MK exam 2

Which of the following would not be good advice for an organization trying to make new-product development a total company effort? Develop a culture that supports innovation. Designate a person, department, or team to be responsible for new-product development. Manage costs to add value. Get top management support. Use only R&D insights to drive market needs.

Use only R&D insights to drive market needs.

Which of the following is not one of the stages of the product life cycle? market growth market maturity economic competition sales decline market introduction

economic competition

Albert works as a server for a restaurant that gives him a certain amount of autonomy. For example, if customers complain about their meal, Albert is allowed to provide them with a free dessert or otherwise compensate them as he deems appropriate. He does not need to check with management before he makes his decision. In this case, the restaurant Albert works for is promoting better service quality through empowerment. strict regulations. innovation. reduction of defects. touchpoints.

empowerment.

When a firm chooses only one wholesaler or retailer to sell its products in each geographic area, this is known as ______ distribution. intensive exclusive mass widespread undifferentiated

exclusive

When franchisees demand protected markets, which of the following approaches is most appropriate? selective distribution multichannel distribution intensive distribution special distribution exclusive distribution

exclusive distribution

Which method of entering international markets generally involves the least risk? joint ventures direct investment licensing exporting management contracting

exporting

Which of the following conditions would not be favorable to branding? fluctuations in product quality due to inevitable variations in raw materials the possibility of dependable and widespread availability easy identification of products by brand or trademark growing demand for a product the existence of economies of scale in production

fluctuations in product quality due to inevitable variations in raw materials

Secondary data refers to information specifically collected to solve a current problem. data that cannot be accessed via the Internet. information that has been collected or published already. data that is more accurate and reliable than primary data. data that is rarely available and is expensive to retrieve.

information that has been collected or published already.

When Mark could not find his favorite candy bar, Pearson Salted Nut Roll, at his neighborhood supermarket, he drove across town to find it at another store. Mark was showing what level of brand familiarity? rejection preference recognition evaluation insistence

insistence

Nuxall Confections produces a variety of different candies. Nuxall Confections wants its candies to be available anywhere a consumer might look for them and as a result uses a wide variety of intermediaries to distribute them, including grocery stores, drugstores, convenience stores, gas stations, and vending machines. This is an example of ________ distribution. selective intensive exclusive national ideal market

intensive

A situation analysis aids the marketing research process in all the following ways except that it helps researchers gain knowledge about the marketing environment. interprets data and converts it to useful knowledge and business wisdom. helps marketing managers educate themselves about unfamiliar situations. aids marketing managers in assessing what information is currently available regarding the problem area. helps researchers figure out how to help the marketing managers.

interprets data and converts it to useful knowledge and business wisdom.

A channel of distribution must have at least three members—a manufacturer, a wholesaler, and a retailer. is a model that helps manufacturers track how final consumers distribute their income among various needs. describes the method through which a product is shipped to a customer. cannot include use of direct distribution from a website. is a series of firms or individuals who participate in the flow of products from producer to final user or consumer.

is a series of firms or individuals who participate in the flow of products from producer to final user or consumer.

A new product that requires only minor changes in customer behavior does not require concept testing. is called a dynamically continuous innovation. is not subject to time limits for the use of the word "new" as imposed by the FTC. is called a reverse prototype. is called a discontinuous innovation.

is called a dynamically continuous innovation.

A supercenter operate no-frills, members-only stores that offer homogenous shopping items at low prices. is concerned with providing all of the customer's routine needs at a low price. is another name for a niche-merchandiser. essentially refers to a specialty store. is another name for a "category killer."

is concerned with providing all of the customer's routine needs at a low price.

Traditional channel systems are characterized by channel partners who seek cooperation among all members. do not view other members as competitors. pursue a common set of objectives. lack a shared product-market commitment. do not buy and sell from each other.

lack a shared product-market commitment.

Product ideas that survive the screening and idea evaluation steps get further investment of time and money, including the creation of a(n) _____, which is an early sample or model built to test a concept. wireframe storyboard replica imitation prototype

prototype

Many firms use ______, who may specialize by product area in large companies, to help cut costs and coordinate relationships with suppliers. advertising specialists customer liaisons purchasing managers salespeople product managers

purchasing managers

Shonda is using open-ended questions to interview people from her company's target market in order to find out, in-depth, about their feelings about a new product. Shonda is conducting ______ research. tertiary fixed response quantitative qualitative secondary

qualitative

Which of the following is best defined as a product's ability to satisfy a customer's needs or requirements? quantity experience equity product quality

quality

A marketing manager for a firm which produces component parts should keep in mind that custom-made components are typically purchased through an online bidding system. most component buyers prefer to rely on one reliable source of supply. component parts are like convenience products. the aftermarket for component parts generally requires the same marketing mix as the one used to serve the original equipment market. quality is highly important because components become part of the buying firm's own product.

quality is highly important because components become part of the buying firm's own product.

Kiara owns a corner convenience store. In one aisle there is a display of about 30 different greeting cards for sale. The display is actually maintained by a ________ that ensures it is kept stocked with seasonally appropriate cards. mill supply house rack jobber truck wholesaler drop-shipper broker

rack jobber

Which of the following may be a business or organizational customer? 1) a producer of goods and services 2) a retailer 3) a wholesaler 4) a federal government agency 5) All of these examples may be business and organizational customers

5) All of these examples may be business and organizational customers

Which of the following is true of a franchise operation? A franchisor pays commission to the retail franchise holder. A retail franchise holder plans the marketing strategy for the franchisor. A franchise arrangement is free of any contracts. A franchisor benefits from the image established by a retail franchise holder. A franchise holder needs to strictly follow franchise rules established by the franchisor.

