MKTG test 3
(14) The amount of annual losses companies suffer from counterfeit products is estimated to be
$250-$350 billion.
Cheetos Fat-free Crunchies is a product developed through advanced technology. Cheetos engineered a technique for making reduced-fat snacks that taste cheesier and stay fresh longer. Cheetos introduced Fat-free Crunchies in limited markets in 2008 and began national distribution in 2009. About 18 months later, a series of competitors' ads was run to counter claims that Cheetos Crunchies actually contained 1.5 grams of fat, and that they contained preservatives and additives. Research showed that the taste of Cheetos Crunchies was also perceived negatively by some people. To save the product, Cheetos reduced the remaining fat to 0 grams, took out the preservatives, and improved the taste.
(for the ones about Cheetos)
(15) What is the reorder point if the usage rate is 10 units per day, the order lead time is five days, and the safety stock is 30?
80
(13) Which of the following is not a service product?
A 100 percent service satisfaction guarantee
(15) What is a primary difference between an industrial distributor and a manufacturers' agent?
A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does.
(12) Which of the following is the best example of a functional modification?
A smoke alarm is modified to be more sensitive to smoke at farther distances.
(13) Which of the following is similar for both for-profit and nonprofit marketing?
Ability to use effective marketing activities
A distributor of plumbing supplies purchases a desktop computer to aid in inventory control. This computer is an example of which type of business product?
Accessory equipment
(13) Which of the following best defines nonprofit marketing?
Activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit or return on investment
(14) When designing a package, which characteristic is least important?
An association with the company's brand mark
What are a marketing manager's two options during the decline stage?
Attempt to postpone the decline or accept its inevitability
(15) The marketing channel of producer to retailer to consumer is most likely to be used by producers of which of the following products?
Automobile
An individual knows that a product exists, but has little information regarding the product and does not seek additional information. In what stage of the product adoption process is that person?
Awareness
An accountant buys a supply of pencils to be used in calculating the taxes of other business firms. Based on this information, pencils in this case would be considered what type of product?
Business
Megan Avakian, who works as a purchasing agent for Greyhound Transport, buys carpeting for use in an office area at Greyhound. What determines whether this carpeting is a consumer or a business product?
Buyer's intended use of the product
Which of the following is always used to determine the classification of a good?
Buyer's intent for using the product
(13) Which of the following service providers are most likely to bundle-price their services?
Cable television companies
Which of the following is not a business product?
Calculators bought to help individuals complete their personal federal income tax forms
(14) ___________ packaging means that the product is packaged in line with the packaging practices associated with a particular product category.
Category-consistent
(13) According to the text, the direct consumers of a nonprofit organization's ideas or services are called its _________ public.
Client
(14) ___________ occurs when two or more brands are placed on a single product.
Co-branding
(12) Questions such as "How often would you buy this product?" and "Which features are of little or no interest to you?" are often proposed during
Concept Testing
(12) 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
Concept Testing
Which of the following statements does not apply to convenience goods?
Consumers are brand loyal to convenience products and are not likely to substitute other brands.
Dannon Yogurt represents what type of product for most consumers?
Convenience
Energizer batteries would be classified as which type of product?
Convenience
Products which are relatively inexpensive and frequently purchased with minimal effort are classified as ___________ products.
Convenience
(14) Which one of the following is not a benefit of multiple packaging?
Conveys an overall image of the firm
(15) Overall channel goals and individual channel member goals cannot be achieved together without
Cooperation
(15) What is the primary determinant in deciding how materials will be handled?
Cost reduction
(13) Which of the following service providers are most likely to use demand-based pricing?
Cruise ships
(13) By installing ATMs, banks have increased production capacity and reduced the number of personnel. This results in a decrease in
Customer contact
(12) Best Buy differentiates its product offerings from its competition with stores like Sam's, by offering delivery and installation, financing arrangements, and repairs. Best Buy is differentiating through
Customer service
When are marketers least likely to change a product's design, style, or other attributes?
Decline
(13) An American West Airlines flight from Dallas to Houston was full, and the tickets were more expensive than the almost-empty American West flight from Chicago to Phoenix. This is an example of what kind of service pricing?
Demand-based
Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Krackel, Hershey's Kisses, Reese's Peanut Butter Cups, Rolo, and Twizzlers. These candies best illustrate Hershey's product mix
Depth
(14) Which of the following should be the least important concern for marketers when selecting a brand name?
Developing an advertising campaign to introduce the name
(13) Which of the following services falls closest to the middle of the tangibility continuum?
Dinner at the Olive Garden
(13) Client-based relationships are most likely to be developed by
Doctors
(12) ___________ and ___________ are important characteristics of quality for consumer markets, and ___________ and ___________ are important characteristics of quality for business markets.
Ease of maintenance/company reputation; durability/technical suitability
(15) Select the greatest advantage of horizontal channel integration.
Efficiencies in advertising, marketing research, and purchasing are increased.
When an individual considers whether a product will meet certain criteria that are critical for meeting his or her needs, in what stage of the product adoption process is this individual?
Evaluation
Which of the following is not a stage in the buyer's product adoption process?
Exploration
(14) What is the most protectable brand type as determined by a series of court decisions?
Fanciful
Which of the following is most likely to be considered a convenience good?
Gatorade
Achieving greater penetration of the market is typically a business goal during the ___________ stage of the product life cycle.
Growth
Aggressive pricing is typical during the ___________ stage of the product life cycle.
Growth
An ad that stresses "Get the real Proactiv Solution; accept no substitutes!" is best geared for which stage of the product life cycle?
Growth
In which stage of the product life cycle do profits begin to decrease?
Growth
In which stage of the product life cycle do profits peak?
Growth
Which stage in the product life cycle is critical to a product's survival because competitive reactions to the product's success during this period will affect the product's life expectancy?
