MKTG 380 exam 2

You have just been hired by the marketing department of a warehouse club. During orientation, the trainer talked about the implications of unfair-trade laws and fair-trade laws. You were about to leave the session confused about the difference; however, the woman sitting next to you clearly explained the differences. Which statement accurately summarizes the differences between unfair-trade and fair-trade laws?

"Fair-trade laws are directed at manufacturers to set a minimum retail price."

Darren is enrolled in a marketing course, and this week, his professor's lectures have centered on product lines. Despite completing all of his assignments thus far, he is still somewhat confused about companies that offer a single product versus those that offer product lines. Your task is to clarify the concept of product lines for Darren. You are reading a quarterly marketing magazine and come across the following headlines. Select the headlines that highlight a product line rather than just a single product.

"Frozen pizza company expands its market share by selling frozen breadsticks, pasta, and wings" "Athletic brand appeals to new customers by adding running gear to popular running shoes" "Cosmetics company creates cover-up, eye shadow, lipstick, mascara, and eyeliner based on popular concealer"

You are the head of product pricing for a household products firm located in South Dakota. You have scheduled a meeting of your marketing team to discuss pricing strategies for the upcoming year. The meeting will focus on establishing pricing objectives. You previously asked each team member to do some preliminary research prior to the meeting and to come prepared to offer one key idea that should be included in the discussion of pricing objectives. Which of the following statements is accurate about the process of setting pricing objectives?

"One of the most fundamental pricing objectives is survival of the firm."

Select all the statements that are accurate about the product life cycle.

A harvesting or divesting approach is used in the decline stage. One objective in the maturity stage is to increase the percentage of customer needs met by the firm. Competitive reactions to the product's success in the growth stage will affect the product's life expectancy.

You own a startup company making three-wheeled bicycles for senior citizens. You sell your manual model for $300 and your electric model for $500. Your variable costs are half of your sales price. Because of the price point, you sell four times as many manual bikes as electric ones. Your total fixed costs are $255,000. You have been asked to calculate the breakeven point for your company's one-year production. After calculating the breakeven point, choose from the following options the answers that are correct AND that are used to calculate the breakeven point and future profit margins. Select all that apply.

After you reach the breakeven point, you make a profit of $150 for the manual bike and $250 for the electric bike. The breakeven point is achieved when 1500 bikes are sold. Variable costs are $150 for the manual model and $250 for the electric model. Variable costs average $170 each for producing ten units to meet your sales demands.

Marketers often deal with the challenge of having too much information about their target markets and being able to sift through them efficiently. One strategy they use to address this challenge is direct sampling, which is used to obtain customer opinions regarding a particular company's goods or services. Neo works for a breakfast food company and wants to increase brand awareness and loyalty among working-class families in the area of Chicago, Illinois. Which of the following will most likely yield the most interesting information about Neo's company's products?

Allowing families to sample products at local supermarkets and asking them to complete a brief survey

Select the statement(s) that accurately illustrate(s) each brand equity concept.

Brand equity enables the smooth expansion of a company's products into new markets. Charmaine purchases Tylenol brand flu medicine for her family when they're sick. This illustrates the relevance dimension. Josie buys a Gucci pocketbook because she associates it with luxury. This illustrates the knowledge dimension.

A researcher is studying the relationship between distance in time and the perception of an item's price and value. Which statement best summarizes research findings regarding distance in time and price-quality relationships?

Consumers don't seem to consider the price of an item when assessing the value of an item that won't be available for several months.

You head the marketing department of a direct competitor of SONIC Drive-ins. Your supervisor has sent you a link to a TV ad in which SONIC declared an upcoming date as a new holiday called "National Ice Cream Day." Customers get ice cream cones for half price. You know that your company's philosophy is: Get the word out about our food; when they find out how good our food tastes, they will come back for more. The CEO also likes assertive initiatives. What is your best response to SONIC's marketing campaign?

Convince your marketing team to come up with a novel concept of a food celebration, instead of a one-day holiday. Instead of offering the same discount as SONIC, propose selling each ice cream cone for a dollar. Call the week-long result "Delicious Dollar Days." Explain that the opportunity to attract new customers overrides any dip in revenue.

