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28. The weakest level of brand loyalty is brand a) recognition. b) insistence. c) equity. d) trial. e) preference.

A

40. The talking gecko used by Geico Insurance facilitates the development of a) brand associations. b) perceived brand quality. c) product preference. d) manufacturer brands. e) product equity.

A

57. At one time, generic brands represented about 10 percent of all retail grocery sales. Today they account for a) considerably less. b) about 35 percent. c) about the same. d) up to 20 percent. e) approximately 25 percent.

A

A common business objective of the ___________ stage of the product life cycle is to generate cash flow. a) maturity b) growth c) introduction d) market reduction e) decline

A

33. A customer must have a particular brand and will accept no substitutes. This is termed brand a) preference. b) loyalty. c) insistence. d) recognition. e) requirement.

C

119. Select the true statement regarding nonprofit marketing. a) Nonprofit marketing strategy should be developed to offer unrestricted alternatives and distribution activities that help accomplish the organization's goals. b) Segmentation techniques used to identify target markets in for-profit businesses are also applicable to reaching nonprofit target markets. c) A nonprofit organization usually attempts to serve fewer market segments than a for-profit organization. d) Selection of the target market is the only major strategy development task in nonprofit marketing. e) The narrowest definition of price should be used in developing the marketing mix strategy.

B

113. A no-drip spout on a bottle of liquid Tide laundry detergent is an example of __________ packaging. a) category-consistent b) innovative c) traditional d) secondary-use e) convenience

B

56. While grocery shopping at Albertson's grocery store, Janna sees a box that is plain in color and labeled cotton swabs. This is an example of a) streamline packaging. b) generic branding. c) store branding. d) individual branding. e) category-consistent packaging.

B

58. Which of the following statements about customer contact in services marketing is false? a) Service employees are important in creating satisfied customers. b) High-contact services are less expensive to deliver because they are typically equipment-based. c) The main principle of customer contact is that satisfied employees lead to satisfied customers. d) Service companies can minimize customer dissatisfaction by changing high-contact services into low-contact services. e) Employee training programs are an effective way to ensure good customer contact and reduce problems.

B

59. 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. a) core b) supplementary c) bundled d) business e) complimentary

B

61. 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. a) primary; secondary b) core; supplementary c) bundled; extra d) complementary; main e) major; minor

B

When Greyhound launched the BoltBus and NeOn bus lines, this is an example of a) a branding extension. b) co-branding. c) an extension in the width of the product mix. d) an extension in the depth of the product mix. e) family branding.

C

74. When a firm uses a policy of naming each product differently, this strategy is called ___________ branding. a) brand-extension b) family c) differentiated d) individual e) new-product

D

75. Compared to goods marketers, services providers are more likely to promote performance documentation, availability, guarantees, and a) distribution. b) tangible elements. c) management expectations. d) price. e) customer expectations.

D

85. Ford Explorer vehicles that are Eddie Bauer versions exemplify a) brand licensing. b) brand extensions. c) dual-branding. d) co-branding. e) cooperative branding.

D

91. Who judges service quality? a) Employees b) The company c) Independent raters d) Customers e) Marketers

D

Compared with other phases of the new-product development process, the largest number of new-product ideas is rejected during the ___________ phase. a) idea generation b) concept testing c) business analysis d) screening e) test marketing

D

26. According to your text, one perspective from which to view services is as a ______ targeted at a(n) ________. a) sporting event; spectators b) concert; audience c) play; actors d) performance; audience e) presentation; spectators

D

27. Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and a) labor-intensiveness. b) orientation toward value. c) homogeneity. d) heterogeneity. e) specialization.

D

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. a) functional b) quality c) product extension d) brand e) aesthetic

E

When banks add new services during the maturity stage, the objective they are most likely trying to achieve is a) pruning items from the product line. b) generating cash flow. c) maintaining their market share. d) filling geographic gaps. e) increasing their share of the customer.

E

Large tools and machines used in a production process for a considerable length of time are classified as a) installations. b) accessory equipment. c) component parts. d) raw materials. e) MRO supplies.

A

What links producers to consumers through the purchase and reselling of products or contractual agreements? a) Marketing intermediaries b) Distributors c) Suppliers d) Middle marketers e) Marketing channels

A

"Is the demand strong enough?" is a question that marketers ask during the ___________ phase of new-product development. a) screening b) concept testing c) business analysis d) product development e) test marketing

C

103. In marketing, family packaging means a) packaging products in a quantity suitable for use for an average-sized family. b) putting a set of related products all in the same package. c) making all of a company's or product line's packaging look similar. d) putting the same brand name on all a company's products. e) designing and selling only products that are related.

C

18. Any human or mechanical effort that adds value to a product is called a) a service. b) an intangible. c) overhead. d) customer service. e) service marketing.

D

19. McDonald's golden arches are a classic example of a a) brand. b) brand symbol. c) brand name. d) brand mark. e) trademark.

D

24. The growth of business services is largely attributed to a) increases in incomes and living standards. b) decreases in the consumption of products. c) increases in governmental expenditures. d) increases in the complexity and competitiveness of business environments. e) increases in population.

D

48. 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 a) partnerships. b) repeated customer contact. c) inseparable clientele. d) long-term customers. e) client-based relationships.

E

Schwinn adds features to its bicycles no other companies offer in order to create a) commercialization. b) consistency of quality. c) styling. d) product positioning. e) product differentiation.

E

117. Twin-packs and six-packs are examples of a) family packaging. b) group packaging. c) package bundling. d) family branding. e) multiple packaging.

E

20. Service industries account for ____ of the gross domestic product of most developed nations. a) more than half b) a small portion c) approximately 25 percent d) nearly all e) nearly three-quarters

E

(PARAGRAPH ON TESTBANK) Polar management is currently in which stage of new product development? a) idea generation b) screening c) concept testing d) product development e) test marketing

A

101. Attributes which are assessed only during the consumption of a service are called a) tangibles. b) search qualities. c) experience qualities. d) use benefits. e) credence qualities.

A

104. Surveys, focus groups, and customer comment cards are all methods used by service companies to a) understand customer needs and expectations. b) set service quality specifications. c) establish guidelines for employee performance. d) manage service expectations. e) control service intangibility.

A

105. Packages designed to appeal to children often use a) bold designs and primary colors. b) clear color and simple designs. c) black and white only. d) pastels and soft images. e) lots of writing and little color.

A

106. Packaging is most important, as a strategic tool, for a) consumer convenience products. b) consumer shopping products. c) industrial products. d) consumer specialty products. e) services.

A

110. The decorative tins used to package holiday cookies and candies are an example of ____ packaging. a) secondary-use b) multiple c) family d) category-consistent e) altered

A

114. Which of the following best defines nonprofit marketing? a) Activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit or return on investment b) Marketing activities conducted by organizations other than business organizations c) Nonbusiness activities aimed at goals such as profit or return on investment d) Marketing activities aimed at getting the product to the retailers, through intermediaries e) The marketing activities conducted by individuals and organizations that are considered volunteer establishments

A

116. Planters is concerned that acquiring a taste for its new product, honey-roasted macadamia nuts, takes time. Planters should use ___________ packaging for its new product. a) family b) multiple c) tamper-resistant d) unlabeled e) transparent

A

118. Children with muscular dystrophy who receive treatments developed through research programs funded by MDA represent ___________ for this charitable organization. a) target publics b) target population c) general publics d) focus groups e) client publics

A

119. Multiple packaging encourages a) the consumer to try the product several times. b) higher consumption of all products. c) infrequent purchases. d) easier handling and storing of all products. e) environmentally responsible behavior.

A

120. Arm & Hammer would probably not want to use multiple packaging for its baking soda because a) the product is used infrequently. b) storage would be more difficult. c) shelf space could not be maximized. d) shipping costs would increase. e) the product has a short shelf life.

A

121. A university's student body would be considered its ___________ public, and parents, alumni, and trustees would be included as its ___________ public. a) client; general b) specialized; general c) target; simple d) general; client e) target; market

A

131. When Kaycee visited the accountants' offices and used the look of the surroundings, as well as the office furniture condition in her evaluation of the service business, she was most likely using the elements of the ________ dimension of service quality. a) tangibles b) reliability c) empathy d) assurance e) responsiveness

A

132. 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 a) Nutrition Labeling Act. b) Food and Drug Administration. c) Fair Packaging and Labeling Act. d) Nutritional Content Disclosure Act. e) Federal Trade Commission.

A

22. Brands provide all of the following benefits for buyers except that they do not a) foster brand loyalty. b) help identify specific products. c) help buyers evaluate the quality of products. d) offer psychological rewards. e) reduce perceived risk of purchase.

A

23. A trademark signifies a) that the owner has exclusive use of a brand and others are prohibited from using it. b) that a product was manufactured by a particular company. c) the full and legal name of an organization. d) the level of quality of a product based on its legally protected rights. e) the inventive use of a brand name or brand mark to identify a company's products.

A

24. iPod is the ___________ of the MP3 player made by Apple, Inc. a) trade name b) brand mark c) trade label d) brand e) identifier

A

26. 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. a) loyalty b) equity c) awareness d) personality e) quality

A

27. 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 a) loyalty. b) recognition. c) preference. d) insistence. e) equity.

A

29. The continuum of tangibility goes from _____ on one end to _____ on the other end. a) service-dominant products; good-dominant products b) pure products; pure services c) rational products; irrational products d) mostly service goods; mostly product goods e) easy to see; not easy to see

A

31. Because practically all marketers provide some services, ___________ typically do not exist in today's business environment. a) pure goods b) pure services c) customer services d) service products e) tangible-dominant products

A

50. Client-based relationships are least likely to be developed by a) towing services. b) accountants. c) beauticians. d) orthodontists. e) psychiatrists.

A

61. Which of the following is a primary factor specific to services in choosing a brand name? a) The service brand is usually the same as the company name so it must be flexible enough to fit several services. b) The name must convey an image of great customer service because this is more important for services than for goods. c) The name should be distinctive and set the company apart from potential competitors. d) Shortness and conciseness are extremely important when choosing brand names for services so that they can easily be remembered. e) Service brands are much more difficult to protect legally, so marketers must focus on creating brands with made-up words or a combination of letters and numbers.

A

63. The heterogeneity characteristic of services provides marketers with tremendous opportunity to a) customize their services to meet unique individual needs. b) hold down the cost of providing services to customers. c) create standardized packages that will appeal to many customers. d) offer the same service as all of their competitors. e) develop relationship marketing with their customers.

A

66. Clean, sharp looking employees with appropriate uniforms help assure customers about service quality and therefore address the _____ of services. a) intangibility b) perishability c) tangibility d) inseparability e) heterogeneity

A

67. Of the following choices, which would be the easiest brand name to legally protect? a) Tarzink Yogurt b) Learn and Grow Daycare c) Scout Camping Supplies d) Sullivan Water Filtering Systems e) Western County Distributors

A

70. Prudential Insurance uses "the rock" symbol to communicate stability and security to customers. This is Prudential's attempt to help customers better understand its services by a) emphasizing tangible cues in promoting the service. b) using word association. c) personalizing the selling of the service. d) utilizing publicity techniques to enhance the service. e) distributing the service directly through television.

A

73. Using appointments or reservations for scheduling delivery of services is an attempt to address the ___________ characteristic of services. a) perishability b) intangibility c) heterogeneity d) inseparability e) homogeneity

A

73. Which of the following types of products would be the most difficult to brand? a) Wheat b) Soap c) DVD players d) Automobiles e) Tax preparation services

A

77. Transamerica's pyramid-shaped building in San Francisco is used to symbolize strength, security, and reliability. This type of promotion is designed to address the ___________ characteristic of services. a) intangibility b) perishability c) heterogeneity d) inseparability e) customer service

A

78. When Anheuser-Busch added Michelob Light to the line of Michelob beers, the firm was using ___________ branding. a) brand-extension b) individual c) exclusive d) selective e) existing

A

79. When a firm uses an existing brand name as part of a brand name for a new product, this is called ___________ branding. a) brand-extension b) licensed c) family d) individual e) new-product

A

80. Gorton's sells Gorton's Fish Sticks, Gorton's Fish Fillets, and Gorton Grilled Fish. This is an example of a) family branding. b) shared naming. c) individual branding. d) brand extension. e) single branding.

A

89. Trying to link a motorcycle brand like Harley-Davidson to a food brand like Healthy Choice would be considered a poor decision in this type of branding. a) Co-branding b) Individual branding c) Family branding d) Product branding e) Wholesaler branding

A

94. Marvel Comics allowed various organizations to use its Spiderman and Incredible Hulk characters to market a wide variety of toys and clothing items. Marvel Comics received a percentage of the gross revenues. This is a) brand licensing. b) character exploiting. c) co-branding. d) family branding. e) trademark leasing.