Growth
Which stage of the product life cycle begins when a business reaches the breakeven point with the product?
Growth
(13) Which of the following service characteristics results in variability of service quality yet provides the opportunity for customizing services to match the specific needs of individual customers?
Heterogeneity
(13) Which of the following statements about customer contact in services marketing is false?
High-contact services are less expensive to deliver because they are typically equipment-based.
(15) To expand the number of its retail outlets in the Washington, D.C., area, the Dress Barn bought out a small chain of women's apparel stores in northern Virginia. This type of integration is called
Horizontal
A(n) _____ is a concept, philosophy, or image.
Idea
MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets
Ideas
(13) Which of the following factors have contributed the least to the growth of services in the U.S. economy?
Increased number of high-tech goods
(13) Hair stylists find it challenging to market their service because the customer must be involved in production (i.e., the haircut). This illustrates which of the following unique features of services?
Inseparability
(13) If a nonsmoker dines in a restaurant without a no-smoking section, then the overall quality of service experienced by the nonsmoking customer probably declines. This is an example of which of the following service characteristics?
Inseparability
(13) Personal trainers cannot complete their work without their clients present because of the _______ feature of services.
Inseparability
Tojitos Mexican Restaurant purchased several large ovens for use in remodeling its kitchens. These ovens are an example of which type of business product?
Installations
Sales start at zero and profits are negative during the ____ stage of the product life cycle.
Introduction
(12) Which of the following is a disadvantage of gradually introducing a product to market?
It allows competitors to monitor the results of the new product.
(14) Many brand names have become so common that they are now generic terms for a particular product category. Which of the following is the best example of this?
Jell-o
(14) Which of the following statements about labeling is false?
Labels do not have to disclose nutritional information.
(13) Which of the following service providers would typically call their customers "clients"?
Lawyers
(12) __________ is the development of a product that is closely related to one or more products in a firm's existing product line but is designed specifically to meet somewhat different customer needs.
Line extension
Brunswick's bowling balls, bowling bags, and shoes are individual product ___________ for this sporting goods manufacturer.
Lines
Which of the following tactics would typically be employed when a product is in the growth stage of its life cycle?
Lowering prices after developmental costs have been recovered
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
MRO supplies.
(13) Select the true statement about nonprofit marketing.
Major nonprofit marketers in the United States are social causes and charitable organizations.
(14) A ___________ brand usually requires a producer to become involved in distribution, promotion, and pricing decisions.
Manufacturer
(15) What links producers to consumers through the purchase and reselling of products or contractual agreements?
Marketing intermediaries
Sara Lee Corporation manufactures desserts, breads, pantyhose, meats, and a variety of other products. These products make up Sara Lee's product
Mix
(13) ___________ marketing includes activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit.
Nonprofit
(13) Which is the most typical distribution channel used in nonprofit organizations?
Nonprofit organization, client
(14) 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
Nutrition Labeling Act.
(13) ___________ is the value of the benefit that is given up by selecting one alternative rather than another. a)Benefit loss
Opportunity cost
(15) What are the three primary tasks of order processing?
Order handling, order entry, order delivery
(13) Marketers of services must deal with the challenges of balancing supply and demand and planning for peak and off-peak times. What characteristic of services creates these challenges?
Perishability
(14) which of the following products is an example of a manufacturer brand?
Pioneer stereos
(13) Which of the following is the best example of a high-contact service?
Plastic surgery
(13) Compared to goods marketers, services providers are more likely to promote performance documentation, availability, guarantees, and
Price
Which of the following is the most typical example of a new product introduction?
Pringles sold in snack-sized containers
(15) Which of the following is the most commonly used channel for distributing business products?
Producer, organizational buyers
(15) Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels?
Producer, retailers, consumers
(15) Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use?
Producer, wholesaler, retailer, consumer
(12) As Justin 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
(12) Ideally, test marketing should follow which stage in the new-product development process?
Product development
(15) Which of the following is least likely to be a factor affecting the selection of marketing channels?
Product packaging
(13) Which of the following issues is least important in nonprofit marketing?
Profits
(12) Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the organization?
Quality
(14) The weakest level of brand loyalty is brand
Recognition
(15) For which of the following products would exclusive distribution be most appropriate?
Rolls Royce automobile
(12) A group of managers has been assigned the task of developing a new product, has listed several good ideas, and is now in the process of assessing each idea to determine whether it is consistent with the firm's overall objectives and resources. The managers are at what stage of the new-product development process?
Screening
(12) Compared with other phases of the new-product development process, the largest number of new-product ideas is rejected during the ___________ phase.
Screening
(12) 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
(13) Select the true statement regarding nonprofit marketing.
Segmentation techniques used to identify target markets in for-profit businesses are also applicable to reaching nonprofit target markets.
(13) What are the three primary ways that marketers deliver services?
Service facilities, customer's home, or from a distance
Gap clothing stores sell primarily what type of products?
Shopping
Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called ______ products.
Shopping
Shannon Hill needed to buy an airline ticket to visit her parents. She called several airlines to compare rates and chose a flight on Southwest Air Lines because, for comparable prices, it had a better reputation for service. For Shannon, this flight is an example of which type of product?
Shopping
(12) Which of the following is the best definition of product features?
Specific design characteristics that allow a product to perform certain tasks
(13) Which of the following products associated with weddings is most likely to be considered a service?
String quartet music
(14) Besides generic names, what other types of names are very difficult to protect?
Surnames and geographic names
(12) Product failure is a concern of all marketers. Which of the following phases of new-product development is best able to measure this concern?
Test Marketing
(12) Sales and cost analyses occur most frequently in what stage of the new-product development process?
Test marketing
(12) Select the true statement concerning test marketing.
