Mkt 230 Chapters 7,8,11,12,13,14

In which stage of the product life cycle do profits begin to decrease?

Growth

Which one of the following countries will not be included in the data presented in the new industry classification system that is replacing the SIC?

Japan

Why are line extensions more common than new products?

a. They are less expensive and lower-risk.

Which of the following best illustrates how a firm can use a symbol to make an intangible product more tangible?

a. Traveler's Insurance umbrella

A product line is defined as

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

Morgan is interested in upgrading to a new sofa for her apartment. Morgan looks online to see what new models her favorite sofa brand has available and can get information on the style and color; however, she can't actually sit on the sofa to determine its comfort level. Morgan is able to evaluate the __________ modifications to the sofa, but not the __________ .

a. aesthetic; functional

Cognitive, affective, and behavioral are the three major components of

attitudes

Nathan recently purchased a floor lamp from Ikea. The floor lamp came in a compact cardboard box and assembly was required. This is an example of _________ packaging.

b. handling-improved

Compared with consumer goods, marketers aiming at business customers

b. have an enormous amount of information available concerning potential customers.

Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of

b. line extensions.

Which of the following products is most likely to be purchased on the basis of contract negotiation?

c. A custom-made bulldozer

Which of the following is the best example of a functional modification?

c. A smoke alarm is modified to be more sensitive to smoke at farther distances.

What is a primary difference between business and consumer buyers?

c. Business buyers generally make larger orders than consumer buyers.

Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) _____________ channel.

c. Producer-to-business buyer

Select the true statement concerning test marketing.

c. Test marketing is a limited introduction of the product in areas chosen to represent the intended market.

Netflix sells its movie services using its website while Red Box sells its movie services using vending machines. From a customer's point of view, Netflix is using _________________ and Red Box is using ____________ .

c. a direct-marketing channel; a type of retailer.

One disadvantage of test marketing a new product is that

c. competitors may copy the product.

Sales usually start to decline during the __________ stage of the product life cycle.

c. end of maturity

Consumers receive the benefits of place utility when

d. products are available in locations where consumers want to buy them.

Which of the following is similar for both for-profit and nonprofit marketing?

e. Ability to use effective marketing activities

For which of the following products would a consumer most likely use limited decision making?

e. Hair dryer

Which of the following statements about business buying is false?

e. Orders in business markets tend to be smaller than those placed in consumer markets.

All of the following are marketer-dominated sources of information except

friends

Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ____________ in this purchase decision.

gatekeeper

When three buyers purchase the products of three producers, nine transactions are required. If one intermediary serves both producers and buyers, the number of possible transactions is

six

Our society uses many factors, including occupation, educational level, income, wealth, religion, race, ethnic group, and possessions, to group people into

social classes

Volkswagen purchases upholstery for the interiors of its vehicles from various suppliers. This upholstery must have a set of characteristics that is expressed by Volkswagen. This set is called

specifications

When Minute Maid mailed out free samples of its new instant drink mix, it was trying to move prospective customers into the _____ stage of the product adoption process.

trial

Demand for business products is also known as ______________ demand.

industrial

Joe is an athlete who plays a variety of sports that all require various athletic shoes. He has a favorable attitude toward Nike shoes. This favorable attitude is called brand

loyalty

Dannon Yogurt represents what type of product for most consumers?

Convenience

Who judges service quality?

Customers

Which of the following consumer decision-making processes will probably be used in purchasing toothpaste?

Routinized response behavior

Shannon Hill needed to buy an airline ticket to visit her parents. She went to several websites to compare rates and chose a flight on Southwest Air lines because, for a similar price to other airlines, it had a better reputation for service. For Shannon, this flight is an example of which type of product?

Shopping

Problem recognition occurs when a consumer

The correct answer is: becomes aware that there is a difference between a desired state and an actual condition.