A

96. Services have three evaluation attributes: search qualities, experience qualities, and ___________ qualities. a) credence b) value c) perishable d) marketability e) credibility

A

98. When designing a package, which characteristic is least important? a) An association with the company's brand mark b) Cost-effectiveness c) Environmental responsiveness d) Safety e) The value it has as a promotional tool

A

A brand manager in a multiproduct firm would be responsible for a) performance of a specific brand. b) all brands within a product line. c) branding the products of the firm. d) all products in the brand-line group. e) all brands made by the firm.

A

A change in package size is a strategy that can help boost sales in the ___________ stage of the product life cycle. a) maturity b) growth c) introduction d) market reduction e) decline

A

A company wanting to maintain market share during the maturity stage requires moderate to large a) advertising expenditures. b) distribution expenditures. c) production expenditures. d) price increases. e) packaging modifications.

A

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 a) harvesting. b) investing. c) realigning. d) divesting. e) mixing.

A

A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production. This inventory management technique is called a) just-in-time (JIT). b) time management. c) inventory minimization. d) economic order quantity. e) reorder point maximization.

A

A product mix is best described as a) all products offered by a firm. b) product, distribution, promotion, and price. c) many products sold by one firm. d) all products of a particular type. e) a group of closely related products that are considered a unit because of market, technical, or end-use considerations.

A

A public warehouse is a a) business that leases storage space and related facilities for distribution to other firms. b) large, centralized warehouse that focuses on moving rather than storing goods. c) company that provides a complete array of logistical services for businesses. d) company-operated facility for storing and shipping products. e) warehouse used to store the personal property of many different customers.

A

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) a) component part. b) specialty item. c) accessory equipment. d) raw material. e) process material.

A

Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using a) dual distribution. b) industrial distribution. c) strategic channel alliance. d) supply chain management. e) an unethical marketing channel.

A

During the growth stage of the product life cycle, marketers must a) fortify the product position. b) move to exclusive distribution. c) raise the price. d) increase promotion as a percentage of sales. e) introduce private brands.

A

Early in the commercialization phase, marketers must make decisions about a) warranties, repairs, and replacement parts. b) product features and breakeven points. c) functionality, safety, and convenience. d) the proposed marketing mix variables. e) which ideas to further pursue.

A

Elizabeth from marketing, Manuel from finance, Tony from production, Cynthia from engineering, and Alexandra from research and development were put together by their company to develop a new low-calorie, high-nutrition snack treat. These five people are a(n) __________ at their company. a) venture team b) SWAT team c) brand management group d) idea generation group e) product positioning group

A

Energizer batteries would be classified as which type of product? a) Convenience b) Shopping c) Specialty d) Unsought e) Industrial service

A

Freight transportation companies that offer several different shipment methods are called a) megacarriers. b) intermodal transporters. c) freight forwarders. d) shipping experts. e) superfreighters.

A

Gateway Computer makes computers available through its own stores, its toll-free telephone line, and a website. This is an example of a) dual distribution. b) vertical integration. c) horizontal integration. d) tying agreements. e) exclusive dealing.

A

If Anheuser-Busch refused to allow Jackson Distributing to carry its product if the distributor also carried Miller Brewing products, the company would have been engaging in which of the following channel management practices? a) Exclusive dealing b) Dual distribution c) Tying contacts d) Refusal to deal e) Restricted sales territories

A

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. a) aesthetic b) functional c) quality d) image e) feature

A

If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are a) long-term commitments. b) short-term commitments. c) easier to change than prices. d) easier to change than promotion. e) impossible to change.

A

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 a) outsourcing. b) sole-sourcing. c) logistics. d) wholesaling. e) distribution services.

A

In an administered vertical marketing system (VMS), interorganizational relationships are a) achieved by informal coordination. b) formalized through contracts. c) combined under the ownership of a single organization. d) guided by legal agreements. e) achieved by clearly defining the obligations and rights of all channel members.

A

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 a) modification should make the product more consistent with customers' desires. b) competing companies should not be aware of planned product modifications. c) modification should change customers' desires to provide greater satisfaction. d) management must perceive the modification as a reasonable and necessary action. e) production costs and materials needed should be limited.

A

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. a) contractual b) administered c) corporate d) negotiated e) institutional

A

Johnson Controls hires a consultant to assess its materials handling procedures. The consultant recommends the implementation of ___________ if they want easier movement of items between internal destinations in the warehouse. a) unit loading b) piggybacking c) containerization d) inventory management e) priority transportation

A

Liz Claiborne, Inc. uses which type of channel of distribution for its premium brands? a) A short, direct channel b) A long, direct channel c) Dual distribution d) Horizontal integration e) Intensive distribution

A

Long-term partnerships among channel members working together to reduce inefficiencies, costs, and redundancies in the entire marketing channel is called a) supply chain management. b) vertical channel integration. c) industrial management. d) industrial distribution. e) marketing management.

A

Marketing channel members are likely to experience misunderstandings, frustration, and poorly coordinated strategies as a result of a) channel conflict caused by inefficient communication between channel members. b) open communication among the channel members. c) methods of channel coordination designed to reduce ambiguity. d) negotiating territorial issues among regional distributors of a product. e) allowing one member of the channel to take the role of channel captain.

A

Marketing channels create three types of utility for consumers including a) place, time, and possession. b) location, availability, and suitability. c) time, location, and promotion. d) retailer, wholesaler, and producer. e) position, possession, and place.

A

Megabus is most likely in which of the following stages of the product life cycle? a) Introduction b) Growth c) Maturity d) Decline e) Rejection

A

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 a) width. b) depth. c) length. d) volume. e) dimension.

A

Order processing is defined as a) the receipt and transmission of sales order information. b) the second stage in a physical distribution system. c) the four main tasks. d) the same as order handling. e) electronic processing of information.

A

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. a) shopping b) specialty c) service d) convenience e) unsought

A

Quality modifications are changes that relate to a product's a) dependability and durability. b) effectiveness and versatility. c) price and availability. d) reliability and value. e) value and durability.

A

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 a) concept testing. b) product development. c) screening. d) idea generation. e) test marketing.

A

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? a) Shopping b) Convenience c) Specialty d) Unsought e) Industrial

A

Shaving razors fall into which of the following classification of consumer products? a) Convenience products b) Shopping products c) Substitute products d) Specialty products e) Accessory equipment

A

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 a) a strategic channel alliance. b) exclusive distribution. c) dual distribution. d) horizontal channel integration. e) channel leadership.

A

Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) _________ channel. a) producer-to-business buyer b) producer-to-industrial-distributor-to-business buyer c) producer-to-agent-to-business buyer d) equipment e) consumer

A

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 a) cycle time. b) order processing. c) turn-around. d) shipping time. e) transportation.

A

The best way to reduce overall distribution costs is to a) use a total-cost approach to analyze and evaluate the entire system. b) minimize the costs associated with materials handling and transportation. c) reduce the number of distribution functions that are necessary. d) find the cheapest price for each function and use them to create the system. e) lower the service standards that the company has.

A

The main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales territories is to a) tighten its control over distribution of its products. b) discourage competition from other manufacturers. c) incorporate selective distribution. d) contain distribution costs. e) punish intermediaries for past behavior.

A

The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is a) quality. b) consistency. c) durability. d) styling. e) design.

A

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 a) concept testing. b) customer response testing. c) idea analysis. d) test marketing. e) screening.

A

Three major ways in which marketers engage in product differentiation are a) product quality, product design and features, and product support services. b) product quality, product support services, and packaging. c) product support services, product design and features, and product positioning. d) product positioning, product quality, and product management. e) product positioning, product design and features, and product promotion.

A

Using only some of the available outlets to distribute a product is called a) selective distribution. b) intensive distribution. c) channel conflict. d) vertical channel integration. e) exclusive distribution.

A

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 a) supply chain management. b) a vertical marketing system. c) a horizontal marketing system. d) channel conflict. e) dual distribution

A

What is a primary difference between an industrial distributor and a manufacturers' agent? a) A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does. b) A manufacturers' agent is employed by the manufacturers while an industrial distributor is independent. c) An industrial distributor is employed by the manufacturers while a manufacturers' agent is independent. d) A manufacturers' agent rarely adds any value to the marketing channel while an industrial distributor reduces costs significantly. e) An industrial distributor does not form relationships with customers for repeat business whereas a key asset of a manufacturers' agent is his knowledge of his customers.

A

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. a) maturity b) growth c) introduction d) market reduction e) decline

A

When a single channel member manages an integrated marketing channel to achieve low-cost, efficient distribution for satisfying target markets, ______ exists. a) a vertical marketing system b) horizontal channel integration c) channel power d) channel cooperation e) extensive distribution

A

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? a) Idea generation b) Business analysis c) Test marketing d) Commercialization e) Product development

A

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. a) conflict b) cooperation c) leadership d) integration e) flows

A

Which major mode of freight transportation provides the most flexible schedules and routes? a) Trucks b) Waterways c) Airways d) Pipelines e) Railroads

A

Which mode of transportation hauls more freight than any other? a) Railroads b) Waterways c) Pipelines d) Trucks e) Airways

A

Which of the following is always used to determine the classification of a good? a) Buyer's intent for using the product b) Amount of shopping required by the buyer to obtain the product c) Price of the product d) Specific product features e) Industry competitors

A

Which of the following is the most typical example of a new product introduction? a) Pringles sold in snack-sized containers b) A brand-new nut discovered in Africa c) A car that uses no oil or gasoline d) Shoes that literally make you run faster e) A device that cools your car while parked outside

A

Which of the following organizations consolidates shipments from several firms into more efficient lot sizes? a) Freight forwarder b) Forwarding agency c) Transporter d) Special transportation company e) Intermodal shipping company

A

Which of the following stages of the product life cycle is likely to see dealers offered promotional assistance from the producer? a) Maturity b) Growth c) Introduction d) Market reduction e) Decline

A

Which of the following statements does not apply to convenience goods? a) Consumers are brand loyal to convenience products and are not likely to substitute other brands. b) Convenience products require minimal shopping effort. c) Marketing of convenience products requires intensive exposure of these goods in as many stores as possible. d) Consumers tend to feel that the most desirable retail facility for convenience products is the closest one. e) Colas, gasoline, and bread are good examples of convenience goods.

A

Which of the following tactics would typically be employed when a product is in the growth stage of its life cycle? a) Lowering prices after developmental costs have been recovered b) Raising promotion expenditures as a percentage of total sales c) Moving from intensive to selective distribution d) Raising prices to encourage competitors to enter the market e) Reducing the number of product models in the product line

A

___________ is the combining and coordinating of two or more modes of transportation to take advantage of benefits offered by each of the different types of carriers. a) Intermodal transportation b) Physical distribution c) Containerized movement d) Efficient transportation e) Freight forwarding

A

104. All Healthy Choice products come in green boxes with the same Healthy Choice logo. This is an example of the use of a) category-consistent packaging. b) family packaging. c) multiple packaging. d) family branding. e) group labeling.

B

109. A secondary-use package is defined as one that a) can be used as a promotional tool. b) can be reused for purposes other than its initial use. c) facilitates transportation, storage, and handling for middlemen. d) is recyclable and environmentally safe. e) promotes an overall company image.

B

111. Janet sets up her new interior decorating business and advertises her expertise in high-quality draperies and other window treatments. One of her first customers is extremely dissatisfied with Janet's work, so Janet redoes the job at her own expense because she knows how powerful _____ is (are) for services and wants to stay in business. a) service expectations b) word-of-mouth communication c) zones of tolerance d) customer perceptions e) experience qualities

B

112. ___________ marketing includes activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit. a) Unit b) Nonprofit c) Organizational d) Individual e) Enterprise

B

120. In nonprofit organizations, a) development of a marketing strategy should focus on the general public. b) the direct consumers of the product are the client public. c) target markets are defined much more easily. d) the techniques used by for-profit organizations to define target markets cannot be applied. e) goods are marketed more often than ideas or services.

B

123. Which is the most typical distribution channel used in nonprofit organizations? a) Nonprofit organization, intermediary, client b) Nonprofit organization, client c) Nonprofit organization, middleman, client d) Nonprofit organization, government, client e) Government, nonprofit organization, client

B

124. The overall challenge for marketers when developing packaging is to a) make it as attractive as possible to the target market of the product. b) create effective, convenient packaging that appeals to customers and keeps costs low. c) find ways to reduce costs as much as possible for packaging without letting safety suffer. d) always be more innovative than the competitors in order to make a product stand out. e) ensure that product damage is minimized during distribution.

B

125. ___________ is the value of the benefit that is given up by selecting one alternative rather than another. a) Benefit loss b) Opportunity cost c) Privileged cost d) Selection cost e) Exchange loss

B

126. What type of product is the children's playground at the "Y"? a) The YMCA has no product. b) The playground is a consumer service product. c) The playground is a business service product. d) The playground is a shopping product. e) The playground is a governmental shopping product.

