MK2300 final

Which type of retailer typically carries deep product assortments of narrow product lines? A) self-service retailers B) specialty stores C) warehouse clubs D) discount stores E) factory outlets

b

Which wholesaler channel function is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost? A) bulk breaking B) selling and promoting C) buying and assortment building D) warehousing E) risk bearing

b

________ 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

b

________ 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

b

A company that uses telephone marketing to sell its products to customers is most likely using the promotion tool of ________. A) advertising B) public relations C) direct and digital marketing D) retailing E) merchandising

c

________ 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

c

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

A

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

A

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

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

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

B

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

B

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

B

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

B

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

B

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

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

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

B

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

B

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

B

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

B

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

D

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

D

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

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

D

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

D

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

D

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) inseparabilit

E

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

E

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

E

Which of the following statements is true of retailing? A) All retail stores are full-service retail stores. B) A department store has a narrow product line with a deep assortment. C) The largest type of retail outlet is a supermarket. D) Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed. E) A feature common to all types of retail stores is the use of the everyday low pricing strategy.

d

Window Concepts has introduced a new line of windows that offer the same benefits as solar panels in reducing heating and cooling costs in homes. The state-of-the-art windows will also contribute to the slowing of global warming while providing energy reliability. The company sends a team of representatives to the National Doors and Windows Trade Show to promote the new line of windows. Which promotion mix tool has Window Concepts used in this scenario? A) crowdsourcing B) public relations C) advertising D) personal selling E) crowdcasting

d

In a(n) ________ marketing system, leadership over production and distribution is assumed through the size and power of one or a few dominant channel members. A) direct B) contractual vertical C) horizontal D) corporate vertical E) administered vertical

e

Surf's Up, a family-owned business, offers a free surf lesson with the purchase of any surfboard over $200 during the month of May. This is an example of which promotion mix element? A) direct and digital marketing B) public relations C) advertising D) personal selling E) sales promotion

e

The primary objective of ________ advertising is to build selective demand. A) reminder B) classified C) personal D) informative E) persuasive

e

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

b

In which of the following situations is a producer guaranteed full control over product sales? A) a corporate marketing channel B) a direct marketing channel C) a contractual distribution channel D) a horizontal marketing system E) an administered marketing system

b

Inglast, a chocolate producer, is faced with a class action suit when customers found pieces of plastic in boxes of cocoa powder. Inglast settles the case and then releases an advertising campaign to show the new and improved safety seals on all containers of cocoa powder. Which kind of advertisement has Inglast most likely used? A) classified B) informative C) comparative D) personalized E) reminder

b

Java Jane's first coffeehouse was very successful due to the unique flavors, on-site baked goods, and inviting ambiance. The owner, Jane Phillips, decided to franchise her operation when she was approached by several interested investors. Which type of marketing system has Java Jane's most likely adopted? A) an administered marketing system B) a contractual marketing system C) a horizontal marketing channel D) a direct marketing channel E) a vertical marketing channel

b

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

d

________ 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

d

________ 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

d

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

A

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

A

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

A

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

A

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

A

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

A

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

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

B

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

C

Karen Dodd is employed by Dell and responsible for calling on primary schools in her home state of Maine to promote the company's offerings. She demonstrates the Dell line of products including desktop computers, laptops, and tablets and fields questions from teachers and administrators alike. This is an example of which promotion tool? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising

b

Kids.com is an online retailer that buys clothing from a variety of brand name manufacturers at less-than-regular wholesale prices and then charges customers less than retail. Kids.com is an example of a(n) ________. A) specialty retailer B) independent off-price retailer C) departmental retailer D) full-service retailer E) category killer

b

Leading "big-box" stores, such as Walmart and Target, now dominate the retail scene. However, even "small-box" stores like Dollar General, are thriving in the current economic environment. All three retailers are considered ________. A) convenience stores B) discount stores C) full-service retailers D) designer shops E) specialty stores