Which of the following actions is most likely to be taken by a company in order to implement the value pricing objective?

Convincing consumers that the quality of their lower-priced product is the same as that of a comparatively higher-priced product sold by a competitor

The marketing manager of a global exporting company is considering the utilization of standard worldwide pricing strategy. Under which conditions is the strategy most likely to work? Select the condition(s) under which dual pricing is most likely to be successful. Choose all that apply.

Foreign marketing costs remain low enough not to affect overall costs. The company's prices reflect average unit costs.

As the head of marketing, you issued a directive for all individual product marketing teams to use a consistent set of marketing strategies and tactics in managing products across the stages of the product life cycle. Which of the following marketing strategies and tactics is(are) linked appropriately to a stage of the product life cycle?

In the introduction stage, marketing strategy should be designed to attract the customer segment that is most interested and has the fewest objections. In the growth stage, the marketing strategy goal is to establish and fortify the product's market position by encouraging brand loyalty. In the decline stage, the marketer may cut promotion efforts and eliminate marginal distributors. In the maturity stage, a greater mix of pricing strategies is used.

Which of the following is a key difference between product and institutional advertising?

Institutional marketing is closely linked to a firm's communications and relationships with its various publics.

Which of the following is true of pure competition?

It presupposes a market condition where sellers produce homogenous products.

A government agency would like to obtain a food service, which would provide its employees breakfast and lunch at convenient locations. While negotiating the price, the agency attempts to purchase the service at the lowest available price without paying a set price for its purchase. How would the agency go about finding the lowest price available for large purchases without paying a set price?

It would invite potential vendors to quote prices, with the lowest bidder winning the contract.

Choose the accurate example(s) of various components in the promotional mix.

Joshua works for an insurance company and goes door to door to sell life insurance to young families. He engages in personal selling. To promote the independent film The Blair Witch Project, the producers set up an Internet campaign to spread rumors about the fictitious "Blair Witch" and two teens who had disappeared at the hands of the said witch. This was an example of guerrilla marketing. Milagros purchased a new workout series on DVD via the toll-free number she heard on the infomercial she was watching. This is an example of direct marketing.

Choose the scenario(s) below that accurately illustrate(s) the five consumer adoption categories.

Juan tends to try new products just before the average person does. He is a member of the early majority. Fatima is venturesome when it comes to trying new products. She is a member of the consumer innovators. Julia is cautious when trying new products. She is a member of the early majority. Navid distrusts new products. He is a member of the laggards.

You work for an organization that promotes animal safety and teaches courses about wildlife. As the beginning of the fiscal year approaches, you want to find ways to fundraise for the organization and are contemplating television advertising, particularly through cable networks. At first, you air your commercials on public networks in the hope that you will garner a high response rate; however, this approach is not effective. You decide that the most efficient strategy would be to fine-tune your target audience so that you are targeting a smaller, more specific audience. You partner with the animal channel instead. Which of the following strategies worked best and why? Check all that apply.

Narrowcasting because viewers who see the advertising are more likely to donate to your cause Narrowcasting because special interest channels attract specialized audiences and permit niche marketing

Which of the following are characteristics of product innovation and can influence a product's adoption rate?

Observability Relative advantage Possibility of trial use Complexity

Which of the following scenarios illustrate(s) an advertising campaign?

Protex uses the slogan, "Whatever you touch stays with you!" on billboards, T-shirts, magazine ads, and television commercials to promote their new hand soap line. Apple's print ads, commercials, and posters all highlight the significant size difference between the iPhone 6 and the iPhone 6 Plus. Since their new film is titled Fire, the producers developed promotional materials in bright red and orange hues, and all their ads feature fireballs in the background.

You wanted the cheapest price when you purchased airline tickets to visit your parents. You accepted some limitations: advance purchase, Saturday-night stay requirements, and penalties for flight changes. The plane's takeoff was delayed by fog. No refreshments were served. The flight was not smooth due to prevailing winds. Your baggage, for which you paid extra charges, was lost. When your suitcase was returned to you later, it was irreparably damaged. The plane was late in returning home, circling the airport for two hours. Which possible reactions to your travel experience relate to the airline's use of yield management strategies?

