Marketing Exam 2 Multiple Choice
The process by which the use of a new product or service spreads throughout a market group is referred to as
diffusion of innovation.
Marketers with luxury brands use brand extension cautiously in order to avoid
diluting the core brand
Having no intermediaries between the buyer and seller is a defining characteristic of a(n) _______ marketing channel.
direct
Trisha makes purses out of old blue jeans and sells them to customers at local craft fairs. What type of marketing channel does this represent?
direct
Sophie made pies and sold them from her food truck to local businesses. This is an example of a(n)
direct marketing channel
Which of the following is not one of the activities carried on in a distribution center?
distributing paychecks and paystubs for retail employees
A ________ is a facility for the receipt, storage, and redistribution of goods to company stores.
distribution center
The break-even point is estimated by
dividing fixed costs by contribution per unit.
A __________ package is the one a consumer uses. A __________ package is used by retailers to display and sell the product.
primary; secondary
Suppose that Walgreens (a major drug store chain) wants to introduce its own brand of cough medicine that is similar in content and packaging to a national brand, but at a lower cost. What kind of brand would Walgreens be introducing?
private-label brand
When the marketing research problem is not clearly defined, a researcher will likely engage in __________ research.
qualitative
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
individual brands
Dynamic pricing is also referred to as _______ pricing.
individualized
A local furniture store buys furniture from various manufacturers and resells the furniture to its customers. What type of marketing channel does this represent?
indirect
In a(n) _______ marketing channel, one or more intermediaries work with manufacturers to provide goods and services to customers.
indirect
There is an old saying "If you have to ask the price of a yacht, you cannot afford it." Products like yachts are most likely to be associated with
prestige pricing
According to your text, research has consistently shown that consumers usually rank which of the four Ps as one of the most important factors in their purchase decisions?
price
The Clayton Act and the Robinson-Patman Act forbid certain types of
price discrimination
The _______ is the ratio of the percentage change in quantity demanded to the percentage change in price.
price elasticity of demand
__________ is the practice of colluding with other firms to control prices.
price fixing
Franchising involves a(n) __________ vertical marketing system.
contractual
Marketers selling milk, bread, and other consumer staples know that most customers do not spend much time searching or comparing alternatives. For most consumers, these are _____________ goods.
convenience
In a(n) __________ marketing channel, none of the participants have any control over the others.
conventional
Brands are assets that 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.
core customer value
The three types of vertical marketing systems are administered, contractual, and
corporate
Sometimes brand names become synonymous with a product itself. If that happens, the brand
could lose its trademark status
Marketing research includes all of the following except
creating data
By adding new product lines beyond its core business of computer software, like the Surface Pro tablet and Xbox 360 game system, Microsoft primarily benefits by
creating diversification and reducing risk
Which of the following is not required to build a successful strategic relationship?
creation of a joint venture
If a firm declared that it wanted to develop a strategic relationship, but was unwilling to commit funds or any effort to make it succeed, there would be an obvious lack of
credible commitments.
In a __________ distribution center, merchandise moves from vendors' trucks to retailers' delivery trucks in a matter of hours.
cross-docking
When a firm sets its pricing strategy based on how it can add value to its products or services it has embraced a(n) _______ orientation to pricing.
customer
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
customer input.
A "no-haggle" pricing policy is a type of _____ pricing strategy.
customer-oriented
Brand extension is a popular marketing strategy because it
allows the firm to spend less on creating brand awareness and associations.
Omar is responsible for marketing and marketing research for a midsized 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?
"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."
Which of the following is an unstructured question?
"What are the most important characteristics for choosing a brand of shampoo?"
Which of the following is an example of an unstructured question?
"Why did you buy this product?"
Jason rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20. His fixed costs are $100,000 and his target profit is $20,000. For Jason to earn his target profit, he will need to rent out ________ rooms.
1,500
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
2 percent
If the fixed costs of manufacturing a new cell phone are $10,000, the sales price is $60, and variable cost per unit is $20, the break-even point is
250 units.
Barbara is using a test model of her firm's new inline skates to see if they work according to the design specifications. Barbara is involved in
alpha testing
From a retailer's perspective, a(n) ________ is helpful in order to know exactly what will arrive in a particular shipment from a supplier.
ASN
Because there are many firms with similar products in purely competitive markets,
Because there are many firms with similar products in purely competitive markets,
A personal digital assistant programmed with key customers' birthdates, wine preferences, and food allergies is a(n) __________ tool.
CRM
One of the major tools used by marketers to meet the needs of loyal customers is
CRM
_______ products are products whose demands are positively related and as such, they rise or fall together.
Complementary
__________ is when vendors ship merchandise prepackaged in the quantity required for each store to the distribution center.
Cross-docking
Which of the following is not an advantage of using a distribution center?
Customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center.
In addition to merchandise and payments, information flows throughout a supply chain. Which of the following is not a good characterization of the flow of information in a supply chain?
Customers will send and receive information from stores and manufacturers.
What situation is occurring if a 1 percent decrease in price results in more than a 1 percent increase in quantity demand?
demand is price elastic
How can a company find its way out of a market characterized by pure competition?
Differentiate the product in some way, even by packaging, so customers will see it as distinct
What is one of the drawbacks of using a price skimming strategy?
Firms must consider the high costs associated with producing a small volume of product.
Which U.S. government agency has the primary responsibility in reviewing food and package labels to ensure claims made by the manufacturer about the product are true?
Food and Drug Administration
In what country have regulators demanded that Facebook stop collecting biometric data on its users?
Germany
Assuming that a marketing 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
Is top management committed to the study?
What makes a high/low pricing strategy appealing to sellers?
