Marketing 3000 Exam 2

Walmart is known for its efficient logistical systems. Every time consumers buy something, that purchase is recorded and sent to company headquarters, where it is used to generate reorders to vendors. In addition, customers' billions of purchases are analyzed to uncover patterns of consumers' purchasing behavior. This is an example of: A. data isolation. B. data mining. C. secondary data collection. D. sentiment mining. E. qualitative research.

B Data mining uses a variety of statistical analysis tools to uncover previously unknown patterns in the data or relationships among variables. In this case, Walmart uses the data to reorder products and to uncover customers' purchase patterns.

When the marketing research problem is not clearly defined, a researcher will likely engage in __________ research. A. data mining B. qualitative C. survey D. quantitative E. experimental

B Qualitative research can be conducted to investigate the research problem in order to gain preliminary insights; it provides initial information that helps the researcher more clearly formulate the research objectives.

How is consumer panel data collected during the test marketing phase of a new product introduction? A. Panelists complete a questionnaire about the product. B. Panelists scan their receipts on a home scanning device. C. Stores provide sales data to companies. D. Consumers voluntarily go to a website to record their preferences. E. Focus groups are held in key markets.

B. Panelists scan their receipts on a home scanning device The consumer panel data are collected by panelists scanning in their receipts using a home scanning device.

Which of the following is the best example of a family brand? A. Cadillac, GMC, and Chevrolet B. Tostitos Multigrain Scoops and Tostitos Chunky Salsa C. Kellogg's Special K and Famous Amos Chocolate Chip Cookies D. Lifesavers Soda, Coca-Cola, and Diet Coke E. KFC/Taco Bell fast foods

B. Tostitos Multigrain Scoops and Tostitos Chunky Salsa A firm can use its own corporate name to brand all its product lines and products, referred to as a family brand.

How might a book publisher use blogs in its marketing research efforts? A. as a place to report marketing research results to top management B. as a source of reviews of its latest releases C. as a location for holding online focus groups about its books D. as a location for conducting online experiments about book purchasing patterns E. as a substitute for large-scale surveys about future book topics

B. as a source of reviews of its latest releases Bloggers often review products. These reviews can provide insights, especially if the blogger is unaffiliated with the products being reviewed.

What are the 5 steps in the marketing research process?

1.) Define objective and research needs 2.) Designing the research 3.) Collecting the data 4.) Analyzing the data and developing insights 5.) Developing and implementing an action plan

Which of the following is not a characteristic of products in the maturity stage of the product life cycle? A. Laggards are a major focus of marketing efforts. B. Price competition is intense. C. Marketing costs increase as firms defend their market share. D. The market may become saturated because nearly all potential customers have adopted the product. E. To increase the customer base, firms consider entry into new markets and new market segments

A. Laggards are a major focus of marketing efforts. The late majority, not laggards, should be the focus of marketing efforts in the maturity stage.

Which of the following statements is not one of the guidelines provided by the American Marketing Association for conducting marketing research? A. Personal information about research participants should not be shared, except with a designated member of senior management. B. Selling or fund-raising should not be conducted under the guise of conducting research. C. Researchers should not misrepresent data. D. Clients and suppliers should be treated fairly. E. Researchers should not omit pertinent data.

A. Personal information about research participants should not be shared, except with a designated

Marketers need to think about the product offer on three levels. Which of the following levels includes associated services such as warranties, financing, support, and after-sale service? A. augmented product B. core customer value C. actual product D. modified product E. core product

A. augmented product The augmented product includes associated services such as a warranty and a customer service line dedicated to product support

If a few of Nintendo's customers are asked to try out a new video game that has not yet been released on the market, this is an example of A. beta testing. B. market testing. C. premarket tests. D. test marketing. E. concept testing.

A. beta testing. Beta testing uses potential consumers, who use the product in a "real use" setting to determine its performance.

In many cases, pioneers lose their market lead and initial market share to imitators who A. capitalize on the pioneers' weaknesses. B. create similar products with reduced value to consumers. C. utilize alpha-beta testing. D. ignore patents and copyrights. E. target late maturity consumers.

