MKT 230 - Exam 3 (Assignment Questions)

Scenario 12.3 In Australia Coca-Cola launched Mother, an energy drink. However, most people did not like the taste. Rather than introducing an entirely new product, Coca-Cola decided to reposition the product. It reformulated the Mother drink and re-released it with a new campaign. Refer to Scenario 12.3. Which of the following slogans should Coca-Cola use to signal to consumers that its Mother drink has been repositioned? a. "New Mother—Tastes Nothing Like the Old One" b. "Mother Energy Drink: Get More for Less" c. "Mother—Great Taste and Great Energy" d. "Mother Energy Drink—For Those Who Dare to Dream" e. "Not Your Everyday Mother"

a. "New Mother—Tastes Nothing Like the Old One"

Around the winter holidays, airline tickets tend to increase. What type of pricing are the airlines most likely using to determine how much they will charge customers at this time? a. Demand-based pricing b. Time spent on the task c. Compensation-based pricing d. Weather conditions e. Bundled pricing

a. Demand-based pricing

Scenario 11.3 Tide Pods was developed to revolutionize the detergent industry and spark new interest in Tide laundry detergent. The pods launched with much fanfare. Customers like the pods because they are less messy and more concentrated than liquid detergent. Originally, the pods were placed in a clear packaging. Other competitors have also released detergent pods due to their popularity. However, since its release there have thousands of incidents with children ingesting the pods and mistaking them as candy. Because of their higher concentration, ingesting the pods can do severe damage and has even led to deaths. Procter & Gamble responded by changing the packaging so that it is no longer transparent. It also made the packages harder to open. Refer to Scenario 11.3. Melinda hates using liquid laundry detergent. She heard about Tide Pods from a friend and did some research. She likes what she learns, but she is concerned about all the incidents where children have accidentally swallowed the pods. She has two young children herself. Melinda begins weighing the pros and cons of Tide Pods versus the liquid laundry detergent. Melinda is in what stage of the product adoption process? a. Evaluation b. Awareness c. Adoption d. Trial e. Interest

a. Evaluation

When automakers started installing Apple CarPlay and Android Auto in cars, this was an example of a(n) _______. a. functional modification b. product line modification c. aesthetic modification d. quality modification e. repositioning modification

a. Functional modification

Scenario 13.1 Shelly works as a call-center employee from inside her home. The company she works for does not mind that she works from home because she is so good at her job. Her professionalism hardly varies from one call to the next. One day, however, she learned that her mother had died. Rather than taking off work, she went through the work day as routine. A few days later, a customer complained to the firm that she did not like Shelly's attitude when she contacted her with questions about a product. She felt that Shelly was brusque and rude. The company investigated the matter and found that Shelly had lost her patience with the customer over the phone. However, when they found out about her situation, they only gave her a verbal warning. Refer to Scenario 13.1. Which characteristic of services caused a problem for the firm in this scenario? a. Heterogeneity b. Inseparability c. Intangibility d. Low customer contact e. Perishability

a. Heterogeneity

Scenario 12.2Buckyballs was marketed as a desk toy made up of small magnetic spheres. Adults could play with the magnetic spheres and create different shapes. Labeling on Buckyballs packaging clearly stated that this product should be kept away from children. As concerns for safety grew, Buckyballs placed even more warning labels on the packaging. Despite this fact, thousands of children who thought the magnets were candy ingested them. The magnets could cause fatal complications inside the body. If more than one was swallowed, they could attract one another inside the stomach, creating tearing and other complications. Despite all the warnings, the Consumer Product Safety Commission ruled the product was too dangerous and filed a lawsuit. Though Buckyballs magnets were discontinued, they have since returned under the name Zen Magnets.Refer to Scenario 12.2. The company was forced to delete its magnetic desk toy product due to safety concerns after being sued by the Consumer Product Safety Commission. What type of product deletion did the firm most likely use? a. Immediate drop b. Run-off c. Harvesting d. Product decline e. Phase-out

a. Immediate drop

Electronic data interchange (EDI) is most effective for which type of logistics activity? a. Order processing b. Inventory management c. Warehousing d. Transportation e. Materials handling

a. Order processing

Method is a nontoxic, biodegradable cleaning supplies company. Suppose one of the employees on the production team at Method got an idea for the company to expand into biodegradable plastic wrap. He has heard about new technologies that could make this possible. Method has the resources to invest in this new product, but after considering it, the production managers nixed the idea because it did not fit well with its product mix. What stage of the product development process was Method in? a. Screening b. Business analysis c. Commercialization d. Product development e. Test marketing

a. Screening

Logan enjoys going to the local zoo. He does not like the price of the zoo food and beverages, however, as they are much more expensive than food in other places. When he does buy a drink, he usually goes for the extra-large because he gets a souvenir cup that he gets to keep. The souvenir cup represents which of the following? a. Supplemental features b. Product lines c. Experiential benefits d. Brand extensions e. Core product

a. Supplemental features

Which of the following is most likely to use the channel where the good goes from producer to retailer to end consumer? a. Target b. Caterpillar c. Hershey d. Sysco e. Netflix