B

129. Kyle Jackson, one of the staff members at the YMCA, suggested that the "Y" offer discounted memberships to senior citizens over the age of 65; however, they could only use the facility between the hours of 9:00 am and 4:00 pm. Kyle's plan is most likely addressing the issue with ______, and relates to the ______ characteristic of services. a) peak demand; intangibility b) off-peak demand; perishability c) off-peak demand; heterogeneity d) demand-based pricing; heterogeneity e) preferred demand; perishability

B

129. Which of the following statements about labeling is false? a) The label can be used to facilitate the identification of a product. b) Labels do not have to disclose nutritional information. c) The label indicates the quality of the product. d) Labeling is used to describe the product. e) The label can play a promotional function.

B

133. The Pillsbury branding policy is most likely a) individual branding. b) family branding. c) brand extensions. d) co-branding. e) brand licensing.

B

133. When Kaycee looked in the yellow pages and on the Internet for information on the accountants in the area, she was most likely using _________ qualities to evaluate the accountant service. a) credence b) search c) product d) service quality e) assurance

B

134. How does brand loyalty typically effect a customer's purchase decisions? a) It makes every purchase easy. b) It shortens the amount of time and reduces the risk. c) It provides an automatic measure of quality for all products. d) It lengthens the process due to the great effort expended. e) It makes decisions difficult because most people are loyal to many brands.

B

20. A distinguishing factor between a brand name and a brand mark is that a brand name a) creates customer loyalty. b) consists of words. c) identifies only one item in the product mix. d) is registered with the U.S. Patent and Trademark Office. e) implies an organization's name.

B

21. Healthy Choice is a ____ manufactured by ConAgra Foods, which is a ____. a) brand mark; trade name b) brand name; trade name c) trade name; brand d) brand name; trademark e) brand mark; trademark

B

21. Which of the following countries was the world's first service economy? a) England b) United States c) Sweden d) Canada e) Germany

B

25. Which of the following is most likely to be considered a business service? a) Housecleaning b) Consulting c) Haircutting d) Personal training e) Alaskan cruise

B

30. Which of the following services falls closest to the middle of the tangibility continuum? a) College education b) Dinner at the Olive Garden c) A new Ford Escape d) A custom built yacht e) A trip to Brazil

B

32. 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? a) Intangibility b) Inseparability c) Perishability d) Heterogeneity e) Homogeneity

B

42. Private distributor, generic, and manufacturer are the three types of a) equity. b) brands. c) producers. d) packaging. e) trade names.

B

43. A ___________ brand usually requires a producer to become involved in distribution, promotion, and pricing decisions. a) dealer b) manufacturer c) private distributor d) store e) wholesaler

B

44. What should marketers do to promote the consistency and reliability of their services most effectively? a) Limit the number of employees in their organization b) Train employees and develop standard procedures for dealing with customers c) Encourage employees to be creative in solving customer issues and complaints d) Perform as much of the service as possible before the customer arrives e) Require employees to be shining, happy people all day long

B

48. The major characteristic of a private brand is that a) only retailers initiate and own the brand. b) manufacturers are not identified on the product. c) producers become involved with the marketing mix. d) producers price the product. e) wholesalers encourage producers to make the product available.

B

51. Kellogg's Rice Krispies, a _____ brand, is likely to be found next to Crispy Rice, a _____ brand that has very similar coloring and styling for its package. a) generic; store b) manufacturer; private c) dealer; private distributor d) producer; house e) distributor; store

B

55. Which of the following is a low-contact service? a) Childcare b) Website design c) Health care d) Manicure e) Legal services

B

65. Besides generic names, what other types of names are very difficult to protect? a) Names created by the company b) Surnames and geographic names c) Arbitrarily chosen names not related to the product d) Arbitrarily chosen names related closely to the product e) Names that contain shapes and colors

B

67. 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? a) Perishability b) Inseparability c) Heterogeneity d) Intangibility e) Homogeneity

B

72. The most recent act passed by Congress that addresses the protection of trademarks is the a) Lanham Act. b) Trademark Law Revision Act. c) Counterfeit Protection Act. d) U.S. Patent and Trademark Act. e) Fair Trademark and Brand Name Usage Act.

B

75. R. J. Reynolds markets several brands of cigarettes, including Vantage, Camel, Winston, and Salem. This is an example of which type of branding policy? a) Generic b) Individual c) Family d) Line family e) Brand extension

B

79. Production and consumption of services must simultaneously occur due to the _____ characteristic of services. a) intangibility b) heterogeneity c) customer contact d) perishability e) inseparability

B

80. 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? a) Bundled b) Demand-based c) Supply-based d) Upfront e) Customer-based

B

81. Piano teachers, tutors, attorneys, and consultants are most likely to price their services based on a) functions performed. b) time. c) objectives accomplished. d) demand. e) combination pricing.

B

88. A co-branded product from Ruffles potato chips and Chiquita bananas would likely fail because a) neither of these brands is very well known to consumers. b) their products are not complementary. c) they are both food products. d) this co-branding will not provide product differentiation. e) the market segment for this product is too vast

B

94. 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. a) experience b) search c) intangible d) credence e) assurance

B

96. The most important function of packaging is a) offering convenience to customers. b) protecting the product and maintaining its functionality. c) covering the product. d) communicating information to the customer. e) attracting the attention of the customer.

B

A complex product development process, including an extensive business analysis to determine the possibility of success, are hallmarks of a a) genuinely new product. b) radically new product. c) new product failure. d) controlled new product. e) market share advance.

B

A group of organizations and individuals that directs the flow of products from producers to the ultimate consumers is called a a) free trade association b) marketing channel c) channel of suppliers d) production line-up e) chain of retailers

B

A new variety of Doritos is initially introduced in Ft. Worth, Texas; Columbia, South Carolina; Peoria, 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. a) multi-stage introduction b) roll-out approach c) test-market expansion d) mass commercialization e) trickle-down approach

B

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. a) product modification b) line extension c) quality modification d) functional development e) aesthetic extension

B

Achieving greater penetration of the market is typically a business goal during the ___________ stage of the product life cycle. a) maturity b) growth c) introduction d) market testing e) decline

B

All of the following are concepts used in a just-in-time inventory management system except a) supplies arrive just as they are needed. b) safety stock is kept to reduce stockouts. c) much waste is eliminated. d) purchases are made in small quantities. e) purchases are made frequently.

B

All of the following are major steps in developing new products except a) test marketing. b) evaluation of competitors' efforts. c) screening. d) business analysis. e) idea generation.

B

All of the following are reasons why new products fail except a) overestimated market size. b) followed a systematic plan. c) distributed insufficiently. d) had poor timing. e) promoted poorly.

B

An ad that stresses "Get the real Proactiv Solution; accept no substitutes!" is best geared for which stage of the product life cycle? a) Introduction b) Growth c) Stabilization d) Expansion e) Decline

B

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) a) sole intermediary. b) manufacturers' agent. c) producers' broker. d) industrial distributor. e) channel facilitator.

B

An individual moves into the adoption stage of the adoption process at the point when he or she a) is self-motivated to get information about the product. b) begins using that specific product. c) seriously considers whether the product will satisfy his or her needs. d) experiences the product for the first time. e) becomes aware that the product exists.

B

At the annual managers' planning conference, Jackie Conrad asks the other managers to consider her proposal to increase the quantity of inventory to a five-week supply in order to increase the percentage of completely filled customer orders from 85 percent to 90 percent. She states that she is willing to trade off the ___________ incurred for the positive effect of better customer service. a) lower response time b) higher warehousing costs c) higher transportation costs d) higher order processing costs e) higher performance levels

B

Because Coke is such a popular product and the company is so powerful, Coca-Cola is in a position to exert considerable control over channel structures and the way Coke is marketed. This is an illustration of channel ___________ in the distribution channel. a) conflict b) leadership c) dominance d) cooperation e) negotiation

B

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 a) horizontal. b) vertical. c) multilevel. d) retail. e) merchandising.

B

Buyers do not compare alternatives when shopping for ______ products. a) convenience b) specialty c) shopping d) unique e) unsought

B

Candy bars and chewing gum are most likely to be distributed through _____ and _____. a) selective distribution; multiple channels b) intensive; dual distribution c) strategic channel alliances; intensive d) exclusive; a single channel e) dual distribution; convenience channels

B

Caruthers Paint Manufacturing Company buys the chemicals it needs for producing its products from a chemical producer, Roth Chemicals. In this instance, the chemicals are being distributed to Caruthers through which of the following types of channels? a) Industrial distributor b) Direct distribution c) Retail d) Wholesaler-sponsored e) Producer

B

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) a product modification. b) a line extension. c) a quality modification. d) a functional extension. e) an aesthetic modification.

B

Currently, Star is using the _________ approach to distributing its janitorial supplies to its large customers. a) intensive b) just-in-time c) segmented d) outsourcing e) exclusive

B

Elena recently purchased a pair of sunglasses because she liked their quality, styling, and price. Her friend Katie purchased an almost identical pair, except that Katie's sunglasses had the name "Armani" imprinted on the side. Elena probably based her purchase decision on ___________, whereas Katie apparently based her decision on ___________. a) price; product quality b) real product differences; perceived product image c) perceived product image; product quality d) product value; perceived product image e) product design; product quality

B

Eliminating a wholesaler from a marketing channel will a) cut costs and lower prices. b) not eliminate the functions performed by that wholesaler. c) eliminate the functions performed by that wholesaler. d) lead to lower costs but higher prices. e) reduce channel conflict.

B

Fansteel manufactures parts used in jet engines, which it sells to companies such as Boeing. When shipping products to Boeing, Fansteel seals the parts in 8' 8' 40' boxes for shipping to decrease loss and damage. This method of materials handling is a) unit loading. b) containerization. c) freight forwarding. d) unitized shipping. e) bonded packaging.

B

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 a) wholesalers. b) producers. c) retailers. d) agents. e) brokers.

B

For which of the following products would exclusive distribution be most appropriate? a) Gasoline b) Rolls Royce automobile c) Washing machine d) Laundry detergent e) Moderately priced luggage

B

Fragile products that require special handling are more likely to be distributed through a) longer channels. b) shorter channels. c) Channel D. d) Channel H. e) exclusive outlets.

B

Gap clothing stores sell primarily what type of products? a) Convenience b) Shopping c) Unsought d) Nondurable e) Specialty

B

Having products available when the customer wants them is called a) place utility. b) time utility. c) availability. d) possession utility. e) chronavailability.

B

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 a) width. b) depth. c) length. d) volume. e) life cycle.

B

If Hewlett-Packard provides its customers with a help line for computer questions and problems, it is differentiating itself through a) support of its level of quality. b) product support services. c) a help line feature. d) product features. e) customer requests.

B

If a microchip in a computer in New York failed, which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from Silicon Valley, California? a) Pipeline b) Airways c) Waterways d) Truck e) Railroad

B

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 a) a brand extension. b) line extension. c) functional modification. d) quality modification. e) a new-to-the-world product.

B

In product modification, the first issue to consider is whether a) existing customers can perceive that a product modification has been made. b) the product is modifiable. c) quality is modified. d) modification will make the product more consistent with customers' desires. e) modification will provide greater satisfaction to the consumer.

B

In which stage of the product life cycle do profits begin to decrease? a) Introduction b) Growth c) Maturity d) Decline e) Recovery

B

In which stage of the product life cycle do profits peak? a) Introduction b) Growth c) Decline d) Termination e) Maturity

B

Most marketing channels have marketing intermediaries. A marketing intermediary's role is to a) link wholesalers to other wholesalers. b) link producers to other middlemen or to consumers. c) always sell products to wholesalers. d) not take title to products. e) always sell products to retailers.

B

Nike maintains a good deal of control over how its products are promoted, displayed, and sold. Because of this control, Nike would be appropriately described as the channel a) intermediary. b) captain. c) allocator. d) terminator. e) price leader.

B

Products are classified as being business or consumer products according to the a) goals of the organization. b) buyer's intended use of the product. c) seller's intended use of the product. d) location of use. e) types of outlets from which they are purchased.

B

Products which are relatively inexpensive and frequently purchased with minimal effort are classified as ___________ products. a) shopping b) convenience c) industrial d) specialty e) unsought

B

Tasha is shopping for personal care items at her local Target. She walks by one aisle and sees a floor-standing display for the new Venus Embrace. She hadn't thought about buying a new razor, but the display has caught her attention. Which stage of the product adoption process is Tasha most likely in at the present time? a) awareness b) attention c) evaluation d) trial e) adoption

B

The Diamond Salt Company needs to transport 20 tons of salt from Baton Rouge, Louisiana, to Cincinnati. Which of the following methods would be the cheapest for transporting this cargo? a) Pipelines b) Waterways c) Trucks d) Airways e) Railroads

B

The decision to delete the industrial product line of ice chests is an example of deleting a product through a(n) _____, while the decision to drop the thermal underwear line is an example of a(n) ______. a) run-out; phase out b) phase-out; immediate drop c) immediate drop; run-out d) immediate drop; phase-out e) phase-out; run-out

B

The last group to adopt a new product, _________, is oriented toward the past and is suspicious of new products. a) non-adopters b) laggards c) innovators d) late adopters e) late majority

B

The major drawback to using aesthetic modifications is a) the cost of the modifications. b) that the value of the modification is determined subjectively. c) the need for redesign of the product. d) a possible decrease in market share. e) that there is no differentiation for the product in the market.

