Marketing Final Chp 11,12,19

T o F The point at which marginal revenue equals marginal cost is the breakeven point

False

T o F concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions

False

Products are classified as being business or consumer products according to the

buyer's intended use of the product

If Norwegian Cruise Lines increased the price of its 7 day cruise package by 10% and, as a result, experienced a 20% decline in customer bookings, Norwegian's demand would be

elastic

Brand Preference is the strongest form or degree of brand loyalty

false

t o f Buyers want to exert only minimal effort to obtain shopping products

false

Increasing the quality of a product may

give a firm an advantage over competing brands

In which stage of the product life cycle do profits begin to decrease

growth

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

T o F A brand name is the part of the brand that is spoken

True

T o F A product's classification can influence its price, distribution, and promotion

True

T o F Nonprice competition allows a company to increase its brand's unit sales through means other than changing the brand's price

True

T o F Price is the most easily adjusted ingredient in the marketing mix

True

T o F Price is the value that is exchanged for products in a marketing transaction

True

T o F The buyer's intent can determine whether an item is classified as a consumer or business product

True

T o F Use of the product is the most important means of distinguishing consumer products from business products

True

T o F the purpose of the pricing concept is to quantify and express the value of items in a market exchange

True

T o FThe major drawback in using aesthetic modifications is that their value is determined subjectively

True

T o f factors affecting pricing decisions can include demand, distribution, and the way in which the product is promoted

True

T o f profits decline in the maturity stage, largely because of increased competition

True

4 major stages of a product life cycle include

introduction, growth, maturity, decline

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

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

lines a company offers

The major characteristic of a private brand is that

manufacturers are not identified on the product

When Cameron was visiting family in Missouri, he ate a flavor of Boulder Canyon Kettle Chips he had never seen before. He went home to Virginia and couldn't find the flavor. Which is most likely why he could not find the flavor at home?

He was visiting a city being used as a boulder canyons test market

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

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

Early in the commercialization phase, marketers must make decisions about

warranties, repairs, and replacement parts

T o F Marketers have little influence over shaping consumers concepts or perceptions

False

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

False

T o F Product mix refers to a related group of products in the product line

False

T o F Profits for a firm are computed as follows: Profits = Total Revenue- Fixed costs

False

T o F Test marketing should be conducted when a product has been given a low probability of success

False

T o 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 o F during the growth stage, promotion costs rise as a percentage of total sales

False

T o F fixed costs vary with the number of units produced or sold

False

T o F the core product element of the total product can include installation, delivery, training, and financing

False

T o F venture team members usually come from the same functional areas within the firm

False

T o f a firm that competes on a price basis is unable to change prices frequently

False

T o F Barter is the oldest form of exchange

True

T o F Brand and product managers operate cross- functionally

True

T o F Business analysis provides a tentative sketch of a product's profitability

True

T o F Communicating product benefits to consumers in very important in the introduction stage

True

T o F Costs are a major issue when establishing price

True

T o F Designing a product that customers perceive as different from competing products is an example of product differentiation

True

T o F Laggards are the last to adopt a new product and usually distrust new products

True

T o F The major drawback in using aesthetic modifications is that their value is determined subjectiely

True

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

True

T o F New products are classified solely as innovations that have never been sold by any organization

false

T o F Obtaining a specialty product involves a considerable amount of comparison activity

false

T o F delivery, installation, financing, repair, warranties, and guarantees are all examples of product features

false

T o FLine extensions are less common than other new products because line extensions are more expensive and more risky.

false

T o f a run out approach to product deletion lets the product decline without changing the marketing strategy

false

The test marketing stage

is a sample launching of the entire marketing mix.

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

During the maturity stage

some competitors are forced out.

A product mix is best described as

all products offered by a firm

T o F Customers always interpret a higher price to mean higher quality

False

T o F Disruptive innovations involve completely new technologies

False

T o F Electricity is an example of a product that is price elastic

False

T o F Process materials are used directly in the production of products

False

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

Which of the following is not a business product?

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

The 3 levels of brand loyalty from strongest to weakest are

Insistence, preference, recognition

________refers to how a product is conceived, planned, and produced

Product design

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

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

brand associations

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

After building a prototype of his new device, Brad 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

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 is an 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

Price is

the value that is exchanged for products in a marketing transaction

T o F The buyers intent can determine whether an item is classified as a consumer or a business product

true