a. Target

Scenario 12.1 During the recession, sales for many companies plummeted. The rate of unemployment grew substantially. As a result, Procter & Gamble (P&G) decided to release a cheaper, more basic version of its Tide product. This lower-priced Tide Basic lacked some of the cleaning features of its more expensive counterpart, but P&G thought it would be good for cash-strapped consumers. P&G tried out Tide Basic in 100 stores in the south for about a year. The product failed to take off, and it discontinued Tide Basic. A few years later P&G tried again with another less expensive Tide product called Simply Tide. Refer to Scenario 12.1. What stage of the product development process was P&G in when it decided to discontinue Tide Basic? a. Test marketing b. Business analysis c. Commercialization d. Product development e. Concept testing

a. Test Marketing

_________ is the most expensive logistics function. a. Transportation b. Materials handling c. Order processing d. Inventory management

a. Transportation

All marketers of goods sell customer services. a. True b. False

a. True

All tangible goods have an intangible component to them. a. True b. False

a. True

It is often harder to judge the quality of the services provided by workers at a nonprofit than it is for employees of a for-profit firm. a. True b. False

a. True

Procurement involves the processes to obtain resources to create value through sourcing, purchasing, and recycling including materials and information. a. True b. False

a. True

Refusal to deal is legal as long as suppliers do not refuse to deal with intermediaries simply because they resist policies that are anticompetitive. a. True b. False

a. True

Scenario 11.1Buckyballs was marketed as a desk toy made up of small magnetic spheres. Adults could play with the magnetic spheres and create different shapes. Labeling on Buckyballs packaging clearly stated that this product should be kept away from children. As concerns for safety grew, Buckyballs placed even more warning labels on the packaging. Despite this fact, thousands of children who thought the magnets were candy ingested them. The magnets could cause fatal complications inside the body. If more than one was swallowed, they could attract one another inside the stomach, creating tearing and other complications. Despite all the warnings, the Consumer Product Safety Commission ruled the product was too dangerous and filed a lawsuit. Though Buckyballs magnets were discontinued, they have since returned under the name Zen Magnets.Refer to Scenario 11.1. Buckyballs was marketed as a desk toy, and many consumers placed them on their desks at work. Despite this fact, Buckyballs should be classified as a consumer product. a. True b. False

a. True

Supply chain management includes procurement, logistics management, and operations management activities. a. True b. False

a. True

Walmart is most likely to be a channel captain in the supply chain. a. True b. False

a. True

Miles recently stayed at the Hyatt. He loved the experience. The staff was so nice, and the rooms were clean. The concierge was extremely helpful. He decided to stay there when he returned on his next business trip. However, the next time he stayed there, there were different staff members who were not very friendly or helpful. Also, the housekeeping staff did not change the towels in his room. The only thing he found to be the same was the concierge. This Hyatt seems to lack _______. a. consistency of quality b. level of quality c. functionality d. good customer service e. product features

a. consistency of quality

Scenario 13.2 Belle Meade is an old house and plantation in Nashville, Tennessee. Today it operates as a non-profit, giving tours of the house and plantation to the public. Its mission is to educate the public about the significance of the plantation in American history. In the past, it depended on ticket sales from these tours to maintain the upkeep of the plantation. However, once the recession hit, sales of tickets declined. The managers decided to open a non-profit winery to supplement ticket sales. Belle Meade grows grapes on the property, and volunteers package the wine. At the end of the tour guests can engage in wine tasting and purchase wines at the plantation's store. The winery has been highly successful, and any profits from selling the wine are reinvested back into the plantation. It also operates a restaurant on the premises. Refer to Scenario 13.2. At Belle Meade Plantation, the core product is _______. a. education b. bottled wine c. food d. plantation tours e. wine-tasting

a. education

Felicity loves to try new products because she gets a thrill from it. Even though some of the products she adopted turned out to be failures, Felicity is willing to take the risk. She needs to be the first one to own the newest products! Her best friend Melanie, however, is generally suspicious about new products. For instance, when the iPad first came out, Melanie was highly skeptical. Even when Felicity assured her that it was a good product, Melanie was not certain. Finally, after a few years and lots of encouragement from Felicity, Melanie decided to purchase the newest iPad. Felicity is most likely in the _______ category, while Melanie is most likely in the _______ category of product adopters. a. innovator; late majority b. innovator; early majority c. early adopter; late majority d. early adopter; laggard e. early majority; laggard

a. innovator; late majority

Scenario 13.4 Eric was incredibly excited to see the premiere of a new movie that was coming out. However, when he went to see the movie, he was disappointed because there were some loud people in the audience that kept distracting him. He had high hopes for the movie but felt the loud people ruined it for him. He notices this happens a lot at this movie theater. Unfortunately, Eric lives in a small town in a highly rural area, and it is the only theater there. Eric knew that he could have waited to rent the movie when it came out, but then he would not experience the full movie effect. He feels it's a shame he has to go to a loud movie theater to see the movies he wants. However, he does not see any other option other than driving to the next city with a movie theater several miles away. Refer to Scenario 13.4. Ideally, Eric would like to watch the movie in a totally quiet environment. However, he is realistic and knows that he is going to hear some noise from others in the audience. It does not bother him as long as they keep their voices relatively low. However, there are always a few people who talk loudly and obnoxiously. This difference between Eric's desired level of total silence and the point where he can no longer enjoy the movie because the audience is too loud is called the _______. a. zone of tolerance b. zone of acceptability c. level of tolerance d. dissatisfaction point e. experience criteria