A. capitalize on the pioneers' weaknesses. Although pioneers often obtain an initial market lead, later entrants into the market can sometimes overtake the pioneers' lead by focusing on the pioneers' weaknesses.

In questionnaire design, a question such as "When was the first time you went to a dentist?" A. is a question that respondents cannot easily or accurately answer. B. is a question that respondents are reluctant to answer because the information is sensitive. C. leads respondents to a particular response. D. asks two questions at once. E. is complex and something respondents may be unfamiliar with.

A. is a question that respondents cannot easily or accurately answer. It may be difficult for a respondent to remember his or her first dentist office visit, which means that responses to the question will probably not be reliable

One key feature of the value of a strong brand is that A. it can protect the firm from competition. B. it no longer needs to be supported by advertising and promotion. C. if it becomes a generic name, the brand is worth even more. D. it cannot be successfully imitated by a retailer's own brand. E. competitors will typically abandon a sector altogether rather than compete.

A. it can protect the firm from competition. Strong brands protect the firm somewhat from competition because the brand differentiates the firm's products, making customers more loyal

A restaurant chain is working on improving the quality of its food and service. To track its progress it recruits customers who agree to respond to customer satisfaction surveys once every three months over the next two years. What kind of data is the restaurant chain collecting? A. panel data B. internal secondary data C. focus group data D. external secondary data E. scanner data

A. panel data This is an example of using a panel— a group of consumers who provide information over a period of time. These are primary, not secondary, data because the data are being collected specifically to measure progress in improving satisfaction

A __________ is a document used by a forklift driver indicating how much of each item to get from specific storage areas. A. pick ticket B. warehouse receipt C. bill of lading D. certificate of origin E. RFID tag

A. pick ticket A pick ticket is a document or display on a screen in a forklift truck indicating how much of each item to get from specific storage areas. The forklift driver goes to the storage area and picks up the number of cartons indicated on the pick ticket

In one test before product launch, customers try a sample product and are then surveyed to understand whether or not they would buy/use the product again. This is known as A. premarket testing. B. market testing. C. alpha testing. D. concept testing. E. prelaunch testing.

A. premarket testing. Premarket tests are conducted to determine whether or not the customer will buy/use the product again. This is done to allow the firm to evaluate the product's likely success before committing to the cost of a test market.

Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their A. relative advantage. B. compatibility. C. observability. D. associated services. E. trialability.

A. relative advantage. These operating systems enjoyed a substantial relative advantage compared to DOS.

Quantitative research offers a means to confirm ideas through A. surveys or experiments. B. in-depth interviews. C. data mining. D. qualitative research. E. informal analysis.

A. surveys or experiments. Quantitative research produces data that can be used to confirm ideas through statistical testing.

One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Using the cars in a real-use setting provides an opportunity for _______ the product. A. pretesting B. beta testing C. test marketing D. alpha testing E. concept testing

B. beta testing A beta test is a test of the product conducted by key customers. Participation in NASCAR and other racing organizations offers auto companies a chance to do this.

The basic reason manufacturers spend time and money building their own brands is to A. create brand awareness. B. build brand equity. C. offset the power of private-label manufacturers. D. create positioning possibilities for their generic product lines. E. maximize product line depth.

B. build brand equity. Companies invest in brands to build brand equity, which is a corporate asset.

Sometimes brand names become synonymous with a product itself. If that happens, the brand A. has achieved brand stabilization. B. could lose its trademark status. C. should try co-branding to avoid brand dilution. D. should consider a new packaging strategy. E. easily eliminates all competition.

B. could lose its trademark status. Companies whose brand names become synonymous with the product—like Kleenex, Clorox bleach, and Scotch tape—must be vigilant in protecting their brand names because if they are used so generically, over time, the brand itself can lose its trademark status

Flora is frustrated with her company's supply chain management information system. She wants to be able to receive sales data, initiate purchase orders, send and receive invoices and receive returned merchandise documentation. Flora needs a(n) A. cross-docking exchange. B. electronic data interchange system. C. vendor-managed inventory system. D. vertical conflict reduction system. E. radio frequency identification system.

