Marketing test 2

Which of the following conditions is most likely essential for implementing a successful market-skimming pricing strategy for a product? A) The product's quality and image must support its high price. B) Lower-priced alternatives can enter the market easily. C) Low prices promote more market growth than high prices. D) The product's price matches its manufacturing costs. E) A low-price position of the product is maintained.

A

Which statement is most likely true about idea generation in the new product development process? A) Idea generation is most effective when it occurs after idea screening. B) Most companies set a limit for the number of ideas generated to simplify the process. C) Intrapreneurial programs enable customers to contribute to the idea generation process. D) Idea generation is usually followed by procedures that reduce the total number of ideas. E) A company can either develop ideas through internal or external sources but not through both.

D

The team-based new product development approach saves times and increases effectiveness because departments work closely together in ________. A) divisional teams B) problem-solving teams C) self-managed groups D) cross-functional teams E) independent groups

cross-functional teams

Denta Clean's decision to add a whitening toothpaste to its current line of toothpastes is an example of product line ________. A) stretching B) widening C) strengthening D) mixing E) filling

filling

Zappos recognizes the importance of the buyer-seller interaction. They only hire people with an innate "passion to serve" and they go through four weeks of customer loyalty training. This is referred to as ________ marketing. A) horizontal B) interactive C) advocacy D) social E) internal

interactive

Which of the following is an economic factor that affects the pricing decisions of a company? A) market-penetration practices B) top management decisions C) promotional activities D) reseller policies E) interest rates

interest rates

Producers of popular beverages often partner with global music channels to target consumers through a variety of promotional events and advertisements. This approach to marketing is referred to as ________ segmentation. A) intermarket B) income C) age and life-cycle D) occasions E) gender

intermarket

Orienting and motivating customer-contact employees and supporting service people to work as a team to provide customer satisfaction is known as ________ marketing. A) social B) organizational C) differentiated D) internal E) interactive

internal

The Dairy Bar, a national soft-service ice cream retailer, buys cones from Cones & More. Cones & More is an important resource for marketplace information. They're considered a(n) ________ source of new product ideas for the Dairy Bar. A) entrepreneurial B) competitive C) external D) internal E) intrapreuneurial

internal

Which link in the service profit chain emphasizes superior employee selection and training? A) healthy service profits and growth B) satisfied and loyal customers C) greater service value D) satisfied and productive service employees E) internal service quality

internal service quality

Companies like 3M, Google, and Sony have ________ that encourage employees to develop new ideas. A) trade magazines B) marketing research firms C) government agencies D) competitor's ads E) intrapreneurial programs

intrapreneurial programs

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features? A) product development B) introduction C) growth D) maturity E) adoption

introduction

Which of the following is true about local marketing? A) It does not cater to individual stores. B) It does not support evolving technologies. C) It increases manufacturing costs. D) It increases economies of scale. E) It reduces logistical issues.

it increases manufacturing costs

A successful niche marketing strategy relies on a firm's ________. A) availability of services B) product positioning C) superior products D) knowledge of customer needs E) affordable pricing

knowledge of customer needs

Stores offering low-quality alternatives to luxury products at low prices most likely follow a ________ positioning strategy. A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) more-for-more

less-for-much-less

Which of the following is an example of an unsought product? A) furniture B) laundry detergent C) refrigerator D) toothpaste E) life insurance

life insurance

________ occurs when a company uses its existing brand name for new forms, colors, sizes, ingredients, or flavors of an existing product category. A) Line extension B) Co-branding C) Private labeling D) Brand extension E) Clustered branding

line extension

Non-Dairy Delight, a manufacturer of soy milk, attracts new customers by adding cinnamon, pumpkin, and vanilla flavors to its traditional product. In this case, the company has developed its brand with ________. A) brand extensions B) line extensions C) multibranding D) new product lines E) co-branding

line extensions

________ marketing tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores. A) Differentiated B) Mass C) Niche D) Local E) Individual

local

Using a ________ positioning strategy, companies can attack the more-for-more strategy of another firm by offering a brand of comparable quality at a lower price. A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) less-for-more

more-for-the-same

A detailed version of a product idea stated in meaningful consumer terms is a ________. A) product feature B) product concept C) product idea D) product image E) product framework

product concept

Which of the following sets the lower limit for a product's pricing? A) product costs B) profits C) competition D) elements of the product mix E) consumer perceptions of value

product costs

Taco Bell test marketed Doritos Locos Tacos for three years and developed 45 prototypes. Once the decision was made to launch the new taco shell, it moved into the ________ stage of the new product development process. A) concept development B) product development C) test marketing D) strategy development E) commercialization

product development

Bose promises "better sound through research." This is an example of ________. A) people differentiation B) channel differentiation C) price differentiation D) services differentiation E) product differentiation

product differentiation

Electronics International has experienced a significant decline in sales for SweetTunes, its MP3 player, during the past two years. In response, the company has reduced its advertising and sales expenditures for SweetTunes in an attempt to improve short-run profits. Which term best describes Electronics International's strategy for SweetTunes? A) sales outsourcing B) product modification C) industry repositioning D) product harvesting E) marketing mix modification

product harvesting

The style, ease of use, and multi-blade technology of Gillette's Fusion razor system is a ________ that has favorably impacted consumer perceptions about other new products sold by the company. A) product audit B) product feature C) product image D) product framework E) product concept

product image

NerdHerd Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as ________ pricing. A) product line B) optional-product C) by-product D) product bundle E) captive-product

product line

Clorox sells five major product lines including cleaning, household, lifestyle, professional, and international. Together the product lines make up Clorox's ________. A) product length B) product mix C) product depth D) product consistency E) product assemblage

product mix

Some companies are now appointing ________, whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems. A) intradepartmental teams B) idea generation teams C) product audit committees D) product stewards E) listening officers

product stewards

When Nabisco offers to cover half the cost of all local advertising for supermarkets that sell Oreo Cookies, the company is granting ________. A) cash discounts B) seasonal discounts C) quantity discounts D) promotional allowances E) trade-in allowances

promotional allowances

What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency? A) segmented pricing B) psychological pricing C) geographical pricing D) promotional pricing E) dynamic pricing

promotional pricing

Bass Pro Shops recognizes that outdoors enthusiasts are a diverse group. Likely segments include hunters, campers, and boaters. What is this segmentation method called? A) user status B) usage rate C) benefit D) behavioral E) psychographic

psychographic

________ segmentation factors divide buyers into different groups based on social class, lifestyle, or personality characteristics. A) Geographic B) Demographic C) Psychographic D) Behavioral E) User status

psychographic

Pricing a product based on consumers' reference prices is referred to as ________ pricing. A) geographical B) psychological C) allowance D) by-product E) captive-product

psychological

In ________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a pure monopsony

pure competition

t/f Companies that combine a customer-centered approach with team-based new product development gain a big competitive edge by getting the right new products to market faster.

true

t/f Demographic factors are the most popular bases for segmenting customer groups.

true

t/f Even if a segment has the right size and growth and is structurally attractive, a company must consider its own objectives and resources before targeting that segment.

true

t/f For market segments to be beneficial for companies, they must be measurable.

true

t/f Furniture is an example of a shopping product.

true

t/f In the new product development process, the purpose of idea generation is to create a large number of ideas and the purpose of the next set of stages in the process is to reduce that number.

true

t/f Market skimming makes sense when a product's quality and image support its higher price, and enough buyers want the product at that price.

true

t/f Marketers must be careful to guard against stereotypes when using age and life-cycle segmentation.

true

t/f Most major new innovations are unsought until consumers become aware of them through advertising.

