliable.

A. they include both positive and negative commentary. Because bloggers are generally independent, they have no loyalty to a company. Reviews can be positive or negative.

When a manufacturer launches a new product, it may offer __________ to wholesalers and retailers, including introductory price promotions, special events, and personal selling. A. trade promotions B. trade shows C. trade-in allowances D. trade discounts E. trade budgets

A. trade promotions Trade promotions are promotions to wholesalers or retailers to get them to purchase the new products, often combining introductory price promotions, special events, and personal selling.

When a salesperson calls you to sell a cemetery plot, this is most likely what type of product? A. unsought product B. shopping product C. convenience product D. line extension E. secondary product

A. unsought product An unsought product or service is a product consumers either do not normally think of buying or do not know about.

Political consultants have been using market research for decades to help their candidates understand A. who makes up the voting public and how to reach them. B. what ethical lapses they can get away with. C. which consumers spend the most money. D. how large their campaign signs should be. E. how to buy the votes they need.

A. who makes up the voting public and how to reach them. Political consultants frequently survey likely voters to find out their current attitudes and to gain insight into how to reach those who may be persuaded to vote for the candidate.

Beverly is assessing the results of a new product launch of a series of e-books for her bookstore. When evaluating the results, Beverly will likely consider all of the following EXCEPT A. why it took her so long to consider the new product line. B. whether the e-books are generating the expected level of profit. C. whether the e-books are generating the expected level of sales. D. whether her customers are interested in the new books. E. whether the e-books function as expected.

A. why it took her so long to consider the new product line. The reasons behind any delays in introducing e-books would not be an important issue to consider during evaluation of results. All the others are good questions to ask.

Omar is responsible for marketing and marketing research for a mid-sized manufacturer of assemblies for the housing market. His boss has asked him to cut back expenses, especially in marketing research: "Why can't you just use information off the Internet? There's plenty out there." What is Omar's best response to try to get his boss to change his mind? A. "We can try, but if it's wrong it's not my fault." B. "Those are secondary data, and they may not be as timely, accurate, and relevant as what we need. Our decisions may not be as good, and we'll run a huge risk." C. "I'd rather not use any data at all than use secondary data." D. "This is a matter of principle. I quit." E. "You should never use any information from the Internet in marketing research."

B. "Those are secondary data, and they may not be as timely, accurate, and relevant as what we need. Our decisions may not be as good, and we'll run a huge risk." Projects often start with a review of relevant secondary data to obtain preliminary insights quickly and at minimal cost; however, secondary data are not tailored to a specific research need and may not provide the answers sought.

If a cable television company had 100 million subscribers at the end of the year, and 2 million of its subscribers left its service, it would have a churn rate of A. 1%. B. 2%. C. 5%. D. 10%. E. 20%.

B. 2%. Churn is the number of participants who discontinue use of a service, divided by the average number of total participants. Therefore, 2 million/100 million = 2%.

Which of the following is NOT one of the five groups in the diffusion of innovation curve? A. Innovators. B. Non-adopters. C. Late majority. D. Early majority. E. Early adopters.

B. Non-adopters. The five groups in the diffusion of innovation curve are innovators, early adopters, early majority, late majority, and laggards.

How is consumer panel data collected during the test marketing phase of a new product introduction? A. Panelists complete a questionnaire about the product. B. Panelists scan their receipts on a home scanning device. C. Stores provide sales data to companies. D. Consumers voluntarily go to a website to record their preferences. E. Focus groups are held in key markets.

B. Panelists scan their receipts on a home scanning device. The consumer panel data is collected by panelists scanning in their receipts using a home scanning device.

__________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents. A. Reverse innovation B. Reverse engineering C. Selective dissection D. Redistribution E. Creative destruction

B. Reverse engineering Companies sometimes use reverse engineering—taking a product apart and determining how it works to create a comparable product.

Which of the following is the best example of a family brand? A. Cadillac, GMC, and Chevrolet B. Tostitos Multigrain Scoops and Tostitos Chunky Salsa C. Kellogg's Special K and Famous Amos Chocolate Chip Cookies D. Lifesavers Soda, Coca Cola, and Diet Coke E. KFC/Taco Bell Fast Foods

B. Tostitos Multigrain Scoops and Tostitos Chunky Salsa A firm can use its own corporate name to brand all its product lines and products, referred to as a family brand.

The first question a marketing researcher should ask when considering a research study is A. Who will pay for it? B. Will the research be useful? C. When is the due date? D. What sample size will be needed? E. Should we use structured or unstructured questions?

B. Will the research be useful? If research will not guide or influence decision making, there is little point in conducting the research.

Brands can be owned by A. manufacturers only. B. any firm in the supply chain. C. retailers only. D. wholesalers and retailers only. E. only private label generic retailers.

B. any firm in the supply chain. Any firm in the supply chain—manufacturer, retailer, distributor, and so on—can own a brand.

Toyota, a well-established, reputable brand, recently introduced a new line of vehicles under the Scion brand, targeted at young car buyers. Toyota probably used the new brand to A. lower advertising costs. B. appeal to a different market segment. C. reinforce the Toyota brand image. D. exploit brand loyalty to Toyota. E. lower product development costs.

B. appeal to a different market segment. Toyota probably chose to use a new brand to target young people.

How might a book publisher use blogs in its marketing research efforts? A. as a place to report marketing research results to top management B. as a source of reviews of its latest releases C. as a location for holding online focus groups about its books D. as a location for conducting online experiments about book purchasing patterns E. as a substitute for large-scale surveys about future book topics

B. as a source of reviews of its latest releases Bloggers often review products. These reviews can provide insights, especially if the blogger is unaffiliated with the products being reviewed.

In a focus group, researchers usually videotape the session to A. evaluate the potential for in-depth interviews. B. assess both verbal and nonverbal responses. C. post the videos on the corporate website. D. avoid asking repetitive questions. E. create survey instruments to send to the participants.

B. assess both verbal and nonverbal responses. Videotaping allows the researcher to record verbal responses as well as body language.

What aspect of the product is being described when a used-car salesperson explains that each car comes with a one-year extended warranty and a two-year maintenance plan? A. actual product B. associated services C. product style D. product position E. product concept

B. associated services Associated services are the nonphysical aspects of the product such as product warranties.

When conducting a survey about choosing vacation destinations, Hillary will need to __________ to get reluctant respondents to provide honest information. A. choose only highly verbal consumers B. assure consumers that their individual responses will be kept confidential C. use only focus group interviews D. ask unstructured questions E. create an efficient data warehouse

B. assure consumers that their individual responses will be kept confidential Unless respondents are promised that their information will be kept confidential, they will often either refuse to participate or give less than candid answers.

Which of the following was NOT a new-to-the-world product or service when it was introduced? A. Wi-Fi B. the Mercedes mini sport utility vehicle, a smaller version of its larger SUVs C. Microsoft's Windows operating system D. the MP3 player E. flat screen TVs

B. the Mercedes mini sport utility vehicle, a smaller version of its larger SUVs The Mercedes mini SUV was a variant on an existing product.

Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl? A. because of the annual competition for the most creative Super Bowl ad B. because the Super Bowl offers an opportunity to create significant brand awareness C. because the Super Bowl is a significant opportunity to be associated with global marketing D. because Super Bowl ads generate brand loyalty E. There is no good reason to spend over $2 million for a Super Bowl ad

B. because the Super Bowl offers an opportunity to create significant brand awareness Some firms might agree that it doesn't make sense to spend so much money on a Super Bowl ad; however, the Super Bowl offers a huge TV audience and, with it, a major opportunity to build brand awareness.