B. electronic data interchange system. Electronic data interchange (EDI) is the computer-to-computer exchange of business documents from a retailer to a vendor and back.

Firms can measure the success of a new product by all of the following factors except A. satisfaction of its technical requirements. B. fewer competitors in the market. C. satisfactory sales and profits. D. customer acceptance. E. satisfactory performance.

B. fewer competitors in the market. Firms can measure the success of a new product by three interrelated factors: (1) its satisfaction of technical requirements, such as performance; (2) customer acceptance; and (3) its satisfaction of the firm's financial requirements, such as sales and profits

Even if they succeed, new-to-the-world products are A. generally not profitable. B. not adopted by everyone at the same time. C. not capable of creating new markets. D. not subject to the law of first movers. E. typically very short-lived.

B. not adopted by everyone at the same time. The adoption of an innovative product or service spreads through the population over a period of time and generally follows a bell-shaped curve (called the diffusion of innovation curve). A successful newto- the-world product creates a new market and is generally profitable.

In the infamous Coke/New Coke taste test, 54 percent of consumers, using a blind taste test, preferred the New Coke formula to the existing formulation. This is an example of a(n) __________ marketing research method. A. qualitative B. quantitative C. observational D. syndicated E. invalid

B. quantitative Quantitative research is numeric/statistical in nature, as in this case where the precise percentage of consumers preferring one option to the other was measured. Formal studies such as specific experiments, scanner and panel data, or some combination of these are quantitative in nature.

In retailing, a just-in-time delivery system is called a(n) _______ system. A. cross-docking B. quick response (QR) C. UPC D. EDI E. lead time

B. quick response (QR) Just-in-time (JIT) and quick response (QR) both refer to inventory management systems designed to ship smaller quantities more frequently

Some products may stay comfortably in the maturity phase of the product life cycle until a new product emerges to replace them. An example of such a mature product is A. e-books. B. refrigerators. C. the VCR. D. smartphones.

B. refrigerators. Refrigerators have been in the maturity phase for decades and are likely to stay that way for quite some time. E-books and smartphones have not yet reached maturity. The VCR is in the decline stage, having been mostly replaced by DVD players, and DVRs

When a global firm turns to its subsidiaries in less developed markets for new product ideas, such as when Coca-Cola developed Minute Maid Pulpy out of its Shanghai research center and then moved the product into other markets around the world, the firm is engaged in A. a consortia. B. reverse innovation. C. competitive engineering. D. pioneering. E. beta testing.

B. reverse innovation. Reverse innovation is when companies initially develop products for niche or underdeveloped markets and then expand them into their original or home markets.

Leona is the logistics manager for the Barnes & Noble bookstore chain. She is weighing the many benefits of the company's JIT system but will need to consider that just-in-time inventory management systems increase _______ costs. A. sales force labor B. transportation C. promotional D. advertising E. new product development

B. transportation JIT systems, despite their benefits, increase complexity and transportation costs associated with distribution. It is simpler and more straightforward to place a small number of large-quantity orders and then to stockpile inventory until it is needed; however, for many firms the benefits of JIT far outweigh the cost of the greater complexity.

Jaleel is the marketing manager for a moderately well-known rock band. He wants to know more about industry trends including sales by different musical styles, online downloads, and concert attendance. Jaleel will most likely use __________ to gather this type of data. A. focus groups B. observation C. syndicated data D. sales invoices E. census data

C Of the options listed, syndicated data are the best choice. Jaleel can look for a data provider who can supply industry sales information. Focus groups and observation are research methods that would not offer comprehensive sales data. Sales invoices could summarize results for Jaleel's band but not for the industry, and census data do not provide the needed information.

__________ are customers who modify existing products according to their own ideas to suit their specific needs.

C. Lead users Lead users, who modify existing products to meet their needs, are a particularly good source of new product ideas.

Barbara is using a test model of her firm's new inline skates to see if they work according to the design specifications. Barbara is involved in A. test marketing. B. product launch. C. alpha testing. D. target marketing. E. concept testing.

C. alpha testing. In alpha testing, the firm attempts to determine whether the product will perform according to its design and whether it satisfies the need for which it was intended.

