MKTG Management FINAL
B
28) ________ describes the product's look and feel to the buyer; it has an advantage of creating distinctiveness that is difficult to copy. A) Design B) Style C) Durability D) Conformance E) Reliability
E
29) Ideal ________ would exist if users could fix the product themselves with little cost in money or time. A) durability B) reliability C) style D) design E) reparability
B
1) A ________ is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas. A) function B) product C) benefit D) process E) structure
B
10) Which of the following are tangible goods that normally survive many uses? A) generic goods B) durable goods C) core benefits D) convenience goods E) unsought goods
F
100) A product system is a group of diverse and unrelated items that does not function in a compatible manner and includes the product mix and product assortment.
A
11) Because ________ are purchased frequently, marketers should make them available in many locations, charge only a small markup, and advertise heavily to induce trial and build preference. A) nondurable goods B) durable goods C) services D) unsought goods E) specialty goods
E
12) What types of goods are purchased frequently, immediately, and with minimum effort by the consumers? A) specialty goods B) shopping goods C) unsought goods D) durable goods E) convenience goods
D
13) It was sunny when Jenny went to class, but by the time class was over it was raining heavily, so Jenny stopped by the student store to buy an umbrella before she walked back to her dorm. In this case, the umbrella is an example of a(n) ________. A) impulse good B) specialty good C) homogeneous shopping good D) emergency good E) heterogeneous shopping good
B
14) What goods are similar in quality but different enough in price to justify shopping comparisons? A) emergency goods B) homogeneous shopping goods C) heterogeneous shopping goods D) specialty goods E) convenience goods
B
15) Products such as insurance, cemetery plots, and smoke detectors are examples of ________ that are products that the consumer does not know about or does not normally think of buying. A) specialty goods B) unsought goods C) heterogeneous shopping goods D) homogeneous shopping goods E) convenience goods
E
16) Industrial goods can be classified as ________, capital items, or suppliers and business services based on their relative cost and how they enter the production process. A) service components B) sub-assemblies C) accessories D) specialty goods E) materials and parts
D
18) Capital items are long-lasting goods that facilitate developing or managing the finished product. They include two groups: installations and ________. A) natural products B) component materials C) operating supplies D) equipment E) processed materials
B
19) The two kinds of supplies with respect to industrial goods classification are maintenance and repair items, and ________. A) installations B) operating supplies C) processed materials D) component materials E) equipment
D
2) A customer judges a product offering by three basic elements: product features and quality, services mix and quality, and ________. A) performance B) utility C) tangibility D) price E) availability
E
20) ________ are major purchases and are usually bought directly from the producer with the typical sale preceded by long negotiation periods. A) Raw materials B) Materials and parts C) Processed materials D) Capital goods E) Installations
D
21) Most products are established at one of four performance levels: low, average, high, or superior. For example, mountain bikes come in a variety of sizes and physical attributes. When a consumer purchases a mountain bike costing $1,000, she/he expects the bike to perform to specifications and to have a high ________ meeting the promised specifications. A) features B) conformance quality C) durability D) performance quality E) reliability
A
22) Many products can be differentiated in terms of their ________, which is its size, shape, or physical structure. A) form B) prototype C) architecture D) model E) blueprint
A
23) ________ is the ability of a company to prepare on a large-scale basis individually designed products, services, programs, and communications. A) Mass customization B) Reverse engineering C) Interoperability D) Backward compatibility E) Benchmarking
D
24) ________ is the level at which the product's primary characteristics operate. A) Design B) Conformance quality C) Reparability D) Performance quality E) Durability
C
25) Buyers expect products to have high ________, which is the degree to which all the produced units are identical and meet the promised specifications. A) durability B) compatibility C) conformance quality D) form E) performance quality
C
26) Most products can be offered with varying ________ that can supplement its basic function. A) degrees of reliability B) conformance qualities C) features D) forms E) designs
B
27) If the Ford GT is designed to accelerate to 50 miles per hour within 10 seconds, and every Ford GT coming off the assembly line does this, the model is said to have high ________. A) reliability B) conformance quality C) durability D) compatibility E) interoperability
C
3) The five product levels constitute a ________. At each level more customer value is added. A) product line B) business model C) customer value-hierarchy D) value grid E) demand chain