Relax. The problems you experienced were not related to the airline's yield management strategies.

Which of the following can be sources for new product ideas?

Research and development specialists Sales force Assessments of competing products Suggestions from customers

Which of the following is true of generic products?

They are characterized by plain labels, little or no advertising, and no brand names.

You work for a human services organization that relies heavily on federal grants to run its programs. Because of the economic crisis, your funders have cut budgets, causing your organization to scale back its youth-based and mental health programs. At your biweekly staff meeting, you suggest that junior staff set up a phone bank and call community members who have accessed your organization's programs in the past to see if they'd be interested in donating funds to support the programs. You also want to figure out whether the organization can afford to place an ad in local newspapers, or find a celebrity who will endorse your organization's services for free. Which of the following statements can be inferred from the scenario described above?

This organization has a fairly limited promotional mix.

the _______ stated that a drug company could be sued over an alleged defect, regardless of the fact that it has been approved for use.

US Supreme Court

A researcher is interested in studying the problems that businesses encounter with transfer pricing and how they solve them. Which of the following businesses would the researcher most likely select as having issues with transfer pricing?

a large multinational oil refinery

Lorem is working as an intern at a local television network and has been asked to support the marketing communication process. Lorem understands that effective promotional messages must capture the potential customer's ________ before all else. Consequently, he researches a series of effective ads and studies the strategies those companies employed to achieve success. One element that effective messages have in common is that they all engage and stimulate the potential customer's _______. This factor is critical because a message that lacks magic and does not attract the audience will not lead to a sale. Lorem also notices that the message must stimulate a potential customer's ________ for something by convincing the customer that the product can satisfy some sort of lack in his or her life. Last, a strategic message should result in __________ , whereby the potential customer actually buys the product or develops a more favorable perception of the product.

attention interest desire action

You have been hired to work for the marketing department of an elite automobile manufacturer that has recently expanded into the coach bus industry. To cut out the middleman, the company sells its products directly to its customers. As you struggle to identify your target market, you realize that you need to determine whether the company should target consumers, businesses, or both. Which is the best targeting choice for this company?

both (consumer and business markets)

The term _____ refers to the added value a certain brand name gives to a product in the marketplace.

brand equity

_____ is the strategy of attaching a popular brand name to a new product in an unrelated product category.

brand extension

_____ is the ultimate stage in brand loyalty that leads consumers to refuse alternatives and search extensively for the desired merchandise.

brand insistence

A marketer responsible for an individual product or product line is called a(n) _____.

brand manager

A(n) _____ is a symbol or a pictorial design that distinguishes a product.

brand mark

A(n) _____ consists of words or numbers that can be spoken, and identifies and distinguishes a firm's offerings from those of its competitors.

brand name

____ is the second level of brand loyalty at which buyers rely on previous experiences with the product when choosing it, if available, over competitors' products

brand preference

At the _____ stage of brand loyalty, marketers use advertising as a means to increase consumer awareness of a brand.

brand recognition

The pricing technique used to determine the number of products that must be sold at a specified price to generate enough revenue to cover total cost is known as _____ analysis.

breakeven

The ______ defines when an investment in board game production will begin to generate a positive return. The fixed and variable costs are covered, and profits can be made in future sales.

breakeven point

_____ refers to loss of sales of an existing product due to competition from a new product in the same line

cannibalization

A(n) _____ is a national brand sold exclusively by a retail chain.

captive brand

A new-product idea is ready to be full-scale marketed when it reaches the ________ step. When a product reaches the _________ step, the engineers work to turn the idea into a visible product. The _________ step may include checklists to determine a product's compatibility with company objectives. The ________ step assesses the product's market potential and its likely competitive strengths. A consumer tries out the new product in a real-life environment in the _______ step. The _______ step involves the product's conception.

commercialization development screening business analysis test marketing idea generation

____________ subjects a product idea to additional study prior to its actual development.

concept testing

A person who purchases new products as soon as they are available in the market is called a(n) _____.

consumer innovator

The first buyers of new products—people who purchase new products almost as soon as these products reach the market—are commonly referred to as

consumer innovators

The first buyers of new products—people who purchase new products almost as soon as these products reach the market—are commonly referred to as ______________.