b

A TV ad promoting how an ordinary person's life has changed due to considerable weight loss is an example of the ________ style of advertising. A) scientific evidence B) testimonial evidence C) technical expertise D) mood or image E) fantasy

b

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

b

Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a ________. A) category killer B) factory outlet C) specialty store D) superstore E) power center

b

A convenience store ________. A) markets to segments comprised mostly of white-collar workers B) stocks narrow product lines that have wide, deep assortments C) carries a limited line of high-turnover goods for consumer self-service D) involves high operation costs due to full-service customer assistance E) is a multi-channel food and discount retailer that targets niche markets

c

Chic Eyewear, a producer of designer eyeglass frames, promotes their new line in national fashion magazines. Chic Eyewear lists the select optical retailers that carry their line at the bottom of their ads. This is an example of a ________ strategy. A) push B) vertical integration C) pull D) publish-subscribe E) direct marketing

c

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

c

Electronics Storage is a wholesaler that holds inventories, thereby reducing carrying costs and risks for both suppliers and customers. Which channel function does Electronics Storage primarily provide? A) showrooming B) assortment building C) warehousing D) financing E) transporting

c

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

c

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

c

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

c

More than 80 percent of McDonald's restaurants worldwide are owned and operated by franchisees. This illustrates a(n) ________ marketing system. A) corporate vertical B) horizontal C) contractual vertical D) administered vertical E) direct

c

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

c

Studio 19 is a dance studio geared to adults who want to learn ballroom and Latin dance. When individuals call the studio, they're encouraged to access the Web site to receive a $25 ecoupon entitling them to a free half hour of dance instruction. Once they become patrons, text messages are sent to share news about featured dance instructors and upcoming special events. Which of the following promotion mix tools does Studio 19 employ to reach target customers? A) public relations B) personal selling C) direct marketing D) crowdcasting E) retailing

c

The American Tie Company, a necktie retailer, offers a deep assortment of men's neckties. The American Tie Company is best described as a(n) ________. A) department store B) supermarket C) specialty store D) discount store E) off-price retailer

c

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

c

When a company issues a press release to announce a sizable donation to a national charity, they are using ________ to generate goodwill and maintain a positive corporate image. A) personal selling B) sales promotion C) public relations D) direct and digital marketing E) advertising

c

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

c

Which of the following best describes the personality symbol style of advertising? A) using ordinary people to show how a product affects them in their daily lives B) using scientific evidence to support claims about a product in an advertisement C) using an animated character or mascot to represent a product in an advertisement D) using a technical expert to recommend a product in an advertisement E) using a celebrity to endorse a product in an advertisement

c

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

C

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

C

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

C

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

C

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

C

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

C

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

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 or brands. 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 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

C

________ 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

C

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 Answer:

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 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

________ 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

D

________ 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

D

________ 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

D

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

E

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

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

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

a

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

a

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

a

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

a

For over 10 years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books online through studysmart.com, a popular online retailer that sells textbooks published by different companies. Recently, Erudite stopped selling its books through studysmart.com and set up its own Web site to sell its books. This change in channel organization is called ________. A) disintermediation B) intensive distribution C) brokering D) franchising E) selective distribution

a

In a promotion mix, ________ involves personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. A) direct marketing B) advertising C) public relations D) predictive analyticals E) indirect procurement

a

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

a

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

a

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

a

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

a

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

a

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 of the following is true of a conventional distribution channel? A) It has each channel member acting as a separate business unit trying to maximize its own profits. B) It consists of producers selling their products directly to customers without the use of intermediaries. C) It has one channel member owning the other channel members. D) It is a distribution channel where a producer is owner of all the other channel members. E) It has all members of the channel working together as a single organization.

a

Which of the following is true of marketing strategies that are being developed in the new marketing communications model? A) They are more targeted, social, and engaging. B) They target much larger customer segments. C) They rely more on mass-media marketing techniques. D) They use very little alternative media. E) They include a greater number of print media ads.