C
30) ________ is a measure of the probability that a product will not malfunction or fail within a specified time period. A) Reparability B) Durability C) Reliability D) Specialty E) Compatibility
D
31) When the physical product cannot be easily differentiated, the key to competitive success may lie in adding valued services and improving their quality. The main service differentiators are ordering ease, delivery, installation, ________, customer consulting, maintenance, and repair. A) technology intensity B) responsivity C) ease of use D) customer training E) adaptability
E
32) Delivery refers to how well the product or service is brought to the customer. It includes speed, ________, and care throughout the delivery process. A) expedience B) intensity C) tangibility D) performance E) accuracy
A
33) ________ refers to educating the customer's employees to use the vendor's equipment properly and efficiently. A) Customer training B) Open innovation C) Crowdsourcing D) Co-development E) Collaborative research
E
34) ________ refers to data, information systems, and advice services that the seller offers to their buyers. A) Sales force relationships B) Customer relationships C) Open source technology D) Customer training E) Customer consulting
C
35) Differentiating on ________ is important for companies with complex products and becomes an especially good selling point when targeting technology novices. A) delivery B) ordering ease C) ease of installation D) customer consulting E) reparability
D
36) ________ describes the service program for helping customers keep purchased products in good working order. A) Returns B) Ordering ease C) Installation D) Maintenance and repair E) Delivery
E
37) Which of the following actions would result in the elimination of uncontrollable returns of products in the short run? A) improved handling B) better packaging C) improved transportation D) proper storage E) cannot be eliminated
A
39) Realizing that although household products is a huge category, taking up an entire supermarket aisle or more, it is an incredibly boring one, the founders of Method Products designed a sleek, uncluttered dish soap container that also carried functional advantages, such as ease of dispensing soap and cleaning. Method is competing in the crowded market for household products on the basis of superior ________. A) design B) durability C) conformance D) reliability E) performance quality
C
4) When companies search for new ways to satisfy customers and distinguish their offering from others, they look at the ________ product, which encompasses all the possible augmentations and transformations of the product. A) consumption B) expected C) potential D) augmented E) basic
B
40) In increasingly fast-paced markets, price and technology are not enough. ________ is the factor that will often give a company its competitive edge and is defined as the totality of features that affect how a product looks, feels, and functions in terms of customer requirements. A) Conformance B) Design C) Performance D) Reliability E) Style
E
41) A group of products within a product class that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same outlets or channels, or fall within given price ranges is known as a ________. A) product type B) product class C) need family D) product variant E) product line
A
42) A(n) ________ is defined as a distinct unit within a brand or product line distinguishable by size, price, appearance, or some other attribute. A) stockkeeping unit B) inventory turn C) individual brand D) product type E) brand line
B
43) A ________ is the set of all products and items a particular seller offers for sale. A) product line B) product mix C) product extension D) product system E) product class
E
44) Happy Home Products produces detergents, toothpaste, bar soap, disposable diapers, and paper products. This company has a product ________ of five lines. A) type B) length C) class D) mix E) width
E
45) Using the ________ level of the product hierarchy to market its soups, Campbell Soups feature the company name first, then the soup variety on their packaging. A) product class B) product-type C) need-family D) product-family E) product-line
B
46) A consumer products firm manufactures and sells over 200 different sizes and varieties of jams and jellies. We can say that this manufacturer's product mix has high ________. A) consistency B) depth C) intensity D) range E) width
B
48) The ________ of the product mix refers to the total number of items in the mix. A) width B) length C) depth D) breadth E) range
E
49) In offering a product line, companies normally develop a ________ and modules that can be added to meet different customer requirements. A) convenience item B) flagship product C) staple item D) potential product E) basic platform
A
5) The way the user performs the tasks of getting and using products and related services is the user's total ________. A) consumption system B) consumable system C) consistent use system D) augmented system E) potential system
C
50) The ________ of a product mix refers to how many variants are offered of each product in the line. A) width B) length C) depth D) consistency E) height
B