Wanda and Jim are working on a research project to anticipate customer attitudes toward a proposed new product line for their company. They have worked with the marketing manager to determine the answers that are needed and have created a detailed design of the project. Their next logical step will be to A. develop a budget. B. begin to collect data. C. summarize their preliminary conclusions to present to managers. D. begin recommending changes to the new product line based on ideas developed in the design phase. E. analyze the data.

B. begin to collect data. After defining the research objectives and designing the research, the next step is to collect data.

One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Car racing provides an opportunity for A. pretesting. B. beta testing. C. test marketing. D. alpha testing. E. concept testing.

B. beta testing. A beta test is a test of the product conducted by key customers. Participation in NASCAR and other racing organizations offers auto companies a chance to do this.

If a fast food restaurant collected photographs of its regular customers so that it could use facial detection software to identify visitors captured by security cameras, this would be an example of using A. external secondary data. B. biometric data. C. social media monitoring. D. illegal surveillance methods. E. sentiment mining.

B. biometric data. Biometric data include one or more physical traits such as facial characteristics, iris scans, or fingerprints.

The pharmaceutical industry often justifies the high prices for new drugs by arguing that it researches as many as one hundred new compounds before it comes up with one __________, an extremely successful product that pays for the costs associated with the other attempts to develop new products. A. standout B. blockbuster C. first mover D. pioneer E. premium product

B. blockbuster A blockbuster is a highly successful product, which can fund attempts to develop other products that were less successful.

Jake developed a toothpaste using only natural ingredients, and he has been quite successful selling the product in health food stores and some grocery stores. He has recently developed a toothbrush using bamboo and natural components. Jake is considering a __________, giving the toothbrush the same brand name as the toothpaste to have greater brand awareness. A. co-brand B. brand extension C. premium brand D. joint brand E. natural brand

B. brand extension If Jake gives the toothbrush the same brand name as his existing toothpaste, this is a brand extension, adding a new product line (toothbrushes) to his existing brand.

When Procter & Gamble added teeth whitening products under the Crest brand, the firm was engaged in A. corporate branding. B. brand extension. C. brand licensing. D. brand association. E. perceived value branding.

B. brand extension. This was a brand extension, using the Crest brand name for a new product line

Matt was passionate about Abercrombie & Fitch. It was the only place he'd buy his clothes. If anyone asked him about clothes, he would talk for what seemed like hours about why he only shopped there. From a strictly marketing perspective, this word of mouth is an element of A. social marketing. B. brand loyalty. C. self-actualization. D. motivation. E. brand extension.

B. brand loyalty. Matt's word of mouth behavior is an outcome of his brand loyalty.

The basic reason manufacturers spend time and money building their own brands is to A. create brand awareness. B. build brand equity. C. offset the power of private label manufacturers. D. create positioning possibilities for their generic product lines. E. maximize product line depth.

B. build brand equity. Companies invest in brands to build brand equity, which is a corporate asset

Pioneer or breakthrough products A. will likely result in late maturity buying. B. can change consumer preferences. C. incorporate reverse engineering outputs. D. require the use of concept testing services. E. must be geographically centered.

B. can change consumer preferences. Pioneer products establish a completely new market or radically change both the rules of competition and consumer preferences in a market.

Laptop computers, personal digital assistants, and cellular phones were all readily accepted and diffused in U.S. markets where business and personal lifestyles tend to be faster-paced, compared to many other areas in the world. These products offered __________ with consumers' needs and priorities. A. relative positioning B. compatibility C. observability D. complexity E. trialability

B. compatibility The fast pace of business in the U.S. makes mobile computing devices compatible with U.S. consumers' lifestyles.

Sometimes brand names become synonymous with a product itself. If that happens, the brand A. has achieved brand stabilization. B. could lose its trademark status. C. should try co-branding to avoid brand dilution. D. should consider a new packaging strategy. E. easily eliminates all competition.

B. could lose its trademark status. Brand names that become synonymous with the product—like Kleenex, Clorox bleach, and Scotch tape—must protect against the use of the brand name in a generic fashion, or they may lose their trademark on the name.

Marketing research includes all of the following EXCEPT A. collecting data. B. creating data. C. recording data. D. interpreting data. E. analyzing data.

B. creating data. Marketing research involves the collection, recording, analysis, and interpretation of data.

Academic researchers often jump at the opportunity to conduct a research study, curious to learn more and address unanswered questions for the sake of general knowledge. Business people tend to be more cautious before embarking on a marketing research study, recognizing that research is often A. beyond most managers' ability to comprehend. B. expensive and time consuming. C. an academic exercise of little real value. D. an impediment to decisive management. E. of little use in real marketing situations.

B. expensive and time consuming. Research can be expensive and time consuming, and for that reason businesses should embark on research only if the benefits of obtaining the answers exceed the costs of doing the research.

Firms can measure the success of a new product by all of the following factors EXCEPT A. satisfaction of its technical requirements. B. fewer competitors in the market. C. satisfactory sales and profits. D. customer acceptance. E. satisfactory performance.

B. fewer competitors in the market. Firms can measure the success of a new product by three interrelated factors: (1) its satisfaction of technical requirements, such as performance; (2) customer acceptance; and (3) its satisfaction of the firm's financial requirements, such as sales and profits.

Frederica manages an upscale women's clothing store. She wants more information about her customers' general feelings about upcoming fall fashions. Frederica will most likely use __________ to gather this type of data. A. door-to-door surveys B. focus group interviews C. syndicated data D. sales invoices E. census data

B. focus group interviews Focus groups are a good way to collect the feelings or opinions of a group of individuals when you do not need in-depth responses from each individual.

Every month, Dr. Combahee takes her staff to lunch and asks them to share patients' comments and concerns. Dr. Combahee uses the lunches as an informal marketing research effort intended primarily to A. provide a link between herself and her profession. B. help her to understand the needs of her customers. C. monitor her competitors. D. decrease the uncertainty associated with decision making. E. improve profitability.

B. help her to understand the needs of her customers. Dr. Combahee is asking specifically about comments and concerns of her customers; thus, she is primarily seeking to better understand their needs.

In a competitive market, perceived value is determined by consumers mostly A. by quantitative analysis of brand personalities. B. in relationship to the value of competitors' offerings. C. by weighing primary versus secondary benefits. D. by trying out different products. E. through brand association and brand licensing.

B. in relationship to the value of competitors' offerings. The perceived value of a good or service is the relationship between its benefits and its costs. In a competitive market, these benefits and costs will be easiest to evaluate in comparison to competitive offerings.

Nadia stood outside the mall and asked people which stores they visited and if they bought anything. If they said yes, she asked them what they bought and how they came to the decision to buy that item. What form of research was Nadia most likely conducting? A. questionnaire B. in-depth interviews C. experiment D. focus group E. biometrics

B. in-depth interviews In an in-depth interview, trained researchers ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on a particular issue.

During the introduction stage of a product's life cycle, typical consumers are A. early adopters. B. innovators. C. pioneers. D. early majority. E. laggards.

B. innovators. During the introduction stage, innovators are the ones to try the new product

A major advantage of primary data collection is that A. it can be easily accessed through syndicated databases. B. it can be tailored to meet the specific research needs. C. it takes less time to collect than secondary data. D. it is general enough to meet many researchers' needs. E. all of these are advantages of primary research data.

B. it can be tailored to meet the specific research needs. Primary data collection, though it can be expensive and time-consuming, can also be tailored to the precise needs of the research.