It attracts two distinct market segments.
Which of the following is true about quantitative research?
It confirms insights and provides a basis for taking a course of action.
Which of the following is not true regarding secondary packaging?
It is of little value to the average consumer.
_______ systems are designed to deliver smaller shipments of merchandise on a more frequent basis to retailers.
Just-in-time (JIT)
Which of the following is not a characteristic of products in the maturity stage of the product life cycle?
Laggards are a major focus of marketing efforts.
__________ are customers who modify existing products according to their own ideas to suit their specific needs.
Lead users
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
alpha testing
Which of the following is not one of the five groups in the diffusion of innovation curve?
Non-adopters
In a retail supply chain, the ________ records the purchase information and electronically sends it to the corporate office.
POS
Which of the following statements is not one of the guidelines provided by the American Marketing Association for conducting marketing research?
Personal information about research participants should not be shared, except with a designated member of senior management.
The growth phase of the product life cycle is always dynamic. Which of the following does not occur in this phase?
Price competition with protracted price wars erodes profits.
_______ measures consumers' sensitivity to price changes.
Price elasticity of demand
__________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents.
Reverse engineering
Which of the following statements best describes secondary data?
Secondary data are pieces of information that have been collected prior to the start of the focal research project.
Which of the following is not one of the guidelines for developing a marketing research questionnaire?
Sensitive questions should be asked first.
When a company launches a new product line with an existing brand name, this is known as
a brand extension.
What is neuromarketing?
The use of EEG scanners to measure consumers' brain waves.
Which of the following is a true statement about distribution centers?
They enable retailers to carry less merchandise in individual stores.
Which of the following is the best example of a family brand?
Tostitos Multigrain Scoops and Tostitos Chunky Salsa
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
U.S. Census data.
A(n) __________ is a 13-digit code retailers can use to track inventory.
UPC
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. Which is the most important question that Kristina should ask?
Will consumers purchase the swimwear if it becomes available?
When conducting exploratory concept testing for her firm's new Internet antipiracy software, which is the most important question that Dee should ask?
Will respondents purchase the software if it becomes available?
The first question a marketing researcher should ask before embarking on a research study is
Will the research be useful?
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
alpha testing.
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
an associated service
Mary's Bakery is trying to determine what price to charge for its 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?
an experiment
Frank's Heating and Air Conditioning Company specializes in electric heat pumps. Frank keeps track of the price of natural gas, knowing that
an increase in the price of natural gas will increase demand for his electrical heating systems.
Brands can be owned by
any firm in the supply chain
How might a book publisher use blogs in its marketing research efforts?
as a source of reviews of its latest releases
In questionnaire design, a question such as "Do you like Wendy's hamburgers and fries?"
asks two questions at once
In a focus group, researchers usually videotape the session in order to
assess both verbal and nonverbal responses.
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?
associated services
When conducting a survey about choosing vacation destinations, Hillary will need to __________ in order to get reluctant respondents to provide honest information.
assure consumers that their individual responses will be kept confidential
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
awareness
Pioneer or breakthrough products
can change consumer preferences.
Bill desperately needed tires for his car, and he found an ad with an incredibly low price. When he got there, he found out that those had supposedly been sold out, and he was pressured into buying tires that were more expensive than he wanted. Bill found out later that Marcelo had the same experience at the store a few weeks earlier. It's quite possible that both Bill and Marcelo had become the victim of a deceptive pricing tactic known as
bait and swithc
In developing marketing strategies, why is price often the most challenging of the four Ps to manage?
because it is the least understood element of the marketing mix
Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl?
because the super bowl offers an opportunity to create significant brand awareness
In the case of Band-Aid adhesive bandages, the brand name has
become synonymous with the product itself
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
begin to collect data.
The product life cycle is theoretically __________ with regard to sales and profits.
bell-shaped
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
beta testing
The term _______ refers to the enormous amount of information that firms now have access to but cannot handle using conventional data management and data mining software.
big data
When Procter & Gamble added teeth-whitening products under the Crest brand, the firm was engaged in
brand extension
When a restaurant chain, Big Burgers, launches its own brand of frozen meals, this is an example of a
brand extension
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
brand loyalty
Efforts to change a brand's focus to target new markets or change the image of a brand are called
brand repositioning
Jenna always buys Stacy's brand pita chips. She does not even consider alternatives. Jenna is a __________ customer.
brand-loyalty
Brand dilution occurs when
brands are overextended and customer perceptions about the core brand are adversely affected.
The point at which the number of units sold generates enough revenue to equal the total costs of running an operation is known as the
break-even point.
The basic reason manufacturers spend time and money building their own brands is to
build brand equity
If a firm has demographic and purchasing information about its customers, the firm can use data mining techniques to
build separate marketing programs for different demographic segments
Variable costs change with
changes in the quantity being produced.
Yesterday, Lorinda overheard a surprisingly unpleasant encounter between the manager of the hardware store where she works and a sales rep who sells a well-known line of tools. The rep insisted that his tools should be more prominently displayed and that a better assortment would mean more sales. The manager had other plans and told him so, and the conversation turned into a loud argument. What Lorinda observed was an example of
channel conflict.
Ted is glad his company finally converted to an RFID system. Now, he no longer needs to go through all the new goods to make sure what the company ordered was what it received. Ted is responsible for __________ in his company.
checkign
The number of participants who discontinue their use of a service divided by the average number of total participants is called
churn
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.
closed-ended
________ can be defined as raw numbers or other factual information that, on their own, have limited value to marketers.
data
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 were available?
data mining
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
data mining
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
data mining
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 to uncover patterns of consumers' purchasing behavior. This is an example of
data mining
During the ___________ stage of the product life cycle, firms either position themselves for a niche market of loyal consumers or they exit the market.
decline
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.
decline
If the price for a product increases, the demand for the complementary product will
decrease
Managers of Wendy's fast-food restaurants keep track of prices at competitors such as McDonald's, Burger King, and Arby's, knowing that a decrease in the prices at these other fast-food restaurants will
decrease demand for Wendy's products.