A franchise holder needs to strictly follow franchise rules established by the franchisor.

Which of the following statements is true of a second-mover? A second-mover is the first to market with a new product idea. A second-mover is one that quickly follows a pioneer. A second-mover has a weak customer focus. A second-mover is always less profitable over the long run. A second-mover is always at a disadvantage when compared to a pioneer.

A second-mover is one that quickly follows a pioneer.

Which of the following statements about different types of wholesalers is false? Brokers usually have a temporary relationship with the buyer and seller. Selling agents almost have complete control of pricing, selling, and advertising. Agent wholesalers are common in international trade. Manufacturers' agents usually represent noncompeting manufacturers. Agent wholesalers generally provide more services than limited-function wholesalers.

Agent wholesalers generally provide more services than limited-function wholesalers.

Which of the following is true of the final step of the marketing research process? It must have action implications or the research is useless. The research should be able to assist in choosing a target market or the mix of the Four Ps. It involves solving the problem. The marketing manager should be able to apply the findings in marketing research planning. All of the answers are correct.

All of the answers are correct.

Franchisors leave it to retail franchise holders to carry out the strategy in their own units. often help franchise holders by providing purchasing power and promotion support. usually receive fees and commissions from the franchise holder. reduce the risk of starting a new retailing business because a good strategy has already been developed and tested. All of these alternatives are correct for franchisors.

All of these alternatives are correct for franchisors.

Which of the following can the Consumer Product Safety Commission do? It can order costly repairs of "unsafe products." It can order returns of "unsafe products." It can back up its orders with jail sentences. All of these alternatives are correct. It can back up its orders with fines.

All of these alternatives are correct.

Which of the following is true of the Foreign Corrupt Practices Act? It prohibits U.S. firms from paying bribes to foreign officials. It levies stiff penalties against people who pay bribes. It applies to foreign firms or individuals who accept payments while in the United States. It was amended to allow small grease money payments if they are customary in a country. All of these answers are correct.

All of these answers are correct.

Which of the following statements about a firm's use of technology to supplement a core product offering is not accurate? Augmented reality is used by firms to forecast customer needs. Technology is now integrated into products that were not previously thought of as "tech" products. The use of technology can help differentiate a product offering. Analytics help artificial intelligence and intelligent agents to predict what a customer wants. Software applications are used to supplement core products by offering value-adding services

Augmented reality is used by firms to forecast customer needs.

Which of the following statements about the strategic importance of packaging is false? Environmentally conscious packaging creates value for buyers. Better protective packaging is very important to manufacturers and wholesalers. Packaging is concerned with promoting, protecting, and enhancing a product. Better packaging always raises total distribution costs. Packaging can promote the brand at the point of purchase and during use.

Better packaging always raises total distribution costs.

Which of the following is not a reason why close relationships between suppliers and organizational buyers have become common? Buyer-seller partnerships encourage frequent competitive bidding to keep prices low. Business customers can expect greater service from close partners. Buyers and sellers can work together to achieve both mutual and individual objectives. Closely tied firms often share tasks at lower total cost. Collaboration enables two partners to perform many functions that would be impossible if they were each working separately.

Buyer-seller partnerships encourage frequent competitive bidding to keep prices low.

Which of the following statements about channel systems is true? Corporate channel systems are less expensive to build and maintain than administered channel systems. All vertical marketing systems are also contractual channel systems. Contractual channel systems completely lack the flexibility of a traditional channel system. Channel members informally agree to cooperate with each other in administered channel systems. In vertical marketing systems, channel members focus on different target markets at the end of the channel.

Channel members informally agree to cooperate with each other in administered channel systems.

Which of the following is true of consumer product classes? Consumer product classes are based on how consumers think about and shop for products. Consumer products refer to only those products that are meant for use in producing other products. Installations are a class of consumer products. Consumer product classes are based on how professional buyers think about products and how the products will be used. Consumer products cannot serve as business products.

Consumer product classes are based on how consumers think about and shop for products.

Which of the following statements is true in the context of "differences in retailing in different nations"? Online retailing is more popular in emerging markets than in developed nations. Consumers in less-developed nations often do not have the income to support mass distribution. New retailing approaches that succeed in one part of the world are often not easily accepted in other countries. Online shopping behavior is similar considerably across countries. Slow growth in their home country prompts most large retail chains to stay out of international markets.

Consumers in less-developed nations often do not have the income to support mass distribution.

Why is the assortment process beneficial? Producers can save money by producing items in large quantities, but consumers often want to buy goods in small quantities. Gathering similar products together from many small producers creates bulk quantities that are attractive to many buyers. Different target markets are typically looking for goods of varying quality. Consumers often find it convenient to shop for products created by many different firms all in one place. Selling directly to consumers saves money for producers and helps them to control the marketing message.

Consumers often find it convenient to shop for products created by many different firms all in one place.

Which of the following is true of the types of new product categories? Discontinuous innovations entail minor variations on existing products. Discontinuous innovations require that customers adopting the innovation significantly change their behavior. Dynamically continuous innovations do not require changes in customer behavior. Continuous innovations require customers to learn new behaviors. Continuous innovations result in completely new product-markets and new product life cycles.