The manager of a company selling cellular phones in rural U.S. markets asks you to conduct survey research into the question, "What percentage of people in Kansas live in communities of fewer than 10,000 people?" The problem with this research objective is that A. it is irrelevant to the cellular company. B. it is already known and available from the U.S. Bureau of the Census. C. it will lead to a set of unstructured questions. D. it is a research question that probably cannot be answered with any level of accuracy. E. it is too expensive to determine the answer.

B. it is already known and available from the U.S. Bureau of the Census. The U.S. Bureau of the Census can provide a great deal of demographic information, including the answer to this question. Since secondary data are available, there is no need to conduct research to get the answer.

Marketers with successful brands sometimes hesitate to expand their brands because A. Federal Trade Commission regulations limit the number of products that can be marketed under an individual brand name. B. it is costly to maintain many product lines, and it might weaken the brand's meaning. C. it is often difficult to get additional marketing communications coverage for the brand. D. manufacturing divisions usually control brand expansion and are often in conflict with the marketing division. E. the current economy can only support a limited number of product options.

B. it is costly to maintain many product lines, and it might weaken the brand's meaning. Each product line involves some additional cost, and if too many product lines are associated with the same brand, it can weaken the brand's meaning and reputation.

The CEO of David's firm just came back from a business seminar, and he called David into his office. He stated, "I just found out about the product life cycle curve in a strategy seminar. This is a great tool. I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." David needs to think fast for a good answer because he knows that A. the product life cycle is not a useful concept. B. it is often impossible to identify with precision where a product is in the product life cycle. C. the product life cycle is not helpful in companies like his that pay attention to diffusion of innovation. D. the idea has been discredited by recent research. E. his job may be threatened by the answer.

B. it is often impossible to identify with precision where a product is in the product life cycle. Although the product life cycle concept can be useful in guiding marketing strategy, it is difficult and often impossible to determine a product's precise stage of the product life cycle.

In the diffusion of innovation process, innovators enjoy taking risks and are regarded as highly knowledgeable. Marketers want to identify innovators because A. they prefer products from established market leaders. B. other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals. C. they are especially price conscious. D. they are easily influenced by reminder advertising. E. they encourage competitors to enter the market.

B. other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals. As the first group to adopt a new product, innovators help the product to gain initial market acceptance. Innovators may recommend the product to friends, creating word-of-mouth referrals.

Walmart is known for its efficient logistical systems. Every time consumers buy something, that purchase is recorded and sent to company headquarters, where it is used to generate reorders to vendors. In addition, customers' billions of purchases are analyzed using data mining techniques to uncover A. the impact of income tax laws. B. patterns of consumers' purchasing behavior. C. the relationship between primary and secondary data. D. new ideas for human resources management. E. competitors' pricing strategies.

B. patterns of consumers' purchasing behavior. Walmart is analyzing customers' purchase data.

If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is A. market testing. B. product development. C. brainstorming. D. reverse engineering. E. launching the product.

B. product development. After concept testing, the next step in the product development process is the actual product development.

The __________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix. A. pretesting B. product launch C. post-testing D. product development E. evaluation of results

B. product launch In the product launch step, execution and coordination of the marketing mix is essential.

A university that has separate graduate and undergraduate admission offices recognizes that these are distinct A. brand associations. B. product lines. C. product mixes. D. brands. E. augmented services.

B. product lines. Graduate and undergraduate programs at most universities are distinct product lines, with each product line including multiple degrees.

Marketers spend billions of dollars annually attempting to build effective brands. One basic benefit of a brand is that it A. creates a basis for effective packaging. B. provides a way for a firm to differentiate its product offerings from competitors. C. offers consumers promotional parity. D. allows manufacturers to capitalize on promotional expenditures. E. reduces the need for product line depth.

B. provides a way for a firm to differentiate its product offerings from competitors. Brands are intended to differentiate a firm's offerings from those of its competition.

When the market research problem is not clearly defined, a researcher will likely engage in __________ research. A. data mining B. qualitative C. survey D. quantitative E. experimental

B. qualitative Qualitative research can be conducted to investigate the research problem to gain preliminary insights.

In the infamous Coke-New Coke taste test, 54 percent of consumers, using a blind taste test, preferred the New Coke formula to the existing formulation. This is an example of a(n) __________ market research method. A. qualitative B. quantitative C. observational D. syndicated E. invalid

B. quantitative Quantitative research is numeric/statistical in nature, as in this case where the precise percentage of consumers preferring one option to the other was measured.

Some products may stay comfortably in the maturity phase of the product life cycle until a new product emerges to replace them. An example of such a mature product is A. e-books. B. refrigerators. C. the VCR. D. smartphones. E. None of these. No product can stay in the maturity phase and survive for very long.

B. refrigerators. Refrigerators have been in the maturity phase for decades and are likely to stay that way for quite some time. E-books and smartphones have not yet reached maturity. The VCR is in the decline stage, having been mostly replaced by DVDs, DVD writers, and DVRs.

Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of A. keeping up in a market where sales come mostly from new products. B. satisfying the changing needs of current and new customers. C. avoiding market saturation from products that have been on the market for a long time. D. creating diversification and reducing risk. E. reduction in cost of ingredients.

B. satisfying the changing needs of current and new customers. Customers' tastes change, both over time and depending on the situation. By offering specials that offer variety, the restaurant seeks to satisfy these changing needs.

A marketing research project often begins with a review of the relevant __________ data. A. primary B. secondary C. quantitative D. unfocused E. structured

B. secondary Projects often start with a review of relevant secondary data to obtain preliminary insights quickly and at minimal cost.

Both major political parties have developed proprietary databases that contain vast information about voters, broken down by demographic and geographic information. This kind of information is A. primary data. B. secondary data. C. syndicated data. D. neuromarketing. E. qualitative research.

B. secondary data. In political settings, such secondary data can be critical for candidates running for office.

Zappos, an online shoe company, knows shoes are typically a(n) __________ good, with consumers often spending time comparing alternatives. They overcome that aspect of consumers' search process by offering a free, no questions asked return policy. A. specialty B. shopping C. convenience D. ritual E. impulse

B. shopping Shoes are typically a shopping good, where consumers compare alternatives.

It is almost impossible to watch a sporting event on television without seeing Nike's swoosh check mark, which is Nike's A. name. B. symbol. C. design. D. term. E. theme.

B. symbol. The "swoosh" is a brand symbol associated with Nike. The firm has invested a great deal of time and money in making the swoosh one of the most recognizable brand symbols in the world.

Joe is reviewing secondary data his company collected about seasonal variation in consumer spending because he is thinking about developing a new product line. The advantages of using these data are that A. they are new and can be used to project overall demand. B. they can be quickly accessed at a relatively low cost. C. they are historical data that can be used to accurately predict future trends. D. they have been collected for just the purpose Joe is using it for. E. their high cost can be justified by the results.

B. they can be quickly accessed at a relatively low cost. Projects often start with a review of relevant secondary data to obtain preliminary insights quickly and at minimal cost. This data was not collected for the purpose Joe is using it for.

When automobile manufacturers introduced SUVs, they distributed and promoted them in the United States, but not in Europe where gasoline is heavily taxed and roads are much smaller. Car manufacturers recognized that this new line of cars A. provided equivalent relative advantage for both European and U.S. customers. B. were not compatible with European market conditions. C. did not provide benefits that were observable. D. involved technology that was too complex. E. could not be easily tried by consumers.

B. were not compatible with European market conditions. SUVs were compatible with U.S. drivers' behavior and lifestyles, but the high cost of gas and the smaller roads made them incompatible under European standards.

