MKG 300 Exam 3

Regarding accessory equipment, which of the following is NOT true? A) Multiple buying influence is less important in the purchase of an installation than with accessory equipment. B) There are more customers for accessory equipment than for installations. C) Specialized services are more important in the purchase of installations than accessories. D) There are more sellers of accessory equipment than of installations. E) All of the above ARE true

A) Multiple buying influence is less important in the purchase of an installation than with accessory equipment.

Regarding installations, which is NOT true? A) The number of potential customers at any one time is quite large. B) Leasing installations may be attractive to buyers. C) It is common for sellers to offer specialized services. D) The buying needs of potential customers are basically economic. E) Multiple buying influence is common

A) The number of potential customers at any one time is quite large.

______________ are products a consumer needs but isn't willing to spend much time and effort shopping for. A. Convenience products B. Unsought products C. Homogeneous shopping products D. Utility products E. Heterogeneous shopping products

A. Convenience products

Pfizer Corp. is introducing a really new product idea. Pfizer is spending a lot of money to inform potential customers and intermediaries about the availability and advantages of the new product. Although sales are rising slowly, Pfizer doesn't expect the product to become profitable for at least another year. Pfizer's new product is in which stage of the product life cycle? A. Market introduction B. Sales decline C. Market development D. Market growth E. Market maturity

A. Market introduction

Which of the following is less likely to happen as a product moves through the later stages of the product life cycle? A. Place - move toward selective distribution. B. Promotion - build selective demand. C. Price - meet competition. D. Competitive situation - Heading toward pure competition. E. Product - Some drop out.

A. Place - move toward selective distribution.

Which of the following is a common cause of new product failures? A. The product fails to offer the customer a unique benefit. B. The company tries to follow an organized new-product development process—rather than using a faster and more spontaneous, "race-to-market" approach. C. The managers worry too much about the competition. D. The company delays putting the product on the market until it has developed a complete marketing plan. E. All of the above

A. The product fails to offer the customer a unique benefit.

Which of the following would NOT be favorable for successful branding? A. The product is hard to identify by brand or trademark B. The product has widespread availability in the market or A. The product offers superior customer value B. Product quality fluctuates due to variations in raw materials C. Dependable and widespread availability D. Economies of scale in production E. Favorable shelf location available

A. The product is hard to identify by brand or trademark or B. Product quality fluctuates due to variations in raw materials

Regarding what a "new product" is, your text says: A. a product should be considered "new" if it is new in any way for the company concerned. B. that the FTC would not call an existing product new, even if it were changed in a functionally significant way. C. there is no legal limit on how long a product can be called "new." D. a new product must be totally different before it can be called a "new product." E. All of the above

A. a product should be considered "new" if it is new in any way for the company concerned.

While shopping in a local supermarket, Jolene Partin came upon an aisle display of cookies and had to have some—immediately. By the time she got to the checkout counter with the rest of her selections, all the cookies were gone. In this case, the cookies were: A. an impulse product B. a staple product C. an unsought product D. very nutritious E. a consumption product

A. an impulse product

Ideas about potential new products should A. be encouraged from any and all sources, since only a few ideas will develop into successful products. B. not be eliminated from consideration until they have been tested in the commercialization stage. C. come primarily from employees of the firm—so that time won't be wasted evaluating product ideas that are inconsistent with the firm's objectives and resources. D. come from outside the firm, since studies show that really new ideas require a fresh perspective. E. None of the above is correct.

A. be encouraged from any and all sources, since only a few ideas will develop into successful products.

During the sales decline stage of the product life cycle: A. firms with strong brands may make profits almost until the end. B. no profits are earned. C. price competition usually declines. D. brand loyalty declines. E. monopoly is typical.

A. firms with strong brands may make profits almost until the end.

Customers see _____ products as different and want to inspect them for quality and suitability. A. heterogeneous B. specialty C. new unsought D. impulse E. convenience

A. heterogeneous

In the idea generation stage of the new-product development process A. many new ideas in business markets come from competitors. B. customers are given new products to test. C. a S.W.O.T. analysis helps evaluate new product ideas. D. a firm decides which ideas to pursue based on return on investment screening. E. final ROI estimates are done.