The major drawback to using aesthetic modifications is

The major drawback to using aesthetic modifications is

Changing people's attitudes toward a firm and its marketing program is

a long, expensive, and difficult task that may require extensive advertising campaigns.

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

a. an unsought good

In the United States, toothpaste is sold in tubes and ketchup is sold in plastic bottles. However, in other parts of the world, ketchup and tomato paste are also sold in tubes. If Heinz were to introduce ketchup in tubes in the United States, consumers might have a more difficult time recognizing the ketchup product due to the change in the __________________ .

a. category-consistent packaging.

Business products are

a. classified according to their characteristics and intended uses.

All packaging must at a minimum

a. comply with the FDA's packaging regulations.

The spray bottle for Windex Glass Cleaner could be considered a secondary-use package because

a. customers can reuse it for other purposes.

The members of a venture team (sometimes referred to as a cross-functional team) come from

a. different functional areas of an organization.

The marketing channels for services are usually

a. direct from provider to customer.

Apple makes its computers available through its own stores, its website, and some major retailers. This is an example of

a. dual distribution.

All of the following are major steps in developing new products except

a. evaluation of competitors' efforts.

An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is called

a. exclusive dealing.

Lysol Basin, Tub, and Tile Cleaner and Lysol Disinfectant Spray exemplify

a. family branding.

When a product experiences an increase in the number of competitors, it is usually in the _______ stage of the product life cycle; however, when that competition becomes intense, it is in the __________ stage.

a. growth; maturity

Eliminating a wholesaler from a marketing channel will

a. not eliminate the functions performed by that wholesaler.

An attitude is

a. one's evaluation, feelings, and behavioral tendencies toward an object or idea.

Individual influencing factors refer to

a. personal characteristics of individuals in the buying center.

In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to

a. promise too much and cause customer expectations beyond what they can deliver.

The development of a person's self-concept is a function of

a. psychological and social factors.

When service companies change high-contact services into low-contact services, the

a. service becomes less personalized.

The United States Navy purchases uniforms from a single supplier. For the last twenty-five years, the trousers purchased from this supplier have not changed and have been bought every six months, in seven different sizes. This example is called a

a. straight rebuy.

Which of the following is the fastest growing, most affluent subculture in the United States?

b. Asian Americans

Business products are classified into the following seven categories according to characteristics and intended uses: raw materials, installations, accessory equipment, component parts, process materials, business services, and

b. MRO supplies

What should marketers do to promote the consistency and reliability of their services most effectively?

b. Train employees and develop standard procedures for dealing with customers

Inelastic demand simply means that

b. a price increase or decrease will not significantly change the demand for an item.

The supply chain includes

b. all entities that facilitate product distribution.

McDonald's golden arches are a classic example of a

b. brand mark.

Kleenex Boutique is a ______ of tissues made by the Kimberly-Clark Corporation.

b. brand name

A single leader who controls and organizes a marketing channel is called a

b. channel captain.

A Lenovo laptop that has an "Intel" logo on its keyboard is an example of

b. co-branding

The phase of new-product development in which a small sample of potential buyers are presented with a product idea through a written or oral description in order to determine their attitudes and initial buying intentions regarding the product is called

b. concept testing.

Brand name awareness is an important element of brand equity because a familiar brand is more likely to be in a customer's ______ than an unfamiliar brand.

b. consideration set

After purchasing a product, postpurchase evaluation may result in cognitive dissonance. Cognitive dissonance is

b. doubts that occur because the buyer questions whether the decision to purchase the product was right.

A run-out policy of product deletion

b. exploits any strengths left in the product.

Safeway Supermarkets recently placed an order with the Kahn Corporation for hotdogs. The typical weekly order is for 10 cases; however, since the upcoming weekend includes a holiday, this time Safeway is ordering 100 cases of hotdogs. Safeway orders this product on a regular basis. What type of purchase does this week's purchase represent?

b. modified rebuy.

Product deletion can best be described as the process of deleting a product from the product mix when it

b. no longer satisfies a sufficient number of customers.