Discontinuous innovations require that customers adopting the innovation significantly change their behavior.

Which of the following statements is true of ethnographic research? When conducting ethnographic research, subjects are always made aware of the fact that their behavior is being recorded. Ethnography has its roots in sociology. Ethnography involves studying customers in their homes or at work. Ethnographic research requires that subjects answer surveys. Ethnography does not involve long-term observation.

Ethnography involves studying customers in their homes or at work.

Which of the following statements about fashion-related products is false? Fashion products are often seasonal. Fashion products are usually marked by innovation and creativity. Fashion products have long life cycles. Fashion products require marketing managers to make frequent product changes. Fashion products are often the hottest selling products in the short term.

Fashion products have long life cycles.

Which of the following statements about organizing for new-product development is true? A company's R&D specialists, operations, and marketing personnel should avoid working together when evaluating the feasibility of new ideas. No one should be put in charge of new-product development; it should be left to anyone who demonstrates an interest in taking the initiative. Top-level support is not vital to the success of new-product development. All of these statements are true. For a firm to be successful in its new-product development endeavors, it should encourage a culture that supports innovation.

For a firm to be successful in its new-product development endeavors, it should encourage a culture that supports innovation.

Which of the following statements about bidding for government business is true? Government buying needs are hard to identify and they are the smallest customer group in the United States. Government buyers avoid using competitive bids since they must purchase at a previously set price. Government buyers must often accept the lowest bid that meets the specifications. The biggest job of government buyers is to locate enough potential suppliers so the bidding procedure works effectively. All of the statements about bidding for government business are true.

Government buyers must often accept the lowest bid that meets the specifications.

In the context of the relationship between consumer product classes and ideal Place objectives, which of the following statements is true? Homogeneous shopping goods favor low-cost retailers. Widespread distribution is necessary for specialty goods. Marketers should avoid selling heterogeneous shopping goods through online stores. Accessory equipment and MRO supplies only require selective distribution. Marketers should avoid selling unsought products at locations where other, related products are sold.

Homogeneous shopping goods favor low-cost retailers.

Which of the following statements is true of a focus group? It is very easy to measure the results of a focus group interview objectively. In a focus group, an interviewer seeks group interaction to stimulate thinking and get immediate reactions. Focus groups must be conducted in person and never online. A focus group involves interviewing 15 to 20 people, one after the other, in an informal setting. The people who participate in a focus group are always representative of the broader target market.

In a focus group, an interviewer seeks group interaction to stimulate thinking and get immediate reactions.

Which of the following statements is true of the market introduction stage of the product life cycle? It is during this stage that sales decline and then rise. In this stage, there is a need for informative promotion. Competition is greatest during this stage. In this stage, profits are at their highest. Customers actively seek out the new product in this stage.

In this stage, there is a need for informative promotion.

Which of the following statements regarding the market growth stage of the product life cycle is false? Monopolistic competition is typical of this stage. The sales of the total industry rise fairly rapidly during this stage as more and more customers buy. Toward the end of this stage, competition and consumer price sensitivity increase. Many competitors enter the market during this stage resulting in great product variety. Innovators still earn profits, but this stage is less profitable for them than the previous stage.

Innovators still earn profits, but this stage is less profitable for them than the previous stage.

Which of the following is true of the Lanham Act? It only applies to consumer products, not raw materials sold to manufacturers. It requires that foreign companies first register their marks in their home countries. It forces companies to register their trademarks and service marks. It specifies which types of marks can be protected. It applies only to goods shipped in interstate commerce.

It specifies which types of marks can be protected.

Which of the following statements about marketing information systems is true? Marketing information systems are used to gather, access, and analyze data from internal sources such as financial reports, spreadsheets, and e-mails, and not external sources. Marketing information systems can handle big data, or data sets too large and complex to work with typical database management tools. Computerized marketing information systems do not provide a continual flow of information, which makes it difficult to access timely information. The value of decision support systems is limited because managers cannot use them while they are actually making their decisions. All of these statements about marketing information systems are true.

Marketing information systems can handle big data, or data sets too large and complex to work with typical database management tools.

Which of the following is not true regarding channels of distribution? Most consumer products are sold directly to consumers by the products' producers. Many business products are sold direct-to-customer because business markets have fewer transactions. Direct distribution usually requires a significant investment in facilities. Consumer products that businesses sell through intermediaries may still make use of "direct marketing." Service firms often use direct channels because services are usually performed on the spot, in the presence of customers.

Most consumer products are sold directly to consumers by the products' producers.

Which of the following is true of the supplier-buyer relationship? Close supplier-buyer relationships have the ability to drive down prices and spur innovation in ways that the competitive bidding process cannot match. Buyers usually do business with a single supplier to reduce their risk. Powerful buyers negotiate lower prices from suppliers. Suppliers and buyers are inflexible with regard to purchase terms in negotiated contract buying.

Powerful buyers negotiate lower prices from suppliers.

A firm wants to get its product on the shelf of a large retailer. Which of the following would make achieving the firm's objective most likely? Provide the buying committee with data about how its marketing mix will attract and keep customers. Send its most persuasive salesperson to make personal relationships with members of the buying committee. Request shelf space on a standard form submitted to the buyer. Present the product's "story" to store managers. All of the answers are correct.

Provide the buying committee with data about how its marketing mix will attract and keep customers.