A. many new ideas in business markets come from competitors.

Persuasive promotion is especially important in which of the following product life cycle stages? A. market maturity. B. sales decline. C. market introduction. D. market growth.

A. market maturity.

New-product specialists at Whirlpool buy washing machines made by other firms and take them apart to look for new ideas. This is called A. reverse engineering. B. positioning. C. S.W.O.T. analysis. D. concept testing. E. clustering.

A. reverse engineering.

Trane Corp. manufactures long-lived, custom-made equipment which its customers treat as capital items. Trane's sales force faces much multiple-buying influence. Trane's products, which do not become part of the customer's final product, are: A) accessory equipment. B) installations. C) MRO items. D) component parts. E) operating supplies

B) installations.

Which of the following is NOT favorable to successful branding? A. Consistent quality can be maintained B. Access to favorable shelf locations is limited C. Economies of scale should be possible E. Dependable and widespread availability should be possible

B. Access to favorable shelf locations is limited

_____ can help create brand recognition, but only _____ can create brand insistence. A. Design; price B. Advertising; satisfying experiences C. Quality; distribution D. Brand names; endorsements E. Publicity; product trials

B. Advertising; satisfying experiences

Which of the following statements is not true of the product life cycle? A. How long a whole product life cycle takes, and the length of each stage, varies a lot across products. B. Although the life of different products varies, on average product life cycles are getting longer. C. The greater the comparative advantage of a new product over those already on the market, the more rapidly its sales will grow. D. If the product can be tried on a limited basis, without a lot of risk to the customer, it can usually be introduced more quickly. E. A product idea may be in a different life-cycle stage in different markets.

B. Although the life of different products varies, on average product life cycles are getting longer.

A trademark or brand name can become public property if: A. The owner doesn't renew the registration each year B. It becomes a common descriptive word for the product C. The owner doesn't register is under the Lanham Act D. It is sold in international markets E. All of these alternatives are correct

B. It becomes a common descriptive word for the product

An industry's sales have leveled off and profits are declining in oligopolistic competition. Consumers see competing products as "homogeneous." Several firms have dropped out of the industry, but a new one entered recently. Firms in the industry are trying to avoid price-cutting by spending on persuasive advertising. These firms are competing in which stage of the product life cycle? A. Market growth B. Market maturity C. Market development D. Market introduction E. Sales decline

B. Market maturity

Fresher Foods Co. manufactures and sells a variety of dairy products under the Fresh Farm brand name. It decides to introduce a new line of organic jams and preserves under the Tru Flavor Preserves brand name. For its new line, Fresher Foods is using ______. A. family brand B. an individual brand C. a dealer brand D. a private brand E. a select brand

B. an individual brand

A firm which makes special batteries that boat and motorcycle manufacturers buy and installdirectly in their new boats and cycles is selling: A. supplies. B. component parts. C. component materials. D. installations. E. accessory equipment.

B. component parts.

Concerning the product life cycle: A. profits and sales begin to decline in the maturity stage. B. individual products may enter and leave the market at any stage. C. a successful introduction almost guarantees that the product will remain a success over the life cycle. D. All of the above are true. E. None of the above is true

B. individual products may enter and leave the market at any stage.

The big cost of poor quality is the cost of A. replacing defective parts. B. lost customers. C. recalling defective goods. D. rework and training. E. induction training.

B. lost customers.

Industry profits are largest in which of the following product life cycle stages? A. market introduction. B. market growth. C. market maturity. D. sales decline. E. any of the above.

B. market growth.

In the market introduction stage of the product life cycle A. sales are the highest. B. most companies experience losses. C. industry profits rise. D. industry sales level off. E. total industry profit is highest.

B. most companies

When business buyers purchase items such as grease, electricity, typing paper, and paper clips, they are buying: A. accessory equipment B. operating supplies C. components D. repair supplies E. maintenance supplies

B. operating supplies

Because of _____, a court rules that a fast-food restaurant has a legal obligation to pay damages to a family whose child was injured when it swallowed an unsafe toy that came in a kids' meal box. A. consumer compensation B. product liability C. consumer protection D. product quality assurance E. pleasing products

B. product liability

Raw materials are different from other business products in that: A. buyers do not seek sources of supply B. they require more grading C. they require a lot of handling before moving to the next D. they never involve contract production arrangements E. pricing decisions for farm products are more complicated

B. they require more grading

Which of the following statements about the idea evaluation step is false? A. Companies can often estimate likely costs, revenue, and profitability at this stage. B. Product planners can compare the cost advantages and limitations of a new product with those currently being used. C. Product tests with customers are used to revise the early versions of the product. D. This step should gather enough information to help decide whether there is an opportunity. E. None of the above is false.

