Marketing final

Which of the following is NOT a business product?

Calculators bought to help individuals complete their personal federal income tax forms

Which of the following products is most likely to have an inverted C-shaped demand curve?

Eternity perfume

When Cameron was visiting family in Missouri, he ate a flavor of Boulder Canyon Kettle Chips that he had never seen before. When he returned home to Virginia, he could not find the flavor in any store. Which of the following reasons most likely explains why he could not find the flavor at home?

He was visiting a city being used as a Boulder Canyon's test market

Which of the following is an example of a functional modification? ​

Planters Nuts redesigns the packaging of its nut products so they are easier for those with arthritis to open.

Which of the following is the best example of disruptive innovation?

Razor blade

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

Of the following choices, which would be the easiest brand name to legally protect?

Tarzink Yogurt

At what point does a firm maximize profit?

The point at which marginal cost equals marginal revenue

Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?

Warehouse club

One advantage of nonprice 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

The jolly green giant used by the Green Giant Company facilitates the development of

brand associations.

The owner of Big Jim's Motorcycles is opening a new retail location. Which of the following is most likely to be a fixed cost for Big Jim's Motorcycles?

building rent

Marianna tells Rajesh that she likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. She is asking Rajesh to proceed to which stage of the new-product development process?

business analysis

Charlotte and Grace own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase the food items and cleaning supplies they need for their business. With the exception of the volume they purchase and the items' intended use, this grocery shopping trip is identical to a weekly trip by their families to a grocery store. Sam's is serving as a ____ wholesaler for these entrepreneurs.

cash-and-carry

The three major types of nonstore retailing are

direct marketing, direct selling, and vending.

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

All of the following are major steps in developing new products except a.test marketing. b.evaluation of competitors' efforts. c. screening. d. business analysis. e. Idea Generation

evaluation of competitors' efforts

A firm that competes on a price basis is unable to change prices frequently.

false

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.

false

A run-out approach to product deletion lets the product decline without changing the marketing strategy.

false

Catalog marketing is one of the more flexible types of direct marketing.

false

Concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions.

false

Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable.

false

Customers always interpret a higher price to mean higher quality.

false

Delivery, installation, financing, repair, warranties, and guarantees are all examples of product features.

false

Direct-response marketing is the performance of marketing-related activities by telephone.

false

Discount stores are distinctive in that they usually are very service oriented.

false

Fixed costs vary with the number of units produced or sold.

false

Marketers have little influence over shaping consumers' concepts or perceptions.​

false

Obtaining a specialty product involves a considerable amount of comparison activity.

false

Product design is the process of creating and designing products so that consumers perceive them as different from competing products.

false

Profits for a firm are computed as follows: Profits = Total Revenue - Fixed Costs.

false

Test marketing should be conducted when a product has been given a low probability of success.

false

The concept of product quality is the same from consumer to consumer and from consumer markets to organizational markets.

false

The coordination of selling efforts within a community shopping center is usually minimal.

false

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

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 breakeven point.

false

The two major product categories are business and institutional.

false

Trial is the first stage of the product adoption process.

false

Wholesaling is the final part of the marketing process in which exchanges are entered into for personal, family, or household purposes.

false

Agents and brokers that facilitate and negotiate purchases but do not actually take title to products are also known as

functional middlemen.

Increasing the quality of a product may

give a firm an advantage over competing brands

A(n) ____ is a concept, philosophy, or image.

idea

The test marketing stage

is a sample launching of the entire marketing mix.

The primary advantage of vending as a form of retailing is that

it eliminates the need for sales personnel

The width of a product mix is measured by the number of product

lines a company offers

Location is important to a retailer because

location determines the trading area from which the store must draw its customers.

The major characteristic of a private brand is that

manufacturers are not identified on the product

Manufacturers' agents offer products that are both

noncompeting and complementary.

Stores that buy manufacturers' seconds, overruns, returns, and off-season production and sell these products at below wholesale prices, are called

off-price retailers

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 t

product development

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 demanded goes down

Which of the following is the best example of disruptive innovation?

razor blade

Compared with other phases of the new-product development process, the largest number of new-product ideas is rejected during the ____ phase.

screening

Which factor is least likely to affect pricing decisions?

shifting stock values

During the maturity stage

some competitors are forced out

A narrow product mix with a deep product line would most likelybe carried by

specialty retailers

A product item is best described as a

specific version of a product.

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

steady

Safeway and SuperValu are all considered

supermarkets

Drop shippers

take title to but not physical possession of the goods

drop shippers

take title to but not physical possession of the goods

When products are presented to television viewers, who can purchase them by calling a toll-free number and paying with a credit card, ____ is being used.

television home shopping

At the breakeven point,

the money a company brings in from selling products equals the amount spent producing the products

At the breakeven point,

the money a company brings in from selling products equals the amount spent producing the products.

Louis is reading the online report of the tuition and fees he owes for this semester of college. Since he has signed up for online banking, he pays the amount immediately. The amount Louis just paid is considered to be

the price

price is

the value that is exchanged for products in a marketing transaction.

If a product has an inelastic demand and the manufacturer raises its price,

total revenue will increase

A customer looking for the lowest price on a mattress without concern for the quality of the mattress or the status gained by buying and using a certain brand is a price-conscious customer.

true

A franchise is an arrangement in which a supplier grants dealers the right to sell products in exchange for some type of consideration.

true

A product need not be a physical product.

true

A product's classification can influence its price, distribution, and promotion.

true

Advertising used in the decline stage may prolong the life of the product.

true

Barter is the oldest form of exchange.

true

Brand and product managers operate cross-functionally.

true

Business analysis provides a tentative sketch of a product's profitability

true

Business analysis provides a tentative sketch of a product's profitability.

true

Changes in buyers' attitudes, other components of the marketing mix, and uncontrollable environmental factors can influence demand

true

Communicating product benefits to consumers is very important in the introduction stage.

true

Costs are a major issue when establishing price.

true

Department stores are characterized by wide product mixes.

true

Direct marketing is the selling of products outside the confines of a retail facility.

true

Dollar General is an example of an extreme-value store.

true

Exterior atmospheric elements include the appearance of the storefront, display windows, store entrance, and amount of traffic congestion.

true

Factors affecting pricing decisions can include demand, distribution, and the way in which the product is promoted.

true

For most products, the quantity demanded goes up as the price goes down.

true

Laggards are the last to adopt a new product and usually distrust new products.

true

Price cuts are typical in a product's growth stage.

true

Price is the most easily adjusted ingredient in the marketing mix.

true

Price is the value that is exchanged for products in a marketing transaction.

true

Profits decline in the maturity stage, largely because of increased competition.

true

The major drawback in using aesthetic modifications is that their value is determined subjectively.

true

The product development stage determines the technical feasibility of producing the new product.

true

The purpose of the pricing concept is to quantify and express the value of items in a market exchange.

true

Early in the commercialization phase, marketers must make decisions about

warranties, repairs, and replacement parts

Peter works for a company that buys snacks such as chips, cookies, and candy in bulk from manufacturers. Peter's company then repackages them and sells them to vending companies that have vending machines at government institutions. Peter most likely works for a(n) _____,while the vending machine company is a(n) _____

wholesaler; retailer