Test marketing is a limited introduction of the product in areas chosen to represent the intended market.
(14) Which of the following issues is least important in using co-branding effectively?
The brands involved should be owned by different companies.
Which of the following best defines the interest stage in the product adoption process?
The buyer seeks information and is receptive to learning about the product.
(14) Which of the following is a primary factor specific to services in choosing a brand name?
The service brand is usually the same as the company name so it must be flexible enough to fit several services.
(12) Why are line extensions more common than new products?
They are less expensive and lower-risk
(15) Which of the following describes a disadvantage of using industrial distributors?
They are unlikely to handle bulky items or items that are slow sellers.
(15) Which of the following is an advantage of using an industrial distributor?
They help reduce a producer's financial burdens by extending credit to customers.
(12) PepsiCo has a new flavor of soft drink that it wants to test to determine reactions of probable buyers. Which of the following test-market characteristics would be least useful to PepsiCo when testing the new soft drink?
Tourism is a major industry in the area.
(14) Which of the following laws was enacted by Congress in 1988 to strengthen trademark protection?
Trademark Law Revision Act
(14) The most recent act passed by Congress that addresses the protection of trademarks is the
Trademark Law Revision Act.
(13) What should marketers do to promote the consistency and reliability of their services most effectively?
Train employees and develop standard procedures for dealing with customers
(15) __________ adds time and place utility to a product by moving it from where it is made to where it is purchased and used.
Transportation
Which of the following best illustrates how a firm can use a symbol to make an intangible product more tangible?
Traveler's Insurance umbrella
When Saturn offers to let qualified buyers test drive the new Saturn SKY roadster, the dealer is trying to stimulate which stage of the product adoption process?
Trial
(13) Which of the following countries was the world's first service economy?
United States
(14) The series of thick and thin lines that electronically identify many products is called a(n)
Universal product code
(15) Which of the following physical distribution functions involves design and operation of facilities for storing goods?
Warehousing
(13) Which of the following is a low-contact service?
Website design
(15) A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances?
When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force
What measure of the product mix involves the number of product lines a company offers?
Width
(12) What is the primary distinction between a line extension and a product modification?
With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension.
A light bulb can be considered all of the following except
a consumer product if it is used to light the office of the board of directors.
(15) When channel members are linked by legal agreements that specify each member's rights and responsibilities, _______ exists.
a contractual VMS
(15) Customers who purchase computer laptops from manufacturer websites are acquiring products through
a direct-marketing channel.
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.
(12) Cheetos produces several cheese snack products and is considering a new Cheetos brand of crackers. This new Cheetos brand of crackers would most likely be an example of
a line extension.
(14) A major advantage of using individual branding is that
a poor quality product will not contaminate all of the company's other products with negative images
(14) Brand licensing agreements can fail for many reasons but usually not because of
a strong match between the product and the licensed brand.
(15) When a single channel member manages an integrated marketing channel to achieve low-cost, efficient distribution for satisfying target markets, ______ exists.
a vertical marketing system
The difference between absolute and relative product failure is
absolute product failure results in a loss on the investment and is deleted from the product mix, whereas relative product failure results in a small profit, and improvements or repositioning can create success later.
(13) The two levels of expectations that consumers generally have about services are
acceptable and desired.
Business products that are purchased routinely, do not become part of finished goods, and are expense items rather than capital goods are called
accessory equipment
(15)In an administered vertical marketing system (VMS), interorganizational relationships are
achieved by informal coordination.
A company wanting to maintain market share during the maturity stage requires moderate to large
advertising expenditures.
(12) Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called ___________ modifications.
aesthetic
(12) If Conway School Furniture Company provides standard primary school chairs in new colors to match the interiors of schools, this modification is most likely to be viewed as a(n) __________ modification.
aesthetic
(12) Improving the taste of Cheetos Crunchies was a(n) __________ modification.
aesthetic
(12) Sony's design of its new plasma television sets with smoked-glass control panel covers and other visual changes would be classified as a(n) ___________ modification.
aesthetic
(12) If buyers choose certain types of products by the way they look, smell, taste, or sound, marketers should focus most on appropriate
aesthetic modifications.
(12) The three major ways to modify a product include
aesthetic, quality, and functional changes.
(15) A producer is not likely to receive _____ from an industrial distributor
aggressive promotion of its brand
(15) The supply chain includes
all entities that facilitate product distribution.
A product mix is best described as
all products offered by a firm.
(14) Many manufacturers that produce their own brand
also produce products for private distributor brands
According to the text, a product is defined as
anything the customer receives in an exchange
An individual moves into the adoption stage of the adoption process at the point when he or she
begins using that specific product.
(14) Traditionally, the main advantage of a private brand over a manufacturer brand was the _____, but this advantage is gradually diminishing.
better price
(14) Packages designed to appeal to children often use
bold designs and primary colors.
(12) If Megan Roberts were given total marketing responsibility over Diet Cherry 7Up, she would hold the position of __________ manager.
brand
(14) The talking gecko used by Geico Insurance facilitates the development of
brand associations.
(14) An agreement in which one company allows another to use its brand on other products for a fee is called
brand licensing.
(14) 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
brand licensing.
(14) McDonald's golden arches are a classic example of a
brand name
(14) The part of a brand that can be spoken including letters, numbers, and words is the
brand name
(14) Healthy Choice is a ____ manufactured by ConAgra Foods, which is a ____.
brand name; trade name
(14) When Anheuser-Busch added Michelob Light to the line of Michelob beers, the firm was using ___________ branding.
brand-extension
(14) Private distributor, generic, and manufacturer are the three types of
brands
(12) "Is the demand strong enough?" is a question that marketers ask during the ___________ phase of new-product development.
business analysis
(12) Breakeven analysis is a tool that marketers are likely to employ during the ___________ stage of the new-product development process.
business analysis
(12) During which stage of new-product development does the firm consider profitability?
business analysis
(12) The product deletion process is similar to the ___________ step of the new-product development process because both involve deciding whether the product should be in the product mix based on an assessment of sales, costs, and profits.
business analysis
As the production manager of an engineering firm, you went out and bought a metal cutting machine. What you have purchased can best be classified as a
business product.
