MRKT 239 Exam 4 (Chapters 11, 12, 15, & 19)

The owner of Big Jim's Motorcycles is opening a new retail location. Which of the following is most likely to b fixed cost for Big Jim's Motorcycles?

Building rent

Which of the following is NOT a business product?

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

Which type of retailer genereally accepts lower margins then traditional retailers in exchange for higher sales volume?

Discount stores

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

Eternity perfume

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 lts the product decline without changing the marketing strategy.

False

Brand preference is the strongest form or degree of brand loyalty.

False

Buyers want to exert only minimal effort. to obtain shopping products.

False

Catalog marketing is one of the more flexible types of direct marketing.

False

Concept testing gives reliable feedback, but at a relatively high cost.

False

Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unavailable.

False

Delivery, installation, financing, repair, warranties, and guarantees are all examples of product features.

False

Direct-response marketing is the performance of marketing-related activities by telephone.

False

Discount stores are distinctive in that they usually are very service oriented.

False

Disruptive innovations involve completely new technologies.

False

During the growth stage, promotion costs rise as a percentage of total sales.

False

Electricity is an example of a product that is price elastic

False

Factory outlet stores exist to compete with traditional retailers.

False

Fixed costs vary with the number of units produced or sold.

False

Marketers have little influence over shaping consumers' concepts or perceptions.

False

Obtaining a specialty product involves a considerable amount of comparison activity.

False

Product design is the process of creating and designing products so that consumers perceive them as different from competing products.

False

Product mix refers to a related group of products in the product line.

False

Profits for a firm r computed as follows: Profits = Total Revenue - Fixed Costs.

False

Supermarkets specialize in selling shopping products.

False

The concept of product quality is the same from consumer to consumer and from consumer markets to organizational markets.

False

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

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 two major product categories are business and insitutional.

False

Trial is the first stage of the product adoption process.

False

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

False

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

Growth

When Cameron was visiting family in Missouri, he ate a flavor of Boulder Canyon Kettle Chips that he had never seen before. When he returned home to Virginia, he could not find the flavor in and store. Which of the following reasons most likely explains why he could not find the flavor at home?

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

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

Insistence

Which of the following has a target market of consumers who live within two to three miles of its stores, or within a few minutes' walking or driving time?

Neighborhood shopping center

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.

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

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

Of the following choices, which would be the easiest brand name to legally protect?

Tarzink Yogurt

At what point does a firm maximize profit?

The point at which marginal cost equals marginal revenue

A brand name is the part of the brand that is spoken.

True

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

True

Advertising used in the decline stage may prolong the life of the product.

True

Brand and product managers operate cross-functionally.

True

Business analysis provides a tentative sketch of a product's profitability.

True

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

True

Dollar General is an example of an extreme-value store.

True

During the commercialization phase of new-product development, plans for full-scale manufacturing and marketing ar refined and settled.

True

Exterior atmospheric element include the appearance of the storefront, display windows, store entrance, and amount of traffic congestion.

True

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

True

For most products, the quantity demanded goes up as the price goes down.

True

Laggards are the last to adopt a new product and usually distrust new products.

True

Nonprice competition allows a company to increase its brand's unit sale3s through means other than changing the brand's price.

True

Price is the most easily adjusted ingredient in the marketing mix.

True

Price is the value that is exchanged for products in aa marketing transaction.

True

Process materials are used directly in the production of products.

True

The first adopters of a product are. the innovators.

True

The major drawback in using aesthetic modifications is that their value is determined subjectively.

True

The product development stage determines the technical feasibility of producing the new product.

True

The purpose pf the pricing concept is to quantify and express the value of items in a market exchange.

True

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

True

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

True

One advantage of nonprice competition is that

a firm can build customer loyalty.

A product mix is best described as

all products offered by a firm.

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

brand associations.

Break-even analysis is a tool that marketers are likely to employ during the _____ stage of the new-product development process.

business analysis

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

buyer's intended use of the product.

Charlotte and Grace own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase the food items and cleaning supplies they need for their business. With the exception of the volume they purchase and the items' intended use, this grocery shopping trip is identical to a weekly trip by their families to a grocery store. Sam's is serving as a _____ wholesaler for these entrepreneurs.

cash-and-carry

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

A small self-service store that is open long hours and carries a shallow product mix in convenience locations is best described as a

convenience store

If a store has areas for men's apparel, women's apparel, Housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is most likely a

department store

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

elastic

Increasing the quality of a product may

give a firm an advantage over competing brands.

An _____ is a concept, philosophy, or image.

idea

The three levels of brand loyalty from strongest to weakest are

insistence, preference, and recognition.

The four major stages of a product life cycle include

introduction, growth, maturity, and decline.

The test marketing stage

is a sample launching of the entire marketing mix.

The preliminary advantage of vending as a form of retailing is that

it eliminates the need for sales personnel.

Product deletion

may be opposed by management.

During the maturity stage

some competitors are forced out.

A product item is best described as a

specific version of a product.

At the breakeven point

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

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

True

A product need not be a physical product.

True

A products classification. can influence its price, distribution, and promotion.

True

A product line is defined as

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

The three major ways to modify a product include

aesthetic, quality, and functional changes.

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

lines a company offers.

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

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.

Walmart, Macy's, and Nordstrom are examples of

retailers.

Compared with other phases of the new-product development process, the largest number of new-product ideas is rejected during the _____ phase.

screening

Safeway and SuperValu are all considered

supermarkets.

Drop shippers

take title to but not physical possession of the goods.

When products are presented to television viewers, who can purchase them by calling a toll-free number and paying with a credit card, _____ is being used.

television home shopping

The major drawback to using aesthetic modifications is

that the value of the modification is determined subjectively.

If a product has an inelastic demand and the manufacturer raises its price,

total revenue will increase.

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

valuation of competitors' efforts.