B

The order-processing task that involves verifying product availability, checking prices and customer credit ratings, and filling orders is a) warehousing. b) order handling. c) information processing. d) materials handling. e) order entry.

B

The reasons a vertically integrated channel can be more effective against competition is because of all of the following except a) the consolidation of power. b) tightly controlled and bureaucratic management style. c) the ability to inhibit competitors. d) the sharing of responsibilities and information. e) increased bargaining power.

B

What function of physical distribution enables companies to compensate for dissimilar production and consumption rates and stabilize prices and availability of seasonal items? a) Materials handling b) Warehousing c) Transportation d) Inventory management e) Order processing

B

When Benetton, the Italian sportswear designer and manufacturer, decided to open its own specialty shops to sell its merchandise, the firm was engaging in a) channel repetition. b) vertical channel integration. c) channel conflict. d) horizontal channel integration. e) channel expansion.

B

When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used ___________ distribution. a) horizontal b) intensive c) selective d) agent e) exclusive

B

When Natalie and Chris analyze the results from the recently completed test market to determine if any changes in the marketing mix are needed, they are in the ___________ phase of the new-product development process. a) idea generation b) commercialization c) test marketing d) business analysis e) screening

B

When one company in a marketing channel has the ability to influence another member's goal achievement, the company has a) channel control. b) channel power. c) marketing leadership. d) a channel captain. e) distributive influence.

B

Which of the following is most likely the primary factor Liz Claiborne, Inc. used when selecting the marketing channel for its Juicy Couture brand? a) characteristics of the intermediaries b) product attributes c) type of organization d) marketing environmental forces e) competition

B

Which of the following is the best example of a functional modification? a) Campbell's puts more of a higher-grade chicken in its classic chicken noodle soup. b) A smoke alarm is modified to be more sensitive to smoke at farther distances. c) Motorola uses a battery that allows its cell phones to charge back up more quickly. d) The manufacturer of the primer and sealer, Kilz, introduces an odorless variety. e) Friskies changes the ingredients in its cat food to a taste that is preferred by most cats.

B

Which of the following is the stage of the new-product development process where customers are first exposed to the new product idea? a) Screening b) Concept testing c) Business analysis d) Product development e) Test marketing

B

Which of the following phases of new-product development is likely the least costly for the firm? a) Commercialization b) Concept testing c) Business analysis d) Product development e) Test marketing

B

Which stage of the product life cycle begins when a business reaches the breakeven point with the product? a) Maturity b) Growth c) Introduction d) Market testing e) Decline

B

__________ 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. a) Quality modification b) Line extension c) Aesthetic modification d) Feature modification e) Product mix modification

B

107. In service marketing, the most important link to the customer is a) effective advertising. b) good word-of-mouth communication. c) well-trained contact employees. d) the tangible aspects of the service. e) exceptional service quality.

C

108. In most service industries, customer-contact employees are a) valued as the most important employees in the organization. b) the best trained employees in the organization. c) the lowest-paid and least-trained employees. d) managers and other supervisory level employees. e) moderately paid personnel confined to strict dress codes.

C

112. Customers will more easily recognize a new product as belonging to a particular product category if the marketers use a) family branding. b) innovative packaging. c) category-consistent packaging. d) category labeling. e) product category packaging.

C

113. Which of the following issues is least important in nonprofit marketing? a) Distribution b) Exchange c) Profits d) Negotiation e) Persuasion

C

114. Dutch Boy house paint comes in plastic jugs that effectively stop dripping and are easy for the customer to hold and pour. This is an example of ______ packaging. a) multiple b) secondary-use c) innovative d) category-consistent e) handling-improved

C

115. An important difference between for-profit and nonprofit marketing is that a) there is no exchange in nonprofit marketing because the nonprofit organization receives something of value but does not give anything of value. b) marketing exists only in the for-profit organization. c) the goals of the nonprofit organization differ from the goals of the for-profit organization. d) a target market need not be determined in the nonprofit marketing scheme. e) there is no price in the marketing mix of the nonprofit organization.

C

115. Multiple packaging is a) likely to decrease serving size. b) the same as family packaging. c) likely to increase demand. d) the most effective type of packaging for decreasing demand. e) the most expensive type of packaging.

C

117. Select the true statement about nonprofit marketing. a) The chief beneficiaries of a nonprofit organization are the owners or stockholders. b) The planning of market strategies requires less refinement and coordination of goals in the nonprofit field than in the for-profit field. c) Major nonprofit marketers in the United States are social causes and charitable organizations. d) Marketing goals in nonprofit activities cannot be determined. e) All nonprofit organizations that have adopted the marketing concept have been successful.

C

126. The series of thick and thin lines that electronically identify many products is called a(n) a) stock keeping unit. b) brand name identifier. c) universal product code. d) price bar. e) inventory control symbol.

C

127. The label on a soft drink reads, "cool and refreshing." For what reason is this phrase used? a) To provide product use information b) To encourage multiple purchases c) To promote the product d) To satisfy legal requirements e) To encourage the proper consumption patterns of the product

C

128. Federal laws require the disclosure of nutritional information on labels. So far, evidence on this matter a) indicate that consumers regularly use the information. b) have been conducted only by the federal government. c) have shown mixed results about the use of this information. d) prove that labels are necessary only for promotional reasons. e) indicate that consumers do not use the information.

C

128. The children who take swimming lessons must be in attendance at the pool during the time of their appointment. The need for the child to be in attendance in order to receive the lesson is an example of the ______ feature of a service, while the need for them to be there at the time of their appointment, represents the _______ feature. a) inseparability; heterogeneity b) heterogeneity; perishability c) inseparability; perishability d) intangibility; perishability e) intangibility; inseparability

C

131. 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 a) specific package colors for selected product categories. b) package design approval procedures. c) mandatory labeling requirements. d) designated package sizes for certain product categories. e) packaging regulations from the Consumer Product Safety Commission.

C

136. If Hanes, a manufacturer of t-shirts, were to begin producing a t-shirt with the trade character Pillsbury Doughboy on the front, this would be an example of a) a brand-extension. b) co-branding. c) brand licensing. d) individual branding. e) fanciful branding.

C

140. If Silk Soymilk were to begin offering Silk Soymilk Chocolate Ice Cream Bars, this would be an example of a) a product line extension. b) individual branding. c) a brand extension. d) a private distributor brand. e) co-branding.

C

16. Services are usually provided through the application of _______ directed at people or objects. a) tangible and intangible products b) physical labor c) human or mechanical efforts d) ideas and other intangible efforts e) knowledge and technology

C

17. In general, differences between goods and services are determined by the a) degree of labor intensiveness. b) type of target market. c) degree of tangibility. d) type of provider. e) degree of consumer contact.

C

17. The part of a brand that can be spoken including letters, numbers, and words is the a) brand. b) brand mark. c) brand name. d) trade name. e) trademark.

C

18. Kleenex Boutique is a brand ___________ of tissues made by the Kimberly-Clark Corporation. a) mark b) identification c) name d) guarantee e) type

C

19. Which of the following is not a service product? a) Maroon 5 concert b) Flight on Southwest Airlines c) A 100 percent service satisfaction guarantee d) Overnight stay at Holiday Inn e) Dry cleaning of a suit

C

28. The intangibility aspect of a service means that a) there is a lack of perceived quality compared to a tangible good. b) unused capacity cannot be stockpiled or inventoried for later use. c) consumers may have a problem evaluating service offerings. d) services are not produced at the same time they are consumed. e) services are not labor-intensive.

C

29. The three levels of brand loyalty from strongest to weakest are a) preference, insistence, recognition. b) insistence, recognition, preference. c) insistence, preference, recognition. d) recognition, preference, insistence. e) insistence, preference, indifference.

C

31. A customer who really wants to buy a certain brand but will settle for others if her first choice is unavailable displays brand a) recognition. b) acceptance. c) preference. d) insistence. e) acknowledgement.

C

33. Personal trainers cannot complete their work without their clients present because of the _______ feature of services. a) perishability b) intangibility c) inseparability d) heterogeneity e) tangibility

C

37. Kathy Adkins, owner of Adkins Styling Salon, looks at the day's appointment schedule and notices that it is completely full. She wishes some of the empty slots from earlier in the week were available on this Saturday afternoon. Her thoughts deal with the ___________ characteristic of services. a) credence b) heterogeneity c) perishability d) search e) inseparability

C

38. 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? a) Inseparability b) Customer contact c) Perishability d) Heterogeneity e) Intangibility

C

49. Private distributor brands are owned by retailers and do not identify the manufacturer of the product. Which of the following is an example of a private distributor brand? a) Green Giant corn b) IBM computers c) Sears Kenmore washers d) Little Debbie snack cakes e) Nike Air Jordan basketball shoes

C

51. Which of the following service providers would typically call their customers "clients"? a) High school teachers b) Waiters c) Lawyers d) Dry cleaners e) Nurses

C

53. When service companies change high-contact services into low-contact services, the a) service becomes more expensive to deliver. b) quality of the service declines. c) service becomes less personalized. d) time required to deliver the service increases. e) service becomes less standardized.

C

54. A product that is simply labeled with the product category is considered a a) private brand. b) no-name product. c) generic brand. d) poor quality item. e) lean manufacturer brand.

C

56. The level of interaction necessary between a customer and service provider in order to complete a service is called a) tangibility. b) client-based relationships. c) customer contact. d) consumer interaction. e) heterogeneity.

C

58. A ___________ brand type is considered the least protectable under existing trademark regulations. a) descriptive b) fanciful c) generic d) symbolic e) suggestive

C

60. A service is usually offered as part of a bundled package of services with a core service and one or more ________ services. a) basic b) tangible c) supplementary d) auxiliary e) other core

C

62. 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? a) Homogeneity b) Perishability c) Heterogeneity d) Intangibility e) Inseparability

C

63. The brand name Hamburger Helper would most likely be considered a) arbitrary. b) generic. c) suggestive. d) descriptive. e) fanciful.

C

66. The well-known brand AT&T (American Telephone and Telegraph) would most likely be classified as a) fanciful. b) generic. c) descriptive. d) suggestive. e) arbitrary.

C

69. 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. a) tangibility b) perishability c) inseparability d) customer contact e) heterogeneity

C

74. By installing ATMs, banks have increased production capacity and reduced the number of personnel. This results in a decrease in a) perishability. b) intangibility. c) customer contact. d) inseparability. e) customer service.

C

76. A major advantage of using individual branding is that a) the promotion of one of the company's brands will also promote the company's other brands. b) this branding policy will prevent the overextension of a brand name to products that are completely unrelated to the original. c) a poor quality product will not contaminate all of the company's other products with negative images. d) a specific brand name for each product will help the company grow during times of economic recession. e) the quality of one of the company's products will help increase the perceived quality image of the company's other related products.

C

77. When ___________ branding is used, each of a firm's products is branded with at least part of the same name. a) individual b) trademark c) family d) selective e) brand-extension

C

78. Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on a) news stories. b) a webpage. c) word of mouth. d) newspaper ads. e) television ads.

C

81. Lysol Basin, Tub, and Tile Cleaner and Lysol Disinfectant Spray exemplify a) private branding. b) product brand marks. c) family branding. d) individual branding. e) wholesaler branding.

C

84. 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 a) time-based pricing. b) off-peak demand. c) demand-based pricing. d) time dependence pricing. e) bundled costing.

C

84. Which of the following issues is least important in using co-branding effectively? a) The brands involved should represent a complementary fit in a customer's mind. b) The brands that are teamed together should not lose their individual identities. c) The brands involved should be owned by different companies. d) Co-branding should be done in a way so that it is obvious which brand is the main brand or key brand. e) Co-branding should take advantage of the distribution capabilities of the brands involved.

C

86. Betty Crocker Brownie mix that contains real Hershey's syrup is an example of a) brand extension. b) brand licensing. c) co-branding. d) individual branding. e) line family branding.

C

87. To use co-branding effectively, which one of the following is probably least important? a) The brands involved should represent a complementary fit in a customer's mind. b) The brands that are teamed together should not lose their individual identities. c) The brands involved should be owned by two or more organizations. d) To avoid confusion on the part of customers, co-branding should be done in a way so that it is obvious which brand is the main brand or key brand. e) The co-branded product should be able to benefit from the distribution system of both brands involved.