A brand manager in a multi product firm would be responsible for

b. performance of a specific brand.

A new variety of Doritos is initially introduced in Ft. Worth, Texas; Columbia, South Carolina; Peria, Illinois; and Spokane, Washington. After its initial success, Frito Lay markets the Doritos in those entire states, then the adjacent states, and finally the entire country. Frito-Lay is using a __________ for its new variety of Doritos.

b. roll-out approach

Antonio is planning a trip to Cancun for spring break. He will likely be able to evaluate the hotel's size, amenities offered, and prices by looking at information on its website. However, he won't be able to evaluate the comfort level of the bed or the friendliness of the employees until he actually spends time at the hotel. The type of evaluation attributes Antonio is using before his trip are called _____________ and those he uses during the trip are called ______________ .

b. search; experience

The three major categories of influences on the consumer buying decision process are:

b. situational influences, social influences, and psychological influences.

Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on

b. word of mouth.

A customer shopping for a fax machine tells a salesperson that it is important for the fax machine to have several attributes. It must use plain paper, be able to make copies, be compatible with all other fax machines, and not require a separate phone line. The buyer has express his or her

c. evaluative criteria.

A major determining factor in deciding which type of decision-making process should be used depends on the individual's intensity of interest in a product and the importance of the product for that person. This is known as an individual's

c. level of involvement.

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

c. lines a company offers.

Business markets are typically divided into four categories. These categories are

c. producer, reseller, government, and institutional.

Schwinn has developed a new bicycle that has the strongest and lightest-weight frame of any bicycle outside of those made for racing. In addition, Schwinn has added several new features to its bike that are attractive to individuals who work as "bike messengers" in large, urban cities. Since no other company makes a bike that has these specific attributes, Schwinn is creating

c. product differentiation.

Minerals, chemicals, timber, and agricultural products are considered

c. raw materials.

Bob Denton of Denton Pest Control buys equipment from Allied Tools because Allied hires him to spray its warehouse for insects periodically. This practice is an example of

c. reciprocity.

The three purposes for which individuals or groups can use products in order for it to be considered a business market are

c. resale, use in daily operations, and direct use in producing other products.

The continuum of tangibility goes from _________ on one end to ________ on the other end.

c. service-dominant products; good-dominant products

All of the following are elements of the inseparability characteristic of services except that

c. services are easy to standardize and control.

In product modification, the first issue to consider is whether

c. the product is modifiable.

Goodyear allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel ________ with independent Goodyear dealers.

conflict

Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through

containerization

Which of the following should be the least important concern for marketers when selecting a brand name?

d. Developing an advertising campaign to introduce the name

As Lisa eats her morning bowl of Golden Grahams cereal, she reads about the calories, fats, carbohydrates, and vitamins she is ingesting. This information is required by the

d. Nutrition Labeling Act.

Which of the following is the best definition of product features?

d. Specific design characteristics that allow a product to perform certain tasks

Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink, Frappucino, to grocery stores and other retail outlets. This is an example of

d. a strategic channel alliance.

Many manufacturers that produce their own brand

d. also produce products for private distributor brands.

The result of an inventory stockout usually results in ______________ .

d. an increase in lost sales.

The three major types of reference groups are:

d. aspirational, disassociative, and membership

If Ralph Lauren, a designer of fine clothing, authorized Dan River Mills to market a line of sheets under the Ralph Lauren name this arrangement is an example of

d. brand licensing.

To differentiate their products, companies sometimes emphasize the prodct spport services that they offer. This is especially true when

d. consumers perceive all products in a market to have essentially the same quality, design, and features.

Procter & Gamble makes at least eight different laundry detergents. This is most relevant to the issue of

d. depth of product mix.

If Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be

d. exercising channel power.

An independent businessperson who is paid a commission to sell complementary products of different producers in an assigned territory without actually taking title of the merchandise is a(n)

d. manufacturers' agent.