Which of the following statements is accurate regarding quantitative research? A common method of quantitative research is the focus group interview. Quantitative research seeks responses that cannot be measured in numbers. Quantitative research seeks structured responses that can be summarized in numbers. Quantitative research seeks in-depth, open-ended responses. Quantitative research does not use multiple choice or fill-in-a-number questions.

Quantitative research seeks structured responses that can be summarized in numbers.

Which of the following statements is not likely to be true of a fast food restaurant franchise? Retail franchise holders are not responsible for carrying out a marketing strategy. Each franchise holder benefits from the reputation established by the main franchisor. The holders of the individual franchises pay fees to the franchisor. The franchisor receives sales commissions from individual franchise holders. Each franchise holder is required by its contract to strictly adhere to a set of franchise rules.

Retail franchise holders are not responsible for carrying out a marketing strategy.

Which of the following statements is true of the characteristics of services? Services are tangible items. Services are typically mass-produced. Service quality is always consistent. Services are perishable. Services are physical things; they can be seen and touched.

Services are perishable.

Which of the following best explains the concept of "discrepancies" in the marketplace? There are many more consumers than producers in the marketplace. The assortment and quantity of products required by a customer may be different from those produced by a manufacturer. Firms produce what they want to sell rather than what customers want to buy. Price is not always a reliable measure of a product's quality. Supply and demand is no longer determined by market forces because "big business" is more powerful than the individual consumer.

The assortment and quantity of products required by a customer may be different from those produced by a manufacturer.

Which of the following demonstrates the promotional use of packaging? Freska's detergent bottle can be recycled. Xylenol's safety seal prevents tampering. Kraft's shredded cheese has a resealable zipper package to keep it fresh. The famous Energizer Bunny appears on the Energizer battery package. Escorp's smartphone is kept safe by styrofoam inserts.

The famous Energizer Bunny appears on the Energizer battery package.

Which of the following is true of manufacturers? All manufacturers share the same buying needs. There are far fewer manufacturers than final consumers. Most manufacturers, both small and large, have formal buyers who purchase raw materials. Manufacturers are typically concentrated in rural areas. Most manufacturers are quite large with more than 1,000 employees.

There are far fewer manufacturers than final consumers.

Which of the following is a common mistake marketing managers tend to make during the first step of the marketing research process? They question if they know enough about a market before proceeding with their plans and strategies. They deny that a problem exists even when there is one. They tend to narrow down research objectives. They conduct research instead of merely relying on intuition. They confuse problems with symptoms.

They confuse problems with symptoms.

Which of the following is true of patents? They are almost impossible to enforce, leading to piracy of new technology. They protect the rights of a producer of creative work. They apply only to technology in new industries. They give firms a short-term monopoly on their new technology. They are indefinite, protecting the new technology for as long as the firm wishes.

They give firms a short-term monopoly on their new technology.

Which of the following is a major problem with questionnaires? They only deliver qualitative data. They often have a poor response rate. They are often inconvenient for respondents. They cannot be used to gather large amounts of data. People are less willing to provide personal information.

They often have a poor response rate.

Cloud Storage Solutions works closely with customers—showing them early versions of its software and interface and then quickly making changes based on customer feedback before soliciting feedback again. The company wants to fail early and often so that it quickly brings to market a product that meets customer needs. In this scenario, Cloud Storage Solutions is using a co-creation process. a product champion. reverse engineering. the market insight approach. benchmarking.

a co-creation process.

Which of the following displays up-to-the-minute marketing data in an easy-to-read format that managers can use to monitor business activity and respond quickly to problems? a marketing dashboard a marketing model a data warehouse a data catalogue a consumer panel

a marketing dashboard

Which of the following is the best example of a single-line or limited-line store? a local store that carries convenience items an online grocery store that home delivers a supercenter that sells homogenous shopping items a vending machine that sells upscale items a national chain that sells only athletic footwear

a national chain that sells only athletic footwear

Eva, a marketing researcher, wants to do in-depth research on business customers' experiences with the company's products. She is most likely to get what she wants if she uses secondary data. an online survey. the observation approach. a personal interview. a mail survey.

a personal interview.

In the context of the North American Industry Classification System (NAICS) codes, what is a three-digit industry? a subindustry of a four-digit industry that has only three buying companies an industry that has only three intermediaries in its distribution channel a subindustry of a two-digit industry an industry with lower number of employees than a four-digit industry an industry with larger sales volume than a two-digit industry

a subindustry of a two-digit industry

A buying center refers to all the salespeople who participate in promoting a product or service. a marketplace where buyers have no bargaining power. all the people who participate in or influence a purchase. a marketplace that has more buyers than sellers.all the customers present at an auction bid.

all the people who participate in or influence a purchase.

Negotiated contract buying allows sellers to reduce product prices but not increase them. allows for changes in purchase arrangements. requires the terms of a contract to be fixed, regardless of volatile business conditions. gives buyers, but not sellers, the power to change the terms of contracts. occurs when buyers and sellers are inflexible about the specifications in the contract.

allows for changes in purchase arrangements.

Which of the following businesses is least likely to own the products it sells? a specialty wholesaler for office supplies a merchant wholesaler for building hardware a cash-and-carry wholesaler for manufacturing firms a general-line wholesaler for electronics an auction company specializing in original art

an auction company specializing in original art

Specialty shops stock anything that they can sell in a reasonable quantity. generally use a mass-marketing approach. are known for the distinctiveness of their line and the superior services offered. carry a broad assortment of products, like department stores. are also referred to as supercenters.

are known for the distinctiveness of their line and the superior services offered.

