Marketing Exam 4

Factors affecting pricing decisions can include demand, distribution, and the way in which the product is promoted. A. True B. False

A. True

Functional modifications usually require that the product be redesigned. A. True B. False

A. True

Laggards are the last to adopt a new product and usually distrust new products. A. True B. False

A. True

The core product element of the total product can include installation, delivery, training, and financing. A. True B. False

B. False

Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing? A. Warehouse club B. Warehouse showroom C. Catalog showroom D. Hypermarket E. Category killer

A. Warehouse club

The three major ways to modify a product include A. aesthetic, quality, and functional changes. B. extensions, generations, and upgrades. C. color, size, and quality modifications. D. styling, product features, and product design. E. quality, quantity, and design.

A. aesthetic, quality, and functional changes.

A product mix is best described as A. all products offered by a firm. B. product, distribution, promotion, and price. C. many products sold by one firm. D. all products of a particular type.

A. all products offered by a firm.

The jolly green giant used by the Green Giant Company facilitates the development of A. brand associations B. brand quality C. product preference D. brand loyalty E. product equity

A. brand associations

Although they become part of a larger product, ____ can often be easily identified and distinguished on the larger product. A. component parts B. accessory parts C. raw materials D. process materials E. MRO supplies

A. component parts

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. A. True B. False

B. False

Trial is the first stage of the product adoption process. A. True B. False

B. False

A(n) ___ is a concept, philosophy, or image A. product B. good C. idea D. service E. issue

C. idea

Agents and brokers that facilitate and negotiate purchases but do not actually take title to products are also known as A. contract negotiators. B. functional wholesalers. C. hands-off intermediaries. D. functional middlemen. E. commission wholesalers.

D. functional middlemen.

The four major stages of a product life cycle include A. prosperity, recession, depression, and recovery. B. specialty, convenience, shopping, and unsought goods. C. decline, stabilization, exposure, and growth. D. introduction, growth, maturity, and decline. E. awareness, interest, trial, and adoption.

D. introduction, growth, maturity, and decline.

The test marketing stage A. is an extension of the screening stage. B. should come immediately after business analysis. C. ensures that the product will not fail. D. is a sample launching of the entire marketing mix. E. prevents competitors from copying the product.

D. is a sample launching of the entire marketing mix.

Compared with other phases of the new-product development process, the largest number of new-product ideas is rejected during the ____ phase A. idea generation B. concept testing C. business analysis D. screening E. test marketing

D. screening

During the maturity stage A. product modifications are unnecessary. B. there is less emphasis on changing a product's price. C. marketing strategies are rarely altered. D. some competitors are forced out. E. limited advertising expenditures are required to maintain market share.

D. some competitors are forced out.

A product item is best described as a A. component of a marketing mix B. particular brand C. specific characteristic of a product D. specific version of a product E. unit of measure for the product

D. specific version of a product

Safeway and SuperValu are all considered A. food stores. B. convenience stores C. superstores. D. supermarkets. E. department stores.

D. supermarkets.

Price is a key element in the marketing mix because it relates most directly to A. the size of the sales force. B. the speed of an exchange. C. quality controls. D. the generation of total revenue. E. brand image.

D. the generation of total revenue.

Louis is reading the online report of the tuition and fees he owes for this semester of college. Since he has signed up for online banking, he pays the amount immediately. The amount Louis just paid is considered to be A. his expenses B. his charges C. his bill D. the price E. the exchange valuations

D. the price

Peter works for a company that buys snacks such as chips, cookies, and candy in bulk from manufacturers. Peter's company then repackages them and sells them to vending companies that have vending machines at government institutions. Peter most likely works for a(n) _____,while the vending machine company is a(n) _____. A. broker; agent B. broker; retailer C. agent; retailer D. wholesaler; retailer E. wholesaler; broker

D. wholesaler; retailer

What is the primary difference between an agent and a broker? A. An agent represents a company on a permanent basis while a broker is employed temporarily. B. An agent gets compensated based on commission while a broker generally charges fees for his services. C. A broker works only for a seller whereas an agent can represent a buyer or a seller. D. An agent has much more extensive knowledge about the products he deals with than a broker does. E. Brokers have long-term relationships with their customers while an agent's relationships are generally short-lived.