When conducting exploratory concept testing for her firm's new Internet anti-piracy software, Dee knows the most important question is A. how long it will take to bring the software to market. B. whether respondents would purchase the software if it becomes available. C. who will determine the price to be charged. D. where the product should be sold. E. which computer trade show will be used to introduce the product.

B. whether respondents would purchase the software if it becomes available. The most important goal of concept testing is to gauge consumers' interest in purchasing the product, should it become available.

Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing, but the most important question is A. what retailers she should use to sell the swimwear. B. whether they would purchase the swimwear if it becomes available. C. what wholesale price should be charged. D. what promotional plan will work best. E. in which season she should introduce the product.

B. whether they would purchase the swimwear if it becomes available. The most important goal of concept testing is to gauge consumers' interest in purchasing the product, should it become available.

Assuming that a market research study will answer important questions and reduce uncertainty associated with the proposed project, a major question that needs to be addressed before starting the study is: A. How will the results be presented? B. Will observational research be considered intrusive? C. Is top management committed to the study? D. How will the questions be defined? E. Who will manage the research?

C. Is top management committed to the study? In addition to ensuring that the research will guide or influence decision making, it is also important to ensure that top management will accept the results of the research. Otherwise, the research is likely to be a waste of time.

Which of the following is true about quantitative research? A. It is always conducted using primary data collection. B. It revises the research objective based on data mining. C. It confirms insights and provides a basis for taking a course of action. D. It offers conclusions that are always correct. E. It includes focus group interviews.

C. It confirms insights and provides a basis for taking a course of action. The purpose of quantitative research is to confirm insights and provide a basis for managerial decision making and action.

__________ are customers who modify existing products according to their own ideas to suit their specific needs. A. Early adopters B. Market testers C. Lead users D. Reverse engineers E. Concept testers

C. Lead users Lead users, who modify existing products to meet their needs, are a particularly good source of new product ideas.

__________ is the number of items within a product line. A. Brand equity B. Product line breadth C. Product line depth D. Product mix depth E. Product mix breadth

C. Product line depth Product line depth is the number of items in a product line. Firms make strategic decisions about the appropriate product line depth based on their resources and objectives.

What is neuromarketing? A. The analysis of consumer comments on social media to understand consumers' thoughts and opinions. B. The use of psychological principles to design marketing research studies. C. The use of EEG scanners to measure consumers' brain waves. D. The use of neural networks to perform data mining and develop marketing insights. E. The use of in-depth interviews to map detailed networks of information storage in the brain.

C. The use of EEG scanners to measure consumers' brain waves. Neuromarketing uses EEG scanners to study the brain when various marketing stimuli are applied. The practice has ethical implications.

Barbara is using a test model of her firm's new inline skates to see whether they work according to the design specifications. Barbara is involved in A. test marketing. B. product launch. C. alpha testing. D. product development. E. concept testing.

C. alpha testing. Alpha testing of new products is conducted by employees, as in this case.

Some credit cards provide free liability insurance, funded by the bank issuing the card, when a customer pays for a rental car using the card. This extra insurance is an example of A. product style. B. the actual product. C. an associated service. D. the product position. E. the core value.

C. an associated service. Associated services are related to the nonphysical aspects of the product such as product warranties.

The product life cycle is theoretically __________ shaped with regard to sales and profits. A. Y B. lightning bolt C. bell D. circle E. flat line

C. bell In theory, the product life cycle curve is bell shaped with regard to sales and profits

If a firm has demographic and purchasing information about its customers, the firm can use data mining techniques to A. understand psychographic motivations. B. create marketing mixes based on consumer self-values. C. build separate marketing programs for different demographic segments. D. determine which syndicated data warehouse services to purchase. E. find out which competitors its customers purchase from.

C. build separate marketing programs for different demographic segments. In this case, data mining could be used to identify common purchasing patterns within demographic segments and then design marketing programs according to these patterns and what they reveal about customer needs.

Marketers selling milk, bread, and other consumer staples know most customers do not spend much time searching or comparing alternatives. For most consumers, these are _____________ goods. A. specialty B. shopping C. convenience D. ritual E. impulse

C. convenience Milk, bread, and other consumer staples are convenience goods for most shoppers. They will not compare many alternatives, but will simply purchase what they need.

Companies that develop customized business software often work closely with their users when installing their products. This close contact often creates new product ideas through A. reverse engineering. B. licensing technology. C. customer input. D. R&D consortia. E. clinical trials.

C. customer input. Listening to customers is an important way to generate new product ideas.

Before deciding on a new promotional campaign, Jeffrey's Muffins looked at its customers' buying patterns over a 15-year period as determined by their use of a loyalty card. What method did Jeffrey's use to make sense of the data that was available? A. biometrics B. neuromarketing C. data mining D. data warehousing E. panel data

C. data mining Jeffrey's used data mining to analyze customer buying patterns by analyzing the data that was captured from loyalty cards.

For many years, General Electric's corporate strategy was to be among the top three firms in any market in which it operated; if it could not achieve a top-three position, it would exit the market. This strategy often resulted in the company __________ when certain product lines failed to meet this expectation. A. increasing product line depth B. decreasing product line depth C. decreasing product mix breadth D. increasing product mix breadth E. introducing brand extensions

C. decreasing product mix breadth If GE could not achieve first, second, or third place in a market, it would eliminate a product line, which decreases the product mix breadth.

Market research begins with A. designing the research project. B. analyzing data. C. defining objectives and research needs. D. presenting results. E. creating the data collection process.

C. defining objectives and research needs. The first step of the marketing research process is to define the objectives and needs for the research to ensure that the right questions will be answered.

Parents of young children have been known to drive out of their way so their kids will not see McDonald's Golden Arches and plead with their parents to stop. For McDonalds, the Golden Arches reduce marketing costs because people (including young children) A. have memorized the McDonald's menu. B. prefer yellow to other colors. C. know what the Golden Arches brand symbol means. D. recognize increases in product line depth. E. are sensitive to brand repositioning.

C. know what the Golden Arches brand symbol means. The Golden Arches are a brand symbol for McDonald's. The company has invested in ensuring that consumers recognize the symbol and associate it with the brand.

By the time BMW got into the mini-SUV market, sales had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the __________ diffusion of innovation group. A. innovator B. laggard C. late majority D. early majority E. early adopter

C. late majority Sales level off around the time when the late majority adopts the product.

When microwaves were new, they often cost over $300, were huge, and had numerous settings and options. Brenda and Bart waited, concerned about potential health hazards and wishing for more choices in the market. By the time they purchased a microwave, sales of microwaves had leveled off and prices had declined significantly. Brenda and Bart were part of the ___________ diffusion of innovation group. A. innovator B. laggard C. late majority D. early majority E. early adopter

C. late majority The late majority is the last group to enter a new product market after sales have leveled off and prices have dropped.

The __________ diffusion of innovation group is the last large group of consumers to adopt a new product or service. A. innovator B. laggard C. late majority D. early majority E. early adopter

C. late majority The late majority is the last large group of consumers to adopt a new product.

Ron sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see whether they are using his tools for other tasks or have modified the tools for some other purpose. These customers are __________, who can provide ideas for new and improved products. A. early adopters B. market testers C. lead users D. reverse engineers E. concept testers

C. lead users Ron is looking for lead users, who modify existing products according to their own ideas to suit their needs.

By the time BMW and Mercedes Benz entered the mini-SUV market, there were many competitors, sales had peaked, and profits were declining. These firms entered the market during the __________ stage of the product life cycle. A. introduction B. leveling C. maturity D. growth E. decline

C. maturity BMW and Mercedes delayed entry into the mini-SUV market, with the result that they did not enter until this market was already mature.