true

t/f Multivariable segmentation systems merge and analyze geographic, demographic, lifestyle, and behavioral data to help companies segment their markets.

true

t/f New communications technologies like satellite TV and social media are likely to eliminate the need for markets to be geographically segmented as clusters of countries.

true

t/f Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies

true

t/f Overuse of promotional pricing can erode a brand's value in the eyes of customers.

true

t/f Price discrimination is allowed if a seller can prove that its costs are different when selling to different retailers.

true

t/f Product modifications are an important source of new products for organizations.

true

t/f Target return pricing is a variation of break-even pricing.

true

t/f The Consumer Product Safety Act of 1972 established the Consumer Product Safety Commission, which has the authority to ban or seize potentially harmful products and set severe penalties for violation of the law.

true

t/f The Robinson-Patman Act seeks to prevent unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given level of trade.

true

t/f The distinction between a consumer product and an industrial product is based on the purpose for which the product is purchased.

true

t/f The federal government has the legal authority to prevent a company from adding products through acquisitions if the acquisition threatens to lessen competition.

true

t/f The installation of an innovation management system allows a company to collect, review, evaluate, and manage new product ideas.

true

t/f The low cost of setting up shop on the Internet makes it even more profitable to serve seemingly small niches.

true

t/f The maturity stage of the product life cycle is characterized by a slowdown in sales growth.

true

t/f The moral of the product life cycle is that companies must continually innovate; otherwise, they risk extinction.

true

t/f Under oligopolistic competition, the market consists of only a few large sellers.

true

t/f Universal Appliance prices its refrigerators at five distinct price levels based on finish, style, capacity, and features. They range from $799 to $9,500. This is an illustration of price steps.

true

t/f Unsought products are consumer products that the consumer either does not know about or knows about but does not normally consider buying.

true

t/f When a company decides to go international with a product, it must first figure out what products and services to introduce and in which countries.

true

t/f When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

true

t/f When consumers react more favorably to a brand than to a generic or unbranded version of the same product, the brand is said to have positive brand equity.

true

t/f While designing a customer-driven marketing strategy, marketers are likely to divide the market into smaller segments.

true

t/fConsumers are generally willing to make more effort than usual to buy specialty products.

true

Netcorp, an Internet service provider, charges its users a fixed rental fee for its basic package, which has a download limit. If a user exceeds this download limit, an additional fee is charged for every download. In this case, the firm's pricing strategy is referred to as ________ pricing. A) by-product B) two-part C) optional-product D) segmented E) promotional

two-part

Which of the following pricing strategies charges the same price plus freight to all customers, regardless of their location? A) basing-point pricing B) freight-absorption pricing C) FOB-origin pricing D) zone pricing E) uniform-delivered pricing

uniform-delivered pricing

Fads are characterized by their ________. A) enduring nature that spans several generations B) low rates of adoption by consumers C) unusually high sales and rapid decline D) basic and distinctive modes of expression that seldom become unpopular E) non-attainment of the last two stages of the product life cycle

unusually high sales and rapid decline

Shampoo marketers segment buyers as light, medium, or heavy product users. This is an example of ________ segmentation. A) user status B) usage rate C) benefits sought D) occasion E) psychographic

usage rate

A product is in the maturity stage of the product life cycle, and the company decides to modify the marketing mix. Which of the following steps is the company most likely to take? A) use aggressive sales promotions B) change features of the product C) improve product quality D) find new uses for the product E) explore new market segments

use aggressive sales promotions

Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called ________. A) user status segmentation B) usage rate segmentation C) benefit segmentation D) behavioral segmentation E) loyalty status segmentation

user status segmentation

Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing. A) high-low B) value-added C) target return D) everyday low E) cost-plus

value-added

A ________ pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth. A) cost-based B) target costing C) value-based D) value-added E) competition-based

value-based

Costs that change directly with the level of production are referred to as ________ costs. A) fixed B) variable C) target D) capital E) payroll

variable

A company launching a new product must first decide ________. A) where to launch the product B) the sample size of the market C) when to launch the product D) the viability of a global launch E) the budget for print advertising

when to launch the product

Specialty products are consumer products and services that customers generally buy ________. A) to conduct business B) frequently and immediately C) based on ready availability D) without making comparisons E) with minimal effort

without making comparisons

Computer Works is a computer accessories manufacturer based in Brazil. All customers in South America pay the same freight charge, $20, when they order products from the company. All customers in North America pay a freight charge of $50. The company's pricing strategy is referred to as ________ pricing. A) basing-point B) FOB-origin C) freight-absorption D) zone E) uniform-delivered

zone

Which of the following sets the upper limit for a product's pricing? A) profits B) product costs C) consumer perceptions of value D) elements of the product mix E) competition

consumer perceptions of value

t/f During the decline stage of the product life cycle, product sales may plunge to zero, or they may drop to a low level where they continue for many years.

true

t/f Dynamic pricing is particularly suitable for Internet-based companies like Amazon who want to be responsive to shoppers' desires and marketplace changes.

true

t/f Smaller companies may lack the skills and resources needed to serve larger segments.

true

t/f Some companies deemphasize price and use other marketing mix tools to create non-price positions in the marketplace.

true

t/f Support services are an important part of a customer's overall brand experience

true

t/f Target and Kohl's have opened smaller-format stores designed to fit the needs of densely packed urban neighborhoods. This is an example of geographic segmentation.

true

t/f Target costing starts with an ideal selling price based on customer value considerations and then aims at costs that will ensure that the price is met.

true

t/f Under a team-based new product development approach, company departments work closely together in cross-functional teams. Overlapping the steps in the product development process saves time and increases effectiveness.

true

Although not recommended, some marketers decide to ignore market segmentation and target the whole market with one offer. This is known as ________ marketing. A) undifferentiated B) differentiated C) niche D) local E) individual

undifferentiated

Which of the following is an approach where firms target a whole market based on common consumer needs? A) demographic segmentation B) undifferentiated marketing C) micromarketing D) concentrated marketing E) geographic segmentation

undifferentiated marketing

Which of the following pricing strategies is the opposite of FOB-origin pricing? A) basing-point pricing B) dynamic pricing C) uniform-delivered pricing D) freight-absorption pricing E) zone pricing

uniform-delivered pricing

Consumer products that the buyer either does not know about or knows about but does not normally consider buying are referred to as ________ products. A) convenience B) unsought C) specialty D) shopping E) industrial

unsought

Marque, a high-end maker of designer watches, has started making inexpensive watches to take advantage of enormous growth rates in low-end market segments. Marque is most likely engaging in ________. A) franchising B) line filling C) two-way stretching D) upward stretching E) downward stretching

downward stretching

The Vitamin Shoppe sells natural vitamins and supplements. Product prices are adjusted frequently to meet the needs of individual customers. For example, long-time customers receive discounts. This strategy is most likely an example of ________ pricing. A) zone B) competition-based C) dynamic D) basing-point E) penetration

dynamic

t/f A market segment with powerful suppliers controlling the prices is more attractive than a segment with less powerful suppliers.

false

t/f A segment is more attractive if it is easy for new competitors to enter the market.

false

t/f Product development usually costs the least among all the steps of the new product development process.

false

t/f There is no true substitute for coffee. If the price goes from $8 to $12 for a package of k-cups due to a coffee bean shortage, demand will remain relatively unchanged. This is an example of demand elasticity.

false

t/f Unlike the other marketing mix elements, price plays a minor role in creating customer value and building customer relationships.

false

t/f Using a differentiated marketing strategy, a company is likely to design a product and a marketing program that will appeal to the largest number of buyers.