52) Product-line analysis provides information for two key decision areasproduct-line length and ________. A) product-class composition B) product-mix pricing C) product pricing D) popular pricing E) product need family
E
53) What occurs when any company lengthens its product line beyond its current range? A) market overreach B) brand dilution C) product adaptations D) cannibalization E) line stretching
C
54) A company positioned in the "middle" market introduces a lower-priced product line. What type of line-stretching is this? A) home stretch B) up-market stretch C) down-market stretch D) maintenance stretch E) two-way stretch
D
55) Moving ________ carries risks. The new brand can cannibalize core brand sales and lower the core brand's quality image. A) up-market B) two ways C) one way D) down-market E) out-market
A
56) Companies may wish to implement a(n) ________ to achieve more growth, to realize higher margins, or simply to position themselves as full-line manufacturers. A) up-market stretch B) rebranding plan C) outsourcing strategy D) disintermediation policy E) vertical integration strategy
A
57) A manufacturer of hiking boots looks at data that indicate that their subsegment of the market called "serious hiker" is declining and is predicted to decline into the future. The firm decides to enter the "low-price" segment with its new items. This is an example of a firm's ________ to reach a new market. A) down-market stretch B) up-market stretch C) two-way stretch D) marketing research E) disintermediation
B
58) Marriott Corporation now contains hotels and motels from the "budget" end of the consumer spectrum to the "premium" end with their JD Marriott flagship locations. This is an example of a firm that successfully performed a ________ to reach more consumers and ventures that are more profitable. A) upstream integration B) two-way stretch C) up-market stretch D) down-market stretch E) downstream integration
C
59) A product line can also be lengthened by adding more items within the present range. There are several motives for line filling. Which of the following is one of them? A) responding to senior management wishes B) responding to consumer wishes C) reaching for incremental profits D) reaching for incremental capacity E) responding to sales-force demands
B
6) Marketers must see themselves as benefit providers. For example, when a shopper purchases new shoes, he/she expects the shoes to cover his/her feet and allow him/her to walk unobstructed. This is an example of what level in the consumer-value hierarchy? A) pure tangible good B) basic product C) augmented product D) potential product E) generic product
C
60) If line filling is overdone, it could result in ________ and customer confusion. A) sales paralysis B) manufacturing inefficiencies C) self-cannibalization D) disintermediation E) ineffective management
C
61) Price-setting logic must be modified when the product is part of a product mix. In that case, the firm searches for a set of prices that ________ profits on the total mix. A) are ineffective on total B) have no effect on total C) maximizes D) minimizes E) capitalize upon
C
62) Companies normally develop ________ rather than single products and require sellers to establish perceived quality differences between price steps within it. A) product mix B) captive products C) product lines D) optional products E) average products
E
64) Some service firms often engage in ________, consisting of a fixed fee plus a variable usage fee. A) pure bundling B) pure pricing C) mixed pricing D) captive pricing E) two-part pricing
E
65) In ________, the seller offers goods both individually and in bundles and often charges less for the "bundle" than for the individual products. A) pirating pricing B) captive pricing C) two-part pricing D) pure bundling E) mixed bundling
C
67) McDonald's restaurants inside Wal-Marts and Starbucks inside Super Targets are examples of ________, whose main advantages are that the products can or may be convincingly positioned by virtue of the associated brands. A) cooperative marketing B) cross-promotion C) retail co-branding D) ingredient branding E) feature promotion
B
68) Betty Crocker cake mixes using Hershey syrup in its cake mixes and "Lunchables" lunch combinations with Taco Bell tacos are examples of what special type of branding? A) family branding B) ingredient co-branding C) co-branding D) generic-branding E) individual branding
C
69) The main advantage of co-branding is that a product may be convincingly positioned by virtue of the ________ involved. A) branding synergy B) increased advertising dollars C) multiple brands D) bundled package E) pure bundling
B
7) How a consumer shops for organic foods and how he or she uses and disposes of the product is part of the consumers' ________ that is important for marketers to consider. A) value proposition B) consumption system C) value system D) quality perception E) value chain
A
70) The potential disadvantages of ________ are the risks and lack of control from becoming aligned with another brand in the consumers mind. Consumer expectations about the level of involvement and commitment are likely to be high, so unsatisfactory performance could be very negative for the brands involved. A) co-branding B) cannibalization C) vertical integration D) disintermediation E) brand stretching
B
