Marketing Exam 4

the phase out approach to product deletion involves a process of continuous price increases to make as much profit as possible before the product is finally priced out of existence

false

the point at which marginal revenue equals marginal cost is the break even point t/f

false

venture team members usually come from the same functional areas within the firm t/f

false

the major characteristic of a private brand is that

manufacturers are not identified on the product

marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during

product development

early in the commercialization phase, marketers must make decisions about

warranties, repairs and replacement parts

t/f: the two major categories are business and institutional

false

A product is best described as a

specific version of a product.

price is the value that is exchanged for products in a marketing transaction t/f

true

t/f: advertising used in the decline stage may prolong the life of the product

true

t/f: products decline in the maturity stage, largely because of increased competition

true

the first adopters of a product are the innovators t/f

true

test marketing should be conducted when a product has been given a low probability of success

false

What degree of brand loyalty is the strongest and most desired by marketers?

Insistence

A product item is best described as a

A specific version of a product

a product item is best described as a

A specific version of a product

Which of the following is NOT a business product?

Calculators bought to help individuals complete their personal federal income tax forms

T F A product line is a particular version of a product that can be designated as a distinct offering on the organization's list of products.

Flase

Of the following choices, which would be the easiest brand name to legally protect? a) Tarzink Yogurt b) Learn and Grow Daycare c) Scout Camping Supplies d) Sullivan Water Filtering Systems e) Western County Distributors

Tarzink Yogurt

At what point does a firm maximize profit?

The point at which marginal cost equals marginal revenue

one advantage of non-price competition is that

a firm can build customer loyalty

a product line is defined as

a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations.

the three major ways to modify a product include

aesthetic, quality and functional changes

A product mix is best described as

all products offered by a firm

Phillip is on his way to work when he realizes that he has a flat tire. He swings into discount tires and has a new tire installed. phillips purchase of a new tire in this situation is considered to be

an unsought good

Phillip is on his way to work when he realizes he has a flat tire. He swings into Discount Tires and has a new tire installed. Phillip's purchase of a new tire in this situation is considered to be

an unsought good.

the money a company brings in from selling products equals the amount spent producing the products

at the breakeven point

the jolly green giant used by the green giant company's facilitates the development of

brand association

The jolly green giant used by the Green Giant Company facilities the development of

brand associations

the owner of Big Jims Motorcycles is opening a new retail location. Which of the following is the most likely to be a fixed cost for Big Jims Motorcycles?

building rent

Products are classified as being business or consumer products according to the

buyer's intended use of the product

What is NOT a business product:

calculators bought to help individuals complete their personal federal income tax forms

one disadvantage of test marketing a new product is that

competitors may copy the product

Although they become part of a larger product, _______ can often be easily identified and distinguished on the larger product.

component parts

if Norwegian Cruise Lines increased the price of its seven-day cruise package by 10% and, as a result, experienced a 20% decline in customer bookings, Norwegian's demand would be

elastic

which of the following products is most likely to have an inverted C - shaped demand curve?

eternity purfume

t/f: product mix refers to a related group of products in the product line

false

what is not a major step in developing new products

evaluation of competitors efforts

T F The core product element of the total product can include installation, delivery, training, and financing.

false

T/F: A product line is a particular version of a product that can be designated s a distinct offering on the organization's list of products.

false

T/F: Brand preference is the strongest form or degree of brand loyalty.

false

T/F: During the growth stage, promotion costs rise as a percentage of total sales.

false

T/F: The marketing mix should be left alone during the maturity stage of the product life cycle; tampering with it may bring an early death to the product.

false

T/F: The two major product categories are business and institutional.

false

T/F: brand preferences is the strongest form or degree of brand loyalty

false

a firm that competes on a price basis is unable to change prices frequently t/f

false

concept testing gives reliable feedback, but at a relatively high cost t/f

false

fixed costs vary with the number of units produced or sold t/f

false

line extensions are less common than other new products because line extensions are more expensive and more risky t/f

false

product design is the process of creating and designing products so that consumers perceive them as different from competing products t/f

false

profits for a firm are computed as follows: Profits = Total Revenue - Fixed Costs t/f

false

t/f: a run-out approach to product deletion lets the product decline without changed the marketing strategy

false

t/f: buyers who want to exert only minimal effort to obtain shopping products

false

t/f: consumers are reluctant to purchase substitute brands if the desired brand of a convenience product is unattainable

false

the three levels of brand loyalty from strongest to weakest are

insistence, preference, recogition

The three levels of brand loyalty form strongest to weakest are

insistence, preference, recognition

The four major stages of a product life cycle include

introduction, growth, maturity, and decline.

The width of a product mix is measured by the number of product

lines a company offers

product deletion

may be opposed by management

what is an example of a functional modification

planters nuts redesigns packaging of its nut products so they are easier for those with arthritis to open

the General Auto Insurance advertises its automobile insurance as "For a great low rate you can get online, go to The General and save some time!" General is engaging in

price competition

A(n) ____ is a concept, philosophy, or image

product

after building a prototype of his new device, Barry is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the ____ phase of the new-product development process.

product development

as Richard works on the prototype of a new action-oriented computer game, he is engaging in which phase of the new-product development process?

product development

_______ refers to how a product is conceived, planned, and producted

product positioning

three major ways in which marketers engage in product differentiation are

product quality, product design and features, and product support services

if Umbro faces a standard demand curve that exists for most products, as it raises the price of its soccer balls, the

quantity demand goes down

which if the following is the best example of disruptive innovation?

razor blade

Convenience products are

relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort

convenience products are

relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort

what step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level?

screening

Which factor is least likely to affect pricing decisions?

shifting stock values

During the maturity stage

some competitors are forced out.

the major drawback to using aesthetic modifications is

that the value of the modification is determined subjectively

Price is a key element in the marketing mix because it relates directly to

the generation of total revenue

T F A product's classification can influence its price, distribution, and promotion.

true

T F A service is intangible and is the result of the application of human or mechanical efforts to people or objects.

true

T F The buyer's intent can determine whether an item is classified as a consumer or a business product.

true

T/F: A product need not be a physical product

true

T/F: A product need not be a physical product.

true

T/F: A product's classification can influence its price, distribution, and promotion

true

T/F: A product's classification can influence its price, distribution, and promotion.

true

T/F: Communicating product benefits to consumers is a very important in the introduction stage

true

T/F: Laggards are the last to adopt a new product and usually distrust new products

true

T/F: Price cuts are typical in a product's growth stage

true

T/F: Profits decline in the maturity stage, largely because of increased competition

true

Use of the product is the most important means of distinguishing consumer products from business products

true

business analysis provides a tentative sketch of a product's profitability t/f

true

changes in buyers attitudes, and other components of the marketing mix, and uncontrollable environmental factors can influence demand. t/f

true

designing a product that customers perceive as different from competing products is an example of product differentiation t/f

true

during the commercialization phase of new product development, plans for full scale manufacturing and marketing are refined and settled t/f

true

factors affecting pricing decisions can include demand, distribution, and the way in which the product is promoted. t/f

true

for most products, the quantity demanded goes up as the price goes down t/f

true

functional modifications usually require that the product be redesigned t/f

true

non-price competition allows a company to increase its brands unit sales through means other than changing the brands price. t/f

true