false

t/f Value-based pricing is often product driven, and customer value perceptions are secondary

false

t/f When buying unsought products, consumers spend considerable time and effort in gathering information and making comparisons.

false

t/f When developing a new product, concept testing should ideally be followed by the business analysis stage.

false

A&B's Smarter Planet campaign markets A&B as a company that provides innovative solutions that improve the world's IQ. This activity of A&B is an example of ________ marketing. A) segmented B) vertical C) organization D) horizontal E) diversified

organization

In the ________ stage of new product development, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them. A) business analysis B) idea generation C) concept screening D) product development E) test marketing

product development

t/f Shopping products are purchased more frequently than convenience products.

false

t/f Branding has become so strong today that hardly anything goes unbranded.

true

When establishing prices, it's important for a manager to understand that "good value" is not the same as ________. A) "low price" B) "high price" C) "bargain basement" D) "perceived value" E) "everyday value"

"low price"

BerryBerry is a fruit juice company that has traditionally sold three varieties of mixed-fruit juices: DazzleBerry, AquaBerry, and GloBerry. The company wants to add more products to its product line. Which of the following is an example of brand extension for BerryBerry? A) The company introduces BerryBliss, a dried berry snack mix for kids. B) BerryBerry adds a new fruit juice flavor, TangyBerry. C) The company introduces a line of flavored milk and yogurt under a new brand name. D) The company creates a new brand, NatureFresh, for a line of cosmetics based on fruit flavors and colors. E) BerryBerry teams up with SFX, a sporting goods company, to introduce a line of energy bars called BerryBerry SFX.

A

In which of the following cases is crowdsourcing used for new product development? A) A company creates a forum where anyone can contribute new product ideas. B) A company hires a marketing agency to generate new product ideas. C) A company reviews the sales, costs, and profit projections of an existing product. D) A company depends on its R&D department to come up with new ideas. E) A company partners with a design agency to create a few prototypes.

A

Product mix depth refers to the ________. A) number of versions offered for each product in the line B) ways in which the various product lines are related C) number of different product lines the company carries D) total number of items a company carries within its product lines E) total market share captured by the entire product line

A

t/f Business and consumer marketers use many of the same variables to segment their markets.

true

An innovation management system would most likely be used by ________. A) managers to update details about customer information B) brand managers to collect, review, and evaluate new product ideas C) suppliers to access inventory information D) product managers to track logistics of a new product E) human resource managers to update information on employee incentives

B

Consistency of a product mix refers to the ________. A) number of versions offered for each product in the line B) ways in which the various product lines are related C) number of different product lines the company carries D) total number of items a company carries within its product lines E) total market share captured by the entire product line

B

Service variability means that ________. A) the evaluation of services is subjective and changes from customer to customer B) service quality depends on when, where, and how they are provided C) services cannot be stored for later sale or use D) services cannot be seen, tasted, felt, heard, or smelled before they are bought E) services can be separated from their providers

B

Which of the following is an example of licensing? A) DMX, an electronics manufacturer, acquires Z-Elex, a start-up firm, and sells all Z-Elex's products under the DMX brand name. B) Berry, a fruit juice company, uses a well-known cartoon character to promote the company's line of children's products and pays the creator of the cartoon character a fee. C) XLC, a sporting goods firm, sponsors a number of top athletes in various sports and also hosts the XLC Sporting Achievement Awards. D) ZetaBike, a bicycle manufacturer, teams up with VitaWater, a sports drink producer, to introduce ZetaVita, an energy drink. E) Mason's, a retail chain, sells a number of different products from different manufacturers under the brand name Mason's.

B

Which of the following statements is most likely true about unsought products? A) Unsought products are consumer products and services that customers buy frequently. B) Marketers use aggressive advertising to convince consumers to buy unsought products. C) Unsought products are typically purchased for further processing by industrial manufacturers. D) Compared to convenience products, unsought products are purchased more frequently. E) Unsought products offer many unique characteristics to status-conscious consumers.

B

t/f Since suppliers are so close to the market, they are valuable sources of information about consumer problems, marketing opportunities, and new product possibilities.

false

A market segment is less attractive when ________. A) there are few aggressive competitors in the segment B) it is difficult for new entrants to enter the segment C) it contains powerful suppliers who can control prices D) substitute products are unavailable in the segment E) buyers in the market segment have weak bargaining powers

C

Product mix width refers to the ________. A) number of versions offered for each product in the line B) ways in which the various product lines are related C) number of different product lines the company carries D) total number of items a company carries within its product lines E) total market share captured by the entire product line

C

t/f Specialty products are primarily purchased for use in conducting a business

false

Which of the following is most likely a true statement about shopping products? A) Shopping products tend to be less expensive than convenience products. B) The existence of such products is generally unknown to consumers. C) Shopping products are purchased less frequently than convenience products. D) Consumers typically spend very little time comparing shopping products. E) A life insurance policy is an example of a shopping product.

C

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy? A) market segmentation, differentiation, positioning, and market targeting B) positioning, market segmentation, mass marketing, and market targeting C) market segmentation, market targeting, differentiation, and positioning D) market alignment, market segmentation, differentiation, and market positioning E) market recognition, market preference, market targeting, and market insistence

C

Which of the following is true of perceptual positioning maps? A) They are used by marketers to divide a market into smaller groups with distinct characteristics. B) They are used by marketers to identify supplier and retailer perceptions of a product. C) They are used to analyze consumer perceptions of a brand relative to competing products. D) They are used to divide buyers into groups based on their perceived income and age. E) They are used to plot the geographic segments that a company needs to target.

C

Which of the following is true of the product life cycle (PLC)? A) All products generally go through all five stages of the PLC. B) All products pass through the stages of PLC in the same order. C) It is generally difficult to forecast the sales level at each PLC stage. D) The PLC concept can be applied to styles but not to fashions and fads. E) Product forms have longer life cycles than product classes.

C

t/f The amount of test marketing needed is the same for each new product.

false

In a sequential new product development process, which of the following is true of the product development step? A) Product development is usually followed by a business analysis of the product. B) Product development involves introducing a product into realistic market settings. C) Product development avoids testing products on actual customers due to liability concerns. D) Product development is usually followed by test marketing. E) Product development helps top management review profit projections.

D

Product mix length refers to the ________. A) number of versions offered for each product in the line B) ways in which the various product lines are related C) number of different product lines the company carries D) total number of items a company carries within its product lines E) total market share captured by the entire product line

D

The first part of a marketing strategy statement describes the ________ of a new product. A) planned price and distribution B) marketing budget C) marketing mix strategy D) target market, planned value proposition, and sales goals E) planned long-run sales and market share

D

Which of the following is a desirable quality for a brand name? A) The name should be unique and difficult to pronounce to ensure legal protection. B) The name should be a common word rather than a distinctive one. C) The name should not suggest anything about the product quality. D) The name should translate easily into foreign languages. E) The name should not be extendable.

D

Which of the following is a disadvantage of a team-based approach to new product development? A) It lengthens the time required to get the right products to market. B) It involves the use of a rigid, sequential product development approach. C) A bottleneck at one place can seriously hinder the entire project. D) Organizational confusion and tension are likely to affect the process. E) The process is highly ineffective for products with short life cycles.

D

Which of the following is an example of a shopping product? A) toothpaste B) fast food C) laundry detergent D) television E) candy

D

Which of the following is true of product positioning? A) A product's position is defined by the number of competitors in a market. B) Product positioning has little influence on the design of marketing mixes. C) Consumers generally reevaluate products every time they make a buying decision. D) To simplify the buying process, consumers are likely to position products in their minds. E) Consumers cannot position products with or without the help of marketers.