The intangible products that most organizations use in their operations are called
business services.
(15) A public warehouse is a
business that leases storage space and related facilities for distribution to other firms.
Products are classified as being business or consumer products according to the
buyer's intended use of the product
(14) Customers will more easily recognize a new product as belonging to a particular product category if the marketers use
category-consistent packaging
(15) A single leader who controls and organizes a marketing channel is called a
channel captain.
(15) If a wholesaler continually emphasizes and promotes one company's products over a competing company's products, _____ is likely to result.
channel conflict
(15) Marketing channel members are likely to experience misunderstandings, frustration, and poorly coordinated strategies as a result of
channel conflict caused by inefficient communication between channel members.
(15) When one company in a marketing channel has the ability to influence another member's goal achievement, the company has
channel power
Business products are
classified according to their characteristics and intended uses.
(13) Many services base their success on building a group of satisfied customers who use their services on a regular basis over long periods of time. This critical component of success is referred to as
client-based relationships.
(13) The main characteristic of a ___________ is that customers are satisfied to the point that they use a service repeatedly over a period of time.
client-based relationships.
(13) A university's student body would be considered its ___________ public, and parents, alumni, and trustees would be included as its ___________ public.
client; general
(14) Ford Explorer vehicles that are Eddie Bauer versions exemplify a) brand licensing.
co-branding
(12) Stacey and Evan are preparing budgets for a new product as well as finalizing plans for the full-scale marketing and manufacturing of the new Genie-Vac. They are in the ____ phase of the new-product development process.
commercialization
(12) One disadvantage of test marketing a new product is that
competitors may copy the product
(14) All packaging must at a minimum
comply with the FDA's packaging regulations.
A set of Bose car speakers sold to Ford for use in the production of a hybrid Escape, would be an example of a(n)
component part.
Although they become part of a larger product, _______ can often be easily identified and distinguished on the larger product.
component parts
(12) Which of the following is the stage of the new-product development process where customers are first exposed to the new product idea?
concept testing
(15) When produce companies such as Dole Tomatoes bypass wholesalers and sell directly to retailers, it is likely to create channel ___________ between Dole and these wholesalers.
conflict
(14) At one time, generic brands represented about 10 percent of all retail grocery sales. Today they account for
considerably less.
(14) 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.
consideration set
(12) The ability of a product to provide the same level of quality over time is called
consistency.
(14) A distinguishing factor between a brand name and a brand mark is that a brand name
consists of words.
(13) Which of the following is most likely to be considered a business service?
consulting
(14) Packaging is most important, as a strategic tool, for
consumer convenience products.
(13) The intangibility aspect of a service means that
consumers may have a problem evaluating service offerings.
(12) To differentiate their products, companies sometimes emphasize the product support services that they offer. This is especially true when
consumers perceive all products in a market to have essentially the same quality, design, and features
(15) In the distribution channel for Domino's Pizza, channel members are linked by legal agreements that spell out the obligations and rights of each member. This is an example of a(n) ___________ vertical marketing system.
contractual
(14) Individual-sized boxes and packages that do not require refrigeration are both benefits of the ____ function of packaging.
convenience
(15) The Home Depot is trying to reduce transportation, information management, and administrative costs. To accomplish this goal, channel members need to
cooperate and accommodate one another's needs.
(13) A first class airline ticket offers a ____ service of transportation as well as _______ services of drink and food service, special boarding rights, and extra customer service.
core; supplementary
(15) The Limited, which produces and retails clothing products in a coordinated channel, is an example of a(n)
corporate vertical marketing system.
(14) The overall challenge for marketers when developing packaging is to
create effective, convenient packaging that appeals to customers and keeps costs low.
(13) Services have three evaluation attributes: search qualities, experience qualities, and ___________ qualities.
credence
(13) Many services have aspects that consumers may never be able to evaluate, even years after the purchase and consumption of the service. These attributes are called
credence qualities
(13) The level of interaction necessary between a customer and service provider in order to complete a service is called
customer contact.
(13) The necessary interaction between service provider and customer that allows a service to be delivered is called
customer contact.
(15) Order handling involves all of the following activities except that the
customer places a purchase order.
(15) All members of the supply chain should determine their position in the chain, identify their partners and their roles, and establish partnerships whose focus is
customer relationships
(15) The driving force behind marketing channel decisions should be
customer satisfaction
(13) Any human or mechanical effort that adds value to a product is called
customer service
(13) Who judges service quality?
customers
(15) Where do supply chains start?
customers
(13) The heterogeneity characteristic of services provides marketers with tremendous opportunity to
customize their services to meet unique individual needs.
(15) A goal of physical distribution is to reduce ______ or how long it takes to complete a process.
cycle time
(15) An important goal of physical distribution is reducing the time it takes to complete
cycle time
(15) The United States Postal Service works hard to get priority mail from the sender to the recipient as quickly as possible in order to compete with companies such as UPS and FedEx. The postal service works to reduce
cycle time
Cadillac recognized it needed to revitalize its brand and attract different market segments. These are indications that Cadillac's products were primarily in the ______ stage of the product life cycle.
decline
Dish Network satellite TV cut back advertising expenditures to minimum levels and reduced the number of channel members for its industrial satellite product. These actions indicate that its product is in the ___________ stage of its life cycle.
decline
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
(15) The main objective of physical distribution should be to
decrease costs while increasing service.