C

91. An agreement in which one company allows another to use its brand on other products for a fee is called a) co-branding. b) brand extension. c) brand licensing. d) trademark licensing. e) cooperative branding.

C

93. Brand licensing agreements can fail for many reasons but usually not because of a) poor timing in the marketplace. b) a lack of manufacturing control of the licensed product. c) a strong match between the product and the licensed brand. d) using the wrong types of distribution channels to market the product. e) licensing the brand to too many unrelated products.

C

93. Tina, a waitress at the Riverfront Grill, is angry that a customer complained that his soup was cold because of her slow service. Riverfront owner Max Griffin reminds her that she must focus on service quality as defined by a) the health department. b) restaurant management. c) the customer's perceptions. d) temperature guidelines. e) general practices.

C

95. As Stan and Anna Walicki meet with the account representative at Landmark Bank, they are shown a sample of what their monthly statement will look like. Providing such sample documents allows Landmark to add tangibility to which of the following service qualities? a) Experience b) Credence c) Search d) Perishability e) Inseparability

C

98. Dentists find it difficult to attract customers because many customers cannot distinguish whether or not the product offered is beneficial. This aspect of the dentist's product is called ___________ quality. a) search b) experience c) credence d) tangible e) separable

C

99. A small private college in Tennessee paid a large sum of money to a marketing firm to study the college's current marketing strategy and help develop new strategies for attracting students. The college is having a difficult time evaluating the effectiveness of the marketing firm's work because this type of service has many a) search qualities. b) undefined parameters. c) credence qualities. d) experience qualities. e) unknown results.

C

A commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is a) web-based inventory management. b) just-in-time. c) electronic data interchange. d) universal product codes. e) activity based management.

C

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? a) Raw material b) Installations c) Accessory equipment d) Component part e) Process material

C

A genuinely new product—like the iPhone once was—offers a) lower prices than existing products. b) at least two new product features. c) innovative benefits to consumers. d) better value than existing products. e) at least two new product features at a lower price.

C

A producer is not likely to receive _____ from an industrial distributor. a) selling activities in local markets b) market information about consumers c) aggressive promotion of its brand d) reduced capital requirements e) a reduced financial burden from customers

C

A product line is defined as a) products that can be designated as a unique offering among the organization's products. b) products that an organization makes available to consumers. c) a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations. d) a specific group of products that are offered to the market. e) products that are sold by the same firm or a division of a firm.

C

A runout policy of product deletion a) lets the product decline without changing the product strategy. b) is an immediate-drop decision. c) exploits any strengths left in the product. d) raises the price of the product continually to secure as much profit as possible before the product is priced out of the market. e) occurs when production cannot keep pace with demand because of material shortages.

C

A specialty product a) requires minimal effort to purchase. b) is purchased frequently. c) requires purchase planning, and the buyer will not accept substitutes. d) is generally less expensive than other items in the same product class. e) prompts the purchaser to make comparisons among alternatives.

C

After building a prototype of his new device, Brad 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. a) product design b) screening c) product development d) concept testing e) test marketing

C

Anna Wren, sales manager for Pacific Lumber, tells Jason Peoples, the firm's inventory manager, that the firm's failure to have adequate supplies of pressure-treated lumber on hand has cost the firm $175,000 in lost sales. This figure represents which of the following inventory management costs? a) Carrying b) Replenishment c) Stockout d) Safety stock e) Reorder

C

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 a) just-in-time. b) order processing. c) inventory management. d) merchandise stocking. e) logistical management.

C

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 a) product ancillaries. b) company styling. c) customer services. d) company features. e) product features.

C

Breakeven analysis is a tool that marketers are likely to employ during the ___________ stage of the new-product development process. a) screening b) concept testing c) business analysis d) product development e) test marketing

C

Brunswick's bowling balls, bowling bags, and shoes are individual product ___________ for this sporting goods manufacturer. a) menus b) mixes c) lines d) life cycles e) ensembles

C

Business products that are purchased routinely, do not become part of finished goods, and are expense items rather than capital goods are called a) raw materials. b) installations. c) accessory equipment. d) component parts. e) process materials.

C

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. In 2008, Cheetos was in which phase of new-product development? a) Idea screening b) Product development c) Test marketing d) Business analysis e) Idea generation

C

Customers who purchase computer laptops from manufacturer websites are acquiring products through a) the most efficient channel of distribution. b) the most common type of marketing channel. c) a direct-marketing channel. d) a business-to-business channel of distribution. e) an indirect-marketing channel.

C

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. a) shopping b) unique c) specialty d) historical e) unsought

C

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 a) late adopters. b) nonadopters. c) innovators. d) middle adopters. e) middle majority.

C

Dropping an unprofitable product immediately is the best strategy when a) all advertising and promotional efforts have been exhausted. b) customers have a negative outlook on other products. c) losses are too great to prolong the product's life. d) the product's performance cannot be improved. e) there is low compatibility with the firm's business strategies.

C

During which stage of new-product development does the firm consider profitability? a) Idea generation b) Testing c) Business analysis d) Product development e) Compatibility research

C

Facilities, factories, and production lines with very large equipment are all classified as a) accessory equipment. b) permanents. c) installations. d) component parts. e) MRO facilities.

C

Greg Braddock is a physical distribution manager. He is currently developing and maintaining assortments of products that are adequate for customer demand. In which stage in the physical distribution system is Greg currently involved? a) Order processing b) Materials handling c) Inventory management d) Transportation e) Warehousing

C

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. a) testing interference b) leadership pricing c) jamming d) test marketing e) stress marketing

C

If Kraft General Foods offered you a position in which you would have total marketing responsibility for all of its cheese products, this position would probably hold the title of __________ manager. a) brand b) area c) product d) sales e) marketing

C

If Ralston Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be a) demonstrating sound channel leadership. b) insisting on exclusive exposure. c) exercising channel power. d) minimizing channel conflict. e) creating a coordinate system.

C

If a wholesaler continually emphasizes and promotes one company's products over a competing company's products, _____ is likely to result. a) channel cooperation b) vertical channel integration c) channel conflict d) horizontal channel integration e) channel leadership.

C

If an intermediary wants to carry Tide detergent and Procter & Gamble agrees only if the supplier purchases P&G's entire line of detergents as well, the company is engaging in which of the following channel management practices? a) Exclusive dealing b) Dual distribution c) Tying agreement d) Refusal to deal e) Restricted sales territories

C

Jeff Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital requirements for the producers. Jeff's company is an example of a(n) ___________ in a distribution channel. a) direct distributor b) manufacturers' agent c) industrial distributor d) producers' agent e) wholesalers' agent

C

Kolder Inc. is using a new just-in-time inventory management system that requires ordering smaller quantities of parts more frequently. The success of its business depends significantly on receiving these parts very quickly, so like many other companies using just-in-time, Kolder Inc. is relying more on the ______ mode of transportation despite its expense. a) railroad b) pipeline c) airway d) truck e) waterway

C

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 a) warehousing. b) inventory management. c) materials handling. d) cycle time. e) containerization.

C

Marketers at Starbucks have generated several ideas for new food products. Management has assessed whether these ideas are consistent with Starbuck's objectives and resources. Several product ideas were dropped after this analysis. The next stage of development for the remaining product ideas is a) product development. b) idea screening. c) concept testing. d) business analysis. e) test marketing.

C

Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as a) market development. b) regional commercialization. c) roll-out. d) market extension. e) competitive jamming.

C

Order processing, inventory management, materials handling, warehousing, and transportation are the activities that define a) wholesaling. b) retailing. c) physical distribution. d) channel management. e) drop shipping.

C

Procter & Gamble makes at least eight different laundry detergents. This is most relevant to the issue of a) width of product mix. b) product mix consistency. c) depth of product mix. d) a market mix. e) a promotion mix.

C

Producers of convenience products such as soft drinks, toothpaste, and breath mints are most likely to use _____ distribution. a) selective b) extensive c) intensive d) exclusive e) demand-based

C

Rob Stevens is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ___________ to maintain contact with the firms using its products. a) wholesalers b) brokers c) agents d) merchants e) retailers

C

Sales and cost analyses occur most frequently in what stage of the new-product development process? a) Screening b) Product development c) Test marketing d) Commercialization e) Business analysis

C

Sales are most likely to have a direct relationship to product availability for products that use _____ distribution. a) selective b) dual c) intensive d) extensive e) exclusive

C

Sara Lee Corporation manufactures desserts, breads, pantyhose, meats, and a variety of other products. These products make up Sara Lee's product a) line. b) item. c) mix. d) width. e) depth.

C

Select the true statement concerning test marketing. a) Test marketing is simply an extension of the screening and developing stages. b) Test marketing should be conducted after all the marketing mix variables have been finalized. c) Test marketing is a limited introduction of the product in areas chosen to represent the intended market. d) If the product is successful in the test market, then it is ensured of success upon total introduction. e) Large corporations usually launch test-marketing efforts in one small area at a time.

C

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) a) strategy for the maturity phase. b) phase out product deletion strategy. c) immediate-drop decision. d) pullout product deletion policy. e) return to test marketing.

C

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. a) convenience b) shopping c) specialty d) unsought e) durable

C

The depth of a product mix is measured by the average number of a) convenience products as compared with the number of specialty products. b) different product lines offered by the company. c) different products offered in each product line. d) specialty products as compared with the number of convenience products. e) product features that the company offers.

C

The marketing channel of producer to retailer to consumer is most likely to be used by producers of which of the following products? a) Chewing gum b) Tobacco c) Automobiles d) Hardware e) Saltine crackers

C

The notion of physical distribution is a) speed of delivery. b) used only by manufacturers. c) the movement of products from producers to end users. d) primarily the wholesaler's responsibility. e) an assessment of distribution costs.

C

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 a) vertical. b) retail. c) horizontal. d) backward. e) forward.

C

Tying agreements occur when a a) producer distributes the same product through two or more different channels. b) manufacturer forbids an intermediary to carry products of competing manufacturers. c) supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well. d) producer refuses to deal to channel members that seem unethical or illegitimate. e) manufacturer prohibits intermediaries from selling its products outside designated sales territories.

C

What are a marketing manager's two options during the decline stage? a) Reintroduce the product to new markets or stop sales immediately b) Speed up the product's decline or increase advertising c) Attempt to postpone the decline or accept its inevitability d) Divesting the brand or reinvesting in the brand e) Accept the decline or phase the product out

C

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? a) 50 b) 150 c) 80 d) 200 e) 400

C

What product(s) is Megabus marketing? a) Megabus is a service and therefore is not marketing a product. b) The ride between cities is a service product and is the only one Megabus is marketing. c) The ride between the cities, which is the core product, plus the supplemental features of Wi-Fi, video screens, and other technology. d) The ride between cities, which is a convenience product. e) The ride between cities, which is a shopping product.

C

What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level? a) Product development b) Evaluation of competitor's efforts c) Screening d) Idea generation e) Business analysis

C

When Clint suggested that Star consider purchasing a paper shredding business and then offer the service to its large and small business customers, he was suggesting a method called _____________, where Star would be the ________. a) horizontal integration; channel manager b) horizontal integration; channel captain c) vertical integration; channel captain d) outsourcing; channel manager e) outsourcing; channel captain

C

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 a) specialty products. b) installations. c) unsought products. d) shopping products. e) convenience products.

C

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? a) Interest b) Awareness c) Evaluation d) Trial e) Adoption

C

When are marketers least likely to change a product's design, style, or other attributes? a) Introduction b) Maturity c) Decline d) Growth e) Removal

C

Where do supply chains start? a) Raw materials b) Suppliers c) Customers d) Producers e) Retailers

C

Which of the following describes a disadvantage of using industrial distributors? a) Industrial distributors possess considerable market information. b) Their marketing exchange relationships are very focused. c) They are unlikely to handle bulky items or items that are slow sellers. d) Industrial distributors sell specific brands aggressively. e) Industrial distributors acquire title to the products and take possession.

C

Which of the following is least likely to be a factor affecting the selection of marketing channels? a) Customer characteristics b) Product attributes c) Product packaging d) Competition e) Environmental forces

C

Which of the following is most likely to be a product stocked by an industrial distributor? a) Tires b) Exercise equipment c) Screws d) Countertops e) Bananas

C

Which of the following is the best definition of product features? a) The things a product does that provide benefits to the customer b) Mechanical efforts or activities a company provides that add value to a product c) Specific design characteristics that allow a product to perform certain tasks d) How a product is conceived, planned, and produced with the necessary functions e) The physical appearance of a product

C

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? a) Decline b) Expansion c) Growth d) Introduction e) Stabilization

C

Why are line extensions more common than new products? a) They are higher risk and more expensive. b) They are guaranteed to succeed in the marketplace. c) They are less expensive and lower-risk. d) They require no market research. e) Modifications to existing products are very easy.