D

Which of the following statements is most likely true about the product life cycle? A) Throughout the product introduction stage, sales are zero. B) The growth stage is the longest stage of the product life cycle. C) Profits are nonexistent in the growth stage. D) Growth is a period of rapid market acceptance and increasing profits. E) Maturity is the period when sales fall off but profits continue to rise.

D

t/f The augmented product is considered the basic level among the three levels of product.

false

t/f The business analysis stage is the final step in the new product development process.

false

t/f The demand curve shows the number of units the market will buy in a given time period at similar prices.

false

t/f The full positioning of a brand is called the unique selling proposition.

false

BerryBerry is a fruit juice company that has traditionally sold three varieties of mixed-fruit juices: DazzleBerry, AquaBerry, and GloBerry. The company wants to add more products to its product line. In this case, which of the following is an example of co-branding by BerryBerry? A) The company introduces BerryBliss, a dried berry snack mix for kids. B) BerryBerry adds a new fruit juice flavor, TangyBerry. C) The company introduces a line of flavored milk and yogurt under a new brand name. D) The company creates a new brand, NatureFresh, for a line of cosmetics based on fruit flavors and colors. E) BerryBerry teams up with SFX, a sporting goods company, to introduce a line of energy bars called BerryBerry SFX.

E

In which of the following cases is little or no test marketing most likely recommended for a new product? A) when the product requires a major investment B) when management is unsure of the projected demand for the product C) when the risks associated with introducing the product are high D) when management is unsure of the marketing program for the product E) when the costs of developing and introducing the product are low

E

Which of the following statements about break-even analysis is most likely true? A) It determines how customer-perceived value changes with value-added pricing. B) It is a tool used to calculate fixed costs. C) It is used to determine the maximum price that can be set on a product. D) It is a tool marketers use to examine the relationship between supply and demand. E) It fails to consider customer value and the relationship between price and demand.

E

Which of the following statements is most likely true about the new product development process? A) The first step in developing a new product involves determining any budgetary or distribution limitations. B) Most firms discourage employees from contributing new product ideas because of legal concerns. C) In most cases, concept testing is followed by concept development. D) A product concept should be developed for each idea before it goes through idea screening. E) Customers, competitors, distributors, and suppliers are major sources of new product ideas.

E

Which statement about convenience products is most likely true? A) They are distributed exclusively in only one or a few outlets per market area. B) They are products that consumers rarely consider buying. C) Luxury cars and designer clothes are examples of convenience products. D) Consumers need to make special purchasing efforts to buy such products. E) They are bought by consumers frequently and with minimal comparison.

E

t/f When using product bundle pricing, sellers combine several products and offer the bundle at an increased price for increased profit.

false

Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product? A) The product's quality supports its high price. B) Alternative products can enter the market easily. C) The market for the product is highly price sensitive. D) Prices increase incrementally as sales volume increases. E) Production costs rise with an increase in marketing efforts.

The market for the product is highly price sensitive

Howard Schultz, the founder of Starbucks, positioned his bistros as "a third place" between work and home where patrons could share and enjoy a cup of coffee with friends. This illustrates ________. A) an actual product B) a core customer value C) simple bundling D) an augmented product E) complex bundling

a core customer value

Which of the following is most likely true of a product in the maturity stage of the product life cycle? A) Sales are zero, and the company's investment costs mount. B) New competitors enter the market. C) A slowdown occurs in sales growth. D) Sales increase with decreasing competition. E) New distribution channels are acquired.

a slowdown in sales growth

t/f When using product line pricing, a firm sets one price for all products in the line based on average manufacturing costs.

false

Market segments that can be effectively reached and served are said to be ________. A) measurable B) accessible C) substantial D) actionable E) profitable

accessible

When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________. A) accessible B) measurable C) reachable D) actionable E) differentiable

actionable

Delta, an American video game manufacturer, targets teens between the ages of 13 and 18, providing free game trials and applications. The firm's marketing approach exemplifies ________ segmentation. A) age and life-cycle B) geographic C) occasion D) gender E) income

age and life-cycle

One reason demographic variables are the most popular bases for segmenting customer groups is because they ________. A) create smaller segments B) create more easily accessible segments C) do not involve stereotypes D) are easier to measure than other variables E) involve fewer attributes to consider

are easier to measure than other variables

Wilkinson & Company sells plumbing supplies across the United States. Wilkinson uses Chicago as its central location for determining freight costs regardless of the city from which products are actually shipped. For example, a Dallas customer pays the freight cost from Chicago to Dallas even if the goods are shipped from Dallas. Wilkinson most likely uses ________ pricing. A) basing-point B) FOB-origin C) freight-absorption D) zone E) reference

basing-point

Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called ________ segmentation. A) behavioral B) psychographic C) age and life-cycle D) user status E) geographic

behavioral

The marketing manager at Frizzles' Eateries targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of low-fat, low-calorie meals that appeal to dieters. Frizzles' approach is best referred to as ________ segmentation. A) age and life-cycle B) user status C) benefit D) demographic E) geographic

benefit

A ________ is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service. A) prototype B) paradigm C) framework D) patent E) brand

brand

________ involves using an existing brand name for a new product category. A) Line extension B) Co-branding C) New branding D) Brand extension E) Multibranding

brand extension

Which of the following costs is most likely associated with commercialization? A) building or renting a manufacturing facility B) paying groups of consumers for participating in crowdsourcing activities C) determining a product's planned price, distribution, and marketing budget D) developing a prototype of a product E) using simulated tests to measure market capacity

building or renting a manufacturing facility

Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product? A) test marketing B) idea screening C) business analysis D) marketing strategy development E) concept testing

business analysis

________ involves a review of the sales, costs, and profit projections for a new product to determine whether they satisfy a company's objectives. A) Vendor analysis B) Portfolio analysis C) Business analysis D) SWOT analysis E) Concept analysis

business analysis

) In terms of packaging functions, Tiffany & Co.'s robin egg blue boxes ________. A) are primarily used to hold and protect products B) have created confusion in the marketplace C) create immediate consumer recognition D) deemphasize the importance of labels E) stifle brand awareness and recognition

create immediate consumer recognition

Which of the following is an example of a convenience product? A) candy B) furniture C) life insurance D) automobile E) refrigerator

candy

Establishing prices for razor blades that must be used with a razor blade system is known as ________ pricing. A) by-product B) market-penetration C) product line D) product bundle E) captive-product

captive-product

When a manufacturer offers a ________, a customer buys a product from a manufacturer's dealer within a specified time period, and the manufacturer then sends the customer a check. A) cash rebate B) quantity discount C) promotional allowance D) flash sale E) functional discount

cash rebate

Which of the following is an industrial product categorized under materials and parts? A) factory B) cement C) generator D) drill presses E) coal

cement

Gershwin, a musical toy for toddlers, is in the maturity stage of the product life cycle, and Gershwin managers have decided to modify the product. What will Gershwin managers most likely do to achieve this goal? A) change distributors B) offer coupons for the toy C) change the packaging of the toy D) launch an online advertising campaign E) cut prices of the toy to attract new customers

change the packaging of the toy

Which of the following types of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance? A) services differentiation B) channel differentiation C) people differentiation D) product differentiation E) price differentiation

channel differentiation

________ occurs when two established brand names of different companies are used on the same product. A) Licensing B) Co-branding C) Private branding D) Franchising E) Brand positioning

co-branding

Which of the following is an industrial product categorized under supplies and services? A) coal B) wheat C) lumber D) elevator E) generator