(13) In general, differences between goods and services are determined by the
degree of tangibility.
(13) Many cellular phone plans contain a certain number of anytime minutes and then either significantly more or even unlimited night and weekend minutes. This is an example of
demand-based pricing
(12) Quality modifications are changes that relate to a product's
dependability and durability.
Procter & Gamble makes at least eight different laundry detergents. This is most relevant to the issue of
depth of product mix.
(14) The well-known brand AT&T (American Telephone and Telegraph) would most likely be classified as
descriptive
(12) When determining how a product is conceived, planned, produced, and even its physical appearance and its specific characteristics, one is really talking about the product's
design, styling, and features.
(12) The members of a venture team come from
different functional areas of an organization.
The depth of a product mix is measured by the average number of
different products offered in each product line
(13) The marketing channels for services are usually
direct from provider to customer.
(15) Many producers selling on the Internet are using
direct-marketing channels.
(15) Select Comfort, a producer of adjustable air mattresses, sells most of its products through direct mail sales and Internet sales. This channel would be classified as
direct-marketing.
(15) A channel of distribution is defined as a group of individuals and organizations that
directs the flow of products from producers to customers.
When Sony realized its CD players were in the decline stage, it decided to immediately withdraw all of its marketing support from these declining products, an approach known as
divesting
(15) Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called
dual distribution.
(15) A commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is
electronic data interchange.
(13) There are five elements that affect customers' perceptions of service quality. They are reliability, appearance of the tangibles, responsiveness, assurance, and
employee empathy.
Sales usually start to decline during the __________ stage of the product life cycle.
end of maturity
(14) The value, measured in either marketing or financial terms, associated with a brand's strength in a market is referred to as brand
equity
(12) All of the following are major steps in developing new products except
evaluation of competitors' efforts.
(15) Expensive, high-quality products that are purchased infrequently often reach consumers through
exclusive distribution.
(15) The three major levels of intensity at which a company can choose to distribute its products are _____ distribution.
exclusive, selective, and intensive
(15) Organizational buyers are especially partial to direct marketing channels when
expensive and/or complex equipment is involved.
(12) A runout policy of product deletion
exploits any strengths left in the product.
(14) When ___________ branding is used, each of a firm's products is branded with at least part of the same name.
family
(14) Gorton's sells Gorton's Fish Sticks, Gorton's Fish Fillets, and Gorton Grilled Fish. This is an example of
family branding.
(14) To promote overall company image, packages of Pillsbury cake and cookie mixes have similar designs and colors. This approach is known as
family packaging
All of the following are reasons why new products fail except
followed a systematic plan
During the growth stage of the product life cycle, marketers must
fortify the product position.
(14) Brands provide all of the following benefits for buyers except that they do not
foster brand loyalty.
(12) Changes that affect a product's versatility, effectiveness, convenience, or safety are called ___________ modifications.
functional
(12) When Conair adds an electrical component that automatically shuts off its curling irons when they have been left on for more than one hour. This improvement would best be classified as a(n)
functional modification.
(12) After a company has created a prototype during the product development stage, its performance, or ___________ must be tested.
functionality
(14) The package design of a bag of flour would most likely be criticized for being
functionally deficient.
(14) A ___________ brand type is considered the least protectable under existing trademark regulations
generic
(14) A package of aluminum foil at Kroger grocery store has no brand name on the package. This product is an example of a _________ brand.
generic
(14) A product that is simply labeled with the product category is considered a
generic brand.
(14) Packaging that is designed to flow through the distribution channel easily is called ____ packaging. a) category-consistent
handling-improved
A firm with a product in the decline stage of the product life cycle may decide to gradually reduce marketing expenditures and realign its marketing mix to one that requires fewer resources. This approach is called
harvesting.
(14) Federal laws require the disclosure of nutritional information on labels. So far, evidence on this matter
have shown mixed results about the use of this information
(13) Because of a service's ___________, standardization and quality are difficult to control.
heterogeneity
(13) Machinery such as ATMs and online customer services can reduce the ______ that comes from increased contact with human employees.
heterogeneity
(13) Production and consumption of services must simultaneously occur due to the _____ characteristic of services.
heterogeneity
(13) The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ______ of services.
heterogeneity
(13) Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and
heterogeneity.
(13) The more __________ involved with delivering a service, the greater the degree of heterogeneity.
human labor
(13) Services are usually provided through the application of _______ directed at people or objects.
human or mechanical efforts
(12) Outback Steakhouse wants to expand its line of food products. The managers sent surveys to customers to determine which food items would appeal to them. Outback is currently in the __________ phase of new-product development.
idea generation
(12) When marketers at Nabisco meet to identify the types of snacks that young people want, they are engaging in which phase of new-product development?
idea generation
(12) Suppose that Cheetos stops production of Cheetos Fat-free Crunchies and sells all of its remaining inventory to a warehouse club. This would be an example of a(n)
immediate-drop decision.
(13) The growth of business services is largely attributed to
increases in the complexity and competitiveness of business environments
When banks add new services during the maturity stage, the objective they are most likely trying to achieve is
increasing their share of the customer.
(14) When a firm uses a policy of naming each product differently, this strategy is called ___________ branding.
individual
(15) An independent business that takes title to products and carries inventories is a(n)
industrial distributor.
Frito-Lay, which is widely known for producing chips and other snack products, tried to introduce Frito-Lay lemonade. The reason this new product failed is likely because of
ineffective branding.
(14) Labeling is important for three specific reasons, including promotional and legal reasons. What is the third reason?
informational
(14) A no-drip spout on a bottle of liquid Tide laundry detergent is an example of __________ packaging.
innovative
(12) A genuinely new product—like the iPhone once was—offers
innovative benefits to consumers.