a. zone of tolerance

Which of the following is most likely to use exclusive distribution? a. Apple iPad b. Boeing 777 Freighter c. Microsoft Office Suite d. Ford vehicles e. Nespresso coffee machines

b. Boeing 777 Freighter

Which of the following would be an example of accessory equipment? a. Iron ore b. Calculator c. Printing press d. Pencils e. Coca-Cola syrup

b. Calculator

Customer services also refer to services as products. a. True b. False

b. False

Firms can use the "Made in USA" label on their products as long as more than 50 percent of the product is actually produced in the USA. a. True b. False

b. False

Joseph Campbell owns his own pet store. He has named his store Campbell's Pet Store. It has become popular, and Joseph wants to trademark the name. He is likely to receive trademark protection if he is the first to register the name. a. True b. False

b. False

Laggards are those consumers who never adopt the product. a. True b. False

b. False

Most of the time, large organizations adopt the traditional functional form of an organization. a. True b. False

b. False

Scenario 12.4 Victoria works in the production department for a manufacturer of coffee equipment. A new promising product idea the company is considering involves the development of simple pour-over coffee makers. These coffee makers would be made of wood with a cotton drip bag, similar to what is known in Costa Rica as Chorreadores. Victoria's firm thinks this type of product can catch on in the United States because it is exotic and highly environmentally friendly. Refer to Scenario 12.4. Suppose that Victoria's firm decides to commercialize the pour-over coffeemaker. They appoint a manager to oversee the pour-over coffeemaker line and their single-serve coffeemaker line. This is an example of a market manager. a. True b. False

b. False

The Food and Drug Administration have strict criteria over what products can be labeled as "natural." a. True b. False

b. False

The terms target public and client public can be used interchangeably. a. True b. False

b. False

Scenario 13.4 Eric was incredibly excited to see the premiere of a new movie that was coming out. However, when he went to see the movie, he was disappointed because there were some loud people in the audience that kept distracting him. He had high hopes for the movie but felt the loud people ruined it for him. He notices this happens a lot at this movie theater. Unfortunately, Eric lives in a small town in a highly rural area, and it is the only theater there. Eric knew that he could have waited to rent the movie when it came out, but then he would not experience the full movie effect. He feels it's a shame he has to go to a loud movie theater to see the movies he wants. However, he does not see any other option other than driving to the next city with a movie theater several miles away. Refer to Scenario 13.4. Eric's major problem is that the movie theater is incredibly loud, but it is his only viable option if he wants to get the full movie theater experience. Which of the following service characteristics is causing this problem for Eric? a. Client-based relationships b. Inseparability c. Perishability d. Intangibility e. Customer contact

b. Inseparability

Scenario 11.2 Oculus, acquired by Facebook in 2014, is involved in virtual reality. Its Oculus Rift product is a virtual reality headset released to the public in 2016. Retailers including Best Buy sell the Oculus Rift for approximately $400. Some competitors have emerged to challenge Oculus Rift, including the HTC Vive, Samsung Gear, and Zeiss VR One Plus. Refer to Scenario 11.2. In which stage of the product life cycle is the Oculus Rift? a. Maturity b. Introduction c. Prosperity d. Growth e. Decline

b. Introduction

Which of the following distribution concerns would a service marketer be most concerned? a. Transportation b. Inventory management c. Warehousing d. Brand management e. Production quotas

b. Inventory managemnet

Which of the following companies are most likely to use individual branding? a. Ford Motor b. Procter & Gamble c. McDonald's d. Campbell's Soup Company e. Apple Inc.

b. Procter & Gamble

Herbalife24 includes products developed for athletes in Canada. Herbalife is a weight management and nutrition products company known for marketing products to customers for a healthier lifestyle. Athletes are just one of the groups that Herbalife targets. Herbalife24 is most likely a _______. a. specialty product b. product line c. brand extension d. product item e. product mix

b. Product line

Scenario 12.4 Victoria works in the production department for a manufacturer of coffee equipment. A new promising product idea the company is considering involves the development of simple pour-over coffee makers. These coffee makers would be made of wood with a cotton drip bag, similar to what is known in Costa Rica as Chorreadores. Victoria's firm thinks this type of product can catch on in the United States because it is exotic and highly environmentally friendly. Refer to Scenario 12.4. Victoria's firm released the pour-over coffeemaker, and it became a hit among a niche group of avid coffee fans. For a few years sales were high. Eventually, however, sales peaked and started to decline. Victoria's firm realizes the coffeemaker still has a small following of dedicated customers. They plan to move on to a more advanced pour-over coffeemaker, but in the meantime, they plan to emphasize the core strengths of the current coffeemaker, including the fact that it is so sustainable. This is an example of what type of product deletion? a. Repositioning b. Run-off c. Fading d. Immediate drop e. Phase-out

b. Run-off

Compared to goods marketers, service marketers are more likely to promote which of the following? a. Safety measures b. Durability c. Guarantees d. Corporate social responsibility e. Search qualities

c. Guarantees

ACME Corp. sells hammers and other tools to Blue's Hardware Store. Suppose that ACME, which is the only supplier of a specific type of hammer that Blue's sells, informs Blue's that it will have to purchase certain other products from ACME if it wants to continue receiving the hammers. Blue's is dismayed because these other products are costly. It has no need for these products. ACME is attempting to get Blue's to enter into _______. a. a refusal to deal b. a tying agreement c. a vertical integration partnership d. exclusive dealing e. restricted sales territories

