buad practice exam

What can companies do to keep their product in the mature stage?

Find new users to the current product Change the style or features of the product Change the price Find new usages to the product *all of the above*

Which of the following could be used as a basis for segmenting business-to-business markets?

Frequency of purchase Number of employees Industry type *all of the above*

Which of the following is the best example of licensing?

Fruit juice company BerryBerry uses a cartoon character to market its line of children's products, paying the creator of the character a fee.

Products have life cycles. What is the marketing objective of the introduction stage of the life cycle?

Gain consumers' awareness

What is the specific term for the process of dividing a total market into subgroups so that each group consists of buyers and users who share similar characteristics, but who are different from those in the other groups?

Market segmentation

One advantage of a market-product grid is that it can be used to

determine which target market segments to select and which product groupings to offer

ABC Company has decided to use mail questionnaires to collect data. Management recognizes that one of the following responses is a disadvantage of this method?

has a very low response rate

To be identified as a market segment, its members must________________

have common needs and respond similarly to a marketing action.

Bayer Aspirin is sold in the original strength, in a safety-coated version, in an extra-strength version, and in a version designed especially for women. Bayer is using __________.

product line extension

Some people are very particular about the speakers in their home entertainment system. Manufacturers such as Bose and Sony want to reach these kind of people - those who are interested in sound purity. Bose and Sony should use _____ segmentation

psychographic

Josh is looking for a new smartphone service provider because he has grown tired on the many dropped calls. In terms of the service quality dimensions, Josh is unhappy with which dimension of this service?

realiabilty

In which stage of the product life cycle is the company is losing a lot of money?

introduction

ChoiceShirts is an online company that makes made-to-order T-shirts. Its online customers can order their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch. This is an example of __________.

mass customization

Which of the following is the best strategy to compete in a "more for more" market segment of premium products?

more for the same

Black & Decker uses a __________ strategy to reach the "do-it-yourself" market with the Black & Decker brand name and the professional construction market with the DeWalt brand name.

mulitbranding

Sunshine Conservatories has launched a series of ads in which it attempts to demonstrate its products superiority on selected attributes relative to competitive brands. It is attempting to _________ its product.

position

"For upscale American families who desire a carefree driving experience, Volvo is a premium-priced automobile that offers the utmost in safety and dependability" is a __________ statement for Volvo in North America.

positioning

The ad for Era laundry detergent portrays it as cheaper and just as effective at removing stains as any other brand of detergent. Its manufacturer Procter & Gamble is using a _____ strategy to describe Era in relation to all its competitors.

positioning

Psychographic segmentation categorizes markets according to ___________________.

preference to behave in certain ways.

The Walt Disney Company carefully markets two distinct Winnie-the-Poohs; one is the original line-drawn figures on fine china sold at Nordstrom and the other is a cartoon-like Pooh on polyester bed sheets sold at Target. This is an example of ___________.

a "Tiffany/Walmart" strategy

Product differentiation can be along all of the following lines EXCEPT:

competitive parity

The following are attributes of a service. Which one is NOT?

*They don't involve customer's participation* They cannot be stored They are intangible They are perishable

Your aunt wants to understand the difference between continuous innovations and dynamically continuous innovations. Which of the following best represents that difference?

A continuous innovation does not require new learning while a dynamically continuous innovation requires some new learning

The added value a brand name gives to a product beyond the functional benefits provided is referred to as __________.

Brand equity

When consumers are willing to pay more for a branded product, this is an example of:

Brand equity

Volkswagen (a car manufacturer) recently unveiled a new product: a motorized foldable bicycle. Which of the following strategies explain this move?

Brand extension

Shell MasterCard, created cooperatively by Shell Oil Company and Master Card, is an example of ____________.

Co-branding

Most new products fail, so why should companies risk investing in developing new products?

Companies wish to preempt competitors entering that space

What type of innovation would a sensor shaver be an example of?

Continuous innovation

Product planners need to think about products and services on three levels. Each level adds more customer value, the most basic level is the , which addresses the question, "What is the buyer really buying?"

Core benefit

Mott's applesauce, which is usually used to feed babies and toddlers, promotes itself as a low-fat alternative to cooking oil for baked goods. Mott's is __________.

Creating new use situations through a market modification strategy

In which stage of the product life cycle is the objective to reduce expenditures and milk the brand?

Decline

Several years ago, SwissAir went out of business. Its board of directors announced that the company would resume flying if it could prove that the airline could regain at least 75 percent of its lost customers. It decided to allocate $50,000 to determine the likelihood that its former customers would fly on the airline again and investigate what could be done to increase this likelihood. This description (the highlighted part) represents which step in the marketing research approach?