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
(13) A sign in a doctor's office waiting room says "Please be courteous of the others waiting with you." The doctor's office is trying to positively influence the _______ aspect of services.
inseparability
(14) The three levels of brand loyalty from strongest to weakest are
insistence, preference, recognition.
(14) A customer must have a particular brand and will accept no substitutes. This is termed brand
insistence.
(14) What degree of brand loyalty is the strongest and most desired by marketers?
insistence.
Facilities, factories, and production lines with very large equipment are all classified as
installations.
Large tools and machines used in a production process for a considerable length of time are classified as
installations.
(13) Symbols such as the Travellers' Financial Services umbrella are designed to help customers overcome the ________ of services.
intangibility
(13) Clean, sharp looking employees with appropriate uniforms help assure customers about service quality and therefore address the _____ of services.
intangibility.
(13) Service marketers make promises to customers, suggesting that the customer place some degree of trust in the service provider. In this way, service marketers are trying to address the challenge of the service characteristic of
intangibility.
(15) Producers of convenience products such as soft drinks, toothpaste, and breath mints are most likely to use _____ distribution.
intensive
(15) Sales are most likely to have a direct relationship to product availability for products that use _____ distribution.
intensive
(15) When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used ___________ distribution.
intensive
(15) Candy bars and chewing gum are most likely to be distributed through _____ and _____.
intensive; dual distribution
The four major stages of a product life cycle include
introduction, growth, maturity, and decline
(15) Because of the significant investment many companies have in the products they sell to customers, they must develop and maintain adequate varieties of products to meet their customers' needs. This is called
inventory management.
(12) The test-marketing stage
is a sample launching of the entire marketing mix.
(15) Vertical channel integration
is made possible by purchasing the operations of a link in the channel
(12) Competitive interference with a test-marketing program is called
jamming
(12) If Jason Carter, product manager at SeaRay Boats, became aware that Bass Boats, Inc., was in the process of test marketing a new line of shallow-water fishing boats in the southeast region, he might want to engage in ___________ to reduce the validity of the other firm's results.
jamming
The last group to adopt a new product, _________, is oriented toward the past and is suspicious of new products.
laggards
(14) Compared to creating and developing a brand from scratch, a firm sometimes buys a brand from another company at a premium price because outright purchase is
less expensive and less risky.
(14) Multiple packaging is
likely to increase demand.
(12) A(n) ___________ is the development of a product that is closely related to one or more products in the existing product line but is designed specifically to meet somewhat different needs of customers.
line extension
(12) If the manufacturer of Cool Whip were to introduce an orange-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of
line extension
(12) Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are
line extensions.
The width of a product mix is measured by the number of product
lines a company offers
(15) Most marketing channels have marketing intermediaries. A marketing intermediary's role is to
link producers to other middlemen or to consumers.
(15) If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are
long-term commitments.
(12) Dropping an unprofitable product immediately is the best strategy when
losses are too great to prolong the product's life.
(15) The result of an inventory stockout is usually an increase in
lost sales.
Shopping products have a _____ inventory turnover and need _____ distribution outlets than convenience goods.
lower; fewer
(14) Brand ___________ is a customer's favorable attitude toward a specific brand and, depending on its strength, some likelihood of the consistent purchase of this brand.
loyalty
(14) In marketing, family packaging means
making all of a company's or product line's packaging look similar.
(14) The Fair Packaging and Labeling Act focuses on the voluntary adoption of packaging standards by firms within industries. It also provides enforcement power to the Federal Trade Commission and the Food and Drug Administration, and establishes
mandatory labeling requirements.
(14) The major characteristic of a private brand is that
manufacturers are not identified on the product.
(15) 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)
manufacturers' agent.
(12) Kyle Bolger of U.S. Hospital Supply Corporation has responsibility for managing the marketing activities for products aimed at nursing homes and extended care facilities. Kyle's job is that of a(n)
market manager.
(15) A group of organizations and individuals that directs the flow of products from producers to the ultimate consumers is called a
marketing channel
(15) Managers and consultants at Colgate-Palmolive are meeting to discuss better ways to package its products to reduce damage and make loading more efficient. The primary function they are trying to improve is
materials handling.
A change in package size is a strategy that can help boost sales in the ___________ stage of the product life cycle.
maturity
A common business objective of the ___________ stage of the product life cycle is to generate cash flow.
maturity
Heinz promoting its vinegar as an effective cleaner for wall, glass, and kitchen and bathroom surfaces would most likely be a strategy for the _____ stage of the product life cycle.
maturity
The producers of Schick razor blades use a marketing strategy that includes large advertising expenditures and more price flexibility for the various types of blades offered. Based on this example, razor blades are in the ___________ stage of the product life cycle.
maturity
When Clorox introduced bleach in a no-drip bottle, the firm was taking action consistent with its product being in the ___________ stage of the product life cycle.
maturity
When a business finds itself squeezed out of a market for a product or loses interest in that product, it is a sign of being in the ___________ stage of the product life cycle.
maturity
Which of the following stages of the product life cycle is likely to see dealers offered promotional assistance from the producer?
maturity
Which stage of the product life cycle is characterized by intense competition?
maturity
(15) When considering the best channel to use, all of the following are true with regard to larger firms except they
may be better suited to serve customers in a particular region.
(12) Product deletion
may be opposed by management.
(12) In product modification, three conditions must be met to improve a firm's product mix: the product must be modifiable, customers must be able to perceive that a modification has been made, and
modification should make the product more consistent with customers' desires.
(14) Kleenex Boutique is a brand ___________ of tissues made by the Kimberly-Clark Corporation.
name
(13) Service industries account for ____ of the gross domestic product of most developed nations.
nearly three-quarters
During the introduction stage of a successful product, profits are usually
negative and increasing.
(12) Product deletion can best be described as the process of deleting a product from the product mix when it
no longer satisfies a sufficient number of customers.