consumer innovators

the ______ has the authority to charge managers with criminal offenses if they have been negligent in their responsibilities to the public.

consumer product safety commission

You are a marketer for a multinational home furnishing store that distributes goods through local retail and department stores. Your company has to cut marketing costs, and as a marketer you have been strategizing ways to do so without sacrificing the quality of your company's promotional mix and advertising strategies. Which of the following strategies could you employ to save costs while retaining the integrity of your company's advertising strategies?

cooperative advertising

Consumer Product Safety Commission

covers consumer products with the exception of food, automobiles, and products that other agencies address, which allows consumers to purchase products safely

When marketing partners share the cost of a promotional campaign that meets their mutual needs, they are said to be engaged in:

cross-promotion

Convenience, shopping, and specialty products differ on two key dimensions: purchasing frequency and planning time. Which type of product is characterized by both low purchasing frequency and low planning time? a. convenience b. specialty c. shopping d. none of the above

d. none of the above

Rather than wait to have customers pick up weekly circulars in the store, Cash on Us Discount Store sends its loyal customers a weekly circular. Cash on Us uses:

direct mail

Which of the following terms represents the measure of responsiveness of purchasers and suppliers to a change in price?

elasticity

_____ pricing is the pricing strategy of continuously offering low prices rather than relying on short-term price-cutting tactics such as cents-off coupons, rebates, and special sales.

everyday low

Brand insistence is a company's first objective for newly introduced products.

false

Brand names should contain words or phrases in general use, so that it is easier for the consumers to pronounce, recognize and remember the brand names.

false

Everyday low pricing strategies are an attempt to remove pricing as a significant part of the marketing mix.

false

Maria sees an ad for a new service offered by the U.S. Postal Service to make shipping packages easier during the holidays. This ad is an example of institutional advertising.

false

Persuasive advertising is typically used in the latter part of the maturity stage and throughout the decline stage of the product lifecycle.

false

The original objective of product packaging was to increase consumer awareness of the product.

false

A(n) _____ is a single brand name that identifies several related products.

family brand

Your company has designed a new body wash that will be branded under the name Beneficials. Your company has already created a shampoo, conditioner, hand cream, and face wash under this same brand name. What type of brand is your company using?

family brand

Traditionally, consumers drink club soda and use it as a mixer for alcoholic beverages. Nevertheless, some consumers swear by club soda's ability to remove stains. Which of the following product life cycle extension themes is illustrated here?

finding new uses

The consumer adoption process goes through distinct stages before the consumer makes the ultimate decision to routinely purchase an item or not. Of the five stages described below, which occurs first and which occurs last? Stage A: A product is first encountered, but no details are known about it. Stage B: A consumer decides whether the product will benefit him or her if purchased. Stage C: A consumer starts to find out details about the product. Stage D: Based on the previous purchase, the product may or may not be purchased regularly. Stage E: A consumer starts to find out details about the product.

first A, last D

______ is not directly related to the level of production of board games. It remains the same amount, regardless of output.

fixed cost

the ______ can ban edible products from the market if the safety of the product is called into question.

food and drug administration

Of the types of goods listed below, which represent(s) elastic demand?

fresh green peas foreign travel

You work for a multinational corporation that manufactures a series of home goods, cosmetics, pet supplies, foods, and beverages. As a newly appointed head of development, you want to familiarize yourself with the company's product lines. Which of the following combinations of items represents a product line?​

frozen tacos, salsa, and shredded cheese

A(n) _____ is characterized by plain labels and no advertising.

generic product

A researcher is studying consumers' perceptions of products and their prices. Which of the following is(are) perceived by consumers as associated with products with a high price tag?

high quality prestige

U.S. Supreme Court

highest court in the United States and has ultimate jurisdiction over product liability disputes that are not settled in lower courts

You are interested in learning about the factors that affect product quality and total quality management processes within business firms. You have been asked to pinpoint critical factors as well as factors that are not as vital. Which of the following is least likely to affect the quality of a product?