If a firm eliminates a product line, then it is
decreasing its product mix breadth.
Marketing research begins with
defining objectives and research needs.
Marketing channels and supply chains comprise various buying entities that form relationships with one another. The basic motivating factor in these interactions is
each party wants something from the others.
As it pertains to the diffusion of innovation, if the __________ group is relatively small, the number of people who ultimately adopt the innovation likely will also be small.
early adopter
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.
early adopter
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.
early majority
The __________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them.
early majority
The value of a brand is often calculated by assessing the
earning potential of the brand over the next 12 months
For a brand name to be effective, it needs to be
easy for consumers to recognize and rememeber
When it comes to measuring consumers' price sensitivity, products are viewed as either
elastic or inelastic
Typically, manufacturers and retailers exchange business documents through a(n) __________ system, the computer-to-computer exchange of business documents from a retailer to a vendor and back.
electronic data interchange
After installing a(n) _______ in its JIT system, Chocolate Tree (a retail chocolate store) was able to reduce lead time for merchandise orders.
electronic data interchange system
Flora is frustrated with her company's supply chain management information system. She wants to be able to receive sales data, initiate purchase orders, send and receive invoices and receive returned merchandise documentation. Flora needs a(n)
electronic data interchange system.
The potential benefits of brand extension do not include
eliminating competition.
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.
equity
Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and
establishing an early market share lead.
One of the potential benefits to a firm of introducing new-to-the-world products or services is
establishment of a completely new market.
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
expensive and time-consuming.
The __________ occurs when unit cost drops as the quantity sold increases.
experience curve effect
__________ research is a type of quantitative research that manipulates variables to help determine cause and effect.
experimental
Which of the following types of research would be considered quantitative research?
experimental research
Digital billboards embedded with ________ software can identify passersby and then display ads targeted to them, based on their age, gender, and attention level.
facial recognition
When consumers associate a brand with a certain level of quality and familiar attributes, allowing consumers to make quick decisions, the brand
facilitates purchasing
Which of the following is not a reason listed in your text for the high failure rate of new products?
failing to introduce lower-priced alternatives
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
fast responses at a lower cost
The most common type of contractual vertical marketing system is a
franchise
A(n) _______ is used in the shipment of products directly to customers.
fulfillment center
Which of the following is least likely to be a source of ideas for new products?
geodemographic segmentation
A(n) _______ market legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by the manufacturer.
gray
Reese and Janelle own a boutique in the United States. Recently they took a trip to China and while there, the couple purchased a large quantity of name-brand handbags for a cost significantly lower than what the manufacturer charges for the same product in the United States. Upon their return, the couple sold the handbags in their store for less than any other store in the area. This is an example of what takes place in a(n) _______ market.
gray
During the __________ stage of the product life cycle, sales rise, profits rise rapidly, and there are a small but increasing number of competitors.
growth
__________ price fixing occurs when competitors collude to control prices, and __________ price fixing occurs within a marketing channel to control prices passed on to consumers.
horizontal; vertical
Which of the following is the most logical example of complementary products?
hot dogs and hot dog buns
Marvin is looking for data to help him with a new marketing research study assigned to him. When reviewing existing secondary data from a past research study, Marvin should pay careful attention to
how the secondary data 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
identify the type of data he needs.
In a competitive market, perceived value is determined by consumers mostly
in relationship to the value of competitors' offerings
Zan wants to collect considerable information about the current opinions of his 10 most important customers. Zan will probably use the __________ research method.
in-depth interview
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?
in-depth interviews
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.
in-depth interviews
Retailers often perform ticketing and marking functions in their distribution centers rather than in their retail stores because ticketing and marking is often
inefficient and expensive.
A study found that among addicted smokers, a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded. For these consumers, cigarettes have a(n) _______ price elasticity demand.
inelastic
__________ is the process by which ideas are transformed into new products and services that will help firms grow.
innovation
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.
innovator
During the introduction stage of a product's life cycle, typical consumers are
innovators
The CEO of David's firm just came back from a business seminar. He called David into his office and 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
it is often impossible to identify with precision where a product is in the product life cycle.
When a product is successful in the introductory stage of the product life cycle,
it may start to see profits toward the end of this stage
A major disadvantage of primary data collection is
it takes more time to collect than secondary data and is more costly.
At the BMW plant in Spartanburg, South Carolina, rather than use a typical order-to-delivery process, it has suppliers deliver parts every four hours when the plant is in operation. BMW uses a(n) ______ inventory control system.
just-in-time (JIT)
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
keeping up in a market where sales come mostly from new products.
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 McDonald's, the Golden Arches reduce marketing costs because people (including young children)
know what the golden arches brand symbol means
Manufacturers trying to implement a just-in-time delivery system need to start with
knowledge of customer demand.