(15) Eliminating a wholesaler from a marketing channel will
not eliminate the functions performed by that wholesaler.
(12) Introducing new products is risky and so is
not introducing new products.
(15) Nathan is trying to decide which shipping company to use to transport his custom-made furniture to customers. Nathan is facing a decision about
order delivery
(15) By receiving orders online instead of through a paper-based ordering system, Barnes and Nobles has been able to save time and money on
order entry
(15) The contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel is known as
outsourcing
(15) If a firm decides to contract its physical distribution functions to third parties that have no managerial authority within the marketing channel, it is using
outsourcing.
(15) The order-processing task that involves verifying product availability, checking prices and customer credit ratings, and filling orders is
over handling
(14) The development of a container and graphic design for a product is called
packaging
(13) Any service provider that offers time-sensitive services receives most of its revenue during
peak demand
(13) Service activities are time-dependent, meaning that the service must be provided at a point in time when customers want to use it. This point in time is also known as
peak demand
(12) A brand manager in a multiproduct firm would be responsible for
performance of a specific brand.
(13) According to your text, one perspective from which to view services is as a ______ targeted at a(n) ________.
performance; audience
(13) Demand-based pricing most closely relates to the _____ of services.
perishability
(13) Using appointments or reservations for scheduling delivery of services is an attempt to address the ___________ characteristic of services.
perishability
(13) The fact the services cannot be inventoried and then sold at a later date is called
perishability.
(12) Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by letting the product decline and not change the current marketing strategy. This method of deletion is called
phase out
(15) Order processing, inventory management, materials handling, warehousing, and transportation are the activities that define
physical distribution.
(15) Marketing channels create three types of utility for consumers including
place, time, and possession.
When Jones' Soda launched its Turkey Gravy flavored soda, it was hoping to take advantage of the short-lived clear-products fad. By the time it launched the soda, the fad for quirky soda flavors had already waned, and customers were no longer clamoring for these type of products. The reason this product failed is
poor timing
(14) A customer who really wants to buy a certain brand but will settle for others if her first choice is unavailable displays brand
preference
(14) Melissa needs some spaghetti sauce and always buy Ragu. However, her local supermarket is out of Ragu and since Melissa wants to get home to cook dinner she settles for Prego. Melissa has brand _____ for Ragu and
preference; recognition
(14) Of the different types of brands, the one that has experienced the steadiest growth is
private distributor.
(15) Morgan Steel Company leases a warehouse in Jacksonville, Alabama to serve Deep South markets that were large enough and stable enough to make a long-term commitment to fixed facilities. This is a
private warehousing
(15) When companies operate their own facilities for storing and shipping products, these facilities are known as
private warehousing
Products used directly in the production of a final product but are not easily identifiable are categorized as
process materials.
(15) Nationally distributed consumer convenience products are most likely distributed through which of the following channels?
producer, wholesalers, retailers, consumers
(15) Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) _________ channel.
producer-to-business buyer
(15) Few supermarkets would try to replace a national brand of baby food with their own brand. Assuming that this is true, we have a good example of channel leadership by
producers
(12) "How much quality should we build into the product?" is a question that marketers ask during the ___________ phase of new-product development.
product development
(12) Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during
product development
(12) The phase of the new-product development process when the organization determines the technological feasibility of producing the product at a cost that results in a reasonable selling price is
product development
(12) Schwinn adds features to its bicycles no other companies offer in order to create
product differentiation.
(12) If Ford adds a driver-side sliding door, side impact airbags, and a small television with DVD player to its Freestar Minivan, it is differentiating its product based on
product features
(12) A ______ is responsible for a product, product line, or several distinct products in an interrelated group within an organization.
product manager
(12) Three major ways in which marketers engage in product differentiation are
product quality, product design and features, and product support services.
(12) If Hewlett-Packard provides its customers with a help line for computer questions and problems, it is differentiating itself through
product support services.
(15) Consumers receive the benefits of place utility when
products are available in locations where consumers want to buy them.
(15) Without wholesalers and other intermediaries,
products would likely be more expensive due to the use of less efficient channel members.
(13) In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to
promise too much and cause customer expectations beyond what they can deliver.
(14) The most important function of packaging is
protecting the product and maintaining its functionality.
(13) Because practically all marketers provide some services, ___________ typically do not exist in today's business environment.
pure goods
(12) The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is
quality
(12) Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost. Because Bauman had been facing stiff competition in the medium-grade carpet industry, it started using the new material in all of its carpeting and reducing its prices. This is an example of
quality modification.
(12) A complex product development process, including an extensive business analysis to determine the possibility of success, are hallmarks of a
radically new product.
Minerals, chemicals, timber, and agricultural products are considered
raw materials
(14) Elements that help create brand equity include all of the following except brand
recognition
(14) When a customer is aware that a brand exists and considers it a possibility if his preferred brand is out, he exhibits brand
recognition
(12) Functional modifications usually require that the product be
redesigned.
Convenience products are
relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort
A specialty product
requires purchase planning, and the buyer will not accept substitutes.
(13) The willingness and readiness of employees to meet the needs of the customer while providing the service is an important dimension of service quality called
responsiveness.
(15) After direct-marketing, the next slightly longer marketing channel adds a(n)
retailer.
(15) When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a
retailer.
(12) Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as
roll-out
(15) All of the following are concepts used in a just-in-time inventory management system except
safety stock is kept to reduce stockouts.
During the decline stage of the product life cycle,
sales rapidly decrease.
(12) Concerns about cannibalization of current product sales must be addressed in the ___________ phase of the new-product development process.
screening
(15) Which of the following is most likely to be a product stocked by an industrial distributor?
screws
(13) 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
(14) A package that can be used again for a different purpose than its original function is called a
secondary-use package.