A. An agent represents a company on a permanent basis while a broker is employed temporarily.

At what point does a firm maximize profit? A. The point at which marginal cost equals marginal revenue B. The point at which the firm sells its product at the highest price C. The breakeven point plus the adjusted marginal cost D. The point at which marginal profits equal marginal revenue E. The point at which marginal cost equals marginal profits

A. The point at which marginal cost equals marginal revenue

A brand name is the part of the brand that is spoken A. True B. False

A. True

A customer looking for the lowest price on a mattress without concern for the quality of the mattress or the status gained by buying and using a certain brand is a price-conscious customer. A. True B. False

A. True

A franchise is an arrangement in which a supplier grants dealers the right to sell products in exchange for some type of consideration. A. True B. False

A. True

A product need not be a physical product. A. True B. False

A. True

Advertising used in the decline stage may prolong the life of the product A. True B. False

A. True

Barter is the oldest form of exchange. A. True B. False

A. True

Business analysis provides a tentative sketch of a product's profitability A. True B. False

A. True

Changes in buyers' attitudes, other components of the marketing mix, and uncontrollable environmental factors can influence demand. A. True B. False

A. True

Costs are a major issue when establishing price. A. True B. False

A. True

Designing a product that consumers perceive as different from competing products is an example of product differentiation A. True B. False

A. True

Designing a product that customers perceive as different from competing products is an example of product differentiation. A. True B. False

A. True

Exterior atmospheric elements include the appearance of the storefront, display windows, store entrance, and amount of traffic congestion. A. True B. False

A. True

Extreme-value stores are a fraction of the size of conventional discount stores. A. True B. False

A. True

Non-price competition allows a company to increase its brand's unit sales through means other than changing the brand's price. A. True B. False

A. True

Price is the most easily adjusted ingredient in the marketing mix. A. True B. False

A. True

Price is the value that is exchanged for products in a marketing transaction. A. True B. False

A. True

Process materials are used directly in the production of products. A. True B. False

A. True

Store atmospherics are used to create emotional effects that enhance the probability of purchasing. A. True B. False

A. True

The buyer's intent can determine whether an item is classified as a consumer or a business product. A. True B. False

A. True

The first adopters of a product are the innovators A. True B. False

A. True

The product development stage determines the technical feasibility of producing the new product A. True B. False

A. True

The purpose of the pricing concept is to quantify and express the value of items in a market exchange. A. True B. False

A. True

Use of the product is the most important means of distinguishing consumer products from business products. A. True B. False

A. True

Warehouse clubs are able to offer a broad range of merchandise because their product lines are shallow and their sales volumes high. A. True B. False

A. True

If Umbro faces a standard demand curve that exists for most products, as it raises the price of its soccer balls, the A. quantity demanded goes down. B. demand remains constant. C. quantity demanded increases. D. demand increases initially, and then drops. E. breakeven increases.

A. quantity demanded goes down.

Beacons are useful to retailers of all sizes because they A. send real-time messages and offers to customers. B. allow customers to scan merchandise to receive discounted prices. C. track customers' locations throughout the store. D. use virtual reality to enhance the shopping experience. E. allow customers to use their phones to check out.

A. send real-time messages and offers to customers.

When products are presented to television viewers, who can purchase them by calling a toll-free number and paying with a credit card, ____ is being used. A. television home shopping B. direct-response marketing C. television marketing D. telemarketing E. e-marketing

A. television home shopping

At the breakeven point, A. the money a company brings in from selling products equals the amount spent producing the products. B. the total fixed costs are exactly equal to the total variable costs. C. profits are exactly equal to the difference between revenue and total variable costs. D. the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit. E. the marginal cost curve and the average cost curve will be identical for a particular product.