Define the problem

. A survey asked consumers of dental products the following question "Have you used toothpaste in the past week? ___ Yes ___ No". What type of question is this?

Dichotomous

The Coca Cola Company markets a wide range of different beverage products including soft drinks, bottled water, juices and sports drinks. Each product appeals to a different segment. This is an example of which type of market offering?

Differentiated marketing

Which of the following disrupts consumer's normal routine but does not require totally new learning?

Dynamically continuous innovation

Which of the following should not be a lifestyle segmentation factor?

Growth rate of the segment

What is the most important number in new product development?

How many products can we sell a year

Which of the following statements best illustrates geographic segmentation?

In China, KFC sells a chicken that is spicier the further away it is from coastal areas

A retail chain hires a company to design and install a computer network that would allow each store in the chain to check the inventory of others in the chain for customer-requested items. The retail chain would have purchased which kind of business products?

Industrial services

Redken, a famous hair color manufacturer, is adding green dye to its line in preparation for St. Patrick's Day. This is

Line extension

In which stage of the product life cycle do sales peak?

Maturity

Coca-Cola expanding operations to Africa, is an example of which strategy?

Modifying the market

Modifying the size in which beer is sold in pubs is an example of-

Modifying the product

Which maturity strategy changes the quality, features, and style of product to inspire new customers and increase usage?

Modifying the product

Suppose that Walgreens (a major drug store chain) wants to introduce its own brand of cough medicine that is similar in contents and packaging to a national brand, but at a lower cost. What kind of brand would Walgreens be introducing?

Private label or store label brand

Newman's Own is a company that gives all of its profits to charities. The company produces popcorn, salsa, pasta sauce, and salad dressings under the Newman's Own brand name. These product lines comprise the company's _____________.

Product Mix

The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given as gifts for almost every occasion imaginable. The Love Bandit Bear is one bear it designed for people to give to each other on Valentine's Day. The Love Bandit Bear is an example of a ______________.

Product item

During a recent shopping trip to a local Target store, Pat noticed several things. First, she noticed that the store offered a tremendous variety of products, including toys; pet food; clothing for men, women, and children; health and beauty aids; small household appliances; automotive products; and more. Each product grouping at Target is an example of a(n) __________.

Product line

Bayer Aspirin is sold in the original strength, in a safety-coated version, in an extra-strength version, and in a version designed especially for women. Bayer is using __________.

Product line extension

Ikea furniture store promotes its furniture to its target market based on its customers' personality attributes and lifestyles. Therefore, Ikea primary basis for segmenting the furniture market is ________________.

Psychographic

Which of the following is inappropriate for segmenting industrial markets?

Psychographic segmentation

Nathan Zabalas owns a regional chain of drug stores. Before expanding nationwide, Nathan is conducting marketing research to determine the best options for opening new stores. He plans to start by collecting secondary data. Which of the following is not a source of secondary data that Nathan might use?

Questionnaires for an online survey designed by his team

Which of the following companies employs the strategy less for much less?

Southwest

The second most visited religious shrine in the world is at Aparecida de Norte, Brazil. More than eight million people visited the shrine annually. Because there is little else in the town for tourists to do, entrepreneurs are building a religious theme park nearby in the hopes that visitors to the shrine will spend the rest of their day there. The shrine's visitors represent the _____ for the religious theme park.

Target market

In positioning statement, first thing that must be stated is ________.

Target segment

BerryBerry is a fruit juice company that has traditionally sold five varieties of mixed-fruit juices: DazzleBerry, AquaBerry, MangoBerry, FuschiaBerry, and GloBerry. The company wants to add more products to its lineup. Which of the following would be a brand extension for BerryBerry?

The company introduces BerryBliss, a dried berry snack mix for kids

Brand extension is the brand strategy to use when

The product category is new but the brand name exists

What is the marketing term for a relatively small, well-defined and very focused target market?

a niche market

Chicken of The Sea brand tuna sells more units than Acme brand tuna, even though the Acme tuna costs 50¢ less per can. This is an example of-

brand equity

When Ann Taylor, a well-known retailer of sophisticated women's clothing, started losing sales to its own LOFT outlets that feature moderately priced casual clothes, Ann Taylor was dealing with the marketing phenomenon of _____________.

cannibalization

The apple with a bite taken out of it that appears on every Apple product is an example of a __________.

logo

Gaining competitive advantage through speedy or careful delivery is an example of which type of differentiation?

services

A national car rental firm targets 50 percent of its advertising to a particular segment of its target market - salespeople who rent a car for more than 40 weeks per year. This segment has been identified using which one of the following variables?

usage rate.

A brand's _____________ is the full positioning of the brand—the full mix of benefits upon which it is positioned.

value proposition