C

Without wholesalers and other intermediaries, a) most products would be much less expensive because fewer companies would be handling the product. b) products would be cheaper because the functions of intermediaries would be eliminated. c) products would likely be more expensive due to the use of less efficient channel members. d) products would never be able to make it to the ultimate consumer at any price without passing through intermediaries. e) many products would be more expensive because retailers would expect more profit.

C

"How much quality should we build into the product?" is a question that marketers ask during the ___________ phase of new-product development. a) commercialization b) concept testing c) business analysis d) product development e) test marketing

D

100. All packaging must at a minimum a) protect and preserve the contents in the package. b) clearly communicate the contents and the product's benefits. c) be tamper-proof and safe for children. d) comply with the FDA's packaging regulations. e) be made out of the most cost-effective materials available.

D

100. There are five elements that affect customers' perceptions of service quality. They are reliability, appearance of the tangibles, responsiveness, assurance, and a) credibility. b) experience within industry. c) responsibility. d) employee empathy. e) product knowledge.

D

101. In the packaging for a new line of beef jerky, Hormel should avoid the use of which color? a) Red b) Yellow c) Orange d) Green e) Clear

D

102. Although it has a strong customer base, Sato Japanese Restaurant rarely attracts customers by methods other than word-of-mouth communication. The manager believes this can be explained by the restaurant's location in a rough area in the city and its run-down appearance. In other words, potential customers are most concerned about a) reliability. b) assurance. c) responsiveness. d) tangibles. e) empathy.

D

102. To promote overall company image, packages of Pillsbury cake and cookie mixes have similar designs and colors. This approach is known as a) family branding. b) brand managing. c) line consistency. d) family packaging. e) product grouping.

D

106. The two levels of expectations that consumers generally have about services are a) acceptable and unacceptable. b) desired and undesired. c) reliable and unreliable. d) acceptable and desired. e) tolerable and desired.

D

107. The spray bottle for Windex Glass Cleaner could be considered a secondary-use package because a) its shape is ideal for multiple-unit packaging. b) glass cleaner works on chrome as well as glass. c) the spray nozzle has an adjustable valve. d) customers can reuse it for other purposes. e) it has a shape similar to other glass cleaner bottles.

D

108. A package that can be used again for a different purpose than its original function is called a a) reusable container. b) innovative package. c) second-round package. d) secondary-use package. e) dual purpose package.

D

109. American Airlines runs a series of television commercials that show its personnel going out of their way to help customers. In addition to consumers, an important secondary audience for these ads is (are) a) the FAA. b) airline competitors. c) bus line customers. d) American Airlines employees. e) American Airlines shareholders.

D

122. According to the text, the direct consumers of a nonprofit organization's ideas or services are called its _________ public. a) general b) consumer c) member d) client e) nonbusiness

D

122. Packaging that is designed to flow through the distribution channel easily is called ____ packaging. a) category-consistent b) multiple c) innovative d) handling-improved e) logistic

D

123. The package design of a bag of flour would most likely be criticized for being a) unsafe to the environment. b) unsafe to the user. c) deceptive. d) functionally deficient. e) well suited for multiple-unit packaging.

D

125. Labeling is important for three specific reasons, including promotional and legal reasons. What is the third reason? a) Marketing b) Branding c) Strategy d) Informational e) Packaging

D

127. The fact that the "Y" is open from 6:00 am until 11:00 pm refers to the __________ element of its marketing mix. a) promotional b) product c) price d) distribution e) service

D

130. Garments must be labeled with the country of manufacture, fabric content, and a) clothing style. b) size. c) inspection code. d) care instructions. e) universal product code.

D

130. Which of the following types of pricing will the accountant most likely use when charging for the service? a) time-based pricing b) off-peak demand c) bundled pricing d) demand-based pricing e) customer contact pricing

D

132. When using an accountant to prepare her tax return, Kaycee really can't determine the level of the accountant's expertise, or whether the accountant actually determined the absolute highest dollar amount Kaycee could have legally received. This is an example of the _________ of a service. a) search qualities b) product qualities c) service quality d) credence qualities e) experience qualities

D

139. Which of the following is not a function of the packaging strategy chosen by Silk Soymilk? a) It protects and preserves the product. b) It offers convenience to customers. c) It's size and shape help make storage easier. d) It is less harmful to the environment. e) It most likely appeals to children and those with active lifestyles.

D

32. 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 brand _____ for Prego. a) insistence; recognition b) insistence; preference c) loyalty; preference d) preference; recognition e) preference; loyalty

D

34. Jason Robinson, a dentist, finds that he is not bringing in enough revenue to cover his expenses. He would like to schedule more patients, but he finds that in almost every time slot, he is seeing an existing patient. Jim's difficulty in expanding his practice involves the aspect of service called a) slotting. b) perishability. c) credence. d) inseparability. e) heterogeneity.

D

34. What degree of brand loyalty is the strongest and most desired by marketers? a) Preference b) Requirement c) Awareness d) Insistence e) Recognition

D

35. Recently Jose went to a neighborhood grocery store to pick up a few items. When he looked for Old Spice Ultra deodorant, it was unavailable. Although there were a number of deodorant brands available, he did not buy any deodorant. Jose's behavior indicates that he most likely has what level of brand loyalty toward Old Spice Ultra deodorant? a) Recognition b) Resistance c) Preference d) Insistence e) No brand loyalty

D

36. The fact the services cannot be inventoried and then sold at a later date is called a) intangibility. b) heterogeneity. c) inseparability. d) perishability. e) nonstorability.

D

36. The value, measured in either marketing or financial terms, associated with a brand's strength in a market is referred to as brand a) loyalty. b) value. c) share. d) equity. e) association.

D

37. Elements that help create brand equity include all of the following except brand a) quality. b) associations. c) loyalty. d) recognition. e) awareness.

D

39. Lauren is a concert promoter who works for pop star Justin Timberlake. She works very hard to make sure most of Justin's concerts are sold out because she understands the concept of perishability, which means a) because the concert is not tangible, customers will have a difficult time judging its quality in advance. b) the production of the concert and the consumption of the concert by the fans cannot be separated so tickets must be sold. c) a high level of interaction will exist between the customers and the musicians, which makes the customers' presence necessary. d) that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again. e) that each concert is different and customers will miss a unique experience if they are not present at the concert.

D

41. Because of a service's ___________, standardization and quality are difficult to control. a) intangibility b) inseparability c) homogeneity d) heterogeneity e) perishability

D

41. Which of the following products is an example of a manufacturer brand? a) Sears Kenmore washing machines b) JC Penney jeans c) Kmart tires d) Pioneer stereos e) Safeway tomato sauce

D

43. The owner of the Lords and Ladies hair salon has difficulty in standardizing and controlling the quality of service that the customers in his salon receive. This problem illustrates which of the following unique features of service? a) Intangibility b) Inseparability c) Perishability d) Heterogeneity e) Marketability

D

44. Another common name for a private distributor brand is a ______ brand. a) home b) manufacturer c) generic d) store e) label

D

46. Machinery such as ATMs and online customer services can reduce the ______ that comes from increased contact with human employees. a) intangibility b) perishability c) inseparability d) heterogeneity e) tangibility

D

47. Craftsman tools, sold and branded by Sears, is an example of a ___________ brand. a) manufacturer b) generic c) wholesaler d) private distributor e) regional

D

52. Client-based relationships are most likely to be developed by a) funeral directors. b) electricians. c) installers. d) doctors. e) brick layers.

D

52. Of the different types of brands, the one that has experienced the steadiest growth is a) manufacturer. b) producer. c) generic. d) private distributor. e) imitator.

D

55. A package of aluminum foil at Kroger grocery store has no brand name on the package. This product is an example of a _________ brand. a) manufacturer's b) private distributor's c) no-name d) generic e) no-frills

D

59. Which of the following should be the least important concern for marketers when selecting a brand name? a) Choosing a name that is easy to say and recall b) Positively suggesting the product's major benefits c) Designing a name that can be used in all different types of media d) Developing an advertising campaign to introduce the name e) Checking to see if the name is already trademarked by another company

D

60. Regarding the factors that marketers consider when selecting a brand name, which one does the toilet bowl sanitizer 2000 Flushes best fulfill? a) Compatibility with other products in the line b) Flexibility to be used in various types of media c) Using fabricated names that cannot be duplicated d) Indicating the product's major benefits e) Keeping the brand name as short as possible

D

64. 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 a) perishability. b) heterogeneity. c) inseparability. d) intangibility. e) customer contact.

D

65. Brittany recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Brittany was trying to overcome the ______ aspect of services. a) heterogeneity b) perishability c) customer contact d) intangibility e) inseparability

D

68. In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to a) deliver on these promises and risk financial losses and the success of the company. b) promise less than they can actually deliver and keep customers away. c) make the appearance of their facilities consistent with their promises to customers. d) promise too much and cause customer expectations beyond what they can deliver. e) make the quality of their services too tangible in the eyes of the customer.

D

69. Which of the following laws was enacted by Congress in 1988 to strengthen trademark protection? a) Brand Protection Act b) Lanham Act c) Trademark Infringement Act d) Trademark Law Revision Act e) U.S. Patent and Trademark Act

D

Air-Tech management learns that last month's production run of heaters at its Newark plant is defective and announces a recall of the specific models produced. To handle the large number of products it expects to receive for replacement of the defective thermostats, Air-Tech will probably need to add a ___________ to its distribution network. a) distribution center b) private warehouse c) dispatching shipment system d) public warehouse e) materials handling system

D

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? a) Trial b) Adoption c) Interest d) Awareness e) Evaluation

D

Angela and Ralph at Tablerock Foods believe they have come up with a delicious low-calorie dessert, but they have some doubt about which of two promotional and pricing campaigns will be better received by consumers. In this instance, they probably should proceed to the ___________ stage of the new-product development process. a) business analysis b) commercialization c) screening d) test marketing e) product development

D

Business products are a) purchased for personal consumption. b) chosen on the basis of preferences expressed by a business procurement department. c) purchased for both their functional aspects and their psychological rewards. d) classified according to their characteristics and intended uses. e) not purchased by nonbusiness organizations.

D

Casey is searching the website of Megabus.com for the schedule and fares of a trip between Buffalo, NY and New York City. Case is most likely in which of the following stages of the product adoption process? a) adoption b) trial c) evaluation d) interest e) awareness

D

Clint's suggestion for the uniform rental service was either picking up and delivering the uniforms themselves, or contracting this to a third party. If Star decides to pick up and deliver the uniforms with its own trucks, this is an example of a _______ channel. If Star contracts this action to a third party, it is called _________. a) long; industrial distribution b) direct; industrial distribution c) long; outsourcing d) direct; outsourcing e) exclusive; outsourcing

D

Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of a) product modifications. b) functional modifications. c) aesthetic modifications. d) line extensions. e) product lining.

D

During the maturity stage a) product modifications are unnecessary. b) there is less emphasis on changing a product's price. c) marketing strategies are rarely altered. d) some competitors are forced out. e) limited advertising expenditures are required to maintain market share.

D

Eric is concerned about not having enough air conditioning units in inventory during June, July, and August so he keeps extra inventory to guard against stockouts during this critical period. Eric is keeping a) short order lead times. b) just-in-time inventory. c) a controlled usage rate. d) safety stock. e) excessive inventory.

D

Federal Mogul places several boxes of products or materials on pallets in order to load them efficiently using forklifts. This system of materials handling is called a) warehousing. b) containerization. c) group storage. d) unit loading. e) mechanized handling.

D

Garcia Wholesale Plumbing has seen its sales in the Southeast triple in the past two years. Materials handling director Barb Peterson announces plans to the board for an Atlanta facility that will combine shipments received from Garcia's 25 suppliers for nearly immediate shipment to plumbing stores and contractors in the region. This new facility would be best classified as which of the following? a) Sales office b) Public warehouse c) Field public warehouse d) Distribution center e) Bonded warehouse

D

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. a) introduction b) decline c) growth d) maturity e) competitive

D

Honey Farms is a maker of fine chocolates. The company's latest product, Fudge-Dipped Strawberries, is the premier product in its Fudge-Dipped line. The product is very expensive and targeted to upscale consumers. Which form of distribution would Honey Farms be likely to use for its new product? a) Intensive b) Selective c) Targeted d) Exclusive e) Premier

D

If 7-UP decides Diet 7-Up with Vitamins is not reaching profit expectations and simply allows the product to decline without any change in marketing strategy, it is using a ____ deletion strategy. a) run-out b) immediate drop c) slow-down d) phase-out e) drop-down

D

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 a) styling. b) support services. c) design. d) product features. e) product quality.

D

If Liz Claiborne were to distribute their Kate Spade brand through its company-owned stores and through wholesalers, to major department stores, then Liz Claiborne would be using ___________ distribution. a) intensive b) vertical c) horizontal d) dual e) exclusive

D

In an administered VMS, informal coordination brings about a high level of interorganizational management. Nonetheless, a) decision making does not take into account the goals of the system. b) the channel members do not remain autonomous. c) the decision making is not coordinated. d) the channel members remain autonomous. e) the goals of the individual firms are not congruent with the goals of the system.