b. a tying agreement

Shopping online is highly convenient and easy. However, there are some things that retail stores have that online shopping does not. For instance, online marketers are likely to have less ______________ than retail stores. Many websites encourage consumers to chat instantly online if they have a problem, and a customer service representative will answer them. This helps save money on calls. a. intangibility b. customer contact c. perishability d. client-based relationships

b. customer contact

Belle Meade sells different kinds of wine. Under its white wine product line, it sells four products—Carriage House White, Celebration Riesling, Race Day White 2016, and Lady's Cuvee. This is an example of _______. a. product height b. depth of product mix c. width of product mix d. brand extensions e. product items

b. depth of product mix

Weight Watchers Smart Ones TV dinners come in red boxes with many of the same elements. Each box features the giant "Smart Ones" brand name at the top. This is an example of a. single-use packaging b. family packaging c. multiple packaging d. individual packaging

b. family packaging

Scenario 14.1 Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox launched a streaming service called Redbox On Demand to compete with Netflix. Refer to Scenario 14.1. George is in charge of working with movie studios and third-party distributors to purchase DVDs and Blu-ray discs to be made available through the kiosks. His only responsibility is to procure the movies and games for the different kiosks. Purchasing specifically falls under ________. a. logistics management b. procurement c. channel management d. operations management

b. procurement

Scenario 15.1 Nicole has been wanting to open her own business for many years. After much saving and a loan from the bank, she was able to open up her own store. This store features upscale jewelry, footwear, and clothing for professional women. She uses a premium pricing strategy to demonstrate the quality of her products. As time passed, she adopted other product lines including luggage and beauty products. Nicole has developed strong relationships with suppliers so that new orders come relatively quickly. Nicole distinguishes herself from the competition with the high level of service at her store. Her workers are trained to greet customers within fifteen seconds of them entering the store. She also gives her employees permission to take whatever time needed to make sure that customer needs are met. Refer to Scenario 15.1. Based upon the description, Nicole is engaging in ________________. a. direct selling b. retailing c. direct marketing d. wholesaling

b. retailing

BSNF Logistics is a third-party organization that companies can use to help with their logistics needs. BSNF claims that it has strong capabilities in land, air, water, and rail services. It creates customized solutions to meet a variety of logistics needs for its customers. BSNF Logistics maintains that it has strong expertise in core logistics activities and can often perform these activities more efficiently. BSNF is most likely a(n) _______. a. industrial distributor b. third-party logistics firm c. wholesaler d. manufacturer's agent e. megacarrier

b. third-party logistics firm

Services make up about ______ of the gross domestic product in most developed countries. a. 35% b. 50% c. 70% d. 100%

c. 70%

Scenario 12.4 Victoria works in the production department for a manufacturer of coffee equipment. A new promising product idea the company is considering involves the development of simple pour-over coffee makers. These coffee makers would be made of wood with a cotton drip bag, similar to what is known in Costa Rica as Chorreadores. Victoria's firm thinks this type of product can catch on in the United States because they are exotic and highly environmentally friendly. Refer to Scenario 12.4. Victoria is working with a team to determine the feasibility of the product. Together with her team, she shows a small group of avid coffee customers a written description as well as a photo of the proposed product. She hopes to determine whether they would buy the product and what they think about it. Victoria and her team are at what stage in the product development process? a. Business analysis b. Product development c. Concept testing d. Commercialization e. Test marketing

c. Concept testing

Scenario 13.3 Chris owns his own small firm. The firm has expanded significantly and is thinking about taking out some ads on television. Chris had decided it is time to get a lawyer to advise them on business issues and ensure that their activities obey all relevant laws. Chris meets with a lawyer on a recommendation from a friend. The lawyer seems to have great credentials, and the advice he gave Chris seemed solid. But the lawyer's advice comes at a high expense. Chris wants to make sure he gets the best service possible for the price he is paying. However, he does not have much experience with the law and does not know how to measure the lawyer's services on quality. It is particularly hard for Chris because the advice he gets from the lawyer is something he cannot see, making it much harder to measure according to quality characteristics. He looks online at the reviews of other consumers who used the lawyer's services. Refer to Scenario 13.3. What type of evaluation method is Chris using to evaluate the lawyer's services? a. Experience qualities b. Search qualities c. Credence qualities d. Customer contact qualities e. Intangibility qualities

c. Credence qualities

Grainger specializes in products that are used to maintain, repair, and operate facilities (MRO products). Grainger takes title to products and carries inventories. It also offers services such as inventory management and support. Grainger is most likely a(n) _______. a. third-party logistics firm b. megacarrier c. industrial distributor d. channel captain e. private warehouse

c. Industrial distributor

Scenario 11.3 Tide Pods was developed to revolutionize the detergent industry and spark new interest in Tide laundry detergent. The pods launched with much fanfare. Customers like the pods because they are less messy and more concentrated than liquid detergent. Originally, the pods were placed in a clear packaging. Other competitors have also released detergent pods due to their popularity. However, since its release there have thousands of incidents with children ingesting the pods and mistaking them as candy. Because of their higher concentration, ingesting the pods can do severe damage and has even led to deaths. Procter & Gamble responded by changing the packaging so that it is no longer transparent. It also made the packages harder to open. Refer to Scenario 11.3. When first released, Tide Pods caught consumers' attention because the detergent was placed into a small orange "pod" that users could throw into their washing machine. This eliminated the need to measure and pour out messier liquid detergent. Tide Pods likely represent what type of packaging? a. Category-consistent packaging b. Single-use packaging c. Innovative d. Handling improved packaging e. Secondary use