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

If a product has an inelastic demand and the manufacturer raises its price, A. total revenue will increase. B. quantity demanded will decrease. C. the demand schedule will shift. D. the demand will become more inelastic. E. total revenue will decrease.

A. total revenue will increase.

Marianna tells Rajesh that she likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. She is asking Rajesh to proceed to which stage of the new-product development process? A. Idea generation B. Business analysis C. Commercialization D. Test marketing E. Screening

B. Business analysis

One disadvantage of test marketing a new product is that A. the product is distributed on a regional basis B. Competitors may copy the product C. The results give little indication of the product's future success D. Price, advertising, and packaging cannot be varied from market to market E. It might fail before it can be commercialized

B. Competitors may copy the product

Which of the following products is most likely to have an inverted C-shaped demand curve? A. Visit to the dentist B. Eternity perfume C. Starbucks coffee D. Pillsbury cake mix E. Ford Escape

B. Eternity perfume

A firm that competes on a price basis is unable to change prices frequently. A. True B. False

B. False

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 A. True B. False

B. False

A run-out approach to product deletion lets the product decline without changing the marketing strategy. A. True B. False

B. False

Buyers want to exert only minimal effort to obtain shopping products. A. True B. False

B. False

Concept testing gives reliable feedback, but at a relatively high cost. A. True B. False

B. False

Concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions A. True B. False

B. False

Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable. A. True B. False

B. False

Customers always interpret a higher price to mean higher quality. A. True B. False

B. False

Delivery, installation, financing, repair, warranties, and guarantees are all examples of product features. A. True B. False

B. False

Direct-response marketing is the performance of marketing-related activities by telephone. A. True B. False

B. False

Discount stores are distinctive in that they usually are very service oriented. A. True B. False

B. False

Electricity is an example of a product that is price elastic. A. True B. False

B. False

Line extensions are less common than other new products because line extensions are more expensive and more risky A. True B. False

B. False

Marketers have little influence over shaping consumers' concepts or perceptions.​ A. True B. False

B. False

Profits for a firm are computed as follows: Profits = Total Revenue - Fixed Costs. A. True B. False

B. False

Supermarkets specialize in selling shopping products. A. True B. False

B. False

Test marketing should be conducted when a product has been given a low probability of success A. True B. False

B. False

The concept of product quality is the same from consumer to consumer and from consumer markets to organizational markets. A. True B. False

B. False

The coordination of selling efforts within a community shopping center is usually minimal. A. True B. False

B. False

Venture team members usually come from the same functional areas within the firm A. True B. False

B. False

Wholesaling is the final part of the marketing process in which exchanges are entered into for personal, family, or household purposes. A. True B. False

B. False

Products are classified as being business or consumer products according to the A. number of buyers involved in the decision. B. buyer's intended use of the product. C. seller's intended use of the product. D. location of use. E. types of outlets from which they are purchased.

B. buyer's intended use of the product.

Charlotte and Grace own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase the food items and cleaning supplies they need for their business. With the exception of the volume they purchase and the items' intended use, this grocery shopping trip is identical to a weekly trip by their families to a grocery store. Sam's is serving as a ____ wholesaler for these entrepreneurs. A. truck B. cash-and-carry C. full-service merchant D. general-line E. specialty-line

B. cash-and-carry

All of the following are major steps in developing new products except A. test marketing. B. evaluation of competitors' efforts. C. screening. D. business analysis. E. idea generation.

B. evaluation of competitors' efforts.

The major characteristic of a private brand is that A. only retailers initiate and own the brand. B. manufacturers are not identified on the product. C. producers become involved with the marketing mix. D. producers price the product. E. wholesalers encourage producers to make the product available.