coal

Introducing a new product into the market is called ________. A) test marketing B) segmentation C) product development D) commercialization E) market penetration

commercialization

Los Amigos, a new Mexican restaurant, has set up shop across the street from Hot Tamales and More. Which of the following pricing strategies will Los Amigos likely use? A) cost-plus B) competition-based C) break-even D) good-value E) target costing

competition-based

A brand difference is said to be preemptive if ________. A) competitors cannot easily copy the difference B) buyers can afford to pay for the difference C) the difference can be introduced profitably D) the difference is communicable E) the difference is beneficial to customers

competitors cannot easily copy the difference

The full positioning of a brand is referred to as the ________. A) differentiated strategy B) concentrated strategy C) unique selling proposition D) value proposition E) undifferentiated strategy

concentrated strategy

The stage in which product ideas are presented to groups of target consumers physically or symbolically is referred to as ________. A) concept testing B) concept development C) test marketing D) marketing strategy development E) crowdsourcing

concept testing

Evans and Hills, a beverages manufacturing company, has developed a new line of specialty teas and is seeking regular input from the test marketing process. To facilitate this process, the firm uses BuyerScan, a software that generates store-by-store, week-by-week reports on the actual sales of tested products and the impact of in-store and in-home marketing efforts. Which of the following approaches does this scenario illustrate? A) standard test markets B) inventory tracking C) controlled test markets D) simulated test markets E) direct commercialization

controlled test markets

Laundry detergent, candy, magazines, and fast food are purchased frequently by customers. They are examples of ________ products. A) unsought B) shopping C) convenience D) specialty E) industrial

convenience

________ products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. A) Shopping B) Specialty C) Capital D) Convenience E) Unsought

convenience

Which of the following would most likely trigger a price increase? A) cost inflation B) reduced demand C) cheaper alternatives D) reduced expenses E) overproduction

cost inflation

A company adding new features to a product will most likely assess each feature's value to customers relative to its ________. A) cost to the company B) performance in the market C) benefits to the company D) cost to the customers E) benefits to the supplier

cost to the company

________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk. A) Competition-based B) Value-added C) Cost-based D) Good-value E) Demand-based

cost-based

Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors will be $5. Lovely Skin is using a ________ approach to price the new moisturizer. A) value-added B) good-value C) cost-plus D) competitor-based E) break-even

cost-plus

Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton is using ________ to generate new product ideas. A) marketing strategy development B) crowdsourcing C) concept development D) business analysis E) test marketing

crowdsourcing

________ uses buyers' perceptions of what a product is worth as the key to pricing. A) Customer value-based pricing B) Target return pricing C) Cost-plus pricing D) Psychological pricing E) Competition-based pricing

customer value-based pricing

Sleek Designs Inc. is producing its first eReader. The company is striving to overcome some of the issues communicated by customers about competitive products including screen glare and product bulkiness. Sleek Designs Inc. is using a ________ approach in their new product development process. A) customer-centered B) team-based C) sequential D) supply/demand E) systematic

customer-centered

Metro Museum has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________ pricing. A) time-based B) location-based C) customer-segment D) by-product E) product form

customer-segment

t/f Pricing strategies usually remain the same as a product passes through its life cycle.

false

t/f Product line filling occurs when a company lengthens its product line beyond its current range.

false

t/f Products include only tangible objects.

false

________ pricing occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers. A) Predatory B) Psychological C) Deceptive D) Cost-plus E) Allowance

deceptive

A product life cycle has five distinct stages: product development, introduction, growth, maturity, and ________. A) stabilization B) rebranding C) decline D) progression E) segmentation

decline

During the ________ stage of the product life cycle, product sales may plunge to zero, or drop to a low level where they continue for many years. A) decline B) growth C) maturity D) ideation E) analysis

decline

The relationship between the price charged for a product and the resulting demand level can be shown in a(n) ________. A) demand curve B) supply curve C) elastic demand slope D) break-even chart E) inelastic demand slope

demand curve

Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry's most likely segments the consumer market based on ________ variables. A) geographic B) psychographic C) universal D) demographic E) behavioral

demographic

Lilly's, a furniture retailer, sells low-end furniture and accent pieces that are targeted toward lower-income consumer groups. Lilly's most likely segments the consumer market based on ________ variables. A) demographic B) psychographic C) universal D) geographic E) behavioral

demographic

Pediacertain Pet Supplies, a pet-food company, divides the pet market according to the pet owners' gender, occupation, income, and family life cycle. In this case, which of the following variables has the company used for market segmentation? A) geographic B) psychographic C) benefit D) demographic E) occasion

demographic

If men and women respond dissimilarly to the marketing efforts for a root beer-flavored malt beverage, they are considered ________ market segments. A) accessible B) measurable C) reachable D) differentiable E) observable

differentiable

Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ________ marketing. A) concentrated B) differentiated C) individual D) mass E) local

differentiated

t/f Salon Finish is test marketing its new smoothing shampoo by assessing consumer satisfaction in laboratory stores where hair is washed and blown dry. Salon Pro is using controlled test marketing in this scenario.

false

t/f Service variability means that the quality of services does not depend on who provides them.

false

Danko International is a multinational company that targets the BRIC countries (Brazil, Russia, India, and China) because they're fast-growing developing economies and use ________ to segment its world markets. A) political factors B) legal factors C) personality factors D) economic factors E) cultural factors

economic factors

Brands vary in the amount of power and value they hold in the marketplace. Iconic brands like Apple, Google, and Harley-Davidson have achieved substantial brand ________. A) capital B) personality C) perception D) esteem E) equity

equity

Which of the following is an example of an industrial product grouped under capital items? A) factory B) cement C) crude petroleum D) coal E) paint

factory

Flurrbies, a line of winter accessories by a leading fashion label, quickly fell in and out of favor with customers. Flurrbies represents an example of a ________. A) form B) fashion C) fad D) style E) drift

fad

t/f A sequential product development approach is team-oriented, enabling firms to bring products to market very quickly.

false

t/f Acquisitions are not considered a source of new products for organizations

false

t/f An abstract presentation of a product concept is likely to increase the reliability of the concept test.

false

t/f An airline runs a 6-month promotional program where all baggage fees are waived. It is using a cost-based pricing strategy.

false

t/f Cian, an automobile manufacturer, offers a new car model with features comparable to that of another popular brand. However, the Cian model is priced lower than its competitor and includes a longer warranty. Cian is most likely following a more-for-the-same strategy.

false

t/f Companies today are moving away from target marketing and toward mass marketing.

false

t/f Concept testing typically follows the marketing strategy development phase of the new product development process.

false

t/f Consumers rarely compare shopping products before purchasing them.

false

t/f Corporate image marketing consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people.

false

t/f Cupcake Gourmet, a high-end bakery in Manhattan, segments its customers according to those who frequent their store regularly, those who visit infrequently, and those who have never visited. This is an example of usage-rate segmentation.

false

t/f Demographic variables are generally more difficult to measure than most other types of variables.

false

t/f During concept testing, a product is evaluated by management without any input from external sources.

false

t/f Everyday low pricing is a cost-based pricing strategy.

false

t/f Federal legislation on price-fixing states that sellers must set prices after talking to customers and competitors.

false

t/f Freight-absorption pricing is used for market skimming and holding on to monopolistic markets.

false

t/f If demand is elastic rather than inelastic, sellers typically consider increasing their prices.

false

t/f It's important for a market pioneer to choose a launch strategy that is consistent with competitive positioning strategies.

false

t/f Life insurance is an example of a convenience product.

false

t/f Light users are often a small percentage of a company's market but account for a high percentage of total consumption.