C. Product tests with customers are used to revise the early versions of the product.

In the idea evaluation stage A. an actual product is developed. B. companies cannot estimate likely costs. C. concept testing is used for getting reactions from customers. D. there is some engineering to design and develop the physical part of a product. E. the final ROI is estimated.

C. concept testing is used for getting reactions from customers.

Which of the following is NOT a consumer product class? A. specialty b. unsought C. derived D. shopping E. impulse

C. derived

It is toward the end of the _____ stage of the product life cycle when industry profits begin to decline. A. market maturity B. market introduction C. market growth D. sales decline E. market decline

C. market growth

Competition is toughest in which of the following product life cycle stages? A. market introduction B. market growth C. market maturity D. market development E. none of the above

C. market maturity

During the sales decline stage A. price competition from dying products is reduced. B. profits are non-existent. C. new products replace the old. D. profits increase and then decrease. E. none of the above.

C. new products replace the old.

Seeking to stop declining sales for an established mouthwash, a sales manager suggests that new coloring be added to the product and a major promotion effort be started for the "new" product. The Federal Trade Commission would: A. be concerned about the possibility of the firm getting a monopoly. B. allow the company to call the product "new" for only six months. C. probably not approve of this at all because the product doesn't meet the FTC's definition of "new." D. allow the promotion effort if it felt that consumers would think the coloring made it "new." E. none of the above is true.

C. probably not approve of this at all because the product doesn't meet the FTC's definition of "new."

Vision Co. manufactures and sells tea, coffee, desserts, shoes, and sporting goods—all under the Vision brand name. These products are A. the firm's product line. B. dealer brands. C. sold with a family brand. D. specialty products. E. generic products

C. sold with a family brand

A new-product idea moves through the early stages of the life cycle more quickly when it has all the following characteristics EXCEPT: A. the product is easy to use. B. the product can be tried on a limited basis, without a lot of risk to the customer. C. the product has no competitive advantage over those already in the market. D. the product is compatible with the values and experiences of target customers. E. the product's advantages are easy to communicate.

C. the product has no competitive advantage over those already in the market.

Customers view regularly unsought products as A. basically the same. B. really new ideas that potential customers do not know about yet. C. undesirable but not unsold forever. D. different and they want to inspect them for quality and suitability. E. worth the time and effort to compare with competing products

C. undesirable but not unsold forever.

Compared to installations, accessory equipment A) is usually less standardized. B) involves more multiple-buying influence. C) is an expense item instead of a capital item. D) is sold to more target markets. E) becomes part of the buyer's final product.

D) is sold to more target markets.

The shape, length, and current stage of a product life cycle may vary depending: A. on how the market is defined. B. on the nature of the competition. C. on the nature of the products involved. D. All of the above. E. None of the above.

D. All of the above.

Which of the following activities is NOT typical of the commercialization stage? A. Goods have to be produced to fill the channels of distribution. B. People must be hired and trained to provide services. C. Manufacturing or service facilities have to be set up. D. Full-scale market testing is conducted. E. Products are introduced city by city or region by region in a gradual "rollout."

D. Full-scale market testing is conducted.

All of the following are examples of dealer brands EXCEPT: A. Craftsman Tools B. Up and Up C. Sam's Choice D. McDonald's E. Kenmore

D. McDonald's

Which of the following statements about the Lanham Act is TRUE? A. Trademarks must always be registered in their home B. In the US, common law does not protect the right of all trademarks C. The Lanham Act require that are trademarks be registered D. Registering under the Lanham Act is often a first step into foreign markets E. None of these statements about trademarks or true

D. Registering under the Lanham Act is often a first step into foreign markets

Which of the following observations concerning a phase-out strategy is incorrect? A. If prospects are poor in a product-market, a phase-out strategy may be needed. B. Phasing out a product may involve some difficult implementation problems. C. Phase-out is also a strategy, and it must be market-oriented to cut losses. D. The need for phasing out becomes more obvious as the market maturity stage arrives. E. It is sometimes better to phase out products gradually.