(15) In marketing a new line of nursery furniture for infants and small children, the Fisher Company will most likely use ___________ distribution for the products.
selective
(15) Durable goods such as television sets and DVD players generally reach their target markets through
selective distribution.
(15) Using only some of the available outlets to distribute a product is called
selective distribution.
(13) When service companies change high-contact services into low-contact services, the
service becomes less personalized.
(13) The continuum of tangibility goes from _____ on one end to _____ on the other end.
service-dominant products; good-dominant products
(13) All of the following are elements of the inseparability characteristic of services except that
services are easy to standardize and control.
(13) Consumers look closely at service quality when comparing competing services because
services are very difficult to evaluate.
(15) Fragile products that require special handling are more likely to be distributed through
shorter channels.
(15) 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.
During the maturity stage
some competitors are forced out.
As Beth and Rob Barker search for a new home, they are interested only in houses built by a particular builder. This purchase is characteristic of a(n) ___________ product.
specialty
Buyers do not compare alternatives when shopping for ______ products.
specialty
David Wilson is an avid collector of Major League Baseball memorabilia. He greatly desires to own the "special" bat that got the slugger Sammy Sosa a seven-game suspension due to its illegal contents. This is an example of a(n) ______ product.
specialty
The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits after they arrive. For Gwen, Blue Bell represents a(n) ___________ product.
specialty
A product item is best described as a
specific version of a product.
(14) Another common name for a private distributor brand is a ______ brand.
store
(14) The brand name Hamburger Helper would most likely be considered
suggestive
(13) A service is usually offered as part of a bundled package of services with a core service and one or more ________ services.
supplementary
(13) If Best Western bundles its rooms with services such as free local phone calls, cable television, wireless Internet access, and complimentary breakfast, these services are known as ___________ services.
supplementary
(15) Wal-Mart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of
supply chain management
(15) Long-term partnerships among channel members working together to reduce inefficiencies, costs, and redundancies in the entire marketing channel is called
supply chain management.
(12) A suggested approach to deleting products, in which each product is evaluated periodically to determine its impact on the overall effectiveness of the firm's product mix, is called a(n)
systematic review.
(13) Attributes which are assessed only during the consumption of a service are called
tangibles.
(14) Registration of a trademark with the U.S. Patent and Trademark Office protects trademarks domestically for ____ years with indefinite renewals.
ten
(12) In 2008, Cheetos was in which phase of new-product development?
test market
(14) A trademark signifies
that the owner has exclusive use of a brand and others are prohibited from using it.
(12) The major drawback to using aesthetic modifications is
that the value of the modification is determined subjectively.
(15) In an administered VMS, informal coordination brings about a high level of interorganizational management. Nonetheless,
the channel members remain autonomous.
(15) Possession utility is best described as
the customer having access to the product to use now or store and use later.
(13) In nonprofit organizations,
the direct consumers of the product are the client public.
(13) An important difference between for-profit and nonprofit marketing is that
the goals of the nonprofit organization differ from the goals of the for-profit organization.
(13) In most service industries, customer-contact employees are
the lowest-paid and least-trained employees.
(14) In a brand licensing arrangement, the licensee is responsible for
the manufacturing, marketing, and financing of the licensed product.
(15) The notion of physical distribution is
the movement of products from producers to end users.
(12) In product modification, the first issue to consider is whether
the product is modifiable.
(15) Order processing is defined as
the receipt and transmission of sales order information.
(14) A co-branded product from Ruffles potato chips and Chiquita bananas would likely fail because
their products are not complementary.
(15) Channel decisions are important to marketers mostly because
they involve long-term commitments and affect customer accessibility.
(15) Physical distribution activities may be performed by a producer, wholesaler, retailer or
they may be outsourced.
(15) The reasons a vertically integrated channel can be more effective against competition is because of all of the following except
tightly controlled and bureaucratic management style.
(13) Piano teachers, tutors, attorneys, and consultants are most likely to price their services based on
time
(15) Having products available when the customer wants them is called
time utility
(13) Client-based relationships are least likely to be developed by
towing services.
(14) The full and legal name of an organization is called the
trade name
(14) iPod is the ___________ of the MP3 player made by Apple, Inc.
trade name
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
(13) Distribution for nonprofit organizations is
typically characterized by short channels
(13) Surveys, focus groups, and customer comment cards are all methods used by service companies to
understand customer needs and expectations
Nick Arnold's Auto Towing Service would best be described as a(n) __________ product.
unsought
When a sudden problem confronts a consumer, such as emergency automobile repair, he or she is likely going to view solutions to that problem as
unsought products.
(15) The best way to reduce overall distribution costs is to
use a total-cost approach to analyze and evaluate the entire system.
To make intangible products more tangible or real to the consumer, marketers often
use symbols or cues to help symbolize product benefits
(15) According to the text, physical distribution cost tradeoffs enable firms to
utilize resources for greatest cost-effectiveness.
(12) The following organizational approaches accomplish tasks necessary to develop and manage products: market manager approach, product manager approach, and the _________ approach.
venture team
(15) Bennetton, a leading manufacturer of knitwear in Italy, expanded its operations to include retail outlets in the United States and South America. This type of integration is called
vertical
(15) Warner Bros. sells cookie jars, puzzles, photo albums, and other items featuring its popular cartoon characters directly through its own retail outlets. This is an example of
vertical channel integration.
(12) Early in the commercialization phase, marketers must make decisions about
warranties, repairs, and replacement parts.
(13) In service marketing, the most important link to the customer is
well-trained contact employees
(14) Private distributor brands are owned by
wholesalers or retailers
One company markets such diverse products as Rosarita Mexican foods, Max Factor cosmetics, and Samsonite luggage. These various offerings exhibit this firm's product mix
width
(13) Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on
word of mouth