In a __________ distribution center, merchandise moves from vendors' trucks to retailers' delivery trucks in a matter of hours. A. traditional B. combination C. cross-docking D. vertical E. horizontal

C. cross-docking Cross-docking refers to items that are received prepackaged for individual stores. For this reason, relatively little processing is required at the distribution center and merchandise can move on to its destination quickly

Procter & Gamble is a huge national brand manufacturer. By owning its brands like Tide and Crest, P&G A. can monopolize store brands. B. has greater opportunity to dictate retail pricing. C. has greater control over its marketing strategy. D. can increase brand dilution. E. can eliminate any local competition.

C. has greater control over its marketing strategy. Brand ownership gives the owner greater control over its marketing strategy—the ability to position the brand and to establish the marketing mix.

A local furniture store buys furniture from various manufacturers and resells the furniture to its customers. What type of marketing channel does this represent? A. horizontal B. vertical C. indirect D. direct E. simple

C. indirect Whereas a direct marketing channel uses no intermediaries, an indirect marketing channel uses one or more intermediaries to provide goods and services to customers. For example, automobile manufacturers such as Ford and General Motors often use indirect distribution, such that dealers act as retailers.

At the BMW plant in Spartanburg, South Carolina, rather than use a typical order-to-delivery process, it has suppliers deliver parts every four hours when the plant is in operation. BMW uses a(n) ______ inventory control system. A. cross-docking B. lead time C. just-in-time (JIT) D. pick ticket E. UPC

C. just-in-time (JIT) Just-in-time (JIT) and quick response (QR) both refer to inventory management systems designed to ship smaller quantities more frequently.

When microwaves were new, they often cost over $300, were huge, and had numerous settings and options. Brenda and Bart waited, concerned about potential health hazards and wishing for more choices in the market. By the time they purchased a microwave, sales of microwaves had leveled off and prices had declined significantly. Brenda and Bart were part of the ___________ diffusion of innovation group. A. innovator B. laggard C. late majority D. early majority E. early adopter

C. late majority The late majority is the last group to enter a new product market after sales have leveled off and prices have dropped.

The __________ diffusion of innovation group is the last large group of consumers to adopt a new product or service. A. innovator B. laggard C. late majority D. early majority E. early adopter

C. late majority The late majority is the last large group of consumers to adopt a new product.

After installing an electronic data interchange, Carmella's gift shop was able to reduce _______, the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise. A. quick time B. the advance notice C. lead time D. float time E. supply chain conflict time

C. lead time Lead time is the time it takes to receive merchandise from the point when a decision is made to place an order. EDI can reduce lead time by electronically transmitting information between the buyer and seller.

Ron sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see if they are using his tools for other tasks or have modified the tools for some other purpose. These customers are __________, who can provide ideas for new and improved products. A. laggards B. market testers C. lead users D. reverse engineers E. concept testers

C. lead users Ron is looking for lead users, who modify existing products according to their own ideas to suit their needs.

By the time BMW and Mercedes-Benz entered the mini-SUV market, there were many competitors, sales had peaked, and profits were declining. These firms entered the market during the __________ stage of the product life cycle. A. introduction B. leveling C. maturity D. growth E. decline

C. maturity BMW and Mercedes delayed entry into the mini-SUV market, with the result that they did not enter until this market was already mature.

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from A. relative advantage. B. compatibility. C. observability. D. complexity. E. trialability.

C. observability. Observability refers to the ability to see the new product in use. Home tours would be one way for potential customers to see a new product installed in a house.

Mattel wanted to determine if a new toy would appeal to preschoolers, so it put six 4-year-olds in a room with several toys and waited to see which ones they played with. What form of research is this? A. experiment B. focus group C. observation D. neuromarketing E. panel

C. observation They observed the children and drew conclusions based on their preferences, which is indicative of observation.

For new product marketers, early adopters are important because they tend to be A. few in number. B. the first to adopt a new product. C. opinion leaders. D. fond of prototypes. E. alpha testing enthusiasts.