Department stores have been experiencing a drastic increase in their share of retail business. offer limited product lines. usually cater only to organizational buyers. are usually strong in customer services. aim at a carefully defined, small target market.

are usually strong in customer services.

Manufacturers' sales branches are warehouses that producers set up at separate locations away from their factories. account for the highest percentage of wholesale establishments in the United States. have to regularly pay commission to the producers. are retail sales branches that are located within the factory premises. have extremely low sales per branch.

are warehouses that producers set up at separate locations away from their factories.

A large paint store has an app that allows customers to snap a picture of their room and see how different paint colors would look on their walls. This is an example of technological analytics. artificial intelligence. digital assistance. augmented reality.

augmented reality.

What are targeted white papers? extensive, blank order forms used by first-time buyers website pages that appear blank but contain hidden code that raises a company's online search ranking websites assembled by industry governing boards with the purpose of educating the public about a product class recommendations written by buyers who have engaged in business with an organization authoritative reports that address important industry issues and provide solutions

authoritative reports that address important industry issues and provide solutions

Pia's clothing company wants to diversify by acquiring a brand of accessories. Pia has found a brand that is well-known and performs well year after year, and her company is willing to pay a premium price because of this. The value of the brand to Pia's company is its product assortment. brand recognition. brand equity. line length. brand insistence.

brand equity.

When a channel has a shared "product-market commitment" channel members focus on the same target market at the end of the channel. channel members need not cooperate with each other. competition among channel members is completely absent. marketers of consumer products compete against service companies. All of these alternatives are correct.

channel members focus on the same target market at the end of the channel.

A key difference between supplies and components is that supplies, unlike components, are produced from raw materials. supplies, unlike components, are business products. components, unlike supplies, become part of a finished product. components, unlike supplies, are used by businesses. supplies, unlike components, are typically tangible.

components, unlike supplies, become part of a finished product.

Lee works as a market researcher for a company that makes frozen foods. The company is considering releasing a new line of frozen dinners featuring flavors from around the world. The dinners have not been created yet, so Lee creates an online survey to ask potential consumers questions and gauge how well the new products will meet the needs and tastes of customers. Lee is engaging in market testing. data exhaust. concept testing. screening. reverse engineering.

concept testing.

A small manufacturing firm has just experienced a rapid drop in sales. The marketing manager thinks he knows what the problem is and carefully analyzes secondary data to verify his assumption. His next step should be to conduct informal discussions with outsiders to check his assumption. conduct an experiment. develop a formal research project to gather primary data. quickly initiate corrective action before sales drop any further. develop a hypothesis and predict the future behavior of sales.

conduct informal discussions with outsiders to check his assumption.

When using randomly selected samples, researchers determine the likely accuracy of the sample by analyzing it with regard to the ______, or the range on either side of an estimate that is likely to hold the true value for the population. sampling confidence quantitative spread secondary value validity measure confidence interval

confidence interval

Whirlpool introduced a new high gloss white finish to its refrigerators. This innovation would be classified as a ______ innovation. continuous discontinuous dynamically continuous simple dynamic

continuous

Automatic vending machines attract customers primarily because of their breadth of selection. convenience. low prices. superior marketing. lack of competition.

convenience

Rusty's Auto Parts is a retail firm that owns and manages twelve stores in Wisconsin. Rusty's Auto Parts sounds like a channel captain. brand leader. corporate chain. category captain. value chain.

corporate chain.

A car dealership wanted to find out more about the customer experience during the car buying process. The dealership's researcher conducted an in-depth interview with Maria Jones and created a graphic diagram that depicted what she was doing, thinking, and feeling during each stage of the buying process. The researcher was undertaking ethnographic research. performing quantitative research. gathering secondary data. creating a customer journey map. initiating a customer focus group.

creating a customer journey map.

A difference between goods and services is that it is often difficult to achieve economies of scale with goods, but it is easy to achieve economies of scale with services. customers can own goods, but they cannot keep services. the quality of services is often more consistent than the quality of goods. goods are intangible items while services are tangible items. services are typically mass-produced in factories while goods are produced in person.

customers can own goods, but they cannot keep services.

Databases are stored in ______ so that they are available when needed. data warehouses data dashboards data mines data matrices data sources

data warehouses

What are the three steps in the business and organizational purchasing process? understanding the unmet need, satisfying the need, selecting alternative products defining the problem, understanding the problem, seeking solutions to the problem defining the problem, engaging in the decision-making process, managing the buyer-seller relationshipCorrect contacting a salesperson, negotiating the sale, accepting product delivery negotiating the terms of the sale, arranging for product or service delivery, reviewing the purchase

defining the problem, engaging in the decision-making process, managing the buyer-seller relationship

The most difficult step in the marketing research process is often collecting data. observing. interpreting the data. analyzing the situation. defining the problem.

defining the problem.

Small companies do not have a need for marketing research. depend on their salespeople or managers to conduct marketing research.Correct typically call in specialized marketing consultants and marketing research organizations to take charge of a whole project. do not use marketing information systems. typically have a separate marketing research department to plan and manage research projects.

depend on their salespeople or managers to conduct marketing research.