Bob and George live in the United States. Bob recently asked for George's cell phone number, but George said he didn't own a cell phone. George would probably be considered a(n) __________ in the diffusion of innovation process.
laggard
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 40 years. Uncle Burton is a(n) __________ in the diffusion of innovation process for telephones.
laggard
Ron sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see if 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.
lead users
In questionnaire design, a question such as "Marketing is the best part of the business program, isn't it?"
leads respondents to a particular response
________ power is based on getting a channel member to behave in a certain way because of a contractual agreement.
legitimate
A __________ brand is one where there is a contractual arrangement between firms allowing one to use its brand name for a fee.
licenses
Which of the following best describes when Johnson & Johnson introduces a travel-sized package for its existing baby oil product?
line extension
__________ pricing tactics lower the price of a product below the store's cost.
loss leader
For marketers, one of the benefits of having achieved brand loyalty is
lower marketing costs associated with reaching loyal customers
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 marketing research primarily to
monitor his competitors
If a firm in a purely competitive market can differentiate its product or service, it becomes part of a(n) _______ market.
monopolistic competition
In a market with _______ there are many firms providing differentiated products.
monopolistic competition
In a vertical marketing system, if the system is _______, the less likely conflict will occur.
more formal
With more frequent shipments associated with quick response (QR) systems, a retailer is
more likely to have what customers want.
Another name for a manufacturer's brand is a(n) __________ brand.
national
Pricing _______ products is especially challenging because little or nothing is known about consumers' perceptions of its value.
new-to-the-world
One of the key characteristics of brainstorming sessions is
no idea is immediately accepted or rejected.
Mattel wanted to determine if 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?
observation
When consumers are unable to articulate their experiences, __________ becomes particularly useful in understanding consumers' preferences.
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
observation.
For a price skimming strategy to work, the product or service must
offer consumers some new benefit currently unavailable in alternative products.
The commercial airline industry is considered what type of market?
oligopolistic competition
Where on a product's packaging would one most likely find nutrient content and country of origin?
on the label
Qualtrics, SurveyMonkey, and Zoomerang are examples of
online survey software.
Data collection begins
only after completing the research design process.
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.
pioneer
Which element of the marketing mix specifically deals with supply chain management?
place
One of the disadvantages of secondary research is ______, while one of the disadvantages of primary research is often ________.
potential bias; cost
If a telecommunications company drastically cuts the price for cellular phone service in order to eliminate local competitors, the company could be charged with
predatory pricing
The diffusion of innovation theory is useful to marketers in helping them
predict which types of customers will buy their product immediately and later.
In one test before product launch, customers try a sample product and are then surveyed to understand whether or not they would buy/use the product again. This is known as
premarket testing
A demand curve shows the relationship between _______ in a period of time.
price and demand
If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is
product development.
The __________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix.
product launch
A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products.
product line
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.
product line depth
__________ is the number of items within a product line.
product line depth
A university that has separate graduate and undergraduate admission offices recognizes that these are distinct
product lines
For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university's product mix.
product lines
The complete set of all products offered by a firm is called its
product mix.
Which of the following is not part of the "actual product" level of the product offer?
product warranty
Firms spend millions of dollars annually to build brand equity, recognizing that brand equity contributes to
profitability
The purpose of __________ is that it confirms insights and provides a basis for taking a course of action.
quantitative research
Which of the following provides the information needed to confirm insights and help managers pursue appropriate courses of action?
quantitative research
Once a marketing researcher is ready to move beyond preliminary insights to specific, informed questions, the researcher is ready to conduct
quantitative research.
In retailing, a just-in-time delivery system is called a(n) _______ system.
quick response (QR)
The major objectives associated with a market penetration pricing strategy are to
quickly build sales and market share.
Historically, prices were
rarely changed except in response to radical shifts in market conditions.
Julia wants her firm's gourmet snacks to be the leading brand in the U.S. market. When adopting a pricing strategy designed to gain market share, she should remember that
rarely is the lowest-price offering the dominant brand in a market.
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 and Shoulders being promoted as a glamorous health-oriented product. She had always thought of Head & Shoulders as an antidandruff shampoo. The new ads suggest that Head & Shoulders has most likely been
rebranded
When Costco sells to consumers directly, it acts as a _______; when it sells to other businesses, such as a restaurant owner, it acts as a _______.
retailer; wholesaler
Brands that are owned by ___________ are called private-label brands.
retailers
Private-label brands are developed and managed by
retailers
In vendor-managed inventory systems,
retailers send sales information to the manufacturer.
A distribution center is typically operated by
retailers, manufacturers, or distribution specialists.
When a global firm turns to its subsidiaries in less developed markets for new product ideas, such as when Coca-Cola developed Minute Maid Pulpy out of its Shanghai research center and then moved the product into other markets around the world, the firm is engaged in
reverse innovation.
When Joe's Chicken Shack wants chicken delivered in smaller batches more frequently, it offers its distributors an incentive in the form of special bonuses to change their schedules. Joe's demonstrates which kind of power?
reward
Kendra is taking a backpacking trip across Europe. She wants to make sure that the backpack she chooses is the best one for her adventure, so she is spending a considerable amount of time comparing alternatives to make sure she selects the best one. For Kendra, this backpack represents what type of product?
shopping
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.
shopping
Jaleel 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. Jaleel will most likely use __________ to gather this type of data.
syndicated data
J. D. Power and Associates, the National Purchase Diary Panel, and Nielsen are examples of companies that provide
syndicated data.
Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell. Naomi is using a _______ pricing strategy.
target return
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
the product history
The diffusion of innovation theory focuses on
the rate at which consumers are likely to adopt a new product or service.
Raymond estimates that the fixed costs associated with opening a new bank branch are $500,000. He expects the branch to attract 1,000 new customer accounts in the first year, each of which will cost $50 per year to service. He also expects to generate $100,000 per year in revenue. For Raymond, the total cost of opening the new branch and remaining open for one year will be
$550,000.
Jacob rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service and utilities. His fixed costs are $100,000 and his profit last year was $20,000. For Jacob, the contribution per unit is
$80.
A typical focus group has ________ members.