how the product is distributed

You work for a company that manufactures and sells its own products in the company's chain of grocery stores. You manage the chain of grocery stores and are reviewing customer comments from a recent in-store survey conducted in 50% of the stores. The following is a sample of some of the comments received in the survey: "I like shopping at your store because I can shop for just about every household product category I need. The choices in each category, however, are too limited." "I shop at your store primarily for breakfast cereal, but I get frustrated when I can't find the cereal brands I see advertised on television." Which one of the following steps should you take to address these types of customer concerns?

increase the depth of your product mix

You work for the local public health department and want to assure community residents that the recent meningitis outbreak is under control, and that your staff are working diligently to vaccinate children and to ensure that something like this doesn't occur in the future. ​ ​Which type of advertising should the company use?

institutional advertising

Your company recently released an ad campaign to promote its new tablet. Shortly thereafter, your company publishes a series of blogs and articles about the product and sets up hotlines so people can call in to find out more information about the product and its release date. At which stage of the adoption process are consumers operating?​

interest

You work for an automobile manufacturing company that has received millions of dollars in loans and grants. Your CEO wants the company to invest in marketing strategies that push your company to the forefront in the market. While you think direct marketing may be an efficient way to go, you want the company to leave an indelible mark, so you come up with other ideas. ​ ​Which of the following choices would you make about your company's marketing strategy?

invest in a new stadium that showcases the company name

At a meeting of the marketing department, the team members discuss the pricing strategy of a new product. One of the team members suggests that the company should initially set a price that is significantly higher than the price of the company's competitors. This person defends the strategy on the grounds that the new product is unique and distinctive and that there are very few competitors that also sell it. The person continues by saying that an inflated price will increase the company's price margins. However, as a member of the department, you warn against such a practice. What is the most likely reason why you discouraged this pricing strategy?

it attracts competition

A large cable company offers its customers bundle pricing in order to offer them a wide variety of services. Many of their customers, however, resist the practice.

it forces customers to pay for unwanted services

What happens when a new-product idea reaches the commercialization stage?

it is ready for full-scale marketing

A(n) _____ is a branding component that carries an item's brand name or symbol, the name and address of the manufacturer or distributor, information about the product, and recommended uses.

label

_____ is the practice of developing individual offerings that appeal to different market segments while remaining closely related to the existing product line.

line extension

_____ pricing is a pricing policy in which products are offered to consumers at less than cost to attract them to stores in the hope that they will buy other merchandise at regular prices.

loss leader

Volume-related pricing objective with the goal of controlling a portion of the market for a firm's product is known as a ______ objective.

market-share

Marketers are concerned with a company's _________ , the blend of the four elements of a marketing strategy: product, price, promotion and _________. In addition, the ________ , whether tangible or intangible, must satisfy the needs of the __________. The differences between the two can cause confusion for some. Businesses and consumers alike may often use the ___________ to distinguish between products and services.

marketing strategy distribution product customer goods-services continuum

During which of the following stages in the product lifecycle, do industry sales of the product level out?

maturity stage

as an illustration of the ______ objective, Shoppable customers can check out the value prices offered by Walmart and Target.

meeting competition The meeting competition objective is met by the ability of customers to check out prices from such known discounters as Walmart and Target, who offer value pricing.

The assortment of product lines and individual product offerings a company sells is called its product _____.

mix

A _____ brand refers to a brand name owned by a manufacturer or a producer.

national or private

Convenience, shopping, and specialty products differ on two key dimensions: purchasing frequency and planning time. Which type of product is characterized by both low purchasing frequency and low planning time? a. convenience b. speciality c. shopping d. none of the above

none of the above

prices are set at numbers ending in 7 or 9 in the hope that the product will appear less expensive than if it has a price ending in zero

odd pricing

You have been hired as a marketing consultant for an advertising firm, and you have been presented with a marketing research opportunity. The firm's CEO wants to use a personal historical approach to describe the earliest implementations of fair-trade legislation in California. She wants you to report the opinions of the marketing executives who were the first to be affected by the law, and describe how they felt about it. Which of the following research techniques would be the easiest source of the requested information?

opinions printed in newspapers, journals, and books

Dennis goes door to door trying to persuade families to purchase life insurance. While Dennis employs _________, Marcy prefers the cell phone carrier commercials that use babies - an example of _________.

personal selling media advertising

You work for a direct marketing company and have been asked to go door to door to survey consumers on their favorite products. Before you head out, you want to ensure that you understand the differences between services and goods. You also realize that some offerings are combinations of services and goods. Which of the following are goods-services combinations?

pizza delivery online music streaming

The ______ mandates that drug companies market their products to be child-resistant but accessible to adults.

poison prevention packaging act

Customers can see products displayed or mentioned in context with luxury lifestyle images. This is related to the firm's _______ objective

prestige The prestige objective is met by a firm's ability to situate mention of its products on high-end websites, blogs, or native content, if that is the intended audience.