c. Innovative

Scenario 13.3 Chris owns his own small firm. The firm has expanded significantly and is thinking about taking out some ads on television. Chris had decided it is time to get a lawyer to advise them on business issues and ensure that their activities obey all relevant laws. Chris meets with a lawyer on a recommendation from a friend. The lawyer seems to have great credentials, and the advice he gave Chris seemed solid. But the lawyer's advice comes at a high expense. Chris wants to make sure he gets the best service possible for the price he is paying. However, he does not have much experience with the law and does not know how to measure the lawyer's services on quality. It is particularly hard for Chris because the advice he gets from the lawyer is something he cannot see, making it much harder to measure according to quality characteristics. He looks online at the reviews of other consumers who used the lawyer's services. Refer to Scenario 13.3. Based on the scenario, what characteristic of services has made it difficult for Chris to analyze service quality? a. Client-based relationships b. Inseparability c. Intangibility d. Customer contact e. Heterogeneity

c. Intangibility

Scenario 11.3 Tide Pods was developed to revolutionize the detergent industry and spark new interest in Tide laundry detergent. The pods launched with much fanfare. Customers like the pods because they are less messy and more concentrated than liquid detergent. Originally, the pods were placed in a clear packaging. Other competitors have also released detergent pods due to their popularity. However, since its release there have thousands of incidents with children ingesting the pods and mistaking them as candy. Because of their higher concentration, ingesting the pods can do severe damage and has even led to deaths. Procter & Gamble responded by changing the packaging so that it is no longer transparent. It also made the packages harder to open. Refer to Scenario 11.3. Tide holds a large market share in the laundry detergent industry. However, Tide has been on the market for many years. Procter & Gamble was hoping that its pods would bring new life to its product and excite consumers once more. Tide laundry detergent is most likely in what stage of the product life cycle? a. Prosperity b. Decline c. Maturity d. Growth e. Introduction

c. Maturity

Jake is looking for a way to transport low-sulfur coal. He would like to choose a transportation mode that will get his product to its destination in a reasonable time period. He also needs the transportation mode he chooses to carry large quantities of this coal, but he would like to keep costs down. Which mode of transportation should Jake use? a. Airplane b. Waterway c. Railroad d. Pipeline e. Truck

c. Railroad

Lindsey works in R&D at a consumer products firm. She meets up with Don, who works in finance, Riley, who works in production, and David, who works in marketing. Together they are going to develop a new product that Lindsey's department had researched. They are responsible for all aspects of developing the product. This is an example of a _____________. a. brand department b. positioning team c. venture team d. work group

c. Venture team

Cummins has multiple product lines that it categorizes into engines, power generation, fuel systems, turbo technologies, filtration, and emissions solutions. This would be an example of which of the following? a. Brand extensions b. Depth of product mix c. Width of product mix d. Product items e. Product height

c. Width of product mix

Supermarkets use _______________ to allocate space for their many product categories, such as cosmetics, cereals, and soups. a. wholesaling b. atmospherics c. category management d. retail positioning

c. category management

Most wine comes in similarly shaped bottles. However, Stack Wine offers its wine in four-pack cups. While a traditional winemaker is likely to adopt _______ packaging, Stack Wine has adopted _______ packaging. a. category-consistent; secondary use b. improved handling; multiple c. category-consistent; innovative d. multiple; innovative e. identical; improved handling

c. category-consistent; innovative

Scenario 11.3 Tide Pods was developed to revolutionize the detergent industry and spark new interest in Tide laundry detergent. The pods launched with much fanfare. Customers like the pods because they are less messy and more concentrated than liquid detergent. Originally, the pods were placed in a clear packaging. Other competitors have also released detergent pods due to their popularity. However, since its release there have thousands of incidents with children ingesting the pods and mistaking them as candy. Because of their higher concentration, ingesting the pods can do severe damage and has even led to deaths. Procter & Gamble responded by changing the packaging so that it is no longer transparent. It also made the packages harder to open. Refer to Scenario 11.3. Tide Pods would most likely be classified as a(n) _______ product. However, suppose a hotel uses Tide Pods to wash their sheets and towels. In this case, Tide Pods would be classified as _______. a. convenience; process materials b. unsought; accessory equipment c. convenience; MRO supplies d. unsought; process materials e. shopping; MRO supplies

c. convenience; MRO supplies

Assume that Coca-Cola has a manager for Powerade, a manager for Coca-Cola, and a manager for Simply Orange. What types of managers are these? a. Assistant managers b. Market managers c. Product managers d. Venture team managers e. Brand managers

e. Brand managers

Fila Sports Oceania is a subsidiary of an Italian company that owns apparel rights for certain teams in the Australian Football League. Fila introduced a policy in which retailers could not feature Fila products in the same stores as other licensed products from its rivals. The Australian Competition and Consumer Commission ruled this as anticompetitive. Fila was most likely forcing its retailers into _______. a. restricted sales territories b. tying agreements c. exclusive dealing d. refusal to deal agreements e. full-line forcing