8-12
From charitable giving to medical records to Internet tracking, consumers are more anxious than ever about
preservation of their right to privacy
Company sales invoices, census data, and trade association statistics are examples of
secondary data
Customers must see value in a product or service before they are willing to exchange time or money to obtain it, but not all customers see the same value in a product. To analyze how many units will be sold at any given price point, marketers draw on
a demand curve
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 line extension
The saying "leaving money on the table" is associated with
a market penetration strategy when there is an opportunity for price skimming.
For which of the following is demand likely to be most sensitive to price increases?
a specific brand of soft drink
Which of the following data sources would not be considered external secondary data?
a survey
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 survey with open-ended questions
Roland has just received notification from a vendor that his clothing merchandise order has been processed and dispatched. Roland has just received a(n)
advanced shipping notice.
Today, when a customer orders merchandise from an online vendor, the vendor usually sends an immediate order confirmation message by e-mail. Usually within a day or two, a second message arrives stating that the order is in the mail. This second message is a type of
advanced shipping notice.
Especially in the fashion industry where styles and trends change rapidly, a quick response system can
align deliveries more closely with actual sales.
One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Using the cars in a real-use setting provides an opportunity for _______ the product.
beta testing
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
biometric data
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.
brainstorming
The Doritos advertising effort of "Live Mas," which is Spanish for "Live More," is meant to suggest a lifestyle aspiration. If consumers make a connection between the Doritos brand and this promotional effort, then Doritos has created
brand association
_______ reflect(s) the mental and emotional links that consumers make between a brand and its key product attributes.
brand association
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?
brand conceptualization
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
brand dilution
__________ occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold.
brand dilution
A _______ refers to the use of the same brand in a different product line.
brand extension
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 in order to create greater brand awareness.
brand extension
Stores like Home Depot and Costco act as wholesalers when they
sell to contractors or restaurant owners.
In many cases, pioneers lose their market lead and initial market share to imitators who
capitalize on the pioneers' weaknesses.
Shell MasterCard, created cooperatively by Shell Oil Company and MasterCard, is an example of
co-branding
When her company's dry goods deliveries were late for the third time, Melissa withheld payment from her supplier until it was back on schedule. This is an example of ________ power.
coercive
Which of the following is not one of the five Cs of pricing?
collaboration
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.
compatibility
When Ursula decides how to price new products in her gift store, she measures the value of her product offerings against those of the other stores in her area. Ursula uses a _______ pricing strategy.
compeitors-oriented
In many high-end resort markets, Westin hotels compete directly with Crown Plaza hotels. When it comes to pricing, Westin tends to charge its guests similar rates to what the Crown Plaza hotels charge. Westin is using a _______ pricing strategy.
competitive party
When firms set prices similar to those of competitors, they are following a strategy of
competitive party
Diane owns a bakery where she sells cupcakes. Two blocks down there is another bakery, CC's Bakery, that sells cupcakes for $1 less than Diane. Diane decides to lower her price and match CC's Bakery prices. What type of pricing strategy is Diane implementing?
competitor-oriented pricing
One of the categories of products for which brand extension is especially logical is
complementary goods
Bill is a yacht broker in the southeastern United States. For years he has had difficulty selling large yachts locally because there were few places to dock these boats. Yachts and spaces to dock them are an example of
complementary products.
decrease demand for Wendy's products.
consumers make their purchase decisions based on perceived value.
Julia's is an upscale women's clothing store. Prices are based on customers' beliefs about the value of the clothing. The store focuses on a limited target market and provides excellent customer service. Julia's is using a _______ pricing strategy.
customer-oriented
The process of charging different prices for goods or services based on the type of customer, level of demand, or time of the day, week, or season is referred to as
dynamic pricing
Shorter lead times allow retailers
to reduce the needed level of inventories.
Break-even analysis is useful because it allows managers to
estimate the quantity they will need to sell at a given price to break even.
Which of the following is not a stage in the product life cycle?
evaluation
A demand curve is built on the assumption that
everything but price and demand remains the same
Firms can measure the success of a new product by all of the following factors except
fewer competitors in the market.
Colin has just received a delivery from the company's distribution center. He opens the containers and finds the popcorn and snacks are all bar-coded and priced and the package includes an end-of-the-aisle display rack. Colin has received a(n) __________ shipment.
floor-ready
Some retailers require their suppliers to ship merchandise ___________, thus eliminating the time and expense associated with ticketing and marking.
floor-ready
When Cynthia's Boutique receives dresses, they already have price tags and are on hangers. Cynthia's Boutique receives __________ merchandise.
floor-ready
Merchandise that arrives in the delivery truck ready to be sold is considered
floor-ready.
A(n) __________ is a small group of people brought together for an intensive discussion of a topic.
focus group
Martin has hired a marketing 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 marketing research firm might conduct a(n) __________ to provide the information Martin has requested.
focus group
Which type of interview contains a small group of participants and a trained moderator that guides the conversation?
focus group
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.
focus group interviews
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.
focus groups
In a(n) __________ marketing channel, several independent members each attempt to satisfy their own objectives and maximize their profits, often at the expense of the other members.
independent
Nora is deciding whether to purchase brand-name sneakers or a less expensive 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
greater perceived value
During the __________ stage of the product life cycle, there are few but an increasing number of competitors.
growth
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.
growth
Procter & Gamble is a huge national brand manufacturer. By owning its brands like Tide and Crest, P&G
has greater control over its marketing
The decision to delete a product is never taken lightly because, generally, manufacturers
have made substantial investments in product development and manufacturing
Each time a politician or celebrity writes a book, bookstores can expect at least some customers to want the book, but whether or not it will become a bestseller is less certain. The bookstore's primary inventory management challenge is
having enough books to satisfy customer demands versus the cost of having the inventory.