During the __________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense. A. introduction B. leveling C. maturity D. growth E. decline

C. maturity Intense competition can lead to a decline in profits in the maturity stage.

Paul subscribes to an Internet service that alerts him whenever other firms in his industry are quoted in the media. Paul is using this type of market research primarily to A. provide a link between him and his production center. B. help him understand the needs of his customers. C. monitor his competitors. D. increase profits through the sale of syndicated data. E. decide how to price his new products.

C. monitor his competitors. Since Paul's service is informing him of quotes from managers of others in his industry, he is monitoring his competition.

Another name for a manufacturer's brand is a(n) __________ brand. A. systematic B. extended C. national D. premium E. private-label

C. national The terms "manufacturer's brand" and "national brand" both refer to brands owned and managed by manufacturers.

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from A. relative advantage. B. compatibility. C. observability. D. complexity. E. trialability.

C. observability. Observability refers to the ability to see the new product in use. Home tours would be one way for potential customers to see a new product installed in a house.

Mattel wanted to determine whether a new toy would appeal to preschoolers, so it put six 4-year-olds in a room with several toys and waited to see which ones they played with. What form of research is this? A. experiment B. focus group C. observation D. neuromarketing E. panel

C. observation Mattel observed the children and drew conclusions based on their preferences, which is indicative of observation.

Bianca's discount home furnishings store is in a strip mall. She wants to know what other businesses in the strip mall her customers visit when they come to her store. To collect information for this objective, Bianca will most likely use A. door-to-door surveys. B. focus group interviews. C. observation. D. sales invoices. E. census data.

C. observation. Bianca can hire someone to observe foot traffic to the stores in the strip mall to see which customers visit her store as well as others. Sales invoices and census data would not reveal the answers, and door-to-door surveys and focus groups would have a problem in that you would be able to approach only a small percentage of shoppers.

For new product marketers, early adopters are important because they tend to be A. few in number. B. the first to adopt a new product. C. opinion leaders. D. fond of prototypes. E. alpha testing enthusiasts.

C. opinion leaders. Early adopters, who are not the very first buyers of a new product (those are the innovators) but who still buy very early in the product's life, are important to the diffusion of the products because they are often opinion leaders.

The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States. Eiger Labs was a(n) __________ in the MP3 player market. A. blockbuster B. early adopter C. pioneer D. market tester E. concept tester

C. pioneer Pioneer firms establish completely new markets or radically change both the rules of competition and consumer preferences in a market. In this case, the MPMan created the market for MP3 players, even though it was not successful in the long run

When testing new products, most firms consider the question of whether testing products on animals A. should always be done in the animal's natural environment. B. should be done outside of the United States to avoid consumer backlash. C. should be done when the new product does not contribute to the health and well-being of human users. D. should be done only by companies large enough to be ethically responsible. E. should be done with animal activists present.

C. should be done when the new product does not contribute to the health and well-being of human users. Some firms do not believe in conducting any animal testing at all, and a few consider animal testing appropriate in any situation. Many firms, though, find a middle ground, considering the benefit to humans of the research.

A(n) __________ is a fee paid by manufacturers to get new products into stores or to gain more or better shelf space for products. A. facilitating payment B. introductory price promotion C. slotting allowance D. stocking premium E. place holder

C. slotting allowance Slotting allowances are often paid to retailers to get access to shelf space.

Jalel is the marketing manager for a moderately well-known rock band. He wants to know more about industry trends, including sales by different musical styles, online downloads, and concert attendance. Jalel will most likely use __________ to gather this type of data. A. focus groups B. observation C. syndicated data D. sales invoices E. census data

C. syndicated data Of the options listed, syndicated data are the best choice. Jalel can look for a data provider who can supply industry sales information. Focus groups and observation are research methods that would not offer comprehensive sales data. Sales invoices could summarize results for Jalel's band but not for the industry, and census data do not provide the needed information.

A marketing professor in Ithaca, New York, maintains a museum of failed consumer products. Most new products in this museum failed during the __________ stage of new product development, when they are introduced to a limited geographical area. A. pretesting B. product launch C. test marketing D. product development E. concept testing

C. test marketing Test marketing is a limited product test in a specific geographic area, in which the entire marketing mix is tested.

When McDonald's comes up with a new drink or sandwich for its restaurants, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in A. pretesting. B. product launch. C. test marketing. D. product development. E. concept testing.

C. test marketing. Test marketing is a limited product test in a specific geographic area, in which the entire marketing mix is tested.

Lionel Smith Ltd. is a traditional men's clothing store. Every fall the owner sends an embossed invitation (much like a wedding invitation) to his regular customers, inviting them to a private reception showing the new fall line of clothes. For Lionel Smith Ltd., one of the benefits of having established a loyal customer base is A. recognition through industry awards. B. lower marketing costs associated with reaching loyal customers. C. that he can be less concerned about competitors' actions. D. increased price sensitivity among loyal customers. E. less need for concern about product quality.

C. that he can be less concerned about competitors' actions. Loyal customers are less likely to switch brands due to competitor actions.

In questionnaire design, a question such as, "Marketing is the best part of the business program, isn't it?" suffers from the problem of a question A. that respondents cannot easily or accurately answer. B. that respondents are reluctant to answer because the information is sensitive. C. that leads respondents to a particular response. D. that asks two questions at once. E. that is complex and something respondents may be unfamiliar with.

C. that leads respondents to a particular response. This question suggests the answer "Yes" by its wording.

Brand extension is a popular marketing strategy because A. it separates out the cost of brand extension from brand intention. B. it allows the firm to discontinue complementary products. C. the firm can spend less on creating brand awareness and associations. D. it avoids the problem of brand dilution. E. it guarantees success for a new product.

C. the firm can spend less on creating brand awareness and associations. Since consumers are already familiar with the brand name, existing awareness and associations will transfer to the new product.

When consumers are __________, observation becomes particularly useful in understanding consumers' preferences. A. unwilling to participate in research B. confused by questionnaires C. unable to articulate their experiences D. interviewed too frequently E. highly educated

C. unable to articulate their experiences Observation is especially helpful if people are unable to explain their experiences and preferences. Instead of asking them to think about these issues, people's actual behavior can be observed.

Microsoft's Windows operating system continues to dominate the market, even though it has been around for over twenty years. Windows will likely remain in the maturity stage of the product life cycle A. indefinitely. B. until it rules the world. C. until a superior product comes along to replace it. D. unless Microsoft repositions Windows as an introductory stage product. E. as long as the company doesn't change it.

C. until a superior product comes along to replace it. Products can stay in the maturity stage for a very long time, until a superior product comes along as a replacement.

Innovators are a critical group of new product adopters because they A. are the major source of innovation. B. act as reverse engineering consultants. C. help with test marketing. D. help the product gain market acceptance. E. extend the product life cycle.

D. help the product gain market acceptance. As the first group to adopt a new product, innovators help the product to gain initial market acceptance.

Now that the consumer demand is building for Miranda's new organic shampoo, she and her team face a new set of decisions. Which of the following is NOT one of the decision items on the agenda for the team discussion of place in the marketing mix for a new product launch? A. How much should be shipped initially to the stores? B. Where should the merchandise be stored: at distribution centers or shipped directly to the stores? C. Which retailers are chosen to sell the product? D. Are the packaging colors working well with the target markets? E. Should the manufacturer be involved in reordering decisions?

D. Are the packaging colors working well with the target markets? Packaging is a product issue, not a place issue.

A personal digital assistant programmed with key customers' birthdates, wine preferences, and food allergies is a(n) __________ tool. A. SKU B. PDQ C. IMF D. CRM E. GATT

D. CRM Keeping track of customers' preference enhances the relationship and increases brand loyalty, all part of customer relationship management (CRM).