Able Soda is one of the largest manufacturers of sweetened beverages. The new health consciousness sweeping the country has negatively affected the demand for Able's products. As a result, Able's cane sugar suppliers have also lost sales. This best exemplifies which of the following? the battle of the brands product assortment unsought products derived demand brand rejection

derived demand

BlueSpray Co. has created a new clothes dryer that uses light to dry clothes. The company has created a prototype and is testing a marketing mix. The product manager has developed an estimate of the return on investment. Considering these activities, the product is most likely in the _____ stage of the new-product development process. development idea generation commercialization screening idea evaluation

development

Which of the following strategies is not used to rejuvenate the sales of a product that is heading toward the sales decline stage of the product life cycle? adding a successful innovation to the original product idea selling the product in geographic regions where the product is not in the final stage of the life cycle devising a phase-out strategy finding new uses for the product adding appealing services or sales promotions that target loyal customers

devising a phase-out strategy

Which of the following approaches to international marketing gives a parent firm complete control over its marketing strategy planning? licensing management contracting exporting franchising direct investment

direct investment

Among the many factors that influence purchasing decisions are _____, who control the flow of information within an organization. buyers deciders influencers end users gatekeepers

gatekeepers

Wholesaling is primarily concerned with the activities of those establishments that sell goods to retailers and other merchants. solely to government units in small quantities. only commodity goods and not consumer products. directly to end users through the Internet. products in bulk to final consumers.

goods to retailers and other merchants.

Which of the following products has a 100 percent emphasis on service? a cell phone canned soup restaurant meal steel pipe hair styling

hair styling

Product or brand managers are commonly used when a firm wants to dismiss the use of cross-functional teams. wants to eliminate the job of the advertising manager. has several different kinds of products or brands. wants one person to have authority over all the functional areas that affect the profitability of a particular product. has only one or a few related products.

has several different kinds of products or brands.

A seller of software sends a direct mailer to dentists telling them about a medical office management software package. This is an example of a seller using social media to drive consumer purchase. helping buyers realize that they have a problem. conducting a pilot test for the software. drafting a product requirement chart. tracking the purchasing behavior of their clients.

helping buyers realize that they have a problem.

A channel captain is best described as a manager who assigns wholesalers and retailers to manufacturing firms. performs vendor analysis for channel members. holds the largest market share in the whole channel. helps direct the activities of a whole channel. heads the labor union of all channel members.

helps direct the activities of a whole channel.

For a product, market exposure beyond the ideal level results in continued economies of scale. has no effect on the total cost of distribution. decreases the total cost of marketing. decreases the total cost of marketing first and then increases it. increases the total cost of marketing.

increases the total cost of marketing.

When a firm's target market is accustomed to shopping at certain retailers or wholesalers, that firm will probably need to use ______ channels of distribution to reach its desired customers. heterogeneous online homogeneous indirect direct

indirect

In the market environment, discrepancies of quantity occur because some consumers have more money than others. consumers demand more product variety than producers can make. individual producers tend to focus on quality, while individual consumers only want large quantities of products at low prices. individual producers often make larger quantities of products than individual consumers normally want to buy. there are more consumers in the marketplace than producers.

individual producers often make larger quantities of products than individual consumers normally want to buy.

Manuel is a manager at a company that makes office furniture. After reviewing products that the company currently makes, he determines which ones are selling best and where gaps exist in the product line. Using this information, he draws up a list of features he would like to see included in new products and gives the list to the design team. In this case, Manuel is a(n) user. decider. gatekeeper. influencer.

influencer

Whenever iHome developed a clock radio or music player that connected with the Apple iPhone, iHome used the iPhone brand name in its promotion with Apple's permission. In this case, for iHome, iPhone is an example of a dealer brand. licensed brand. generic brand. manufacturer brand. private brand.

licensed brand.

Bubble Gums Inc. of Chicago, Illinois, sold the rights to sell its patented toys outside the United States to an Australian company, Phoenix Junior Inc. In return, Phoenix Junior Inc. has to pay 40 percent of its total sales of the patented toys as royalties to Bubble Gums Inc. Which of the following approaches to entering international markets is Bubble Gums Inc. using in this scenario? exporting franchising management contracting direct investment licensing

licensing

A set of individual products that are closely related because they are produced or operate in a similar way, sold to the same target market, sold through the same types of outlets, or priced at about the same level, is known as a product assortment. category. mix. portfolio. line.

line.

The idea underlying the mass-merchandising concept is that demand in a geographical area is fixed, so it is necessary to follow a "buy high and sell high" philosophy. products should be bought at a lower price and sold at a higher price to attract high returns. low prices should be offered to get faster turnover and greater sales volume. specialized packaging and premium pricing are necessary to appeal to larger markets. unique product assortments help increase the brand value of wholesalers.

low prices should be offered to get faster turnover and greater sales volume.

Which type of brand is created by producers? dealer brands private brands curated brands manufacturer brands retailer brands

manufacturer brands

An industry with tough competition faces falling profits, and its sales growth is slow. Demand for individual brands has become quite elastic—as consumers see competing products as almost homogeneous. Several firms have dropped out. Which of the following stages of the product life cycle does this indicate? market maturity sales decline market growth product renewal market introduction

market maturity

A research proposal may include information about costs, what data will be collected, and how long the process will take. usually cannot provide much information about how data will be collected, since it is hard to tell until the research is started. should be conducted before the situational analysis. should be written by the marketing manager, not the researcher, since the manager knows what needs to be done. is a plan developed during the problem definition stage of research.

may include information about costs, what data will be collected, and how long the process will take.