a

Which of the following media is most suitable for advertising a product that needs to be demonstrated? A) television B) radio C) newspaper D) magazine E) billboard

a

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

a

________ have filled the ultralow-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail. A) Off-price retailers B) Specialty stores C) Convenience stores D) Designer shops E) Full-service retailers

a

________ includes all the activities involved in selling goods and services to those buying them for resale or business use. A) Wholesaling B) Sole sourcing C) Franchising D) Crowdsourcing E) Showrooming

a

________ 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

a

________ 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

a

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

b

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

b

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

b

Specialty stores are characterized by ________. A) the sale of convenience and staple items B) narrow product lines with deep assortments C) a wide range of products and categories D) low prices on a wide range of goods E) routinely purchased food products and services

b

The aim of ________ is to make ads and brand content so engaging or useful that people want to watch them. A) branded entertainment B) advertainment C) social advertising D) subliminal advertising E) infotainment advertising

b

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

b

Which of the following is a disadvantage of using a magazine as an advertising medium? A) It has a poor pass-along readership. B) It involves high costs. C) It has low geographic selectivity. D) It has low credibility and image. E) It consists of low-quality reproduction.

b

Which of the following is a shortcoming of advertising? A) It does not allow dramatization of the brand or company. B) It only provides one-way communication with customers. C) It can be too customized and only attracts small, niche markets. D) It reaches targeted customers too slowly in most cases. E) It is the most costly promotion tool for companies.

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 is true of direct and digital marketing? A) Its marketing message is fixed and does not change according to the customer's requirements. B) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships. C) It is presented as company news rather than as a sales-directed communication. D) It does not involve any interaction between the company and its customers. E) It is an impersonal promotion tool that hinders two-way communication.

b

Which of the following types of promotion tools requires a considerable degree of personal interaction with a customer? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising

b

________ advertising would most likely result in attack ads between competitors. A) Reminder B) Comparative C) Personal D) Informative E) Classified

b

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 effort

c

Which of the following is an effect of the advancement of technology on marketing? A) Fragmented markets have assimilated into a few mass markets. B) Marketers go through more intermediaries to connect with consumers. C) Consumers rely less on marketer-supplied information than in the past. D) Marketers have increasingly moved toward mass-marketing techniques. E) Marketers tend to supply less information to consumers than in the past.

c

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.

c

________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users. A) Research and development channels B) Upstream channels C) Marketing channels D) Raw materials suppliers E) Backward integration chains

c

________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A) Sales promotion B) Personal selling C) Advertising D) Public relations E) Direct marketing

c

"Informing the target market about a price change for a signature cookie dough product through a national TV campaign within three months" is an example of a(n) ________ objective. A) reminder B) comparative C) informative D) advertising E) persuasive

d

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. A) manufacturing chain B) distribution center C) marketing intermediary D) value delivery network E) disintermediation system

d

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________. A) corporate vertical marketing system B) contractual vertical marketing system C) direct marketing system D) horizontal marketing system E) administered vertical marketing system

d

A(n) ________ is considered a marketing intermediary. A) customer B) producer C) manufacturer D) wholesaler E) advertiser

d

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

d

Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The highend security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements? A) direct distribution system B) horizontal marketing system C) corporate vertical franchise system D) multichannel distribution system E) administered vertical marketing system

d

Luccia's is a restaurant based in Illinois that exclusively sells Italian food. Luccia's sells the rights to its recipes to a British firm, Clover Trading, which then opens an outlet in London under the Luccia's brand name. Which kind of channel arrangement does Luccia's most likely have with Clover Trading? A) a horizontal marketing system B) a direct marketing system C) an administered vertical marketing system D) a contractual vertical marketing system E) a corporate vertical marketing system

d

Lush Lawns, a new landscaping company, uses the same logo and shade of green in all forms of communication including its online ads, truck signage, Web site, and business cards. Which technique is being used by Lush Lawns to promote its business? A) logistics information management B) inventory control segmentation C) niche market penetration D) integrated marketing communications E) global marketing management