71) ________ is a special case of co-branding involving creating brand equity for materials, components, or parts that are necessarily contained within other branded products. A) Cross-branding B) Ingredient branding C) Equity branding D) Family branding E) Generic branding
C
72) We define packaging as all the activities of designing and producing the container for a product. This includes up to three levels of material: primary package, secondary package, and ________. A) retailer package B) design package C) shipping package D) consumer package E) supplier package
E
73) Sales of luxury goods such as perfumes, colognes, and aftershaves depend heavily upon their initial response by the consumer. A well-designed package can create convenience and promotional value. It has been called the "silent salesman." Which of the three levels of packaging is this "silent salesman"? A) retailer B) consumer C) shipping D) secondary E) primary
B
74) Which of the following factors is one of the contributors to the growing use of packaging as a marketing tool? A) consumption aid B) consumer affluence C) consumer influence D) conformance qualities E) brand identification
B
75) ________ are formal statements of expected product performance by the manufacturer. A) Insurance B) Warranties C) Bonds D) Invoices E) Balance sheets
B
76) Many sellers offer either general or specific guarantees. Guarantees reduce the buyer's ________ risk. A) actual B) perceived C) real D) implied E) stated
E
77) Guarantees are most effective in two situations. The first is when the company or products are not well known and the second is when the product's quality is ________ to competition. A) not known B) different C) inferior D) equivalent E) superior
E
78) A new product is advertised on the "infomercials" as being "the best cleaner money can buy" and "if not completely satisfied, return the product for a full refund, including shipping." The strategy of using a strong guarantee in this instance is sound because ________. A) it is an example of a misleading or false advertising and is illegal B) the product is so superior to competition that there will be no claims for refunds C) it is just "advertising fluff" and the manufacturer has no intentions of refunding money D) for a product that is not too well known, it is "good advertising" because the claims will be a small percentage of sales E) for a product that is not too well known it reduces the buyer's risk in purchasing
T
79) Marketing planning begins with formulating an offering to meet target customers' needs or wants.
D
8) The sellers of ________ goods carry a wide assortment to satisfy individual tastes and must have well-trained salespeople to inform and advise customers. A) unsought B) specialty C) convenience D) heterogeneous shopping E) generic
T
80) A product is anything that can be offered to a market to satisfy a want or need.
F
81) In planning its market offering, the marketer needs to address five product levels, each of which reduces customer value.
F
82) The customer-value hierarchy consists of the basic product, core benefit, expected product, augmented product, and the consumption system.
T
83) Marketers have traditionally classified products on the basis of characteristics such as durability, tangibility, and use.
F
85) Because they are intangible, durable goods normally require more quality control, supplier credibility, and adaptability than either services or nondurable goods.
F
86) Carlos always buys bread and milk when he goes grocery shopping. In this case, bread and milk are examples of impulse goods.
F
87) A Maserati sports car is considered a convenience good because interested buyers will travel far to buy one.
T
88) The homogeneity of natural materials limits the amount of demand-creation activity that producers undertake.
T
89) Capital items are long-lasting goods that facilitate developing or managing the finished products.
D
9) Marketers have traditionally classified products on the basis of three characteristics: ________, tangibility, and use. A) availability B) affordability C) aesthetics D) durability E) necessity
F
90) Supplies can be classified as two kinds: heterogenous supplies and homogeneous supplies.
F
91) To be branded, physical products need not be differentiated.
T
92) To avoid "feature fatigue," companies must be careful to prioritize those features that are included and find unobtrusive ways to provide information about how consumers can use and benefit from the feature.
F
93) Firms should design the highest performance level possible for their products.
F
94) As a selling point, durability commands a particularly high pricing premium, especially for products that are subject to rapid technological obsolescence, as are personal computers and video cameras.
F
95) If the physical product cannot be easily differentiated, the key to competitive advantage lies in the pricing of the related "services" provided by the manufacturer.
T
96) Customer training and customer consulting are two areas for service differentiation that manufacturers can use with their products.
T
97) The cost of processing a return can be significantly greater than that of an outbound shipment.
T
98) Design can shift consumer perceptions to make brand experiences more rewarding.
T
99) The product hierarchy stretches from basic needs to particular items that satisfy those needs.