Marketing Exam 2 Material

________ products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. a. Shopping b. Specialty c. Unsought d. Convenience e. Capital

d. Convenience

________ occurs when a company uses its existing brand name for new forms, colors, sizes, ingredients, or flavors of an existing product category. a. Private labeling b. Clustered branding c. Co-branding d. Line extension e. Brand extension

d. Line extension

________ refers to the unique psychological characteristics that distinguish a person or group. a. Lifestyle b. Status c. Role d. Personality e. Attitude

d. Personality

A ________ is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service. a. framework b. prototype c. paradigm d. brand e. patent

d. brand

According to Maslow's hierarchy of needs, which of the following is most likely an esteem need? a. self-development b. security c. hunger d. status e. love

d. status

________ are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others. a. Opinion leaders b. Late mainstream adopters c. Barnacles d. Lagging adopters e. Strangers

a. Opinion leaders

________ segmentation factors divide buyers into different groups based on social class, lifestyle, or personality characteristics. a. Psychographic b. Geographic c. Behavioral d. User status e. Demographic

a. Psychographic

When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________. a. actionable b. accessible c. reachable d. differentiable e. measurable

a. actionable

The new product development process usually starts with ________. a. idea generation b. market strategy development c. concept testing d. idea screening e. concept development

a. idea generation

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features? a. introduction b. maturity c. adoption d. product development e. growth

a. introduction

Demographic factors are the most popular bases for segmenting customer groups. a. true b. false

a. true

The maturity stage of the product life cycle is characterized by a slowdown in sales growth. a. true b. false

a. true

When consumers react more favorably to a brand than to a generic or unbranded version of the same product, the brand is said to have positive brand equity. a. true b. false

a. true

Introducing a new product into the market is called ________. a. segmentation b. commercialization c. market penetration d. test marketing e. product development

b. commercialization

Pediacertain Pet Supplies, a pet-food company, divides the pet market according to the pet owners' gender, occupation, income, and family life cycle. In this case, which of the following variables has the company used for market segmentation? a. benefit b. demographic c. occasion d. psychographic e. geographic

b. demographic

Modifying a product is an ineffective strategy in the maturity period of the product life cycle because the product's decline is irreversible at this stage. a. true b. false

b. false

Which of the following is a social factor that influences consumer buying behavior? a. occupation b. family c. economic situation d. personality e. life-cycle stage

b. family

Parvon, a cleaning product, is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely take to achieve this goal? a. offer improved services to new buyers b. find new market segments for the brand c. reduce mass media advertising expenses d. improve the overall quality of the product e. conduct controlled test marketing activities

b. find new market segments for the brand

Gulf Coast, a wholesale shrimp distributor, groups its customers by regions in the United States, such as Midwest, Northeast, and Southwest. For each region, Gulf Coast tailors a different set of advertisements and promotions. The supplier is segmenting its market according to ________. a. benefits sought b. geographic location c. demographics d. personality characteristics e. behavioral factors

b. geographic location

A doctor performing hip surgery on a patient illustrates how a service can be produced and consumed simultaneously. This is an example of which service characteristic? a. tangibility b. inseparability c. variability d. perishability e. intangibility

b. inseparability

In which of the following stages of the adoption process does a consumer seek information about a new product? a.evaluation b. interest c. adoption d. awareness e. trial

b. interest

Which of the following is an approach where firms target a whole market based on common consumer needs? a. demographic segmentation b. undifferentiated marketing c. geographic segmentation d. micromarketing e. concentrated marketing

b. undifferentiated marketing

________ products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. a. Unsought b. Secondary c. Shopping d. Capital e. Convenience

c. Shopping

Which of the following is most likely a true statement about social class? a. In the United States, the lines between social classes are fixed and rigid. b. Members of a social class vary drastically in their values, interests, and behaviors. c. Social classes show distinct product preferences in areas such as clothing. d. Wealth is a more important variable than education in measuring social class. e. Consumers of the same age belong to the same social class.

c. Social classes show distinct product preferences in areas such as clothing.

Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton is using ________ to generate new product ideas. a. marketing strategy development b. test marketing c. crowdsourcing d. business analysis e. concept development

c. crowdsourcing

Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ________ marketing. a. concentrated b. mass c. differentiated d. individual e. local

c. differentiated

The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________. a. undifferentiated marketing b. niche marketing c. micromarketing d. global marketing e. segmented marketing

c. micromarketing

Which of the following is the first stage of the buyer decision process? a. information search b. purchase decision c. need recognition d. post-purchase behavior e. evaluation of alternatives

c. need recognition

Taco Bell test marketed Doritos Locos Tacos for three years and developed 45 prototypes. Once the decision was made to launch the new taco shell, it moved into the ________ stage of the new product development process. a. commercialization b. test marketing c. product development d. concept development e. strategy development

c. product development

Clorox sells five major product lines including cleaning, household, lifestyle, professional, and international. Together the product lines make up Clorox's ________. a. product assemblage b. product depth c. product mix d. product length e. product consistency

c. product mix

Consumer products that the buyer either does not know about or knows about but does not normally consider buying are referred to as ________ products. a. convenience b. industrial c. unsought d. shopping e. specialty

c. unsought

In which of the following cases is crowdsourcing used for new product development? a. A company depends on its R&D department to come up with new ideas. b. A company partners with a design agency to create a few prototypes. c. A company hires a marketing agency to generate new product ideas. d. A company reviews the sales, costs, and profit projections of an existing product. e. A company creates a forum where anyone can contribute new product ideas.

e. A company creates a forum where anyone can contribute new product ideas.

________ is the degree to which an innovation fits the values and experiences of potential consumers. a. Divisibility b. Communicability c. Complexity d. Relative advantage e. Compatibility

e. Compatibility

________ are tradition-bound, suspicious of changes, and adopt an innovation only when it has become something of a tradition itself. a. Early mainstream adopters b. Early adopters c. Latent innovators d. Late mainstream adopters e. Lagging adopters

e. Lagging adopters

________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior. a. Differentiation b. Mass marketing c. Positioning d. Market targeting e. Market segmentation

e. Market segmentation

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. a. Market targeting b. Market segmentation c. Mass marketing d. Differentiation e. Positioning

e. Positioning

Which of the following is most likely a true statement about services? a. Service quality is not dependent on the provider. b. Services can be easily separated from their providers. c. Demand fluctuation has little to no impact on service providers. d. Services can be stored for later sale or use. e. Service industries vary greatly.

e. Service industries vary greatly.

A child in the United States is exposed to many values including achievement and success, freedom, individualism, hard work, and material comfort. These are symbolic of American ________. a. perceptions b. expectations c. society d. subculture e. culture

e. culture

If a product passes both the concept test and the product test, the next step is most likely to be ________. a. marketing strategy development b. concept development c. product development d. business analysis e. test marketing

e. test marketing

Specialty products are consumer products and services that customers generally buy ________. a. frequently and immediately b. based on ready availability c. to conduct business d. with minimal effort e. without making comparisons

e. without making comparisons