false

t/f Line extensions occur when a company extends existing brand names to new or modified products in a new category.

false

t/f Manufacturers rely on distributors and suppliers as internal sources of new product ideas.

false

t/f Marketers typically limit their market segmentation analysis to a single variable in order to simplify the process.

false

t/f Modifying a product is an ineffective strategy in the maturity period of the product life cycle because the product's decline is irreversible at this stage.

false

t/f Orienting and motivating customer-contact employees to work as a team to provide customer satisfaction is known as social marketing.

false

Parvon, a cleaning product, is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely take to achieve this goal? A) find new market segments for the brand B) improve the overall quality of the product C) reduce mass media advertising expenses D) offer improved services to new buyers E) conduct controlled test marketing activities

find new market segments for the brand

Each PC produced by HP involves a cost of computer chips, wires, plastic, packaging, and other inputs. Although these costs tend to be the same for each unit produced, they are called ________ costs because the total changes based on the number of units produced. A) fixed B) variable C) target D) capital E) payroll

fixed

Rent, electricity, and executive salaries that do not vary with production or sales level are referred to as ________ costs. A) fixed B) variable C) break-even D) target E) promotional

fixed

P&G was among the first to use ________ segmentation when it introduced Secret, a deodorant brand specially formulated for women's chemistry. A) age and life-cycle B) gender C) behavior D) psychographic E) geographic

gender

Gulf Coast, a wholesale shrimp distributor, groups its customers by regions in the United States, such as Midwest, Northeast, and Southwest. For each region, Gulf Coast tailors a different set of advertisements and promotions. The supplier is segmenting its market according to ________. A) behavioral factors B) personality characteristics C) geographic location D) benefits sought E) demographics

geographic location

Retailers like Walmart and Target carry less-expensive versions of established brand name products or new lower-price lines. They have adopted a ________ pricing strategy. A) high-low B) target return C) cost-plus D) good-value E) market-skimming

good-value

In the ________ stage, a firm most likely faces a trade-off between high market share and high current profit. A) growth B) decline C) maturity D) introduction E) commercialization

growth

Consumers rely less on price to judge the quality of a product when they ________. A) lack information about the product B) are unable to research the product C) have prior experience with the product D) are unable to judge the quality of the product E) rely on cues from sellers to differentiate a high or low price

have prior experience with the product

Compared with undifferentiated marketing, differentiated marketing is more likely to lead to ________. A) reduced sales in each market segment B) weaker product position in each market segment C) higher costs of doing business D) redundancy in product design across market segments E) smaller market share in the industry

higher costs of doing business

The new product development process usually starts with ________. A) idea screening B) idea generation C) concept development D) concept testing E) market strategy development

idea generation

Safari Unlimited recently conducted national research to generate ideas for a new line of fatigues geared to women. The company uncovered a number of ideas about clothing and accessory preferences as well as important benefits such as built-in sunblock and durability. The Safari Unlimited product development team will most likely use ________ next to arrive at a realistic number of products for the new fatigues line. A) crowdsourcing B) idea screening C) concept testing D) concept development E) business analysis

idea screening

Which of the following steps of the new product development process would most likely use an R-W-W framework? A) idea generation B) idea screening C) concept testing D) test marketing E) commercialization

idea screening

The distinctive yellow and blue "hands held high" logo of a local daycare distinguishes it from other establishments. The logo is prominently displayed on its building, t-shirts worn by the children, and at fundraising events. The daycare has differentiated itself through ________. A) image B) people C) services D) channels E) positioning

image

When firms use symbols, colors, or characters to convey their personalities, they are using ________ differentiation. A) image B) people C) usage-rate D) user-status E) channel

image

Which type of market segmentation is generally used by marketers who sell luxury products targeted to the affluent segments of a population? A) usage rate B) occasion C) income D) benefits sought E) gender

income

A product line is most likely too short if managers can ________. A) increase profits by dropping items B) decrease costs by adding items C) increase market share by dropping items D) decrease costs by dropping items E) increase profits by adding items

increase profits by adding items

A product line is most likely too long if managers can ________. A) decrease costs by adding items B) increase market share by adding items C) increase profits by dropping items D) decrease costs by dropping items E) increase profits by adding items

increase profits by dropping items

The marketing manager of Refresh Inc., a leading producer of soft drinks, is considering a differentiated marketing strategy. An important consideration is weighing increased sales against ________ before selecting this strategy. A) decreased production B) increased demand C) increased costs D) decreased prices E) increased profits

increased costs

At the extreme, micromarketing becomes ________ insofar as products and marketing programs are tailored to the needs and preferences of customers. A) differentiated marketing B) multi-segmented marketing C) local marketing D) mass marketing E) individual marketing

individual marketing

When demand hardly changes with a small change in the price of a product, the demand for the product is best described as ________. A) elastic B) flexible C) inelastic D) variable E) cyclical

inelastic

A doctor performing hip surgery on a patient illustrates how a service can be produced and consumed simultaneously. This is an example of which service characteristic? A) tangibility B) intangibility C) perishability D) variability E) inseparability

inseparability

t/f An important consideration when determining what price to charge in a specific country is the nature of the wholesaling and retailing system in that country.

true

Unlike other car rental agencies that are based in airports to serve travelers, Rental Wheelz has a network of neighborhood offices. The firm strives to serve people who need car rentals for reasons other than vacation, such as when their own cars are being repaired. Rental Wheelz caters to a small share of the large car rental market. From this description, it can be concluded that Rental Wheelz most likely practices ________. A) undifferentiated marketing B) multi-segmented marketing C) individual marketing D) local marketing E) concentrated marketing

local marketing

Busch Stadium in St. Louis charges different prices for seats in different areas of the ball park, even though each seat costs the same for the owners of the stadium. What is this form of pricing called? A) location-based pricing B) market-skimming pricing C) product-form pricing D) time-based pricing E) market-penetration pricing

location-based pricing

1) ________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior. A) Differentiation B) Mass marketing C) Market targeting D) Market segmentation E) Positioning

market segmentation

The first Target store opened in 1962. Its initial strategy was to set prices low to attract a large number of buyers quickly and win a large market share. This is referred to as ________. A) market-skimming pricing B) market-penetration pricing C) value-added pricing D) target costing E) deceptive pricing

market-penetration pricing

The first generation Apple iPod was introduced in 2001 and sold for $500. The following year a mini version was introduced for $250. Apple initially used a ________ strategy to price their digital music innovation. A) market-skimming B) target costing C) deceptive D) market-penetration E) predatory

market-skimming

Posh Collections introduced a new watch to appeal to upscale consumers. The company will most likely use a(n) ________ strategy. A) market-skimming pricing B) market-penetration pricing C) optional-product pricing D) by-product pricing E) allowance pricing

market-skimming pricing

Doggie World concept tested an idea for a new chew toy that would entertain dogs while simultaneously cleaning their teeth. Dog owners were pleased with the results. The next stage in developing the new product concept is ________. A) idea screening B) marketing strategy development C) business analysis D) product development E) test marketing

marketing strategy development

When a company interacts one-on-one with large numbers of customers to create customer-unique value by designing products and services tailor-made to individual needs, it is engaging in ________. A) concentrated marketing B) mass marketing C) mass customization D) differentiated marketing E) local marketing

mass customization

Marketing the same product to a huge customer base without any customization is referred to as ________. A) mass marketing B) differentiated marketing C) niche marketing D) local marketing E) individual marketing

mass marketing

Cement is an example of an industrial product that is categorized under ________. A) capital items B) augmented products C) supplies and services D) materials and parts E) shopping products

materials and parts

Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the product life cycle. A) introduction B) maturity C) growth D) decline E) incubation