Concept testing is important because it can
help a firm avoid the costs of unnecessary product development.
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
help her understand the needs of her customers
Innovators are a critical group of new product adopters because they
help the product gain market acceptance.
Dan is especially price sensitive. He has been known to line up on "Black Friday" (the day after Thanksgiving) at 4 a.m. to be among the first to buy sale items. Dan would likely respond to a(n) _______ pricing strategy.
high/low
In a(n) _______ pricing strategy, marketers rely on the promotion of sales, during which prices are temporarily reduced to encourage purchases.
high/low
_______ channel conflict occurs when there is disagreement or discord among members at the same level in a marketing channel, such as two competing retailers or two competing manufacturers.
horizontal
Using __________, researchers ask questions, listen to and record responses, and ask additional questions based on initial responses.
in-depth interviews
When the detailed opinions of a few industry experts or experienced consumers are needed, __________ is(are) often the best qualitative research method.
in-depth interviews
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?
in-depth interviews
One important purpose of a brand is to
increase customer recognition and awareness of product offerings
For which of the following is demand likely to be least sensitive to price increases?
prescription drugs
Which of the following is the correct sequence of new product adopters in the diffusion of innovation curve?
innovators, early adopters, early majority, late majority, laggards
When supply chain members view their goals and ultimate success as intricately linked, or ________, they develop deeper long-term relationships.
interdepentent
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?
internal secondary data
During the __________ stage of the product life cycle, sales are low and profits are small or negative.
introduction
In questionnaire design, a question such as "Do anti-lock braking systems reduce car accidents?"
is a question that respondents cannot easily or accurately answer
In questionnaire design, a question such as "When was the first time you went to a dentist?"
is a question that respondents cannot easily or accurately answer.
A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy, especially if the strategy
is supported by consistent advertising and distribution strategies
A major advantage of primary data collection is
it can be tailored to meet the specific research needs.
One key feature of the value of a strong brand is that
it can protect the firm from competitoin
Students of marketing often overlook or underestimate the importance of place in the marketing mix simply because
it happens behind the scenes.
The manager of a company selling cellular phones in rural U.S. markets asks you to conduct survey research into the following question: What percentage of people in Kansas live in communities of less than 10,000 people? The problem with this research objective is that
it is already known and available from the U.S. Census Bureau.
Marketers with successful brands sometimes hesitate to expand their brands because
it is costly to maintain many product lines, and it might weaken the brand's meaning
The observation that consumers are generally more sensitive to price increases than to price decreases suggests that
it is easier to lose customers with a price increase than to gain customers with a price decrease
The manager of a company selling baby products asks you to conduct research into the following question: Is life expectancy getting longer in Kuwait? The problem with this research objective is that
it is irrelevant to the baby products company.
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.
late majority
The __________ diffusion of innovation group is the last large group of consumers to adopt a new product or service.
late majority
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.
late majority
Which of the following adopter categories refers to the last large group of buyers to enter a new product market?
late majority
After installing an electronic data interchange, Carmella's gift shop was able to reduce _______, the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise.
lead time
The amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller's store to be available for sale is referred to as
lead time
Frequent buyer/user award programs are used to
maintain contact with loyal customers.
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
make purchase decision
While JIT systems have many benefits, they
make the logistics function more complicated.
With a __________ pricing strategy, marketers set a low initial price for the introduction of a new product or service.
market penetration
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 market his current products only to his current customers or
market the same products to similiar customers
It is the responsibility of __________ to determine the ethical approach to setting prices so consumers find value and the firm can make a profit.
marketers themselves
A(n) __________ is the set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption.
marketing channel
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.
maturity
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.
maturity
During the __________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense.
maturity
In the United States, most consumer packaged goods found in grocery and discount stores are in the __________ stage of the product life cycle.
maturity
A _______ strategy involves accurately measuring all the factors needed to predict sales and profits at various price levels, so that the price level that produces the highest return can be chosen.
maximizing profits
The marketing research process follows five steps, and researchers
may not always go through them in the exact sequence if the situation changes or new information is discovered.
Even if they succeed, new-to-the-world products are
not adopted by everyone at the same time.
Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from
observability.
For new product marketers, early adopters are important because they tend to be
opinion leaders.
In the diffusion of innovation process, innovators enjoy taking risks and are regarded as highly knowledgeable. Marketers want to identify innovators because
other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals.
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
other stores where you buy similar products
Price is the _____________ a consumer is willing to make to acquire a specific product or service.
overall sacrifice
A restaurant chain is working on improving the quality of its food and service. To track its progress it recruits customers who agree to respond to customer satisfaction surveys once every three months over the next two years. What kind of data is the restaurant chain collecting?
panel data
How is consumer panel data collected during the test marketing phase of a new product introduction?
panelists scan their receipts on a home scanning device
In a corporate vertical marketing system,
participants—such as warehouses, transportation companies, and retail outlets—are typically owned by a parent company to ensure harmonious relations throughout the supply chain.
Felicia had just taken over her family's business after spending ten years in the marketing department of a large corporation. She met with a representative from one of her firm's biggest customers, who told her, "We should think about how we can make the pie bigger rather than fighting over the size of the slices." She had expected a more cutthroat approach rather than this call for a
partnering relationship.
Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because
people already know what the brand means
Cross-price elasticity is the
percentage change in quantity demanded of product A compared to the percentage change in price of product B.
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.
percieved value
In the product development process, what takes place between concept testing and market testing?
performing product development
A __________ is a document used by a forklift driver indicating how much of each item to get from specific storage areas.
pick ticket
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
premarket testing.
