Marketing Exam 4
the phase out approach to product deletion involves a process of continuous price increases to make as much profit as possible before the product is finally priced out of existence
false
the point at which marginal revenue equals marginal cost is the break even point t/f
false
venture team members usually come from the same functional areas within the firm t/f
false
the major characteristic of a private brand is that
manufacturers are not identified on the product
marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during
product development
early in the commercialization phase, marketers must make decisions about
warranties, repairs and replacement parts
t/f: the two major categories are business and institutional
false
A product is best described as a
specific version of a product.
price is the value that is exchanged for products in a marketing transaction t/f
true
t/f: advertising used in the decline stage may prolong the life of the product
true
t/f: products decline in the maturity stage, largely because of increased competition
true
the first adopters of a product are the innovators t/f
true
test marketing should be conducted when a product has been given a low probability of success
false
What degree of brand loyalty is the strongest and most desired by marketers?
Insistence
A product item is best described as a
A specific version of a product
a product item is best described as a
A specific version of a product
Which of the following is NOT a business product?
Calculators bought to help individuals complete their personal federal income tax forms
T F A product line is a particular version of a product that can be designated as a distinct offering on the organization's list of products.
Flase
Of the following choices, which would be the easiest brand name to legally protect? a) Tarzink Yogurt b) Learn and Grow Daycare c) Scout Camping Supplies d) Sullivan Water Filtering Systems e) Western County Distributors
Tarzink Yogurt
At what point does a firm maximize profit?
The point at which marginal cost equals marginal revenue
one advantage of non-price competition is that
a firm can build customer loyalty
a product line is defined as
a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations.
the three major ways to modify a product include
aesthetic, quality and functional changes
A product mix is best described as
all products offered by a firm
Phillip is on his way to work when he realizes that he has a flat tire. He swings into discount tires and has a new tire installed. phillips purchase of a new tire in this situation is considered to be
an unsought good
Phillip is on his way to work when he realizes he has a flat tire. He swings into Discount Tires and has a new tire installed. Phillip's purchase of a new tire in this situation is considered to be
an unsought good.
the money a company brings in from selling products equals the amount spent producing the products
at the breakeven point
the jolly green giant used by the green giant company's facilitates the development of
brand association
The jolly green giant used by the Green Giant Company facilities the development of
brand associations
the owner of Big Jims Motorcycles is opening a new retail location. Which of the following is the most likely to be a fixed cost for Big Jims Motorcycles?
building rent
Products are classified as being business or consumer products according to the
buyer's intended use of the product
What is NOT a business product:
calculators bought to help individuals complete their personal federal income tax forms
one disadvantage of test marketing a new product is that
competitors may copy the product
Although they become part of a larger product, _______ can often be easily identified and distinguished on the larger product.
component parts
if Norwegian Cruise Lines increased the price of its seven-day cruise package by 10% and, as a result, experienced a 20% decline in customer bookings, Norwegian's demand would be
elastic
which of the following products is most likely to have an inverted C - shaped demand curve?
eternity purfume
t/f: product mix refers to a related group of products in the product line
false
what is not a major step in developing new products
evaluation of competitors efforts
T F The core product element of the total product can include installation, delivery, training, and financing.
false
T/F: A product line is a particular version of a product that can be designated s a distinct offering on the organization's list of products.
false
T/F: Brand preference is the strongest form or degree of brand loyalty.
false
T/F: During the growth stage, promotion costs rise as a percentage of total sales.
false
T/F: The marketing mix should be left alone during the maturity stage of the product life cycle; tampering with it may bring an early death to the product.
false
T/F: The two major product categories are business and institutional.
false
T/F: brand preferences is the strongest form or degree of brand loyalty
false
a firm that competes on a price basis is unable to change prices frequently t/f
false
concept testing gives reliable feedback, but at a relatively high cost t/f
false
fixed costs vary with the number of units produced or sold t/f
false
line extensions are less common than other new products because line extensions are more expensive and more risky t/f
false
product design is the process of creating and designing products so that consumers perceive them as different from competing products t/f
false
profits for a firm are computed as follows: Profits = Total Revenue - Fixed Costs t/f
false
t/f: a run-out approach to product deletion lets the product decline without changed the marketing strategy
false
t/f: buyers who want to exert only minimal effort to obtain shopping products
false
t/f: consumers are reluctant to purchase substitute brands if the desired brand of a convenience product is unattainable
false
the three levels of brand loyalty from strongest to weakest are
insistence, preference, recogition
The three levels of brand loyalty form strongest to weakest are
insistence, preference, recognition
The four major stages of a product life cycle include
introduction, growth, maturity, and decline.
The width of a product mix is measured by the number of product
lines a company offers
product deletion
may be opposed by management
what is an example of a functional modification
planters nuts redesigns packaging of its nut products so they are easier for those with arthritis to open
the General Auto Insurance advertises its automobile insurance as "For a great low rate you can get online, go to The General and save some time!" General is engaging in
price competition
A(n) ____ is a concept, philosophy, or image
product
after building a prototype of his new device, Barry is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the ____ phase of the new-product development process.
product development
as Richard works on the prototype of a new action-oriented computer game, he is engaging in which phase of the new-product development process?
product development
_______ refers to how a product is conceived, planned, and producted
product positioning
three major ways in which marketers engage in product differentiation are
product quality, product design and features, and product support services
if Umbro faces a standard demand curve that exists for most products, as it raises the price of its soccer balls, the
quantity demand goes down
which if the following is the best example of disruptive innovation?
razor blade
Convenience products are
relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort
convenience products are
relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort
what step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level?
screening
Which factor is least likely to affect pricing decisions?
shifting stock values
During the maturity stage
some competitors are forced out.
the major drawback to using aesthetic modifications is
that the value of the modification is determined subjectively
Price is a key element in the marketing mix because it relates directly to
the generation of total revenue
T F A product's classification can influence its price, distribution, and promotion.
true
T F A service is intangible and is the result of the application of human or mechanical efforts to people or objects.
true
T F The buyer's intent can determine whether an item is classified as a consumer or a business product.
true
T/F: A product need not be a physical product
true
T/F: A product need not be a physical product.
true
T/F: A product's classification can influence its price, distribution, and promotion
true
T/F: A product's classification can influence its price, distribution, and promotion.
true
T/F: Communicating product benefits to consumers is a very important in the introduction stage
true
T/F: Laggards are the last to adopt a new product and usually distrust new products
true
T/F: Price cuts are typical in a product's growth stage
true
T/F: Profits decline in the maturity stage, largely because of increased competition
true
Use of the product is the most important means of distinguishing consumer products from business products
true
business analysis provides a tentative sketch of a product's profitability t/f
true
changes in buyers attitudes, and other components of the marketing mix, and uncontrollable environmental factors can influence demand. t/f
true
designing a product that customers perceive as different from competing products is an example of product differentiation t/f
true
during the commercialization phase of new product development, plans for full scale manufacturing and marketing are refined and settled t/f
true
factors affecting pricing decisions can include demand, distribution, and the way in which the product is promoted. t/f
true
for most products, the quantity demanded goes up as the price goes down t/f
true
functional modifications usually require that the product be redesigned t/f
true
non-price competition allows a company to increase its brands unit sales through means other than changing the brands price. t/f
true