C. opinion leaders. Early adopters, who are not the very first buyers of a new product (those are the innovators) but who still buy very early in the product's life, are important to the diffusion of the products because they are often opinion leaders

A distribution center is typically operated by A. the marketing department. B. vertically integrated consumer networks. C. retailers, manufacturers, or distribution specialists. D. wholesalers. E. electronic data interchange services.

C. retailers, manufacturers, or distribution specialists.

McDonald's introduced a Favorites Under 400 Calorie Menu as part of an attempt to reverse the perception that McDonald's sells only unhealthy food. Suppose that McDonald's, as a follow-up, collects and analyzes social media posts from Facebook, Twitter, and similar sites, hoping to understand whether or not consumer perceptions are improving. This would be an example of A. quantitative research. B. an online focus group. C. sentiment mining. D. neuromarketing. E. an experiment

C. sentiment mining. Sentiment mining is the collection and analysis of social media posts in order to gain insights into consumers' thoughts and opinions.

When consumers are __________, observation becomes particularly useful in understanding consumers' preferences. A. unwilling to participate in research B. confused by questionnaires C. unable to articulate their experiences D. interviewed too frequently E. highly educated

C. unable to articulate their experiences Observation is especially helpful if people are unable to explain their experiences and preferences. Instead of asking them to think about these issues, people's actual behavior can be observed.

Microsoft's Windows operating system continues to dominate the market, even though it has been around for over 20 years. Windows will likely remain in the maturity stage of the product life cycle A. indefinitely. B. until it rules the world. C. until a superior product comes along to replace it. D. unless Microsoft repositions Windows as an introductory stage product. E. as long as the company doesn't change it.

C. until a superior product comes along to replace it. Products can stay in the maturity stage for a very long time, until a superior product comes along as a replacement

The local auto supply store gets merchandise delivered to it by its manufacturers as soon as it has a need, reducing stockouts with minimal inventory. This demonstrates the concept of A. data warehousing. B. a push marketing strategy. C. vendor-managed inventory. D. manufacturer-managed distribution. E. cross-docking

C. vendor-managed inventory. In vendor-managed inventory systems, the manufacturer replenishes inventories in quantities that meet the retailer's immediate demand, reducing stockouts with minimal inventory.

Which of the following is not an advantage of using a distribution center?

Customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center.

One of the major tools used by marketers to meet the needs of loyal customers is A. SKU. B. PDQ. C. IMF. D. CRM. E. GATT.

D. CRM. CRM (customer relationship management) programs often include reward programs aimed at loyal customers

__________ is when vendors ship merchandise prepackaged in the quantity required for each store to the distribution center. A. Quick response B. Checking C. Combination warehousing D. Cross-docking E. Horizontal merchandising

D. Cross-docking Cross-docking refers to items that are received prepackaged for individual stores.

In addition to merchandise and payments, information flows throughout a supply chain. Which of the following is not a good characterization of the flow of information in a supply chain? A. A manufacturer will send and receive information from buyers, stores, and distribution centers. B. Stores will send and receive information from manufacturers, buyers, distribution centers, and customers. C. Distribution centers will send and receive information from stores and manufacturers. D. Customers will send and receive information from stores and manufacturers. E. Buyers will send and receive information from stores and manufacturers.

D. Customers will send and receive information from stores and manufacturers. The information flows in the supply chain do not include customer participation

Which U.S. government agency has the primary responsibility in reviewing food and package labels to ensure claims made by the manufacturer about the product are true? A. Federal Trade Commission B. Federal Communications Commission C. Consumer Product Safety Administration D. Food and Drug Administration E. Interstate Commerce Commission

D. Food and Drug Administration

Mary's Bakery is trying to determine what price to charge for its cookies, so Mary places a low price on them and raises it each week, keeping track of how many she sells. Then she determines what her cost was for the cookies and determines which price was the most profitable. What form of research was Mary conducting? A. observation B. survey C. scanner-based D. an experiment E. a panel

D. an experiment Experimental research (an experiment) is a type of quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on other variables

After installing a(n) _______ in its JIT system, Chocolate Tree (a retail chocolate store) was able to reduce lead time for merchandise orders. A. supply chain B. distribution center C. quick change directory D. electronic data interchange system E. checking system

D. electronic data interchange system Lead time is the time it takes to receive merchandise from the point when a decision is made to place an order. EDI can reduce lead time by electronically transmitting information between the buyer and seller.