D

Justin Abercrombie attends a seminar on just-in-time inventory management. Excited about the idea, he returns to his office at Atlanta Auto Supply to start designing such an inventory system. Which of the following steps must Justin take as he institutes this change? a) Increase safety stock b) Raise the reorder point c) Reduce customer service standard d) Increase order frequency e) Reduce estimates of inventory turnover rate

D

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) a) product manager. b) area manager. c) director of operations. d) market manager. e) sales coordinator.

D

Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels? a) Producer, industrial distributors, retailers, consumers b) Producer, consumers c) Producer, wholesalers, retailers, consumers d) Producer, retailers, consumers e) Producer, agents, wholesalers, retailers, consumers

D

Luis Mayo is an accountant at Ralston Purina. However, he is currently working with a group to determine the feasibility of a new brand of hot breakfast cereal. After the product is launched, Luis will return to the accounting department. His present position can be described as a a) product manager. b) brand manager. c) general manager. d) member of a venture team. e) market manager.

D

Magnetic Springs wants to ship its bottled water with the most flexible schedules and routes of all transportation modes. Magnetic Springs should use ___________ as its transportation mode. a) railroads b) waterways c) pipelines d) trucks e) airways

D

Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called a) multiple channeling. b) strategic channel alliance. c) intensive distribution. d) dual distribution. e) market splitting.

D

Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during a) commercialization. b) screening. c) concept testing. d) product development. e) test marketing.

D

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 a) business analysis. b) immediate drop. c) screening. d) phase out. e) runout.

D

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? a) Price b) Selling organization c) Terms of the sale d) Buyer's intended use of the product e) Benefits the product provides

D

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 a) flexible warehouse. b) dispatching center. c) distribution center. d) private warehouse. e) public warehouse.

D

Nationally distributed consumer convenience products are most likely distributed through which of the following channels? a) Producer, consumers b) Producer, agents, wholesalers, retailers, consumers c) Producer, wholesalers, consumers d) Producer, wholesalers, retailers, consumers e) Producer, industrial distributor, wholesalers, retailers, consumers

D

Overall channel goals and individual channel member goals cannot be achieved together without a) conflict. b) captains. c) leadership. d) cooperation. e) tying agreements.

D

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? a) There are research and audit services available. b) Retailers would be cooperative. c) Testing efforts would not be easily jammed by competitors. d) Tourism is a major industry in the area. e) The city has stable year-round sales of soft drinks.

D

Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through a) transit time. b) warehousing. c) packaging. d) containerization. e) lot sizes.

D

Ralph Lauren sells Polo products through department stores as well as in its own specialty shops. The designer uses ___________ as a channel strategy. a) channel extension b) intermediary exclusion c) broker utilization d) dual distribution e) channel diversification

D

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 a) direct distribution. b) producer, retailer, consumer. c) telemarketing. d) direct-marketing. e) indirect marketing.

D

Select the greatest advantage of horizontal channel integration. a) The flexibility of the channel is decreased. b) The markets are more heterogeneous. c) The expanded number of units is coordinated. d) Efficiencies in advertising, marketing research, and purchasing are increased. e) Planning and research are increased to cope with increased competition.

D

Star Supplies, Inc. is most likely using which of the following to market its vacuum, floor polisher, and janitorial supplies to its small business customers? a) Wholesalers b) Retailers c) Merchants d) Industrial distributors e) Manufacturers' agents

D

The Wicks 'N Sticks candle and gift marketing organization has a(n) ___________ vertical marketing system arrangement with its franchised retail store operations. a) corporate b) administered c) negotiated d) contractual e) horizontal

D

The driving force behind marketing channel decisions should be a) convenience. b) cost reduction. c) environmental concerns. d) customer satisfaction. e) quality.

D

The intangible products that most organizations use in their operations are called a) component parts. b) MRO supplies. c) process ideas. d) business services. e) installations.

D

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 a) test marketing. b) commercialization. c) concept testing. d) product development. e) business analysis.

D

The supply chain includes a) producers, wholesalers, and retailers. b) suppliers, producers, intermediaries, and customers. c) suppliers and suppliers' suppliers. d) all entities that facilitate product distribution. e) buyers, seller, marketing

D

The test-marketing stage a) is an extension of the screening stage. b) should come immediately after business analysis. c) ensures that the product will not fail. d) is a sample launching of the entire marketing mix. e) prevents competitors from copying the product.

D

The width of a product mix is measured by the number of product a) dimensions in the product line. b) features in each brand. c) items in the product line. d) lines a company offers. e) specialties a company offers.

D

To differentiate their products, companies sometimes emphasize the product support services that they offer. This is especially true when a) the company's prices are higher than the competition's. b) the company introduces a new product. c) consumers are willing to pay for product support services. d) consumers perceive all products in a market to have essentially the same quality, design, and features. e) the quality of the company's products is inferior to the quality of competing products.

D

What are the three primary tasks of order processing? a) Order receipt, order delivery, order follow-up b) Order handling, inventory management, order delivery c) Materials handling, warehousing, order delivery d) Order handling, order entry, order delivery e) Order receipt, order checking, order delivery

D

What is the most expensive physical distribution function? a) Warehousing b) Order processing c) Inventory management d) Transportation e) Materials handling

D

What is the primary distinction between a line extension and a product modification? a) A product modification results in a completely new product while a line extension is simply changing an old product. b) In both cases an existing product is altered, but the alteration is more dramatic with a product modification than it is with a line extension. c) Line extensions are designed to better meet the needs of the existing market segment while product modifications target entirely new segments of the market. d) 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. e) Line extensions are strictly aesthetic changes to an existing product whereas product modifications consist of changes in quality and functionality.

D

What measure of the product mix involves the number of product lines a company offers? a) Quality b) Consistency c) Depth d) Width e) Size

D

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. a) introduction b) growth c) stabilization d) maturity e) decline

D

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. a) awareness b) interest c) evaluation d) trial e) adoption

D

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? a) Awareness b) Interest c) Evaluation d) Trial e) Adoption

D

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 a) fifteen. b) five. c) eighteen. d) six. e) twenty.

D

Which of the following best defines the interest stage in the product adoption process? a) The buyer tries to find the product in a retail store. b) The buyer considers the benefits and determines whether to try the product. c) The buyer tries the product to determine its usefulness. d) The buyer seeks information and is receptive to learning about the product. e) The buyer uses objective sources to learn about the product.

D

Which of the following best illustrates how a firm can use a symbol to make an intangible product more tangible? a) McDonald's arches b) Mercedes Benz emblem c) Nike swoosh d) Traveler's Insurance umbrella e) Arrows on Wrigley gum packages

D

Which of the following is a disadvantage of gradually introducing a product to market? a) It reduces the risk of introducing a new product. b) It is easier logistically to introduce it all at once. c) It is difficult to slow down production enough for a gradual introduction. d) It allows competitors to monitor the results of the new product. e) It prevents product differentiation based on geographical differences.

D

Which of the following is most likely to be considered a convenience good? a) A lamp b) A haircut c) Running shoes d) Gatorade e) Concert tickets purchased online

D

Which of the following is not a stage in the buyer's product adoption process? a) Awareness b) Adoption c) Trial d) Exploration e) Interest

D

___________ and ___________ are important characteristics of quality for consumer markets, and ___________ and ___________ are important characteristics of quality for business markets. a) Reliability/ease of use; technical suitability/ease of repair b) Technical suitability/reasonable price; trusted brand name/ease of repair c) Durability/technical suitability; company reputation/ease of repair d) Ease of maintenance/company reputation; durability/technical suitability e) Trusted brand name/ease of repair; reliability/company reputation

D

105. Jack and Amy Douglas are purchasing their first home and have certain expectations for the mortgage company with which they are working. After a long series of "unexplainable" delays, Jack and Amy become very frustrated and decide to stay in their apartment at least another year. The mortgage company failed to provide service within Jack and Amy's a) specifications. b) desired responsiveness. c) perceptions of quality. d) service acceptance. e) zone of tolerance.

E

118. Which one of the following is not a benefit of multiple packaging? a) Facilitates special price offers b) Increases demand c) Increases consumer acceptance of the product d) Makes handling or storage easier e) Conveys an overall image of the firm

E

121. Nathan recently purchased a floor lamp from Wal-Mart. The floor lamp came in a compact cardboard box and assembly was required. This is an example of _____ packaging. a) secondary-use b) multiple c) category-consistent d) innovative e) handling-improved

E

124. Distribution for nonprofit organizations is a) unimportant because physical movement does not take place. b) not an important decision. c) coordinated by middlemen. d) inefficient rather than efficient. e) typically characterized by short channels.

E

138. Silk Soymilk probably increased demand for its single servings by facilitating increased consumption of the product through its practice of ___________ packaging. a) innovative b) category-consistent c) handling-improved d) secondary-use e) multiple

E

22. Which of the following products associated with weddings is most likely to be considered a service? a) Wedding cake b) Floral arrangements c) Bridal gown d) Reception hall e) String quartet music

E

23. Which of the following factors have contributed the least to the growth of services in the U.S. economy? a) Increased interest in travel and entertainment b) Increased number of women in the workforce c) Increased proportion of older people in the United States d) Increased interest of Americans in fitness and recreation e) Increased number of high-tech goods

E

30. When a customer is aware that a brand exists and considers it a possibility if his preferred brand is out, he exhibits brand a) loyalty. b) insistence. c) preference. d) acknowledgement. e) recognition.

E

35. All of the following are elements of the inseparability characteristic of services except that a) consumers are involved in production. b) centralized mass production is difficult. c) consumption and production are simultaneous. d) many services cannot be performed without the customer being present. e) services are easy to standardize and control.

E

38. 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. a) inept set b) loyalty set c) preference group d) brand group e) consideration set

E

39. 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 a) more challenging strategically. b) less time consuming. c) less risky. d) less expensive. e) less expensive and less risky.

E

40. The more __________ involved with delivering a service, the greater the degree of heterogeneity. a) mechanical efforts b) phone contact c) perishability d) tangibility e) human labor

E

45. H&R Block, a major tax preparation firm, reported having a problem with its employees being inconsistent in the filing of returns. The firm is experiencing a problem with which of the following characteristics of the service offering? a) Tangibility b) Intangibility c) Perishability d) Inseparability e) Heterogeneity

E

45. Private distributor brands are owned by a) manufacturers only. b) manufacturers and retailers. c) wholesalers only. d) manufacturers and wholesalers. e) wholesalers or retailers.

E

46. Old Navy sells only Old Navy labeled clothing in its retail stores. The Old Navy brand is not sold in any other outlet. Old Navy is a _____ brand. a) generic b) reseller c) manufacturer d) distribution e) private distributor

E

49. The main characteristic of a ___________ is that customers are satisfied to the point that they use a service repeatedly over a period of time. a) service relationship b) professional marketer c) high-contact service d) heterogeneous service e) client-based relationship

E

53. Many manufacturers that produce their own brand a) also produce generic versions of their products. b) sell only to outlets bearing their brand name. c) receive most of their profits from service work. d) use low prices to build their perceived brand quality. e) also produce products for private distributor brands.

E

57. Which of the following is the best example of a high-contact service? a) Appliance repair b) Newspaper delivery c) Dog training d) Interior decorating e) Plastic surgery

E

62. What is the most protectable brand type as determined by a series of court decisions? a) Generic b) Suggestive c) Descriptive d) Arbitrary e) Fanciful

E

64. Through a series of court decisions, a hierarchy of brand protection based on brand type has been created. These brand types include all but which of the following? a) Arbitrary b) Descriptive c) Fanciful d) Generic e) Symbolic

E

68. Registration of a trademark with the U.S. Patent and Trademark Office protects trademarks domestically for ____ years with indefinite renewals. a) two b) thirty c) eighteen d) five e) ten

E

70. 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? a) Aunt Jemima Pancake mix b) Dell computers c) Puffs d) Crispix e) Jell-O

E

71. What are the three primary ways that marketers deliver services? a) Over the phone, online, or in-person b) Continuously, periodically, or on demand c) At the customer's home, in-person, or by telecommunications d) Through service centers, delivery vehicles, or the mail e) Service facilities, customer's home, or from a distance

E

72. The marketing channels for services are usually a) complex and multifaceted. b) characterized by two to three intermediaries. c) dependent on the geographical location of the consumer. d) determined by the customer. e) direct from provider to customer.

E

83. When a product tries to capitalize on the brand equity of two separate brands, marketers are using a) licensing. b) dual-branding. c) partnerships. d) brand extension. e) co-branding.