Sharon knew that her established customers liked her product much better than her competitor's. She was planning to expand into new markets, and she was considering pricing. She was leaning toward charging a higher price than competitors to help demonstrate that hers was a high-quality product. Sharon was considering
premium pricing
Barry customizes Harley-Davidson motorcycles. No two cycles are alike. He notices that very few customers even ask the price of his motorcycles before they decide to purchase them. Demand for his motorcycles is probably
price inelastic
If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is
price inelastic
The contribution per unit is
price minus variable cost per unit.
When Apple Computer Company introduced the iPhone—a combination phone, MP3 player, and Internet access device—in 2007, it was priced at $499, considerably higher than either the iPod or competing cell phones. Hoping to attract innovators and early adopters, Apple was most likely pursuing a __________ pricing strategy.
price skimming
Because there are only a few firms in markets with oligopolistic competition,
price wars may occur.
A toothpaste tube is an example of a ________ package.
primary
After reviewing the existing data on seasonal spending by his company's customers, Marvin decided he needed to collect new information to address his research questions. Marvin will need __________ data to address the questions in his marketing research study.
primary
When a research team has gathered data for specific research needs, this is known as
primary data
At the break-even point,
profits are zero.
Which of the following is not one of the important functions of labels on products and packages?
protecting against damage to the product
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.
prototypes
Marketers spend billions of dollars annually attempting to build effective brands. One basic benefit of a brand is that it
provides a way for a firm to differentiate its product offerings from competitors
Naomi knows she has to order her store's Christmas holiday merchandise in April to ensure delivery before the holiday season. Naomi is concerned with the supply chain management goal of
providing products at the right time.
In _______ many firms provide similar products that are considered substitutes for each other.
pure competition
Social media monitoring, in-depth interviews, and focus groups are all __________ research methods.
qualitative
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.
qualitative research
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) __________ marketing research method.
quantitative
Another name for brand repositioning is
rebranding
Because manufacturers with JIT systems produce merchandise closer to the time of sale, they can
reduce inventories needed to satisfy retailers' demand.
Brad always buys and uses Nike brand golf balls. If he finds a Titleist or Callaway ball in the rough, he gives it away. Brand-loyal golfers like Brad allow Nike to charge a higher price and not lose many sales. By building a strong brand, Nike has effectively
reduced the price elasticity of demand for its products.
Which of the following is not one of the benefits to a firm of new product development?
reducing the costs of production
Marketers spend millions of dollars annually trying to create or reinforce brand loyalty. Brand loyalty changes the demand curve for the firm's products by
reducing the price elasticity of demand
Everyday low pricing (EDLP) provides value to consumers by
reducing their search costs.
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
refrigerators
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
relative advantage.
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
relative advantage.
David manages a Shoney's restaurant. He is considering staying open later in the evening. For David, the variable costs associated with staying open longer hours will include all of the following except
rent on the restaurant building.
After defining objectives and research needs, the next step in the marketing research process involves
research design.
Gary is the marketing manager for an automobile dealership. His boss tells him the firm's primary goal is to increase its local market share from 15 to 30 percent. His firm is using a ________ orientation.
sales
Health clubs often use a low, introductory offer price to get people to join their club. These low prices represent a _______ pricing strategy.
sales orientation
Many years ago Honda's Accord and Ford's Taurus were the two top-selling cars in the United States. As the year was coming to an end, Ford cut the price of the Taurus, hoping to outsell the Accord and allow Ford to claim that "Taurus is the best-selling car in America." Ford was using a _______ pricing strategy.
sales orientation
When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage
sales would be low and profits nonexistent, but he would attract golf equipment innovators.
Bernard's firm has set corporate direction to become one of the leaders in each of its significant market segments. It was Bernard's job to examine the firm's pricing strategy to determine how to maximize market share, even at the expense of profits in the short run. What kind of company objective would guide Bernard's effort?
sales-oriented
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
satisfying the changing needs of current and new customers
A marketing research project often begins with a review of the relevant ________ data.
secondary
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
secondary data
McDonald's 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 or not consumer perceptions are improving. This would be an example of
sentiment mining.
Zappos, an online shoe company, knows shoes are typically a(n) __________ good, with consumers often spending time comparing alternatives. It overcomes that aspect of consumers' search process by offering a free, no-questions-asked return policy.
shopping
When testing new products, most firms consider the question of whether testing products on animals
should be done when the new product does not contribute to the health and well-being of human users.
Charging a relatively high price for new and innovative products to those consumers most willing and able to pay the high price is called price
skimming
Which of the following markets is most likely to be characterized by oligopolistic competition in the United States?
smartphone service providers
Firms that are engaged in sentiment mining are analyzing data collected from
social media sites
Which of the following is most likely to be characterized by pure competition in the United States?
soybeans
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(n) __________ good while for Joanne it is a(n) __________ good.
specialty; convenience
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 most likely
spread positive word of mouth to other physicians.
Which of the following is not one of the four product life cycle stages?
stagnation
Which of the following would not be part of the launch of a new product?
starting to make preliminary decisions about the target market
Ryan gave the manager of his convenience store a set of binoculars so she could see the gasoline prices charged by the other convenience store at that intersection. Ryan told the manager to always match the gasoline prices of the other store. Ryan is using a _______ pricing strategy.
status quo
Steven managed an auto parts store in the 1990s. At that time, stockouts—failure to have the parts auto mechanics needed to do their work that day—increased the likelihood of the mechanics becoming customers of competing auto supply stores. To avoid this problem and keep his business customers, Steven most likely
stockpiled inventory, adding to the cost of providing auto parts.