c. exclusive dealing

Scenario 13.2 Belle Meade is an old house and plantation in Nashville, Tennessee. Today it operates as a non-profit, giving tours of the house and plantation to the public. Its mission is to educate the public about the significance of the plantation in American history. In the past, it depended on ticket sales from these tours to maintain the upkeep of the plantation. However, once the recession hit, sales of tickets declined. The managers decided to open a non-profit winery to supplement ticket sales. Belle Meade grows grapes on the property, and volunteers package the wine. At the end of the tour guests can engage in wine tasting and purchase wines at the plantation's store. The winery has been highly successful, and any profits from selling the wine are reinvested back into the plantation. It also operates a restaurant on the premises. Refer to Scenario 13.2. Customers are likely to use _______ to evaluate Belle Meade's core product. a. intangibility qualities b. search qualities c. experience qualities d. heterogeneous qualities e. credence qualities

c. experience qualities

In nonprofit marketing, ___________ are indirect consumers of the product. They do not directly benefit from the product the nonprofit organization is offering. a. client publics b. target publics c. general publics d. target markets

c. general publics

When Oreo developed a new Rocky Road flavor, it was an example of a __________. a. brand extension b. product line c. line extension d. product modification

c. line extension

Scenario 11.1 Buckyballs was marketed as a desk toy made up of small magnetic spheres. Adults could play with the magnetic spheres and create different shapes. Labeling on Buckyballs packaging clearly stated that this product should be kept away from children. As concerns for safety grew, Buckyballs placed even more warning labels on the packaging. Despite this fact, thousands of children who thought the magnets were candy ingested them. The magnets could cause fatal complications inside the body. If more than one was swallowed, they could attract one another inside the stomach, creating tearing and other complications. Despite all the warnings, the Consumer Product Safety Commission ruled the product was too dangerous and filed a lawsuit. Though Buckyballs magnets were discontinued, they have since returned under the name Zen Magnets. Refer to Scenario 11.1. "Keep Away from Children" was placed on the label of Buckyballs packaging for __________ purposes. a. promotional b. informational c. safety d. convenience

c. safety

Scenario 12.3 In Australia Coca-Cola launched Mother, an energy drink. However, most people did not like the taste. Rather than introducing an entirely new product, Coca-Cola decided to reposition the product. It reformulated the Mother drink and re-released it with a new campaign. Refer to Scenario 12.3. By using a larger can size and different colors, Coca-Cola is changing the _______ of the product. a. product features b. quality c. styling d. functionality e. repositioning

c. styling

A manufacturer has the legal right to refuse to do business with a channel member unless _______. a. the supplier is the only firm able to provide products of a certain quality b. competition is promoted among dealers handling different brands c. the channel member resists policies that are anticompetitive or in restraint of trade d. the intermediary is free to carry competing products as well e. dealers and customers in a given market have access to similar products

c. the channel member resists policies that are anticompetitive or in restraint of trade

Which is the best way to handle the deletion of a product? a. Maintain the product as long as there are loyal customers b. Discontinue the product after it becomes a heavy financial burden c. Drop the product immediately once sales start to decline d. Conduct a review to determine its impact on the overall product mix e. Only eliminate the product if repositioning fails

d. Conduct a review to determine its impact on the overall product mix

_______ systems exploit the information in supply chain partners' information systems and make it available for easy reference. a. Channel captain b. Strategic channel alliance c. Procurement d. Customer relationship management e. Logistics management

d. Customer relationship management

Experiential or symbolic benefits are most important to which of the following? a. Johnson & Johnson b. Hewlett-Packard c. McDonald's d. Disney World e. H&R Block

d. Disney World

The Amazon Echo is a voice-controlled speaker and personal assistant. It has been in development since 2010. In 2014 it was released only to Amazon Prime members for purchase. In 2015 it expanded and became available in stores nationwide. Amazon has since expanded the Echo family to include the Echo Dot Kids Edition, Echo Spot, Echo Show, and more. What stage in the product development process was Amazon Echo in 2015? a. Product development b. Business analysis c. Screening d. Test marketing e. Commercialization

e. Commercialization

Scenario 13.1Shelly works as a call-center employee from inside her home. The company she works for does not mind that she works from home because she is so good at her job. Her professionalism hardly varies from one call to the next. One day, however, she learned that her mother had died. Rather than taking off work, she went through the work day as routine. A few days later, a customer complained to the firm that she did not like Shelly's attitude when she contacted her with questions about a product. She felt that Shelly was brusque and rude. The company investigated the matter and found that Shelly had lost her patience with the customer over the phone. However, when they found out about her situation, they only gave her a verbal warning.Refer to Scenario 13.1. When evaluating the quality of Shelly's service, what type of evaluation method did the customer most likely use? a. Search qualities b. Intangibility qualities c. Credence qualities d. Experience qualities e. Heterogeneous qualities

d. Experience qualities

Which of the following organizations is closer to pure services on the tangibility continuum? a. Apple store b. McDonald's c. Redbox d. Hyatt e. Car dealership

d. Hyatt

Scenario 14.1 Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox launched a streaming service called Redbox On Demand to compete with Netflix. Refer to Scenario 14.1. What type of market coverage is Redbox most likely to use? a. Selective distribution b. Exclusive distribution c. Intermediate distribution d. Intensive distribution e. Extensive distribution

