Marketing Exam 4

Which two of the following are disadvantages of multibranding? A. Awareness will have to be built from scratch. B. Brand dilution is likely. C. The failure of another product can tarnish your brand. D. Advertising and promotion are typically more expensive.

A. Awareness will have to be built from scratch. D. Advertising and promotion are typically more expensive.

Management of the physical environment for services is sometimes known as _____ management. A. impression B. capacity C. opportunity D. internal

A. impression

The practice of replacing promotional allowances with lower manufacturer list prices is known as ________ pricing. A. odd-even B. everyday low C. uniform delivered D. hi-lo

B. everyday low

What three items are classified as consumer products. A. business products B. specialty products C. shopping products D. convenience products E. commercial products

B. specialty products C. shopping products D. convenience products

Concept tests in the screening and evaluation stage of the new-product process are most useful when ______. A. familiarity with the product is low B. used for minor modifications of existing products C. the product is ready for commercialization D. introducing new, highly innovative products

B. used for minor modifications of existing products

Organizations should consider whether a new product will require new machinery to produce, has the potential to cannibalize existing products, or if it will require new patents during which stage of the new-product process? A. Screening and evaluation B. Development C. Business analysis D. Market testing

C. Business analysis

When a 1 percent decrease in price results in less than a 1 percent increase in quantity sold, demand for the product or service is ______. A. unaffected B. elastic C. inelastic D. flexible

C. inelastic

For ________ pricing to be effective, there must be sufficient customers willing to buy the product at the high initial price, they should interpret that high price as signifying high quality, and that high price should not attract competition. A. loss leader B. penetration C. skimming D. experience curve

C. skimming

Revlon sells cosmetics, hair care products, and beauty tools. The combination of all the products that Revlon sells is referred to as its Blank______. A. name brand B. product line C. marketing mix D. product mix

D. product mix

What element of the marketing mix has a unique role in that it is the place where all other business decisions come together? A. price B. product C. promotion D. place

A. price

What is the focus of target profit pricing? A. a specific percentage of market share B. a specific dollar volume of profit C. a specific percentage of sales volume D. a specific return on investment

B. a specific dollar volume of profit

Burger King's "Satisfries" for kids meals were developed to have fewer calories and fat but failed during Blank______ because they cost more but the extra benefits were not well-communicated. A. business analysis B. market testing C. commercialization D. development

C. commercialization

A one-price policy means there is one price for ______. A. all similar offerings from competing firms B. all consumers except for volume discount exceptions C. all products in a firm's product line D. all buyers of the product

D. all buyers of the product

Which of the following are benefits of a penetration pricing strategy? (Check all that apply.) A. Gaining market share B. Discouraging competitors C. Adding perceptions of quality D. Decreasing production costs as volume increases

A. Gaining market share B. Discouraging competitors D. Decreasing production costs as volume increases

What are two desirable characteristics when choosing a test market for a new product? A. cable system that is able to deliver different advertising to different homes B. areas that are void of any competing products C. potential to show early mock-ups or prototypes to potential customers D. city population that is demographically representative of target market

A. cable system that is able to deliver different advertising to different homes D. city population that is demographically representative of target market

A student may be dissatisfied with her education, despite attending a highly regarded university, if she dislikes her instructors, advisers, or administrators. This type of problem arises due to the _______ of services. A. inseparability B. intangibility C. inconsistency D. inventory issues

A. inseparability

Services marketing differs from that of tangible goods, and many have adopted a strategy to ______. A. manage additional elements, on top of product, price, place, and promotion B. trim the four Ps to just two, price and promotion C. substitute the seven Cs for the four Ps D. eliminate the formal use of the four Ps because services are so varied that managing them must be individualized

A. manage additional elements, on top of product, price, place, and promotion

When Subway introduced a new Southwestern Club sandwich in south Florida before launching it nationwide, it was engaging in ______. A. standard test marketing B. commercialization C. concept testing D. simulated test marketing

A. standard test marketing

Warranties, guarantees, extensive usage instructions, demonstrations, and free samples are effectively used by firms to ______. A. stimulate initial trial of new products B. remind customers of tangible product attributes C. intimidate competitors D. create risk barriers

A. stimulate initial trial of new products

The three elements influencing the demand curve are consumer Blank______, consumer Blank______, and the price and availability of similar products. A. tastes; income B. age; income C. motivation; income D. motivation; tastes

A. tastes; income

Results of laboratory and consumer tests are compared to Blank______ for a product in the development stage of the new-product process. A. the established protocol B. those of the early prototype C. competitors' testing results D. government standards

A. the established protocol

Which two of the following are the dimensions that contribute to meaning development for brand equity? A. brand awareness B. brand imagery C. consumer judgments D. brand performance

B. brand imagery D. brand performance

Small changes in price Blank______. A. are not noticed by consumers B. can have comparably big effects on company profit C. are preferred by consumers, rather than surcharges or fees D. are the best way to improve profitability

B. can have comparably big effects on company profit

A unit volume objectives for pricing should be used judiciously because higher volume goals can sometimes result in Blank______. A. dissatisfied customers that are looking for a more unique product B. drastic price cutting that drives down profits C. unfair proportions of retail price going to intermediaries D. a large drop in demand because of changes in the product

B. drastic price cutting that drives down profits

One of the basic ways in which services differ from tangible goods is that the service and the deliverer of it are ________ from each other. A. irreconcilable B. inseparable C. intangible D. inconsistent

B. inseparable

A Singapore Airlines ad may show the airline's new seats and emphasize their size in order to address which issue that is unique to services? A. inseparable B. intangible C. inventory D. inconsistency

B. intangible

The ability to attract price sensitive customers and discourage competitors from entering a market make which pricing strategy appealing? A. target B. penetration C. skimming D. prestige

B. penetration

A target return objective can be described as Blank______. A. a target set for a short period of time, say one year B. setting a specific profit goal, say 20 percent C. giving up immediate profits for long-term gain D. setting the quantity produced or sold as a pricing objective

B. setting a specific profit goal, say 20 percent

The Federal Trade Commission advises that the term "new" be limited to use with a product up to six month after A. its patent application is approved. B. its initial test market is completed. C. it enters regular distribution. D. its first sale is made.

C. it enters regular distribution.

In brand equity development, both the functional, performance-related dimension and the abstract, imagery-related dimension are used to help a consumer form a(n) _____ for the brand in her mind. A. loyalty B. opinion C. meaning D. intent

C. meaning

Safety tests, even for usage that is not as intended for a new product, are important to conduct in the Blank______ stage of the new-product process. A. screening and evaluation B. market testing C. business analysis D. development

D. development

A desire to keep products seeming new encourages the proliferation of extra features in what is known as Blank______. A. commercialization B. open innovation C. feature inflation D. feature bloat

D. feature bloat

In the ________ stage of the new-product process an organization defines the role of a new product in terms of the firm's overall objectives. A. screening and evaluation B. idea generation C. business analysis D. new-product strategy development

D. new-product strategy development

Setting a price with no variation for product buyers is called a ________ policy. A. permanent-price B. suggested retail price C. standing-price D. one-price

D. one-price