D. The need for phasing out becomes more obvious as the market maturity stage arrives.

When moving into the market maturity stage of the product life cycle, a firm might be able to obtain a competitive advantage: A. with lower production costs. B. by being more successful at promotion. C. by having a slightly better product than competitors. D. all of the above. E. none of the above.

D. all of the above.

Dealer brands (private brands) have the following advantages over manufacturer brands except: A. dealer brands produce higher margins B. dealer brands receive special shelf position and promotion in stores C. dealer brands do not require advertising and promotion campaigns D. dealer brands are often viewed as cheap E. dealer brands do not incur costs associated with premium ingredients

D. dealer brands are often viewed as cheap

According to the text, product life cycles are: A. getting longer. B. speeding up in the later stages. C. now about the same length as 100 years ago. D. getting shorter. E. slowing down in the early stages.

D. getting shorter.

"Product life cycles" are concerned with sales and profits: A. in generic markets—not individual product-markets. B. of a firm's individual products or brands. C. of goods but not services. D. in a product-market. E. Both A and C.

D. in a product-market.

During the market introduction stage of the product life cycle: A. large profits are typical—until competition arrives. B. Price and Promotion are more important than Place and Product. C. much money is spent on Promotion, while spending on Place is left until later. D. money is invested—in the hope of FUTURE profits. E. most customers will try really new products.

D. money is invested—in the hope of FUTURE profits.

In the 1990s, DVDs replaced audio cassettes and floppy disks as the storage media of choice for music and computers. At which stage of the product life cycle is the DVD today? A. market extinction B. market introduction C. market immaturity D. sales decline

D. sales decline

Wujin Chu, marketing manager for Innovative Electronics Products, reviews a S.W.O.T. analysis to help him evaluate four new product ideas his company is currently considering. Chu is operating in the ____ step of the new-product development process. A. idea evaluation B. development C. commercialization D. screening E. idea generation

D. screening

Michelin manufactures tires which truck producers buy and install on their trucks. This company... A) sells installations for which multiple buying influence is likely to be quite important. B) is likely to have good opportunities in the "after market." C) is selling to the OEM market. D) All of the above are true. E) Both B and C are true

E) Both B and C are true

Business professional services: A. may not be purchased outside the firm if they are needed regularly. B. support a firm's operations. C. are offered by a growing number of specialists. D. are generally treated as expense items. E. All of the above are true

E. All of the above are true

As a product moves through its product life cycle: A. industry profits may decrease while industry sales increase. B. the nature of competition moves toward pure competition or oligopoly. C. entirely different target markets may be aimed at. D. customers' attitudes and needs may change. E. All of the above are true.

E. All of the above are true.

Because firms must be developing new products all the time, which of the following statements is true? A. Competitors are likely to rapidly introduce product improvements in the market growth stage. B. The developed economies experience technological advances quicker than the less-developed economies. C. Although the life of different products varies, product life cycles are getting shorter. D. One new invention may make possible many new products to replace old ones. E. All of the above are true.

E. All of the above are true.

Which of the following is an "unsought product"? A. Gravestones aimed at "senior citizens." B. A new type of "health food" produced by a new, small company. C. Life insurance aimed at college students. D. Encyclopedias aimed at new parents. E. All of the above.

E. All of the above.

A $50 consumer product which is purchased infrequently is: A. an unsought product. B. a convenience product. C. a specialty product. D. a shopping product. E. it might be any of the above.

E. It might be any of the above.

Regarding supplies, A. new-task buying is typical with most purchases. B. only one supplier is generally available. C. branding is not important for maintenance and small operating supplies. D. All of the above are true. E. None of the above is true.

E. None of the above is true.

Which of the following qualities of packaging would not be likely to turn a casual customer into a loyal buyer? A. Makes the product easier and safer B. Makes a product convenient to store C. Prevents spoiling or damage D. Makes products easier to identify E. Promotes the brand at the point of purchase

E. Promotes the brand at the point of purchase

Which of the following is an effective source of ideas at the idea generation stage of the new-product development process? A. customer complaints. B. lead-users of the product. C. competitors' products. D. products found in overseas markets. E. all of the above

E. all of the above

Total quality management: A. requires that everyone in the organization be concerned with improving quality. B. means more than just using statistical controls to reduce manufacturing defects. C. views the cost of lost customers as an important result of quality problems. D. applies to service producers as well as manufacturers. E. all of the above are correct.