The process that falls between buying for a new need and making a routine repurchase, where some review of the buying situation is done, though not as much as in new-task buying, is referred to as the direct rebuy. modified rebuy. straight rebuy. one-time purchase. first-time buying.

modified rebuy.

In contrast to manufacturers, producers of services need to be closer to customers. are much larger in size. have stagnant domestic and international growth. are more geographically concentrated. are only growing in the United States.

need to be closer to customers.

The "wheel of retailing" theory suggests that the largest retailers have a greater chance to survive in a fast-moving economy. retailers should always offer high prices to get faster turnover and greater sales volumes. retailing profits tend to be cyclical and follow a fixed pattern. retailing activities are superior to wholesaling activities as there is greater proximity with end users. new types of retailers enter as low-price operators and eventually begin to offer more services and charge higher prices.

new types of retailers enter as low-price operators and eventually begin to offer more services and charge higher prices.

Marketers who primarily sell to museums and charities are focused on which of the following types of organizational customers? final consumers nonprofit organizations limited liability organizations intermediaries producers

nonprofit organizations

Firms are likely to prefer selective distribution when intermediaries place small orders. need extensive service. make frequent returns. have poor credit ratings. offer added support in return for exclusivity.

offer added support in return for exclusivity.

Marketing research helps managers make better marketing decisions because it is based on common sense and hunches. is completely based on intuition. offers objective information gathered using the scientific method. lets computers make the final decisions. focuses on accepting ideas before testing them.

offers objective information gathered using the scientific method.

Phillips and Sanchez is a retailer that operates a national chain of home furnishings stores. It has designed a website and a suite of apps that enable customers to shop seamlessly online, storing the items in their cart and their search history and making them available across multiple devices. When customers make an online purchase, the website and apps let them choose between having the products delivered to their homes or made available for pickup at one of Phillips and Sanchez's locations. These are examples of a(n) ________ strategy. big data scrambled merchandising onmichannel webrooming showrooming

onmichannel

When producers want to handle the distribution job entirely by themselves, they operate their own stores or sell directly to customers through a website. sell directly to retailers. sell directly to wholesalers. expect to have less control over the marketing mix. coordinate marketing mixes with channel partners.

operate their own stores or sell directly to customers through a website.

Which of the following is an advantage that shopping at a physical store has over shopping online? simpler price and product feature comparison availability of reviews from customers who have already used the product anytime and anywhere access wider product assortment personal help and interaction

personal help and interaction

Maria's company makes televisions. The Clarity, a 4K television featuring wireless capabilities, is their best selling model, and the company plans to release a new version in a month. However, next year Maria's company plans to release a television featuring brand new technology that offers even better picture quality than the Clarity. This is an example of planned obsolescence. patent piggybacking. dynamic innovation. patent holdback. discontinuous innovation.

planned obsolescence.

Although some intermediaries may resent this approach, a manufacturer may have to use "multichannel distribution" because the firm desires to reach different target markets. present channel members are doing a poor job. some channel members require it. big retail chains want to avoid selling directly to consumers. antitrust regulations prohibit relying on just one channel system.

present channel members are doing a poor job.

In comparison to the buying pattern of final consumers, the purchasing behavior of organizational buyers is dependent on advertising appeals. never influenced by noneconomic factors. primarily influenced by economic needs like quality and reliability. strictly based on emotional appeals. even less predictable.

primarily influenced by economic needs like quality and reliability.

Which of the following terms refers to the legal obligation of sellers to pay damages to individuals who are injured by defective or unsafe products? product reliability product quality product liability product failure product integrity

product liability

When Yahoo! develops new online services, the company develops a version of the service and shows it to customers. It solicits immediate feedback and then revises the trial version of the product. This process is continued. In this case, Yahoo! is utilizing rapid prototyping. protocol development. swift idea generation. wireframing. concept testing.

rapid prototyping.

When interpreting data, a marketing manager should know that quantitative survey responses are valid, but qualitative research may not be valid. realize that statistical summaries from a sample may not be precise for the whole population. recognize that outliers are routinely wrong and should be ignored and discarded. be satisfied with the sample used as long as it is large. leave it to the technical specialists to draw the correct conclusions

realize that statistical summaries from a sample may not be precise for the whole population.

Accumulating, bulk-breaking, sorting, and assorting are _____ activities performed by channel specialists to adjust discrepancies. liquidating tallying regrouping reversing corrective

regrouping

Which of the following see themselves as purchasing agents for their target customers? category captains retail buyers opinion leaders advertisers gatekeepers

retail buyers

A(n) ______ is a group of independent retailers that pool purchasing and marketing expenses to increase efficiency. franchise operation retailers' cooperative discretionary chain open group voluntary chain

retailers' cooperative

Marketing managers need to plan for ______ that can retrieve products that customers no longer want. value chains descending channels reverse channels horizontal networks multichannel networks

reverse channels

Karina works for a company that makes fans, space heaters, and air purifiers. When the competition comes out with a new air purifier that is supposed to clean air twice as fast with half the energy usage, Karina buys one of the new purifiers so that her research and design team can disassemble it and attempt to build their own highly efficient version. This is an example of data exhaust. planned obsolescence. reverse engineering. copyright infringement. crowdsourcing.

reverse engineering.

Retailers that carry any product line that they feel they can sell profitably are engaging in equity selling. product upgrading. scrambled merchandising. specialty retailing. niche marketing.

scrambled merchandising.