Colin has just received a delivery from the company's distribution center. He opens the containers and finds the popcorn and snacks are all bar-coded and priced and the package includes an end-of-the-aisle display rack. Colin has received a(n) __________ shipment. A. quick-response packaged B. ahead of the curve C. lead time synchronized D. floor-ready E. synthesized

D. floor-ready Floor-ready refers to merchandise that has already been ticketed and marked with price and identification labels.

Which of the following is least likely to be a source of ideas for new products? A. R&D efforts B. licensing agreements C. consumer research D. geodemographic segmentation E. brainstorming

D. geodemographic segmentation All of these but geodemographic segmentation are common sources of new product ideas.

When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the __________ stage of the product life cycle. A. introduction B. leveling C. maturity D. growth E. decline

D. growth As a few additional competitors moved into the hybrid car market, opening up production capacity for additional buyers, the hybrid market moved into the growth stage.

When a product is successful in the introductory stage of the product life cycle, A. it moves directly into the maturity stage. B. it is most likely to begin to launch spinoffs. C. competition becomes less important. D. it may start to see profits toward the end of this stage. E. marketing costs increase significantly.

D. it may start to see profits toward the end of this stage. A product that is successful in the introductory stage may begin to see profits toward the end of this stage.

Where on a product's packaging would one most likely find nutrient content and country of origin? A. inside the secondary package B. inside the primary package C. on the company website D. on the label E. on the store shelf display

D. on the label Product labels may highlight specific ingredients, vitamin content, nutrient content, and country of origin.

Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because A. brands protect corporate copyrights. B. consumer loyalty can be bought for less now compared to the past. C. brand equity can be obtained only by means of product line depth. D. people already know what the brand means. E. well-known brands are less likely to introduce brand extensions.

D. people already know what the brand means. Once a brand has established strong associations with its name, the firm may be able to spend less on promoting new products since consumers already recognize the brand and know what it stands for.

The purpose of __________ is that it confirms insights and provides a basis for taking a course of action. A. primary data collection B. data mining C. qualitative research D. quantitative research E. statistical sourcing

D. quantitative research The purpose of quantitative research is to confirm insights and provide a basis for managerial decision making and action.

When Meg planned her trip to Australia, she spent months evaluating packages, airfares, and hotel accommodations. Meg's trip is an example of a(n) ________ product. A. specialty B. convenience C. unsought D. shopping E. sought

D. shopping Since Meg spent significant time comparing alternatives, this would be considered a shopping product.

Firms that are engaged in sentiment mining are analyzing data collected from A. experiments. B. in-depth interviews. C. focus groups. D. social media sites. E. observations

D. social media sites

________ can be defined as raw numbers or other factual information that, on their own, have limited value to marketers A. Statistics B. Charts and graphs C. Marketing research D. Formulas E. Data

E. Data This describes data. When the data are interpreted, they become information, which results from organizing, analyzing, and interpreting data and putting them into a form that is useful to marketing decision makers.

The growth phase of the product life cycle is always dynamic. Which of the following does not occur in this phase? A. Profits increase as sales increase. B. Profits increase as economies of scale are attained. C. Some new competitors may enter the market with similar products. D. Some competitors will exit in an "industry shakeout." E. Price competition with protracted price wars erodes profits.

E. Price competition with protracted price wars erodes profits. Price competition and price wars are more likely to emerge in the maturity stage.

Golf ball manufacturers use "Iron Mike," a machine that swings a golf club at a constant velocity, to test the distance for new golf ball designs. When using Iron Mike, the manufacturers are engaged in A. concept testing. B. market testing. C. premarket testing. D. product development. E. alpha testing.

E. alpha testing. Iron Mike is a form of alpha testing because it is done within the company, taking the place of a human who might hit the ball repeatedly.