In international marketing, which of the following pricing objectives is used when products are associated with intangible benefits, such as high quality, exclusiveness, or attractive design?

prestige objectives

A(n) _____ is a general guideline that reflects marketing objectives and influences specific pricing decisions.

pricing policy

A brand offered by a wholesaler or a retailer is called a(n) _____.

private brand

The Kirkland brand is owned by Costco, and the products can only be purchased at Costco stores. Costco contracts with manufacturers to produce and package products under the Kirkland name. Kirkland can be regarded as a(n):

private brand

A _____ strategy focuses on developing entirely new products for new markets.

product diversification

A(n) _____ strategy focuses on developing entirely new products for new markets.

product diversification

_____ refers to the responsibility of manufacturers and marketers for injuries and damages caused by their products.

product liability

Marta's company wants to revamp its potato chips brand to compete with Lay's potato chips. She has been researching consumer preferences so that she can market her company's chips accordingly. What type of strategy is Marta using?​

product positioning strategy

A car manufacturer has developed different models of a car to suit the pricing needs of different classes of customers. It offers a low-end version for price conscious customers and luxury cars for high-end customers. This is an example of _____ pricing.

product-line

Specialty products are:

products with unique characteristics that cause buyers to prize those brands

_____ maximization is identified as the point at which the additional revenue gained by increasing the price of a product equals the increase in total costs.

profit

The ease of customers' navigation produces a high conversion-to-sales rate. This is related to the firm's __________ objective

profitability The profitability objective is met by the ease of customers' navigation, producing a high conversion-to-sales rate.

Myra has promised that the retailer who is first to sell out of her current shoe line will be the exclusive carrier of her upcoming line. This is an example of

promotion

applies the belief that certain prices or price ranges are more appealing than others

psychological pricing

After Boka Restaurant was reported to have donated two months' worth of meals to a local shelter, business boomed. This is an example of

public relations

You work for a pharmaceutical company that has new information about a drug it has been testing for years. What is the most cost-effective way to provide the public with information about this development?

publicity release

Prestige pricing objectives emphasize:

quality and exclusivity

A marketing student is studying the difference between one-price policies and price flexibility. The student is trying to determine which policy would be most commonly offered by various retailers. Which products are most likely to offer price flexibility? Select all that apply.

real estate trucks hotel rooms

A fan manufacturer halts the manufacturing of box fans and manufactures oscillating tower fans instead. The tower fans save space and are more efficient. Which of the following product life cycle extension themes is(are) illustrated here?

rebranding the product

Which of the following types of advertising is most likely to be used in the latter part of the maturity stage and throughout the decline stage of the product lifecycle?

reminder advertising

Poison Prevention Packaging Act

requires packaging to be made significantly difficult for children under the age of five to open in a reasonable amount of time, which ensures a child's safety regarding poisonous products

Food and Drug Administration (FDA)

responsible for protecting the public's health by regulating food, drugs, medical devices, and biological products, which protects consumers against potentially harmful or defective products

Motels and luxury hotels cater to the same want satisfaction-a place to stay. However, their respective guests have considerably different expectations of service. Which of the following characteristics of services best represents these different expectations in service?

service standards show wide variations

Which of the following is true of services?

services are inseparable from service providers

Kiera's dog walking business is booming, and she is interested in expanding. In order to expand, her company needs more customers, and the demand for dog walking in her neighboring communities must increase in order for her to generate a profit. Her best friend, a local celebrity, suggests that she should consider marketing her services. Because Kiera understands that there are specific challenges associated with developing advertising objectives for services, she is very careful about how to advertise her dog walking services. In the end, she decides to develop a logo for her company so customers can associate it with the services she provides. ​ How did Kiera make her intangible services more marketable?​

she enhanced her brand image

Culverhouse Company is a manufacturer of specialty canes. The company occupies a niche market in the manufacturing sector and therefore has little competition. Culverhouse introduces a new cane with a rather high price point compared to similar products. Which pricing strategy is the company using?