d. Intensive distribution

Scenario 14.1 Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox launched a streaming service called Redbox On Demand to compete with Netflix. Refer to Scenario 14.1. Redbox kiosks keep track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays its uses to supply the kiosks based on this information. These activities most likely fall under which of the following? a. Materials handling b. Warehousing c. Transportation d. Inventory management e. Order processing

d. Inventory management

Which of the following would most likely use intensive distribution? a. Prada b. Rolex c. Dell d. Kimberly-Clark e. Sony

d. Kimberly-Clark

Scenario 11.1 Buckyballs was marketed as a desk toy made up of small magnetic spheres. Adults could play with the magnetic spheres and create different shapes. Labeling on Buckyballs packaging clearly stated that this product should be kept away from children. As concerns for safety grew, Buckyballs placed even more warning labels on the packaging. Despite this fact, thousands of children who thought the magnets were candy ingested them. The magnets could cause fatal complications inside the body. If more than one was swallowed, they could attract one another inside the stomach, creating tearing and other complications. Despite all the warnings, the Consumer Product Safety Commission ruled the product was too dangerous and filed a lawsuit. Though Buckyballs magnets were discontinued, they have since returned under the name Zen Magnets. Refer to Scenario 11.1. What type of brand was Buckyballs? a. Generic brand b. Dealer brand c. Private distributor brand d. Manufacturer brand e. Store brand

d. Manufacturer brand

In which stage do sales first start to decline? a. Introduction b. Prosperity c. Decline d. Maturity e. Growth

d. Maturity

Functional testing occurs in which part of the product development stage? a. Test marketing b. Business analysis c. Screening d. Product development e. Concept testing

d. Product development

Which market coverage is often used to motivate retailers to provide adequate service? a. Extensive distribution b. Intermediate distribution c. Exclusive distribution d. Selective distribution e. Intensive distribution

d. Selective distribution

In addition to producing the popular iPhone and iPad, Apple also helps design the components as well as the processors. It also owns its own retail stores. Apple therefore operates in the hardware, software, services, and retail industries. This is an example of _______. a. horizontal channel integration b. channel conflict c. channel cooperation d. vertical channel integration e. channel leadership

d. Vertical channel integration

Recognizing that CD players are a thing of the past, those who manufactured CD players have not attempted to make any changes but are letting them live out the remainder of their lives. The makers of CD players have new technology to explore and do not want to waste resources trying to prolong the life of an obsolete technology. This is an example of _______. a. product fading b. harvesting c. a run-off d. a phase-out e. an immediate drop

d. a phase-out

Scenario 12.3 In Australia Coca-Cola launched Mother, an energy drink. However, most people did not like the taste. Rather than introducing an entirely new product, Coca-Cola decided to reposition the product. It reformulated the Mother drink and re-released it with a new campaign. Refer to Scenario 12.3. In repositioning the product, Coca-Cola changed the taste of the product. It also changed the look of the product with a larger can size and different colors. This is an example of a(n) _______ modification. a. repositioning b. functional c. product line d. aesthetic e. quality

d. aesthetic

Scenario 11.2 Oculus, acquired by Facebook in 2014, is involved in virtual reality. Its Oculus Rift product is a virtual reality headset released to the public in 2016. Retailers including Best Buy sell the Oculus Rift for approximately $400. Some competitors have emerged to challenge Oculus Rift, including the HTC Vive, Samsung Gear, and Zeiss VR One Plus. Refer to Scenario 11.2. In terms of brand loyalty, at this stage of the product life most consumers will probably have ___________ for the Oculus Rift. a. brand insistence b. brand equity c. brand recognition d. brand preference

d. brand recognition

Suppose you roast coffee and sell it to Maximum Markets. You have a good relationship with Maximum Markets and have relied on them for many years to display your coffees in its stores. Your marketing chain has been relatively short, going from you (the producer) to the reseller (Maximum Markets) to the end consumer. However, you recently received an offer to sell your coffee in other retail stores, some that compete directly with Maximum Markets. You also would like to start selling directly through your website. You decide to provide discounts for coffee sold online. Integrating more channel members and selling to customers directly is likely to cause _____________ with Maximum Markets. a. channel integration b. channel cooperation c. vertical integration d. channel conflict

d. channel conflict

In 2015, Heinz and Kraft Foods merged into one company. This is most likely an example of _______. a. logistics b. multichannel distribution c. vertical channel integration d. horizontal channel integration e. strategic channel alliance

d. horizontal channel integration

Fidelity Investments is one of the largest mutual fund and financial services groups worldwide. It has various offices in cities across the United States. In each office customer contact personnel have a well-groomed, professional appearance. The inside of the office is clean and attractive. These visible cues are an attempt to deal with the problem of _______ common to service organizations. a. customer contact b. perishability c. inseparability d. intangibility e. heterogeneity

d. intangibility

Kira loves Mexican food. She saw a new Mexican restaurant that had affordable prices. She went in to eat but had a bad experience because the food was too salty. Kira thought perhaps it was just a fluke. She went back to the restaurant, but the food tasted just as bad. For Kira the restaurant has a low ________________. a. consistency of quality b. number of customer services c. product differentiation d. level of quality