E. all of the above are correct.

Which of the following would be treated as an expense item for a children's clothing manufacturer? A. cloth B. sewing machines C. buttons S. zippers E. all of these would be treated as expense items

E. all of these would be treated as expense items

Building quality into services: A. can be easily accomplished by spending more. B. can be accomplished without top-level support because it is such a simple idea. C. is not necessary unless the service is guaranteed. D. can be easily accomplished with surprise quality inspections. E. can be improved by giving employees the authority to correct a problem on their own.

E. can be improved by giving employees the authority to correct a problem on their own.

The _____ step in the new-product development process could involve research and development as well as engineering to design and build the physical part of the product. A. screening B. idea evaluation C. roll out D. commercialization E. development

E. development

Total industry profits reach their maximum during the __________ stage of the product life cycle. A. market maturity B. sales decline C. market development D. market introduction E. market growth

E. market growth

In the _____ stage of the product life cycle, organizations focus on building primary demand A. market decline B. market maturity C. sales decline D. market growth E. market introduction

E. market introduction

A marketing manager developing a marketing mix to sell ______ probably needs to be concerned with grading, transportation, and storing because of seasonal production and/or perishable products. A. component parts B. accessories C. impulse D. supplies E. raw materials

E. raw materials

"MRO items" are:

Supplies can be divided into three types: (1) maintenance (2) repair (3) operating supplies— giving them their common name: MRO supplies.

The law which focuses on the protection of trademarks and brand names is

The Lanham Act

"Installation" products:

Usually requires skillful personal selling by producer, including technical contacts, or understanding of applications; leasing and specialized support services may be required. Multiple buying influence (including top management) and new-task buying are common; infrequent purchase, long decision period, and boom-or-bust demand are typical.

Which of the following is a benefit of branding from the perspective of the manufacturer?

Well-recognized brands make shopping easier. Brand names connect a product with the benefits a customer can expect. A good brand reduces the marketer's selling time and effort. Good brands can also improve the company's image—speeding acceptance of new products marketed under the same name.

Cargill, Inc. is finally earning a profit on the unique product it introduced six months ago. Cargill's advertising is both informative and persuasive. Much money is being spent on Place development. There is little price competition, although several competitors have come out with reasonable imitations. Total industry sales and profits are both rising. In which stage of the product life cycle is Cargill operating? a. market growth b. market introduction c. sales decline d. market maturity

a. market growth

Services

are intangible, produced in person where the customer is located--after the customer has committed to buy

Business product classes

are products meant for use in producing other products. (1) installations (2) accessories (3) raw materials (4) components (5) supplies (6) professional services. they relate to how and why business firms make purchases. they have a derived demand —the demand for business products derives from the demand for final consumer products.

When new product ideas are chosen based on ratings and comments from customers, this process is called ______.

crowd sourcing

Which of the characteristics of a good brand name is missing in the following proposed name: "Gnucheo" candy?

d. easy to pronounce

Consumer product classes

divide into four groups: (1) convenience (2) shopping (3) specialty (4) unsought.

When a company decides to use the same brand name for several products, it is a(n)

family brand

The text's business product classes are based on:

how buyers think about products and how the products will be used.

A trademark

includes only those words, symbols, or marks that are legally registered for use by a single company.

The set of laptop computers sold by Dell is called a(n):

individual product

Darrell Everwine read a review about a new computer program that appealed to him very much. He decided to try to find the program. However, the new program was in short supply—although other brands with similar features were available. Darrell had to try seven shops before he finally found the program in stock. For Darrell, this program achieved brand:

insistence

Industry profits decline during the market maturity stage due to:

lowering their costs

Vision Co. manufactures and sells tea, coffee, desserts, shoes, and sporting goods. All of these products are its

product assortment

From a marketing perspective, product quality primarily depends on....

the customer's specific requirements and needs

"Product" means:

the need-satisfying offering of a firm

The text's consumer product classes are based on:

the way people think about and shop for products