marketing final exam
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 t/f
false
the two major product categories are business and institutional t/f
false
marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during
product development
all of the following are major steps in developing new products except
evaluation of competitors efforts
Buyers want to exert only minimal effort to obtain shopping products
false
a firm that competes on a price basis is unable to change prices frequently t/f
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
false
a run-out approach to product deletion lets the product decline without changing the marketing strategy t/f
false
brand preference is the strongest form or degree of brand loyalty t/f
false
concept testing gives reliable feedback, but at a relatively high cost t/f
false
consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable
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
product mix refers to a related group of products in the product line
false
profits for a firm are computed as follows: Profits = Total Revenue - Fixed Costs t/f
false
test marketing should be conducted when a product has been given a low probability of success
false
the core product element of the total product can include installation, delivery, training, and financing t/f
false
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
a(n) ideas is a concept, philosophy, or image
idea
the three levels of brand loyalty from strongest to weakest are
insistence, preference, recognition
the width of a product mix is measured by the number of product
lines a company offers
the major characteristic of a private brand is that
manufactures are not identified on the product
product deletion
may be opposed by management
which of the following is an example of a functional modification?
planters nuts redesigns the 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
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 produced
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 demanded 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
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
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 most directly to
the generation of total revenue
at the breakeven point,
the money a company brings in from selling products equals the amount spent producing the products
a product need not be a physical product
true
a product's classification can influence its price, distribution, and promotion
true
a products classification can influence its price, distribution, and promotion t/f
true
a service is intangible and is the result of the application of human or mechanical efforts to people or objects
true
advertising used in the decline stage may prolong the life of the product t/f
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
use of the product is the most important means of distinguishing consumer products from business products
true
early in the commercialization phase, marketers must make decisions about
warranties, repairs and replacement parts
during the maturity stage
some competitors are forced out.
a product item is best described as a
specific version of a product
non-price competition allows a company to increase its brands unit sales through means other than changing the brands price. t/f
true
price is the value that is exchanged for products in a marketing transaction t/f
true
products decline in the maturity stage, largely because of increased competition t/f
true
the buyers intent can determine whether the item is classified as a consumer or business product
true
the first adopters of a product are the innovators
true
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.
A product mix is best described as
all products offered by a firm
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. phillips purchase of a new tire in this situation is considered to be
an unsought good
the three major ways to modify a product include
asthetic, quality and functional changes
the jolly green giant used by the green giant company's facilitates 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
buyers intended use of the product
which of the following products is most likely to have an inverted C - shaped demand curve?
eternity purfume
which of the following 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