d

Power Pro, a leading manufacturer of lawn and garden equipment, releases a new line of cordless, lightweight, electric weed trimmers. To boost sales, Power Pro issues a 50 percent off coupon to the first 100 buyers at all Home Depot stores in the Northeast. Which element of the promotion mix has Power Pro used in this scenario? A) public relations B) crowdsourcing C) advertising D) sales promotion E) personal selling

d

The USA Cotton Growers Cooperative sells unfinished cotton to The Weaving Experts who refine the raw material for sale to The Sheet Factory. It's then used in the manufacturing process of 300, 400, and 500 thread count bed sheet sets. The Sheet Factory distributes their products through a number of wholesalers, including Linen Traders. Linen Traders then resells the bed sheet sets to retailer Bedding Plus who markets the products to consumers. Which of the following represents a marketing intermediary transaction? A) only Linen Traders B) only Bedding Plus C) only The Weaving Experts D) Linen Traders selling to Bedding Plus E) The Weaving Experts selling to Linen Traders

d

The objective of ________ advertising is to build primary demand. A) reminder B) comparative C) personal D) informative E) persuasive

d

Which of the following best describes the term "Madison and Vine"? A) utilizing the slice of life style of advertising B) emphasizing reach over impact in advertising C) using social media for advertising a brand D) merging advertising with entertainment E) voicing social concerns through advertising

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 function of an integrated marketing communications system? A) designing products using environmentally friendly techniques B) allowing suppliers or vendors to manage the inventory of products C) controlling production levels by feedback received from customers D) delivering a clear, consistent, and compelling message on the product to each brand contact E) sharing company forecasting details with shareholders

d

Which of the following media is most suitable for having consumers provide input on product design or features? A) television B) radio C) magazines D) social media E) billboards

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

A firm that uses direct marketing would most likely sell its products through ________. A) one marketing intermediary B) big box retailers C) large wholesalers D) multiple intermediaries E) the company Web site

e

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

Brandy's, a national candy store chain, decides to open both a coffee house and ice cream shop within their stores to create a multi-faceted experience for shoppers. The company decides to enter into deals with two well-known retailers — The Beanery and Creamy Creations. As stipulated in their respective contracts, The Beanery and Creamy Creations cannot enter into the same type of agreement with any other candy retailers. All three companies will enjoy greater sales, and ultimately profits, from the arrangement. This is most likely an example of a(n) ________ marketing system. A) direct B) administered vertical C) corporate vertical D) contractual vertical E) horizontal

e

Department stores are most likely characterized by ________. A) narrow product lines B) specialty goods and services C) predatory pricing strategies D) deep assortments of luxury brands E) wide varieties of product lines

e

In a promotion mix, ________ performs the functions of building a good rapport with entities outside the company, building up a good corporate image, and handling unfavorable rumors and events. A) personal selling B) sales promotion C) direct marketing D) advertising E) public relations

e

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) break-even

e

Trainstar, a sportswear equipment manufacturer, releases a new line of energy drinks called VitaZing. The television ad for the energy drink shows people jogging, working out in a gym, and doing aerobics. The actors then take a break to drink VitaZing, which visibly re-energizes them and leads them to continue exercising. Which advertising style is most likely used in the VitaZing ad? A) scientific evidence B) technical expertise C) personality symbol D) testimonial evidence E) lifestyle

e

Which of the following is an example of a combination of sales promotions and direct marketing? A) a company giving discounts on their product prices in order to gain a brand image B) a company releasing a nationwide television ad about every buyer having a chance to win a lottery prize C) a company holding a press conference to talk about their new product D) a company's sales representatives meeting customers directly to present customized offerings E) a company sending an e-mail to a customer about a discount on a product during a holiday season

e

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.

e

Which of the following is true of a vertical marketing system? A) It is formed when two or more companies at one level join together to follow a new marketing opportunity. B) It is formed when a single firm sets up two or more marketing channels to reach one or more customer segments. C) It does not give overall power to any one member in the channel. D) It has each channel member acting as a separate business unit trying to maximize its own profits. E) It has one channel member owning all the other channel members or has contracts with all other channel members.

e