As it pertains to the diffusion of innovation, if the __________ group is relatively small, the number of people who ultimately adopt the innovation likely will also be small. A. innovator B. laggard C. late majority D. early majority E. early adopter

E. early adopter Early adopters, who are not the very first buyers of a new product (those are the innovators) but who still buy very early in the product's life, are important to the diffusion of the products because they are often opinion leaders. If there are relatively few early adopters to serve as opinion leaders, the market for the product is likely to be small.

Each time a politician or celebrity writes a book, bookstores can expect at least some customers to want the book, but whether or not it will become a bestseller is less certain. The bookstore's primary inventory management challenge is A. how to get the author to sign copies of the book. B. whether to price the books in the distribution center or at the retail store. C. which other books to promote along with this book. D. whether or not to display the book at the checkout counter. E. having enough books to satisfy customer demands versus the cost of having the inventory.

E. having enough books to satisfy customer demands versus the cost of having the inventory. Bookstores must select an order quantity that balances having enough of the books to meet demand with the cost of stocking extra books.

A __________ brand is one where there is a contractual arrangement between firms allowing one to use its brand name for a fee. A. franchise B. joint venture C. shared D. common use E. licensed

E. licensed This is the definition of a licensed brand. A long-standing staple of licensing has been major league sports teams that play in the NBA, NFL, or NHL as well as various collegiate sports teams.

In vendor-managed inventory systems, A. corporations send information to retail customers, bypassing wholesalers and retailers. B. companies send information to cooperatives. C. customers send information to retailers. D. sales reps send sales information to the retailer. E. retailers send sales information to the manufacturer.

E. retailers send sales information to the manufacturer. Vendor-managed inventory systems transmit store sales and inventory information to manufacturers so that they can reorder needed merchandise.

Which of the following would not be part of the launch of a new product? A. determining the marketing budget for the first year of the product B. finalizing the marketing mix variables C. reviewing previously conducted research D. making decisions regarding positioning the product E. starting to make preliminary decisions about the target market

E. starting to make preliminary decisions about the target market The target market should already have been identified before the product launch stage; at this point the firm might confirm the target market choice.

The maturity phase of the product life cycle is characterized by greatly reduced competition.

FALSE Competition intensifies in the maturity phase, because the only way a firm can gain customers is typically to take them away from the competition.

A familiar brand name always helps the sales of a product.

FALSE Even if the overall brand name is familiar, it won't help sales of individual products unless consumers know what products are available under that name and the brand has a positive image.

Kellogg's sells many different breakfast cereals, including Corn Flakes, Rice Krispies, Frosted Flakes, Raisin Bran, and Special K. This is an example of the breadth of the Kellogg's product mix.

FALSE Product line depth (not breadth) equals the number of products within a product line, as in this question.

When survey data are analyzed in depth to determine consumer attitudes toward a product, this is an example of sentiment mining.

FALSE Sentiment mining analyzes consumer comments on social media sites in order to gain insights about consumers' thoughts and preferences

Although innovation strategies may not work in the long run, overriding short-term reasons compel firms to introduce new products and services.

FALSE The statement is backward. Innovation strategies focus on long-term objectives, which sometimes do not work in the short run.

If Microsoft decided to sell mobile phones under the Xbox brand (which it uses for its gaming systems), this would be an example of a line extension

FALSE This is a brand extension, not a line extension. A brand extension is the use of the same brand name in a different product line. Phones and gaming systems are different product lines.

A company's product line consists of its various product mixes.

FALSE This is backward. A company's product mix consists of its various product lines.

In the United States, the federal government has enacted comprehensive privacy laws for the Internet.

FALSE While national and state governments in the United States play a part in protecting privacy, the U.S. government has failed to enact comprehensive privacy laws for the Internet. Several states, however, are starting to consider legislation.

Quentin is in a group of 8 to 12 people and is being asked questions by a trained moderator. Quentin is part of an in-depth interview group.

False Quentin is part of a focus group

Using wireless EEG scanners to measure involuntary brain waves that occur when a consumer views a product is called neuromarketing

TRUE This is neuromarketing, a questionable practice given that consumers might not want marketers reading their brain waves and marketing goods and services to them based on unconscious thoughts.