d. level of quality

Scenario 13.2 Belle Meade is an old house and plantation in Nashville, Tennessee. Today it operates as a non-profit, giving tours of the house and plantation to the public. Its mission is to educate the public about the significance of the plantation in American history. In the past, it depended on ticket sales from these tours to maintain the upkeep of the plantation. However, once the recession hit, sales of tickets declined. The managers decided to open a non-profit winery to supplement ticket sales. Belle Meade grows grapes on the property, and volunteers package the wine. At the end of the tour guests can engage in wine tasting and purchase wines at the plantation's store. The winery has been highly successful, and any profits from selling the wine are reinvested back into the plantation. It also operates a restaurant on the premises. Refer to Scenario 13.2. Volunteers are used to help bottle the wine at Belle Meade Plantation. These volunteers experience ______________ because they are donating their time to bottle wine when they could be using it for something else. a. financial costs b. loss of resources c. missed opportunities d. opportunity costs

d. opportunity costs

The University of New Mexico football team is having its homecoming game. However, fewer people have purchased tickets than anticipated. As the game gets closer, the university begins selling the tickets at a discount in the hopes of filling up the stadium. The university is discounting football tickets due to the _______ of services. a. heterogeneity b. intangibility c. customer contact d. perishability e. inseparability

d. perishability

Scenario 12.1 During the recession, sales for many companies plummeted. The rate of unemployment grew substantially. As a result, Procter & Gamble (P&G) decided to release a cheaper, more basic version of its Tide product. This lower-priced Tide Basic lacked some of the cleaning features of its more expensive counterpart, but P&G thought it would be good for cash-strapped consumers. P&G tried out Tide Basic in 100 stores in the south for about a year. The product failed to take off, and it discontinued Tide Basic. A few years later P&G tried again with another less expensive Tide product called Simply Tide. Refer to Scenario 12.1. P&G marketed Tide Basic as a detergent that could perform the basic functions of its signature Tide products at a lower price to the consumer. This was an attempt to create a concept of the product in customers' minds. This is referred to as _______. a. line extension b. product organization c. product modification d. product positioning e. product development

d. product positioning

Ronald McDonald Houses provides places for family members to stay so they can be close to their hospitalized children. Ronald McDonald Houses solicit both donations and volunteers. It is a good charity for volunteers who are passionate about the well-being of children. In this case, who is the client public for Ronald McDonald Houses? a. Anyone who donates to Ronald McDonald Houses b. Communities surrounding the Ronald McDonald Houses c. Volunteers who care about the well-being of children d. The Ronald McDonald House Charity e. Hospitalized children and their families

e. Hospitalized children and their families

Mallory loves her job. She sells complementary products of several producers in assigned territories and is compensated through commissions. Mallory is highly effective at selling these products and is able to earn a high income from commissions. The best part is she never actually owns the products she sells. She acts more as a salesperson. Mallory is most likely a(n) _______. a. industrial distributor b. logistics manager c. wholesaler d. megacarrier e. manufacturer's agent

e. Manufacturer's agent

Scenario 14.1 Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox launched a streaming service called Redbox On Demand to compete with Netflix. Refer to Scenario 14.1. Consider that Redbox locates its kiosks close to shopping centers where customers can pick up a movie while out shopping for food or other supplies. Based upon this, what type of utility do Redbox's kiosks offer to consumers? a. Form utility b. Possession utility c. Cost utility d. Time utility e. Place utility

e. Place utility

Scenario 12.1 During the recession, sales for many companies plummeted. The rate of unemployment grew substantially. As a result, Procter & Gamble (P&G) decided to release a cheaper, more basic version of its Tide product. This lower-priced Tide Basic lacked some of the cleaning features of its more expensive counterpart, but P&G thought it would be good for cash-strapped consumers. P&G tried out Tide Basic in 100 stores in the south for about a year. The product failed to take off, and it discontinued Tide Basic. A few years later P&G tried again with another less expensive Tide product called Simply Tide. Refer to Scenario 12.1. P&G had to modify its Tide product to appeal to this new demographic. What type of product modification did it make? a. Aesthetic modification b. Repositioning modification c. Functional modification d. Product line modification e. Quality modification

e. Quality modification

Which of the products provided by the following companies is most likely to be evaluated using experience qualities? a. Car mechanic b. H&R Block c. Apple Inc. d. Life insurance firm e. Red Lobster

e. Red Lobster

Scenario 11.2 Oculus, acquired by Facebook in 2014, is involved in virtual reality. Its Oculus Rift product is a virtual reality headset released to the public in 2016. Retailers including Best Buy sell the Oculus Rift for approximately $400. Some competitors have emerged to challenge Oculus Rift, including the HTC Vive, Samsung Gear, and Zeiss VR One Plus. Refer to Scenario 11.2. What type of consumer product is the Oculus Rift? a. Unsought b. Convenience c. Accessory equipment d. Specialty e. Shopping

e. Shopping

Scenario 13.1 Shelly works as a call-center employee from inside her home. The company she works for does not mind that she works from home because she is so good at her job. Her professionalism hardly varies from one call to the next. One day, however, she learned that her mother had died. Rather than taking off work, she went through the work day as routine. A few days later, a customer complained to the firm that she did not like Shelly's attitude when she contacted her with questions about a product. She felt that Shelly was brusque and rude. The company investigated the matter and found that Shelly had lost her patience with the customer over the phone. However, when they found out about her situation, they only gave her a verbal warning. Refer to Scenario 13.1. The fact that Shelly's job has been outsourced to her home is known as _____________. a. home-based b. service stele c. commuting d. inseparability e. homesourcing

e. homesourcing