maturity

When a product is in the ________ stage, profits level off or decline because of increased marketing outlays to defend the product against competition. A) production B) decline C) maturity D) test marketing E) conception

maturity

When the size, purchasing power, and profiles of a market segment can be determined, the market segment is said to be ________. A) measurable B) accessible C) substantial D) actionable E) observable

measurable

The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________. A) niche marketing B) micromarketing C) segmented marketing D) global marketing E) undifferentiated marketing

micromarketing

Appliances Galore is continually updating its line of refrigerators to reflect market trends and customer needs. Although the product class is in the maturity stage of the product life cycle, they maintain healthy sales of their line of refrigerators by continually ________. A) concept testing B) modifying the marketing mix C) rebranding D) modifying the product E) modifying the market

modifying the product

The Sherman Act, Clayton Act, and Robinson-Patman Act are all federal laws that were initially adopted to curb the formation of ________. A) monopolies B) oligopolies C) competitive markets D) international markets E) limited partnerships

monopolies

Under ________, the market consists of many buyers and sellers trading over a range of prices rather than a single market price. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a pure monopsony

monopolistic competition

Household Storez, a local retail store, claims to offer better products at lower prices than other retail stores. In this case, the firm's positioning reflects a ________ value proposition. A) more-for-the same B) more-for-less C) same-for-less D) more-for-more E) same-for-more

more-for-less

Which of the following strategies is most likely to be followed by firms that position themselves as caterers of the best products at economical prices? A) more-for-the-same B) more-for-less C) same-for-less D) more-for-more E) less-for-much-less

more-for-less

Rad, a manufacturer of luxury watches, charges a higher price for its products than its competitors. Despite the high prices, the brand is popular among customers for its quality and service in comparison to cheaper alternatives available in the market. In this case, Rad offers a(n) ________ value proposition. A) more-for-more B) more-for-the-same C) more-for-less D) all-or-nothing E) same-for-less

more-for-more

Sportware, a leading shoe manufacturer, markets sneakers under the brand name "Athletix" and dress shoes under the brand name "Cameo" in order to target the two different market segments. What branding strategy is most likely being used by Sportware? A) brand extensions B) line extensions C) multibrands D) new brands E) co-brands

multibrands

Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on ________. A) demographic variables B) geographic regions C) multiple segmentation bases D) behavioral variables E) psychographic segmentation bases

multiple segmentation bases

Xenon, a leading consumer-electronics manufacturing company, markets its products under the company's own brand name. In this case, Xenon has sponsored its products by promoting them as ________ brands. A) licensed B) private C) store D) national E) distributor

national

Bakeries and coffee bistros that offer pumpkin-flavored items only during the autumn season target their consumers primarily through ________ segmentation. A) psychographic B) demographic C) income D) occasion E) age and life-cycle

occasion

Under ________, the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) pure monopsony

oligopolistic competition

Computer World sells laptops separately from accessory products like docking stations, anti-virus software, and external hard drives. This is referred to as ________ pricing. A) product bundle B) optional-product C) market-penetration D) by-product E) product line

optional-product

Which of the following terms best describes the process of designing and producing a container or wrapper for a product? A) labeling B) positioning C) licensing D) packaging E) branding

packaging

As a result of ________, a company cannot make its product illegally similar to a competitor's already established product. A) anti-monopoly laws B) patent laws C) antitrust laws D) product warranties E) product liability

patent laws

Argonaut Food Stores, a retail giant, hires better-skilled employees than its competitors by employing strategic recruitment practices. It also conducts highly specialized training programs for its employees. In this case, Argonaut has focused on gaining a strong competitive advantage through ________ differentiation. A) image B) people C) services D) product E) channel

people

World Skies' Flight 167 takes off at 50 percent capacity. The unoccupied seats cannot be stored for later sale or use. This is an example of which service characteristic? A) tangibility B) intangibility C) perishability D) variability E) inseparability

perishability

The second part of a marketing strategy statement describes the ________ of a new product. A) marketing mix strategy B) profit and sales goals C) planned price, distribution, and marketing budget D) target market and sales goals E) planned value proposition

planned price, distribution, and marketing budget

Zeal is a popular automobile brand, and its positioning statement is: "For upscale American families who require large vehicles, Zeal is the automobile of choice." Which of the following mandatory elements is missing from the positioning statement? A) point of difference B) target audience C) brand name D) product category E) need

point of difference

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. A) Differentiation B) Positioning C) Market targeting D) Market segmentation E) Mass marketing

positioning

Company and brand positioning should be summed up in a ________. A) mission statement B) vision statement C) profit statement D) positioning statement E) corporate statement

positioning statement

Which of the following includes the target segment of a product, the category to which the product belongs, and the product's point of difference from other members in the category? A) mission statement B) vision statement C) profit statement D) positioning statement E) inventory statement

positioning statement

________ pricing refers to selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business. A) Oligopolistic B) Captive C) Dynamic D) Zone E) Predatory

predatory

Penny Bank, a discount store, is highly competitive. When entering a new market, Penny Bank often cuts prices so deeply that it sells below costs, effectively pushing smaller retail stores with less purchasing power out of the market. In this case, Penny Bank is using ________. A) market skimming B) psychological pricing C) predatory pricing D) deceptive pricing E) cost-plus pricing

predatory pricing

________ is the only element in the marketing mix that produces revenue. A) Price B) Place C) Promotion D) Product E) Profit

price

________ is the sum of all the values that customers give up to gain the benefits of having or using a product or service. A) Payroll B) Profit C) Price D) Cost E) Salary

price

Fred's, a national supermarket chain, sells its own brand of items across all categories. Such items are considered ________ brands. A) national B) manufacturer's C) private D) extended E) licensed

private

Eastline, a manufacturer of outdoor patio furniture, positions its products as superior in weatherproofing and durability. This is an example of ________ differentiation. A) product B) services C) image D) people E) channels

product

Flores Fashions promotes its clothing by emphasizing the durability and quality of the fabrics it uses. The company has positioned its brand based on ________. A) product benefits B) product attributes C) beliefs and values D) market share E) brand loyalty

product attributes

Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment is $35. But the combo price is $50. This is referred to as ________ pricing. A) by-product B) product bundle C) captive-product D) optional-product E) product line

product bundle

There are more than 50 blueberry farmers in Shammonton, New Jersey, that grow, package, and distribute the same quality blueberries. An individual farmer cannot charge more than the going market price per unit without the risk of losing business to the other farmers. This is an example of ________. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a black market

pure competition

________ prices are carried in buyers' minds and used when looking at a given product. A) Captive-product B) Reference C) Promotional D) Geographical E) Dynamic

reference

Many companies are taking a ________ approach today, viewing quality as an investment and holding quality efforts accountable for bottom-line results. A) return-on-quality B) quality level C) performance quality D) conformance quality E) total quality management

return-on-quality

Which of the following is true about the introduction stage of a new product? A) Profits are typically high. B) Promotion spending is relatively low. C) Less money is needed to attract distributors. D) Companies tend to avoid basic versions of the product. E) Sales growth tends to be slow.

sales growth tends to be slow

Which of the following is true of the growth stage of the product life cycle? A) New competitors avoid the market. B) Prices tend to increase significantly. C) Early adopters stop buying the product. D) Profits are nonexistent at this stage. E) Sales start climbing quickly.