One of the major tools used by marketers to meet the needs of loyal customers is A. SKU. B. PDQ. C. IMF. D. CRM. E. GATT.

D. CRM. CRM (customer relationship management) programs often include reward programs aimed at loyal customers.

What U.S. government agency has primary responsibility in reviewing food and package labels to ensure claims made by the manufacturer about the product are true? A. Federal Trade Commission B. Federal Communications Commission C. Consumer Product Safety Administration D. Food and Drug Administration E. Interstate Commerce Commission

D. Food and Drug Administration The U.S. Food and Drug Administration has primary responsibility for reviewing food and package labels.

In what country have regulators demanded that Facebook stop collecting biometric data on its users? A. the United States B. Russia C. China D. Germany E. Mexico

D. Germany Regulators in Germany have demanded that Facebook stop collecting biometric data.

__________ are special incentives offering reduced prices for a limited time, offered to retailers to get them to try a new product. A. Loss leaders B. Push prices C. Market skimming incentives D. Introductory price promotions E. Distribution rebates

D. Introductory price promotions These are introductory price promotions, used to convince retailers to try stocking the product.

About 30% of packaged goods have lost content recently. How have consumers reacted? A. A number of lawsuits are pending. B. In a few cases, consumer outrage has caused manufacturers to go back to the original packaging. C. As long as the price is also reduced, they don't seem to mind. D. Most of the changes have gone unnoticed by consumers. E. Consumers have demanded that companies reduce their prices accordingly.

D. Most of the changes have gone unnoticed by consumers. Most of the reductions in content have gone unnoticed by consumers.

__________ confirms insights and provides a basis for taking a course of action. A. Primary data collection B. Data mining C. Qualitative research D. Quantitative research E. Statistical sourcing

D. Quantitative research The purpose of quantitative research is to confirm insights and provide a basis for managerial decision making and action.

What is a disadvantage of online focus groups, compared to offline focus groups? A. They are more expensive. B. They attract a limited group of participants. C. They generally take longer to conduct. D. They usually do not permit insights based on body language. E. They produce insights that are rarely taken seriously.

D. They usually do not permit insights based on body language. Because most online focus groups do not currently include video feeds, insights from body language are often not available.

Mary's Bakery is trying to determine what price to charge for her cookies, so Mary places a low price on them and raises it each week, keeping track of how many she sells. Then she determines what her cost was for the cookies and determines which price was the most profitable. What form of research was Mary conducting? A. observation B. survey C. scanner-based D. an experiment E. a panel

D. an experiment Experimental research (an experiment) is a type of quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on other variables.

In the case of Band-Aid adhesive bandages, the brand name has A. successfully employed private label branding. B. distinctive brand substitutability. C. grown through private label branding. D. become synonymous with the product itself. E. avoided brand extensions.

D. become synonymous with the product itself. Brand names that become synonymous with the product must protect against the use of the brand name in a generic fashion, or they may lose their trademark on the name.

Which of the following is NOT one of the four criteria used for determining how good a brand is or how much equity it has? A. brand awareness B. brand loyalty C. brand associations D. brand conceptualization E. perceived value

D. brand conceptualization Brand awareness, brand loyalty, brand associations, and perceived value are the four primary criteria used to evaluate brand equity.

Efforts to change a brand's focus to target new markets or change the image of a brand are called A. co-branding. B. brand extraction. C. brand collusion. D. brand repositioning. E. brand dilution.

D. brand repositioning. Efforts to change the brand's focus or image are referred to as brand repositioning or rebranding

Brand dilution occurs when A. customers see the fit between products sharing the same brand name. B. there are too few products and product categories. C. new brands compete with existing brands. D. brands are overextended and customer perceptions about the core brand are adversely affected. E. brand names seem too old-fashioned or familiar.

D. brands are overextended and customer perceptions about the core brand are adversely affected. Brand dilution (the weakening of brand equity) can occur when brands are extended too much or in inappropriate ways.

When the detailed opinions of a few industry experts or experienced consumers are needed, __________ are often the best qualitative research method. A. focus groups B. surveys C. social media studies D. in-depth interviews E. secondary data mining studies

D. in-depth interviews In-depth interviews are a good way to collect detailed opinions from a small number of individuals.

The owner of A. C. Flora Ford Dealership wanted to know why consumers chose his company to purchase a car. He was fairly sure that most customers had one of three reasons—service, reputation, or location—but wanted to know which was revealed as the most frequent reason for purchasing. A. C. Flora will probably use a survey with __________ questions to address his research problem. A. observation-based B. open-ended C. experimental D. closed-ended E. unstructured

D. closed-ended A structured questionnaire consists of closed-ended questions and predetermined response alternatives. In this case, A C. Flora simply wants to compare among three possible reasons for choosing a company, so closed-ended questions are an appropriate format.

One of the categories of products for which brand extension is especially logical is A. generic goods. B. generic services. C. commodities. D. complementary goods. E. licensed brands.

D. complementary goods. Complementary products are those that are used together—for example, chips and dip, or toothbrushes and toothpaste. It can often make sense to extend a brand to offer a complementary product under the same brand name.

By adding new product lines beyond its core business of computer software, like the Zune MP3 player and Xbox 360 game system, Microsoft primarily benefits by A. keeping up in a market where sales come mostly from new products. B. satisfying the changing needs of the technological research staff. C. avoiding market saturation from products that have just been introduced to the market. D. creating diversification and reducing risk. E. spreading out production costs.

D. creating diversification and reducing risk. If Microsoft were totally dependent on software sales, a shift away from Windows would damage its sole market. By diversifying into game systems and MP3 players, Microsoft seeks to be less dependent on any one market.

Through analysis of sales data, Price-Cutters retail store found that customers who bought peanut butter also tended to buy bananas. Price-Cutters was engaged in A. syndicated surveying. B. focus group analysis. C. behavioral analysis. D. data mining. E. structured sampling.

D. data mining. Data mining consists of using statistical techniques to discover patterns and relationships in company data. In this case, the connection between peanut butter and banana purchases was discovered

As soon as she saw one, Hillary wanted a flat-screen television, but she was worried about making the wrong choice. She waited until there were alternatives in the market with lower prices and improved quality. Hillary is part of the __________ diffusion of innovation group. A. innovator B. laggard C. late majority D. early majority E. early adopter

D. early majority Hillary has waited for a more competitive market with lower prices; this occurs when the early majority is adopting the product.

The __________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them. A. innovator B. laggard C. late majority D. early majority E. early adopter

D. early majority The early majority is the first large group to adopt the product. Without this group, profits are unlikely to materialize.

Brand __________ is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service. A. positioning B. licensing C. association D. equity E. solvency

D. equity This is the definition of brand equity.

Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and A. not having to pay advertising expenses. B. using prototypes to dominate the market. C. not needing to do test marketing. D. establishing an early market share lead. E. motivating laggards to buy their products.

D. establishing an early market share lead. The first firm offering a new-to-the-world product often becomes the market leader due to its position as the first, and, for a time, only firm in the market.

When consumers associate a brand with a certain level of quality and familiar attributes, allowing consumers to make quick decisions, the brand A. establishes novelty. B. is the only one the consumer will consider. C. reduces delivery costs. D. facilitates purchasing. E. creates brand dilution.

D. facilitates purchasing. A brand can facilitate purchasing because the customer can quickly recognize it and decide whether to purchase it based on brand associations.