________ is another term for private-label brands.
store brands
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.
structured
TT Toys manufactures toys. The company recently started buying paint for its toys from a Chinese firm. This Chinese company is part of TT Toys'
supply chain
Which of the following is a systematic means of collecting information from people using a questionnaire?
survey
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.
surveys
Quantitative research offers a means to confirm ideas through
surveys or experiments.
According to your text, _______ packaging is product packaging that is ecologically responsible.
sustainable
It is almost impossible to watch a sporting event on television without seeing Nike's "swoosh" check mark, which is Nike's
symbol
Commercial research firms like Nielsen and J. D. Power and Associates are sources of
syndicated data
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?
syndicated data
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 geographic area.
test marketing
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
test marketing
Unlike product, promotion, or place, price is the only part of the marketing mix
that generates revenue
Which of the following was not a new-to-the-world product or service when it was introduced?
the Mercedes mini sport utility vehicle, a smaller version of its larger SUVs
When conducting marketing research, researchers assess the value of a project through benefit-cost analysis, which weighs
the benefits of answering questions against the cost of the research.
A major limitation in the use of internal R&D departments for new idea generation is
the costs associated with an internal R&D department tend to be quite high.
Which of the following scenarios is not a reason a firm would eliminate an item within a product line?
the firm has decided to capture new markets
Natalie operates on a pretty tight budget. She is a price-conscious shopper and usually buys store or generic brands to save money. Recently, however, Natalie was given a pretty substantial raise. As such, she has altered her shopping patterns and now regularly buys more expensive name-brand goods. This is an example of
the income effect
Rodi owns Hallman's auto repair service. He has observed over the years that customers keep their high-mileage cars longer when the economy is doing poorly, creating demand for his maintenance and repair service. Rodi has observed the impact of _______ on demand for his service.
the income effect
Sales of national brands of orange juice tend to increase when the economy is doing well, while sales of generic orange juice increase when the economy is not doing well. This is an example of how _______ impacts demand for products.
the income effect
According to a typical demand curve, the higher the price,
the lower the quantity consumers will buy
Because there are many firms in monopolistic competition markets,
the many competitors will focus on product differentiation.
Which of the following statements regarding brand loyalty is not true?
the marketing costs of reaching loyal customers are typically very high
The more substitutes that exist in a market,
the more sensitive consumers will be to changes in the price of a particular product
A reference price is
the price against which buyers compare the actual selling price.
The full price of a product or service includes all of the following except
the price of alternative products and services.
When a customer purchases a DVD at Best Buy, all of the following information flows in the supply chain are started except
the purchase is added to the customer's purchasing habit
A reference price might be considered deceptive if
the reference price has been inflated or is fictitious.
Just as marketers create value by meeting the needs and wants of consumers, marketing researchers create value if
the results will be used in making management decisions.
In marketing's four Ps, place refers to all activities required to get
the right products to the right customer when that customer wants it.
There are many options available to consumers when it comes to breakfast cereals. So, if Kellogg's significantly increases the price of Rice Krispies, consumers are more apt to buy alternate cereals instead. This illustrates which concept?
the substitution effect
Although conflict is likely to occur in any supply chain, it is generally more pronounced when
the supply chain members are independent entities.
One of the benefits of EDI is that it can reduce lead time, which is
the time between the decision to place an order and the receipt of the merchandise.
During the research design step of the marketing research process, researchers identify the type of data needed and
the type of research necessary to collect the data.
In an administered vertical marketing system,
there is no common ownership, and the dominant member has significant power to impose its ideas and objectives.
Joe is reviewing secondary data his company collected about seasonal variations in consumer spending because he is thinking about developing a new product line. The advantages of using these data include
they can be quickly accessed at a relatively low cost.
Manufacturers use wholesalers and retailers because
they create value for customers through convenience and cost savings.
Gray markets can be a challenge to marketers because
they may tarnish the manufacturers image
Getting merchandise floor-ready entails
ticketing and marking
Radio frequency identification tags are
tiny computer chips that transmit information about a container's contents.
Leona is the logistics manager for the Barnes & Noble bookstore chain. She is weighing the many benefits of the company's JIT system but will need to consider that just-in-time inventory management systems increase _______ costs.
transportation
As a promotion technique, samples are often used for new products when __________ will influence the diffusion of the product.
trialability
Zappos.com, an online shoe store, offers an easy, no-hassle return procedure. This relates to the _______ of its products.
trialability
When consumers are __________, observation becomes particularly useful in understanding consumers' preferences.
unable to articulate their experiences
When a salesperson calls you to sell a cemetery plot, this is most likely what type of product?
unsought product
Microsoft's Windows operating system continues to dominate the market, even though it has been around for over 20 years. Windows will likely remain in the maturity stage of the product life cycle
until a superior product comes along to replace it.
A customer orientation toward pricing implicitly invokes the concept of
value
Labor, materials, and energy are typically __________ costs.
variable
The local auto supply store gets merchandise delivered to it by its manufacturers as soon as it has a need, reducing stockouts with minimal inventory. This demonstrates the concept of
vendor-managed inventory.
_______ channel conflict occurs when members of the same marketing channel, for example, manufacturers, wholesalers, and retailers are in disagreement or discord.
vertical
A(n) __________ is a supply chain whose members act like a unified system.
vertical marketing system
_______ occurs when members of the marketing channel collude to control the prices passed on to consumers.
vertical price fixing
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
was not compatible with European market conditions.
Political consultants have been using marketing research for decades to help their candidates understand
who makes up the voting public and how to reach them
Dawn works for a firm that buys products directly from the manufacturer and resells them to retailers, who then sell the products to consumers. Dawn works for a
wholesaler.
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
why it took her so long to consider the new product line.