sales start climbing quickly

The third part of a marketing strategy statement describes the ________ of a new product. A) sales, market share, and profit goals B) distribution and pricing C) marketing budget D) planned value proposition E) target market and sales goals

sales, market share, and profit goals

Which positioning strategy offers value for consumers by providing the same brands as competitors at a lower price? A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) more-for-more

same-for-less

The National Tree Company offers resellers half-price reductions on artificial Christmas trees if they purchase them in July. This is an example of a ________. A) functional discount B) seasonal discount C) promotional allowance D) trade-in allowance E) quantity discount

seasonal discount

Under a ________ product development approach, one company department works to complete its stage of the product development process before passing the new product along to the next department and stage. A) cross-sectional B) simultaneous C) sequential D) team-based E) systematic

sequential

Which of the following is most likely a true statement about services? A) Services can be stored for later sale or use. B) Service quality is not dependent on the provider. C) Services can be easily separated from their providers. D) Service industries vary greatly. E) Demand fluctuation has little to no impact on service providers.

service industries vary greatly

________ refer to a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible. A) Co-brands B) Line extensions C) Services D) Pure products E) Horizontal extensions

services

Companies are likely to gain ________ through speedy, convenient, or careful delivery of products. A) price differentiation B) product differentiation C) channel differentiation D) services differentiation E) people differentiation

services differentiation

Which of the following is a pure tangible good? A) shampoo B) a spa treatment C) financial advice D) a meal at a restaurant E) a medical check-up

shampoo

Major appliances, furniture, and clothing are typical examples of ________ products. A) convenience B) shopping C) unsought D) specialty E) capital

shopping

________ products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. A) Convenience B) Capital C) Unsought D) Shopping E) Secondary

shopping

Using ________, researchers measure consumer responses to new products and marketing tactics in laboratory stores or virtual online shopping environments. A) simulated test markets B) controlled test markets C) business analysis D) standard test markets E) concept development

simulated test markets

The use of traditional business marketing concepts and tools to create behaviors that will benefit individual and societal well-being is called ________ marketing. A) person B) green C) non-profit D) social E) traditional

social

________ products are consumer products and services with unique characteristics or brand identifications for which a significant group of buyers is willing to make more effort than usual to purchase. A) Unsought B) Obsolete C) Intangible D) Convenience E) Specialty

specialty

Susan has been redecorating her new condo for a year. She is carefully selecting every item. Susan finds an oriental rug that matches her color scheme and décor perfectly and purchases it immediately without engaging in comparison shopping. This is an example of a(n) ________. A) shopping product B) convenience product C) specialty product D) industrial product E) capital product

specialty product

Lengthening a product line beyond its current range is referred to as product line ________. A) filling B) strengthening C) mixing D) stretching E) widening

stretching

Colonial furniture has been in existence since the 1600s and continues to adorn homes today. According to the product life cycle concept, it would be described as a ________. A) style B) fashion C) fad D) trend E) drift

style

When a market segment is large or profitable enough to serve, it is termed ________. A) measurable B) accessible C) substantial D) actionable E) differentiable

substantial

A company's external sources of new product ideas include its ________. A) managers B) salespeople C) engineers D) manufacturing staff E) suppliers

suppliers

Business advisory services such as legal or advertising are classified under which category of industrial products? A) supplies and services B) capital items C) raw materials D) materials and parts E) specialty products

supplies and services

Radox, a luxury watch brand, identifies a market segment that is willing to pay premium prices for its watches, and Radox managers select an ideal selling price. Managers then determine the costs to create watches that meet the ideal selling price. The company's pricing approach is referred to as ________. A) mass production B) cost-plus pricing C) target costing D) value-added pricing E) target return pricing

target costing

The Fashion Store, a new startup, sets product prices so that revenues will equal manufacturing and marketing costs. The pricing strategy used by the company is referred to as ________ pricing. A) good-value B) value-added C) cost-plus D) competition-based E) target return

target return

________ pricing is when a firm tries to determine the price at which it will break even or earn the profit it is seeking. A) Competition-based B) Target return C) Cost-plus D) Good-value E) Value-added

target return

Under a ________ new product development approach, company departments work closely together in cross-functional groups, overlapping the steps in the product development process to save time and increase effectiveness. A) cross-sectional B) simultaneous C) sequential D) team-based E) systematic

team-based

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance departments work in cross-functional groups to save time and money in the new product development process. From this description, it can be inferred that Fantastic Flavors uses a(n) ________ approach. A) intradepartmental new product development B) sequential new product development C) team-based new product development D) simulated test market E) controlled test market

team-based new product development

) Foods International is developing a new gluten-free, chili-flavored pretzel. The marketing strategy for the product has already been developed and presented to top management. Several prototypes were also formulated by the company's R&D team. The final prototype is now being tested rigorously to ensure that it passes FDA standards. Once approved, the next step will most likely be ________. A) test marketing B) portfolio analysis C) commercialization D) internal marketing E) business analysis

test marketing

If a product passes both the concept test and the product test, the next step is most likely to be ________. A) marketing strategy development B) product development C) test marketing D) business analysis E) concept development

test marketing

________ is the stage where a product and its proposed marketing program are introduced into realistic market settings. A) Market strategy development B) Concept testing C) Test marketing D) Concept development E) Business analysis

test marketing

Silkskin Cosmetics is advertising its newest line of eye makeup. Made from all-natural ingredients, the products are hypoallergenic. Silkskin is selling the products in specially designed tubes that make application easier. Which of the following is a core customer value for Silkskin's line of eye makeup? A) the natural ingredients B) the Silkskin brand C) the products' revolutionary packaging D) the hypoallergenic properties of the products E) the desire for having beautiful eyes

the desire for hasving beautiful eye

________ can describe a product class, a product form, or a brand. A) The product development process B) The product life cycle concept C) Business analysis theory D) Vendor analysis theory E) Portfolio analysis

the product life cycle concept

How do firms that use captive-product pricing make up for the low prices of their main products? A) They reduce the cost of the captive products. B) They provide the captive products as freebies. C) They set high markups on the captive products. D) They increase the price of the main products. E) They offer the captive products and main products together at a reasonable price.

they set high markups on the captive products

Movie theaters charge matinee pricing during the daytime, and resorts give weekend and seasonal discounts. This is illustrative of a ________ pricing strategy. A) product form B) market-penetration C) market-skimming D) time-based E) value-added

time-based

________ costs refer to the sum of the fixed and variable costs for any given level of production. A) Target B) Marginal C) Value-based D) Total E) Break-even

total

Which group is most likely offered functional discounts by manufacturers? A) trade-channel members that perform sales tasks B) consumers who buy products in large quantities C) buyers who pay their bills before the due date D) buyers who purchase merchandise out of season E) retailers that participate in advertising programs

trade-channel members that perform sales tasks

Vac "N" Sew, a consumer electronics outlet, offers a price reduction of $100 when customers bring in a used vacuum cleaner and exchange it for a new vacuum cleaner or sewing machine. This is an example of a ________. A) functional discount B) cash discount C) seasonal discount D) trade-in allowance E) by-product allowance

trade-in allowance

T/F Total quality management is an approach in which all of the company's people are involved in constantly improving the quality of products, services, and business processes.

true

t/f ) Not all companies that use income segmentation target the affluent.

true

t/f A brand extension gives a new product instant recognition and faster acceptance.

true

t/f A break-even chart shows the total cost and total revenue expected at various sales volume levels of a product.

true

t/f A company or brand image should convey a product's distinctive benefits and positioning.

true

t/f A laptop that is purchased for a graphic design studio is considered an industrial product.

true

t/f A more-for-more market offering not only offers higher quality but also gives prestige to a buyer

true

t/f A product is defined as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

true

t/f An augmented product is a product that is built around the core benefit and actual product by offering additional consumer services and benefits.

true