skimming

You work for Co-eds, a new company that delivers snacks to college students on their campuses in the New York City area. The company delivers snacks between 3pm and 4am, which according to the research your company has done, is the time in which college students tend to study most. You're looking for an inexpensive way to market your products and services to this demographic and don't have a lot of money to spend. Which of the following media formats would you select?

social media

The Kennedys expect a good turnout at their annual health benefit this year because Nike is supporting the event and the company's logo will appear on all communications. They are pleased about this

sponsorship

_______ allows a company to determine how the product will do in a real-life environment. The product may be moved to the ________ stage if it tests well. Concept testing can be used in the ________ step in order to subject a product idea to extensive study before introducing the product to consumer __________. _________ of a new product actually brings the new product to market, and can include tangible items, items that can be touched or __________ items such as a service or experience.

test marketing commercialization business analysis focus groups development intangible

You work for a small consumer goods company that has a star product which continues to dominate the market. You want to convince top management that now is the time to introduce new products into the market. Which of the following would you use in your argument to convince your company's executives to expand its product offerings?

the company can expand operations costs over a series of products

Tyrone works for a toy manufacturer. Recently, the company had to recall a new toy with small parts that present a choking hazard to young children. The company has drawn up plans for a new stuffed whale toy with detachable pieces that it would like to put on the market later this year. Tyrone has been tasked with making sure that the new toy will meet all legal requirements before it's put on the market so that the company can avoid another costly recall. Which government act is of greatest interest to Tyrone?

the consumer product safety act

Product Liability Insurance

the cost of product liability insurance premiums has driven marketers to ramp up efforts to ensure that a product is safe and that consumers are warned of any dangers associated with the product in order to protect manufacturers against lawsuits

You just finished meeting with your boss, who is very upset about the most recent customer survey results for the firm. A majority of the respondents complained about the limited number of product lines your firm offers. Which of the following recommendations should you make to your boss?​

the firm needs to expand the width of its product mix

_______ does not change as the level of production of board games increases. This is key to making a profit: once the total fixed costs are covered, more output does not required more fixed cost expenditure.

total fixed cost

The term _____ refers to the visual components that contribute to the overall look of a brand.

trade dress

A(n) _____ is a brand for which the owner claims exclusive legal protection.

trademark

A brand name must qualify for legal protection.

true

A market penetration strategy seeks to increase sales of existing products in existing markets.

true

An excellent brand name or symbol in one country may prove disastrous in another.

true

Penetration pricing is often used in a market in which a new product is likely to face strong competition when introduced.

true

Setting the timing and sequence for a series of advertisements is called media scheduling.

true

The diffusion process focuses on the speed at which an innovative product is accepted or rejected by all members of a community or social system.

true

Tide laundry detergent commands an extremely high market share. Purchasers of the product are extremely less sensitive to price changes. Based on this assessment, it can be said that Tide has high brand equity.

true

policy in which prices are stated in terms of such units of measurement as gallons or pounds

unit pricing

The _____ is a numerical bar code system used to record product and price information.

universal product code (UPC)

_________ changes in direct relation to the volume of the output of board games. The number of games made, and the cost of making them, are tied together in the variable cost expense.

variable cost

Customers shop until they have enough products to qualify for free shipping from participating retailers, usually two stores. This is related to the firm's ________ objective.

volume The volume objective is met by customers incentivized to shop until they have enough products to qualify for free shipping from participating retailers, usually two stores.You own a startup company making three-wheeled bicycles for senior citizens. You sell your manual model for $300 and your electric model for $500. Your variable costs are half of your sales price. Because of the price point, you sell four times as many manual bikes as electric ones. Your total fixed costs are $255,000. You have been asked to calculate the breakeven point for your company's one-year production. After calculating the breakeven point, choose from the following options the answers that are correct AND that are used to calculate the breakeven point and future profit margins. Select all that apply.