Which of the following is not a business product class? installations raw materials component parts shopping products professional services

shopping products

For the experimental method to work, researchers must use two or more groups that are representative of different social classes. ethnically diverse. similar on the characteristic being tested. different in most ways. similar in most ways, except the characteristic being tested.

similar in most ways, except the characteristic being tested.

Many customers will drive long distances to purchase Yummy Town doughnuts, even though other doughnuts are available for purchase at nearby locations. For such customers, Yummy Town doughnuts are unsought products. business products. shopping products. convenience products. specialty products.

specialty products.

For most customer purchases, products such as toilet paper and breakfast cereal are classified as staples. specialty products. heterogeneous shopping products. emergency products. unsought products.

staples

Which of the following measures how quickly inventory sells and is an indication of the health of a retailer? market share return on investment stockturn rate supplier scorecard cluster analysis

stockturn rate

Just-in-time-delivery is important for customers because storing too much inventory is expensive. most industries require the freshest supplies. manufacturers are usually unable to supply more than the currently needed materials. inventory is difficult to monitor. most supply purchases are spur-of-the-moment and require instant delivery.

storing too much inventory is expensive.

When conducting surveys, researchers study only a sample of the population they are interested in. collect information about everyone in a population. study anyone they can, regardless of whether they are part of the target population. hand select each person to be surveyed. can expect sample results to exactly match those of the larger population.

study only a sample of the population they are interested in.

When a customer buys a pack of Trident chewing gum from a 7-11 store instead of a Shell gas station, the Shell station benefits. wholesalers make more profits. Trident suffers. wholesalers lose sales. the Shell gas station suffers.

the Shell gas station suffers.

Which of the following do new-task buying, modified rebuys, and straight rebuys have in common? the ability to meet needs the level of supplier review the information needed the time required the level of multiple buying influence

the ability to meet needs

Which of the following best describes what "retailing" involves? All of these alternatives describe what retailing involves. the sale of products to final consumers. the sale of goods in bulk to both organizational buyers and end users. the sale of consumer products to wholesalers and retailers. the performance of all merchandising activities except promotion and pricing.

the sale of products to final consumers

In a competitive bid, long-term suppliers of a firm compete to do business with the firm to increase flexibility and spur innovation. the terms of sale are offered by a buyer after product specifications are posted by the seller. the terms of sale are offered by the supplier in response to the purchase specifications posted by a buyer. as the number of suppliers competing for the business increases, the ability to drive down prices or provide beneficial terms of sale is lost. if different suppliers' quality, dependability, and delivery schedules all meet the buyer's specifications, the buyer will select the high-price bid.

the terms of sale are offered by the supplier in response to the purchase specifications posted by a buyer.

Using total quality management to improve the implementation of a marketing plan is likely to involve a lack of participation from the top-level management. the training and empowerment of employees to identify and solve customer problems. an emphasis on physical goods over service products. the assumption that defects are inevitable and acceptable. a flexible quality program with no specifications on exactly what tasks have to be done and by whom.

the training and empowerment of employees to identify and solve customer problems.

Max is designing a symbol for Clean Glow, a company that produces cleaning supplies. Once it is completed, the symbol will be legally registered as the exclusive property of Clean Glow, and the company will place the symbol on its products and will use it in its advertising. This symbol is an example of a(n) brand name. quality mark. app. service mark. trademark.

trademark

Which type of consumer products include those for which customers do not search at all? specialty products shopping products unsought products convenience products staples

unsought products

The scientific method is important in marketing research because it directly introduces products into the market without wasting time and money in running consumer tests. uses observations to develop hypotheses and then test them. eliminates the need for managers to specify the information they need to gather. always specifies a marketing strategy that is bound to succeed. forces the researcher to rely on intuition, thereby reducing the need to follow certain procedures.

uses observations to develop hypotheses and then test them.

Lucy is conducting market research to gauge home owners' interest levels in different types of imported rugs. However, because this is a somewhat specialized topic, she is worried that respondents may not know enough to tell the types apart, meaning they may indicate that they like Bokhara rugs best when they really prefer Khotan rugs. In other words, Lucy is concerned about the ______ of her results, or the extent to which her data measures what it is intended to measure. interval validity hidden purpose decision support viewpoint

validity

Vibgyor Phones Inc., a cell phone manufacturer, expects its retailers not to sell other brands of cell phones in their stores. However, most retailers disagree with this, arguing that their profitability is reduced when they carry only one brand. Such conflicts are referred to as ______ conflicts. vertical spiral circular horizontal nonlinear

vertical

Fyx Autos Inc., an automobile company, has acquired one of its major distributors. This is referred to as horizontal merging. product differentiation. vertical integration. offshoring. product commercialization.

vertical integration.

Which of the following is an explanation of a seller's promises about its product? warranty trademark copyright service mark brand

warranty

Which of the following situations would most likely involve negotiated contract buying? when the buyer knows approximately what they want, but lacks certain details when the buyer wants to lock in a low price for the term of the contract when the buyer plans on making a single, simple purchase from a seller when the seller wants to receive the same price, even if competition lowers the market price for its goods when the buyer is unaware that a problem exists and needs to be fixed

when the buyer knows approximately what they want, but lacks certain details

In developing a marketing strategy, the most important thing for a retailer to consider is why the members of their target market buy where they do. which products are in the highest demand in their area. the best way to promote their business to their target market. how to lay out their store or stores to be most convenient for shoppers. how much people are willing to pay for the products that the retailer stocks.

why the members of their target market buy where they do.