Service industries account for _________ of the gross domestic product of most developed nations.

d. nearly three-quarters

Craftsman tools, sold and branded by Sears, is an example of a ________ brand.

d. private distributor

Three major ways in which marketers engage in product differentiation are

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

The group of people within a business who are involved in making business buying decisions is referred to as

d. the buying center.

In most service industries, customer-contact employees are

d. the lowest-paid and least-trained employees.

Channel decisions are important to marketers mostly because

d. they involve long-term commitments and affect customer accessibility.

In the consumer buying decision process, the information search stage

d. yields a group of brands that a buyer views as possible alternatives.

The stage of the product life cycle when marketers consider eliminating products that are not contributing to profitability or the overall effectiveness of a product mix is the _________ stage.

decline

Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use?

e. Producer wholesaler, retailer, consumer

Which of the following products is an example of a manufacturer brand?

e. Sony TVs

The three major ways to modify a product include

e. aesthetic, quality, and functional changes.

In general, differences between goods and services are determined by the

e. degree of tangibility.

A marketing channel is defined as a group of individuals and organizations that

e. directs the flow of products from producers to customers.

During the growth stage of the product life cycle, marketers must

e. fortify the product position.

According to Maslow's hierarchy of needs,

e. individuals first satisfy the most basic needs and then try to fulfill needs at the next level up.

The four major stages of a product life cycle include

e. introduction, growth, maturity, and decline.

Twin-packs and six-packs are examples of

e. multiple packaging.

During the introduction stage of the successful product, profits are usually

e. negative and increasing.

Product specifications are best described as

e. physical characteristics and level of quality.

Because practically all marketers provide some services, __________ typically do not exist in today's business environment.

e. pure goods

An organization that decides to buy all of a certain part from the same company is using

e. sole sourcing.

A group of brands that a consumer views as alternatives for possible purchase is called a(n)

evoked set.

Because of a service's ___________________, standardization and quality are difficult to control.

heterogeneity

Services have basic characteristics: Intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and

heterogeneity

MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets

ideas

R. J. Reynolds markets several brands of cigarettes, including Vantage, Camel, Winston, and Salem. This is an example of which type of branding policy?

individual

When Jiffy-Pop packaged its popcorn in an aluminum skillet, complete with attachable handle, it designed the package to become the cooking utensil. After cooking, the handle was removed and the package became the popcorn bowl. Jiffy-Pop's popcorn in this case is an example of ______ packaging.

innovative

Depending on the length of time it takes them to adopt a new product, people can be divided into five major adopter categories: early adopters, early majority, late majority, laggards, and

innovators

A customer must have a particular brand and will accept no substitutes. This is termed brand

insistence

Flo, the spokesperson in Progressive Insurance TV commercials, is used to symbolize friendliness, reliability, and knowledge of the company's products. The part Flo plays in the promotion is designed to address the _____________ characteristic of services.

intangibility

When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used _____________ distribution.

intensive

Assignment of meaning to organized information inputs is called

interpretation

Demand for a business product is _______ when two or more items are used in combination to produce a product.

joint

When Zappos, Inc., an online marketer of shoes, accessories, and clothing, contracts out the physical distribution task to third parties such as UPS, this arrangement is called ___________. This is due to the fact that UPS does not have managerial authority within the Zappos marketing channel.

outsourcing

As Brianna walks to classes, she selects, organizes, and interprets the sensations she is receiving through her sense organs. Brianna is experiencing the process of

perception

Demand-based pricing most closely relates to the ____________________ of services.

perishability

Tara finds evaluating a new pair of jeans much easier than evaluating tennis lessons because she can try on the jeans to see exactly how they feel and fit. In other words, the jeans have many __________ qualities.

search

A service is usually offered as part of a bundled package of services with a core service and one or more __________ services.

supplementary

During the search for products and evaluating possible suppliers stage of the business buying decision process, marketers sometimes use __________ analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way.

value