Charles wants to survey recent customers about the quality of service they received at his small auto service dealership. He has customers' mailing and e-mail addresses. Charles will likely use an online survey primarily because it offers A. relatively low response rates. B. the ability to share video with respondents. C. the ability to ask sensitive questions with anonymity. D. fast responses at a lower cost. E. the opportunity to survey both existing and potential customers.

D. fast responses at a lower cost. Online surveys typically have higher, not lower, response rates. Although online surveys do allow the sharing of video and other methods, it does not sound like Charles needs to do that to get his questions answered. He also does not seem to need to ask sensitive questions, nor to talk to potential customers (since he wants opinions of current customers). He may, though, want faster responses at a lower cost, especially since his company is a small one, probably with a limited research budget.

Which of the following is LEAST likely to be a source of ideas for new products? A. R&D efforts B. licensing technology C. consumer research D. geodemographic segmentation E. brainstorming

D. geodemographic segmentation All of these but geodemographic segmentation are common sources of new product ideas.

When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the __________ stage of the product life cycle. A. introduction B. leveling C. maturity D. growth E. decline

D. growth As a few additional competitors moved into the hybrid car market, opening up production capacity for additional buyers, the hybrid market moved into the growth stage.

During the __________ stage of the product life cycle, sales rise, profits rise rapidly, and there are a small but increasing number of competitors. A. introduction B. leveling C. maturity D. growth E. decline

D. growth The growth stage, the second stage of the product life cycle, is marked by rising sales and profits and an increasing number of competitors.

When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage A. sales would rise quickly, profits would jump, and even laggards would buy his product. B. sales would level off, profits would decline, and mature golfers would be attracted to his product. C. sales would slow down, profits would peak, and early adopters of golf equipment would be his major customers. D. sales would be low and profits nonexistent, but he would attract golf equipment innovators. E. sales would be low, profits would be high, and all potential golfers would jump at the opportunity to buy his product.

D. sales would be low and profits nonexistent, but he would attract golf equipment innovators. The introduction stage, the first stage of the product life cycle, is marked by low sales and small or negative profits. Innovators are the typical buyers.

When Meg planned her trip to Australia, she spent months evaluating packages, airfares, and hotel accommodations. Meg's trip is an example of a(n) ________ product. A. specialty B. convenience C. unsought D. shopping E. sought

D. shopping Since Meg spent significant time comparing alternatives, this would be considered a shopping product.

In addition to using sentiment mining to determine customer attitudes about products, some companies also participate in ________ by joining in online conversations with customers. A. data mining B. in-depth interviews C. experiments D. social engagement E. chat room dynamics

D. social engagement Some companies take sentiment mining a step further by joining the online conversation with customers, a process called social engagement.

Andy likes gourmet popcorn and will spend time trying to find his favorite brand. His girlfriend, Joanne, loves popcorn but doesn't care about brands. For Andy, popcorn is a __________ good while for Joanne it is a __________ good. A. shopping; specialty B. convenience; shopping C. convenience; specialty D. specialty; convenience E. unique; universal

D. specialty; convenience For Andy, popcorn is a specialty product—he is willing to spend time finding his favorite brand. For Joanne, it is a convenience good—she doesn't care about brands and so is unlikely to comparison shop.

Commercial research firms like ACNielsen and SymphonyIRI Group are sources of A. primary data. B. internal secondary data. C. data mining. D. syndicated data. E. public data.

D. syndicated data. These are sources of syndicated data—secondary data that can be purchased from firms that collect it.

In questionnaire design, a question such as, "Do you like Wendy's hamburgers and fries?" suffers from the problem of a question A. respondents cannot easily or accurately answer. B. that respondents are reluctant to answer because the information is sensitive. C. that steers respondents to a particular response. D. that asks two questions at once. E. that is complex and something respondents may be unfamiliar with.

D. that asks two questions at once. This should be split into two questions—one about Wendy's hamburgers and one about the fries.

The diffusion of innovation theory focuses on A. the geographic boundaries of innovation. B. the relationship between pioneer brands and imitators. C. the psychological traits of innovators. D. the rate at which consumers are likely to adopt a new product or service. E. the way a product moves through the product life cycle.

D. the rate at which consumers are likely to adopt a new product or service. The adoption of an innovative product or service spreads through the population over a period of time and generally follows a bell-shaped curve (called the diffusion of innovation curve).

Just as marketers create value by meeting the needs and wants of consumers, market researchers create value if A. the research is expensive. B. all participants like the research design. C. the research does not cost too much. D. the results will be used in making management decisions. E. the research is finished quickly.

D. the results will be used in making management decisions. Market research creates value if it can assist in management decision making.

What type of event exposes retailers to large numbers of new products in a concentrated location? A. hosted shows B. browser shows C. premarket demonstrations D. trade shows E. trade promotions

D. trade shows A trade show is a temporary concentration of manufacturers that provide retailers the opportunity to view what is available and new in the marketplace.

At the end of a brainstorming session, participants are often asked to A. identify the worst ideas. B. defer to management for the final decision. C. identify which ideas each person proposed. D. vote on the best ideas. E. propose one more new idea each.

D. vote on the best ideas. Brainstorming sessions often end with a vote to identify the best ideas among those that were proposed.

Which of the following is an example of an unstructured question? A. Would you buy this product? (yes, no) B. Would you buy this product? A. definitely, B. maybe, C. definitely not C. What would convince you to buy this product? A. lower price, B. larger packaging, C. better taste D. Please rate the attributes of this product that are important to you. (Rate 1-5, with 1 being most important and 5 being least important.) E. Why did you buy this product?

E. Why did you buy this product? Unstructured questions are open-ended and allow respondents to answer in their own words. Structured questions are closed-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate.

Which of the following data sources would NOT be considered external secondary data? A. U.S. census data B. syndicated data C. newspaper articles D. scanner data E. a survey

E. a survey Secondary data might come from free or very inexpensive external resources such as census data or newspaper articles, or it can be purchased for a fee (for example, syndicated data). A survey is primary data.

Quincy had no idea how consumers would respond to a survey about attitudes toward a program opening up space travel to private citizens. He could use __________ to allow respondents to answer in their own words. A. secondary data B. an observational study C. an experiment D. a structured questionnaire E. a survey with open-ended questions

E. a survey with open-ended questions A survey with open-ended questions allows people to answer in their own words

Golf ball manufacturers use Iron Mike, a machine that swings a golf club at a constant velocity, to test the distance for new golf ball designs. When using Iron Mike, the manufacturers are engaged in A. concept testing. B. market testing. C. premarket tests. D. product development. E. alpha testing.

E. alpha testing. The Iron Mike is a form of alpha testing because it is done within the company, taking the place of a human who might hit the ball repeatedly.

A product is __________ that can be offered through a voluntary marketing exchange. A. the combination of a firm's marketing mix B. the brand associations C. the category depth D. a tangible item E. anything of value to consumers

E. anything of value to consumers This is the definition of a product. It does not have to be a tangible item; it can also be a service or a combination of a good and associated services.

Why did PepsiCo reduce the weight of its water bottles by 20 percent? A. to save money on shipping B. to save money on materials C. to satisfy environmental groups D. to sell more bottles of water E. because PepsiCo was concerned about waste from its bottles

E. because PepsiCo was concerned about waste from its bottles Some packaging changes are designed to make the product more ecological, such as PepsiCo's response to concerns about the waste associated with bottled water. To reduce the amount of plastic it uses, PepsiCo has decreased the weight of its water bottles by 20 percent.

Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to generate ideas for names for a new beach resort. You are engaged in __________, a form of new idea generation. A. R&D B. licensing technology C. consumer research D. geodemographic analysis E. brainstorming

E. brainstorming A brainstorming session is a meeting whose objective is to generate as many ideas as possible.

Jenna always buys Stacy's brand pita chips. She does not even consider alternatives. Jenna is a __________ customer. A. price sensitive B. brand persuasion oriented C. brand association oriented D. brand extension oriented E. brand loyal

E. brand loyal Since Jenna does not consider other brands, she is brand loyal.

All of the following are ways that manufacturers use promotion to generate demand for new products with consumers EXCEPT A. short-term price reductions. B. coupons. C. rebates. D. advertising. E. coordination of delivery and storage.

E. coordination of delivery and storage. Coordination of delivery and storage are elements ofplace, notpromotion.

Paul listens to music on his iPod and iPhone, but he still buys vinyl records at his local music store on occasion, although they are getting harder to find. Vinyl records are in the __________ stage of the product life cycle. A. introduction B. growth C. evaluation D. maturity E. decline

E. decline Sales of vinyl records have been declining even though they are still a viable product

During the ___________ stage of the product life cycle, firms either position themselves for a niche market of loyal consumers or they exit the market. A. introduction B. leveling C. maturity D. growth E. decline

E. decline The decline stage is marked by niche marketing and by firms exiting the market.

Robin recently bought Voice over Internet Protocol (VoIP) phone service. A few of Robin's friends bought VoIP before she did, but many other friends were interested in Robin's opinions of the new phone service. Robin is a(n) __________ in this product category. A. innovator B. laggard C. late majority D. early majority E. early adopter

E. early adopter Early adopters, who are not the very first buyers of a new product (those are the innovators) but who still buy very early in the product's life, are important to the diffusion of the products because they are often opinion leaders.

If the __________ diffusion of innovation group is relatively small, the number of people who ultimately adopt the innovation likely will also be small. A. innovator B. laggard C. late majority D. early majority E. early adopter

E. early adopter Early adopters, who are not the very first buyers of a new product (those are the innovators) but who still buy very early in the product's life, are important to the diffusion of the products because they are often opinion leaders. If there are relatively few early adopters to serve as opinion leaders, the market for the product is likely to be small.

The potential benefits of brand extension do NOT include A. allowing the perception of a brand with a quality image to be carried over to the new product. B. lowering marketing costs. C. boosting sales of the core brand. D. spending less on creating brand awareness and associations. E. eliminating competition.

E. eliminating competition. Since consumers are already familiar with the brand name, existing awareness and associations will transfer to the new product. In addition, benefits may transfer back to the core brand and increase its sales.

What is wrap rage? A. customer anger when the outside wrapping does not accurately portray what is inside the package B. the reaction of a salesperson when the secondary packaging does not bear a bar code C. frustration of a customer when a package is oddly shaped and cannot be easily gift wrapped D. a reaction by environmentalists when nonrecyclable materials are used for the secondary packaging E. frustration by a customer when the packaging makes it difficult to get at the product

E. frustration by a customer when the packaging makes it difficult to get at the product Many consumers experience wrap rage—a great frustration with packaging that makes it seemingly impossible to get at the actual products.

Which of the following research methods would be best in helping a marketer understand how people feel about a product or service on an individual, detailed level? A. focus groups B. surveys C. social media monitoring D. primary data mining E. in-depth interviews

E. in-depth interviews In-depth interviews are a good way to collect detailed opinions from a small number of individuals.

A __________ brand is one where there is a contractual arrangement between firms allowing one to use its brand name for a fee. A. franchise B. joint venture C. shared D. common use E. licensed

E. licensed This is the definition of a licensed brand, such as Ralph Lauren, which firms pay a fee to use.

Frequent buyer/user award programs are used to A. increase price sensitivity. B. decrease co-branding costs. C. lower licensing fees. D. expand product line depth. E. maintain contact with loyal customers.

E. maintain contact with loyal customers. Frequent buyer programs and similar loyalty programs are often part of a CRM (customer relationship management) program.

The __________ is a specific price at which manufacturers encourage retailers to sell a product. A. key price point B. slotting fee C. perceived value D. retail margin E. manufacturer's suggested retail price

E. manufacturer's suggested retail price Retailers are encouraged to sell at a specific price known as manufacturer's suggested retail price.

In the United States, most consumer packaged goods found in grocery and discount stores are in the __________ stage of the product life cycle. A. growth B. pioneer C. introduction D. decline E. maturity

E. maturity In the United States, most consumer packaged goods found in grocery and discount stores are already in the maturity stage.

Many former Enron professionals who had nothing to do with the corporate scandal found that listing employment with Enron hurt their chances of being hired elsewhere. For these people, the Enron name has A. no brand associations. B. unspent brand loyalty. C. private label impact. D. brand dilution. E. negative brand equity.

E. negative brand equity. The Enron name has negative brand equity for some people, such that some former Enron employees were viewed negatively due to their association with the brand.

Each time you go to the grocery store and have your purchases scanned while using a loyalty or bonus reward card, you are contributing to a database that can help marketers determine all of the following EXCEPT A. what a typical shopping list looks like. B. whether changes in prices affect buying. C. marketplace trends. D. what kinds of promotions might be attractive to you. E. other stores where you buy similar products.

E. other stores where you buy similar products. The use of the grocery loyalty or bonus card allows the grocer to save a list of everything you bought on a given occasion and to compare your behavior on different occasions. The impact of price changes and promotions can be studied, as can trends across many customers.

Between concept testing and market testing, a firm should engage in which stage of the product development process? A. securing financial backing B. marketing research C. brainstorming D. determining potential ROI E. product development

E. product development The third stage of the product development process, between concept testing and market testing, is the actual development of the product.

Private-label brands are developed and managed by A. manufacturers. B. wholesalers. C. supply chain specialists. D. manufacturer's reps. E. retailers.

E. retailers. Private-label brands are brands developed by retailers

Which of the following would NOT be part of the launch of a new product? A. educational efforts for complex or conceptually new products B. technical support staff for technical products C. determining the price for the product D. incentives for distributors E. starting to make preliminary decisions about the target market

E. starting to make preliminary decisions about the target market The target market should already have been identified before the product launch stage; at this point the firm might confirm the target market choice.

SymphonyIRI Group, the National Purchase Diary Panel, and ACNielsen are examples of companies that provide A. internal secondary data. B. primary data. C. online survey software. D. website analytics. E. syndicated data.

E. syndicated data. These are all commercial research companies that sell external secondary data for a fee, or syndicated data.

A major limitation in the use of internal R&D departments for new idea generation is that A. few scientists have ideas. B. they tend to be dissolved once sufficient ideas have been generated. C. they tend to create too many blockbusters. D. few scientists have practical ideas. E. the costs tend to be quite high.

E. the costs tend to be quite high. Although internal R&D departments are widely used by firms in industries such as pharmaceuticals and computer software, they can be very expensive to maintain.

Salina is working to create greater brand awareness for her company's new line of personal digital assistants. To increase brand awareness, the LEAST important information that should be included in promotions is A. the brand name. B. the logo. C. the packaging. D. the slogan. E. the product history.

E. the product history. The brand name, logo, packaging, and slogan are all important in creating brand awareness

During the research design step of the marketing research process, researchers identify the type of data needed and A. the statistical software to be used. B. the dates when data will be collected. C. the forum in which the data will be presented. D. the identities of research participants in the project. E. the type of research necessary to collect the data.

E. the type of research necessary to collect the data. Once the objectives of a research project have been defined, the research can be designed, identifying the type of data needed and the type of research needed to collect the data.