B. manufacturers are not identified on the product.

Product deletion A. tends to be an easy task for most organizations B. may be opposed by management C. usually involves immediate termination D. is a matter of indifference to customers E. usually occurs only with convenience items

B. may be opposed by management

Drop shippers A. do not take title to but take physical possession of the goods. B. take title to but not physical possession of the goods. C. take title to and physical possession of the goods. D. are similar to truck wholesalers but provide the extra service of placing products on retailers' shelves. E. do not take title to or physical possession of the goods.

B. take title to but not physical possession of the goods.

The major drawback to using aesthetic modifications is A. the cost of the modifications B. that the value of the modification is determined subjectively C. the need for redesign of the product D. a possible decrease in market share E. that there is no differentiation for the product in the market

B. that the value of the modification is determined subjectively

The owner of Big Jim's Motorcycles is opening a new retail location. Which of the following is most likely to be a fixed cost for Big Jim's Motorcycles? A. Retail personnel salaries B. Advertising on Facebook C. Building rent D. Electricity E. Transportation of sold bikes

C. Building rent

What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level? A. Product development B. Evaluation of competitor's efforts C. Screening D. Idea generation E. Business analysis

C. Screening

One advantage of non-price competition is that A. a firm can react quickly to competitive efforts. B. market share becomes less important. C. a firm can build customer loyalty. D. marketing efforts are completely eliminated. E. pricing is no longer a factor.

C. a firm can build customer loyalty.

A product line is defined as A. products that can be designated as a unique offering among the organization's products. B. products that an organization makes available to consumers. C. a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations. D. a specific group of products that are offered to the market. E. products that are sold by the same firm or a division of a firm.

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

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 A. steady B. inelastic C. elastic D. prestige E. marginal

C. elastic

The three levels of brand loyalty from strongest to weakest are A. preference, insistence, recognition. B. insistence, recognition, preference. C. insistence, preference, recognition. D. recognition, preference, insistence. E. insistence, preference, indifference.

C. insistence, preference, recognition.

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. A. product design B. screening C. product development D. concept testing E. test marketing

C. product development

When Cameron was visiting family in Missouri, he ate a flavor of Boulder Canyon Kettle Chips that he had never seen before. When he returned home to Virginia, he could not find the flavor in any store. Which of the following reasons most likely explains why he could not find the flavor at home? A. The flavor was being deleted through immediate drop B. The flavor was in the screening phase of the new-product development process C. The chips were undergoing repositioning D. He was visiting a city being used as a Boulder Canyon's test market E. The new flavor was going through product differentiation

D. He was visiting a city being used as a Boulder Canyon's test market

A small self-service store that is open long hours and carries a shallow product mix in convenient locations is best described as a A. supermarket. B. discount store. C. department store. D. convenience store. E. category killer.

D. convenience store.

Which of the following is an example of a category killer? A. JCPenney B. Sam's Club C. Marshalls D. Walmart E. Home Depot

E. Home Depot

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? A. Idea generation B. Commercialization C. Test marketing D. Screening E. Product development

E. Product development

Which factor is least likely to affect pricing decisions? A. Competitive prices B. Legal and regulatory issues C. Organizational and marketing objectives D. Customers' interpretation and response E. Shifting stock values

E. Shifting stock values

Which of the following is NOT a business product A. oil to be refined into fuel B. chips to be integrated into components for personal computers C. paper, pens, and tape to be used in an office D. marketing consulting services to aid a company in marketing a new product E. calculators bought to help individuals complete their personal federal income tax forms

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

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 A. non-price competition. B. demand-based pricing. C. cost-based pricing. D. price differentiation. E. price competition.

E. price competition.

Price is A. money paid in a transaction. B. not important to buyers. C. of limited interest to sellers. D. the most inflexible marketing mix decision variable. E. the value that is exchanged for products in a marketing transaction.

E. the value that is exchanged for products in a marketing transaction.

______________ refers to how a product is conceived, planned, and produced.​ ​A. Product differentiation ​B. Level of quality ​C. Product positioning ​D. Product features ​E. Product design

​E. Product design