E

87. Which of the following service providers are most likely to use demand-based pricing? a) Dentists b) Lawyers c) Doctors d) Hair stylists e) Cruise ships

E

89. Safe Auto Insurance advertises "minimum coverage for minimum budgets" for its automobile insurance. Which of the following best describes Safe Auto's approach? a) Customers often use price as an indicator of quality, and Safe wants to be seen as a low-quality provider. b) This type of advertising makes insurance more tangible to the customer. c) Safe wants to reassure customers that they provide the highest level of service quality available. d) Because market conditions limit prices on auto insurance, Safe uses this approach to gain customers. e) For some services, customers look for the low-cost provider, which is what Safe claims to be.

E

97. Individual-sized boxes and packages that do not require refrigeration are both benefits of the ____ function of packaging. a) protection b) reusability c) cost effectiveness d) safety e) convenience

E

97. 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 a) search qualities. b) performance attributes. c) experience qualities. d) immeasurable attributes. e) credence qualities.

E

A goal of physical distribution is to reduce ______ or how long it takes to complete a process. a) time standards b) processing time c) production d) throughput measure e) cycle time

E

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? a) Business analysis b) Product testing c) Idea generation d) Commercialization e) Screening

E

A light bulb can be considered all of the following except a) a consumer product. b) a business product. c) either a consumer product or a business product. d) a business product if it is used to light an assembly line in a factory. e) a consumer product if it is used to light the office of the board of directors.

E

An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is called a) exclusive distribution. b) a tying agreement. c) refusal to deal. d) contractual VMS. e) exclusive dealing.

E

An important goal of physical distribution is reducing the time it takes to complete a) inventory management. b) outsourcing evaluation. c) electronic data interchange. d) order processing. e) cycle time.

E

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. a) convenience b) unsought c) disposable d) shopping e) specialty

E

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? a) Idea generation b) Commercialization c) Test marketing d) Screening e) Product development

E

Assuming everything else equal, the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be a) waterways. b) airways. c) tanker trucks. d) railroads. e) pipelines.

E

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 a(n) a) aesthetic modification. b) line extension. c) material adjustment. d) functional modification. e) quality modification.

E

Because some products are not doing well, Jonathan Moore thinks that the company should set up a procedure to evaluate each product so that management will know when and how a product should be discontinued. He is suggesting a a) product-drop decision. b) discontinuance procedure. c) performance review. d) closing system. e) systematic review.

E

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 a) production activities. b) service assistance. c) specialty industrial products. d) computer programming and operation services. e) MRO supplies.

E

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. a) maturity b) growth c) introduction d) market testing e) decline

E

Channel decisions are important to marketers mostly because a) they are relatively flexible to change quickly. b) consumers value reasonable prices delivered through marketing channels. c) they dictate what promotional strategies companies should use. d) many businesses are marketing intermediaries. e) they involve long-term commitments and affect customer accessibility.

E

Consumers receive the benefits of place utility when a) they have to travel excessively to obtain products they want. b) retailers remain open 24 hours a day. c) they can stock up on products they need but not use them right away. d) they make purchases with credit and debit cards. e) products are available in locations where consumers want to buy them.

E

Dell Computers is a nationally recognized manufacturer of computers for the small business and home markets. If Dell were to order one of its wholesalers not to carry any computer products other than those made by Dell, this arrangement would be called a) a tying contract. b) refusal to deal. c) a restricted sales territory. d) a restricted channel. e) exclusive dealing.

E

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. a) introduction b) growth c) maturity d) early e) decline

E

Dual distribution is characterized as a) illegal under the Robinson-Patman Act. b) distribution channels that typically carry exclusive products, such as Rolex watches. c) marketing environments that are highly competitive. d) manufacturers that forbid an intermediary to carry products of competing producers. e) distribution of one manufacturer's product through two or more different channel structures.

E

Durable goods such as television sets and DVD players generally reach their target markets through a) intensive distribution. b) channel cooperation. c) direct marketing. d) exclusive distribution. e) selective distribution.

E

Expensive, high-quality products that are purchased infrequently often reach consumers through a) selective distribution. b) highly-selective distribution. c) sole-source retailers. d) complex marketing channels. e) exclusive distribution.

E

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 a) poor timing. b) the failure to match product offerings to customer needs. c) technical problems. d) overestimation of market size. e) ineffective branding.

E

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. a) understanding b) power c) leadership d) communication e) conflict

E

Ideally, test marketing should follow which stage in the new-product development process? a) Commercialization b) Business analysis c) Screening d) Limited production e) Product development

E

If Megan Roberts were given total marketing responsibility over Diet Cherry 7Up, she would hold the position of __________ manager. a) product b) sales c) marketing d) advertising e) brand

E

Improving the taste of Cheetos Crunchies was a(n) __________ modification. a) quality b) sensory c) functional d) benefit e) aesthetic

E

In a simple economy of five producers and five consumers, there would be ___________ transactions possible without an intermediary and _________ transactions possible with one intermediary. a) ten; twenty-five b) thirty; ten c) twenty-five; fifteen d) sixteen; eight e) twenty-five; ten

E

In marketing a new line of nursery furniture for infants and small children, the Fisher Company will most likely use ___________ distribution for the products. a) intensive b) exclusive c) horizontal d) priority e) selective

E

Many producers selling on the Internet are using a) several intermediaries. b) complex marketing channels. c) Internet wholesalers, retailers, and agents. d) supply chain channels. e) direct-marketing channels.

E

Minerals, chemicals, timber, and agricultural products are considered a) process materials. b) accessory materials. c) MRO supplies. d) component parts. e) raw materials.

E

Molly has been using a Bic disposable razor for her shaving needs for the last ten years. She doesn't really see the need to spend more money on razors, but she sees that it is becoming more difficult to find the Bic, and so she is considering the Venus Embrace. Molly is definitely not a(n) _______ in the product adopter categories, and is more likely to be _____. a) innovator; an early adopter b) early adopter; an innovator c) early majority; an early adopter d) innovator; an early majority e) innovator; a late majority

E

Nathan is trying to decide which shipping company to use to transport his custom-made furniture to customers. Nathan is facing a decision about a) order entry. b) order completion. c) just-in-time. d) order handling. e) order delivery.

E

Order handling involves all of the following activities except that the a) credit department approves the purchase. b) order is transmitted to the warehouse. c) availability of product is verified. d) warehouse is instructed to fill the order. e) customer places a purchase order.

E

Organizational buyers are especially partial to direct marketing channels when a) they buy cheap materials in large quantities. b) they try a new product for the first time. c) they are filling an order for a very important customer. d) a modified rebuy type of decision is involved. e) expensive and/or complex equipment is involved.

E

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. a) business analysis b) product development c) test marketing d) screening e) idea generation

E

Physical distribution activities may be performed by a producer, wholesaler, retailer or a) not performed at all. b) the customer. c) investors in any of the previous three. d) solely through technology. e) they may be outsourced.

E

Product and target market characteristics usually determine the type of coverage a product receives. For which of the following products is selective distribution most appropriate? a) Gasoline b) Jaguar automobiles c) Cigarettes d) Laundry detergent e) Panasonic stereos

E

Product failure is a concern of all marketers. Which of the following phases of new-product development is best able to measure this concern? a) Screening b) Concept testing c) Business analysis d) Product development e) Test marketing

E

Products used directly in the production of a final product but are not easily identifiable are categorized as a) accessory products. b) component parts. c) MRO supplies. d) assembly components. e) process materials.

E

Sales start at zero and profits are negative during the ____ stage of the product life cycle. a) decline b) growth c) initial d) maturity e) introduction

E

Sales usually start to decline during the __________ stage of the product life cycle. a) beginning of the termination b) end of the growth c) beginning of the decline d) beginning of the growth e) end of the maturity

E

Shopping products have a _____ inventory turnover and need _____ distribution outlets than convenience goods. a) similar; more b) higher; fewer c) higher; more d) lower; more e) lower; fewer

E

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. a) test marketing b) business analysis c) concept testing d) product development e) commercialization

E

The Home Depot is trying to reduce transportation, information management, and administrative costs. To accomplish this goal, channel members need to a) work independently. b) avoid cooperation due to antitrust considerations. c) work with competitors and share information. d) increase competition among channel members. e) cooperate and accommodate one another's needs.

E

The Limited, which produces and retails clothing products in a coordinated channel, is an example of a(n) a) administered vertical marketing system. b) conventional marketing channel. c) channel network. d) contractual marketing channel. e) corporate vertical marketing system.

E

The Liz & Co brand is sold only at J.C. Penney's. This is an example of ___________ distribution. a) selective b) routine c) horizontal d) intensive e) exclusive

E

The contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel is known as a) illegal. b) logistics. c) warehousing. d) wholesaling. e) outsourcing.

E

The difference between absolute and relative product failure is a) absolute product failure can be fixed by repositioning or improving the product, whereas relative product failure is permanent. b) relative product failure loses money on its investment, whereas absolute product failure returns a small profit. c) relative product failure is the result of poor timing, whereas absolute product failure is the result of the lack of the ability to provide benefits that satisfy customers' desires. d) absolute product failure is caused by design problems, whereas relative product failure is caused by poor promotion or distribution. e) 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.

E

The following organizational approaches accomplish tasks necessary to develop and manage products: market manager approach, product manager approach, and the _________ approach. a) brand manager b) functional team c) multiproduct manager d) special projects e) venture team

E

The members of a venture team come from a) the marketing department. b) a consulting firm. c) the research and development department. d) the production and finance departments. e) different functional areas of an organization.

E

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. a) decline b) evaluation c) growth d) introduction e) maturity

E

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. a) idea generation b) screening c) product development d) test marketing e) business analysis

E

The three major levels of intensity at which a company can choose to distribute its products are _____ distribution. a) narrow, medium, and wide b) cooperative, conflicting, and integrated c) intensive, extensive, and exclusive d) selective, cooperative, and conflicting e) exclusive, selective, and intensive

E

Using a freight forwarder usually a) is not economical for a small firm. b) increases transit time and shipping costs. c) increases transit time and sometimes lowers shipping costs. d) lowers shipping costs for a large firm. e) reduces transit time.

E

Vertical channel integration a) results in two or more different management teams for each member of the channel. b) is made possible when a large corporation divests itself of smaller subsidiaries. c) is a shift back to the conventional channel of distribution. d) combines institutions at the same level of operation. e) is made possible by purchasing the operations of a link in the channel.

E

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 a) channel leadership. b) channel cooperation. c) channel conflict. d) horizontal channel integration. e) vertical channel integration.

E

Weyerhaeuser is evaluating its complete product mix. It wishes to decrease some of its marketing expenditures and streamline its product offerings. Weyerhaeuser will most likely look at products in the _____ stage of the product life cycle as possibilities for elimination. a) not yet developed b) growth c) introduction d) maturity e) decline

E

What is the primary determinant in deciding how materials will be handled? a) Unit loading b) Containerization c) Customer preference d) Cost reduction e) Product characteristics

E

What two modes of transportation are used when containers are shipped by piggyback? a) Railroads and airways b) Trucks and airways c) Pipelines and trucks d) Waterways and railroads e) Railroads and trucks

E

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) a) brand extension. b) product deletion. c) aesthetic modification. d) market extension. e) functional modification.

E

When channel members are linked by legal agreements that specify each member's rights and responsibilities, _______ exists. a) horizontal channel integration b) an administered VMS c) a corporate VMS d) a channel captain e) a contractual VMS

E

When companies operate their own facilities for storing and shipping products, these facilities are known as a) distribution centers. b) product storehouses. c) public warehouses. d) megawarehouses. e) private warehouses.

E

When considering the best channel to use, all of the following are true with regard to larger firms except they a) can use an extensive product mix as a competitive tool. b) may be better able to negotiate better deals with vendors or other channel members. c) may have more distribution centers. d) may have the resources to develop their own sales force. e) may be better suited to serve customers in a particular region.

E

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 a) positioning. b) level and consistency of quality. c) ability to meet customer service needs. d) design, styling, and level of quality. e) design, styling, and features.

E

Which of the following is an advantage of using an industrial distributor? a) These firms are easy to control because they work directly for the producers. b) Inventory holding costs are minimized because they can store inventory very cheaply. c) They are closer geographically to all of the producers' customers. d) They possess a high level of technical knowledge about their products. e) They help reduce a producer's financial burdens by extending credit to customers.

E

Which of the following is not a business product? a) Oil to be refined into fuel b) Chips to be integrated into components for personal computers c) Paper, pens, and tape to be used in an office d) Marketing consulting services to aid a company in marketing a new product e) Calculators bought to help individuals complete their personal federal income tax forms

E

Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the organization? a) Aesthetic b) Operational c) Benefit d) Functional e) Quality

E

___________ adds time and place utility to a product by moving it from where it is made to where it is purchased and used. a) Warehousing b) Containerization c) Distribution d) Materials handling e) Transportation

E

111. ___________ packaging means that the product is packaged in line with the packaging practices associated with a particular product category. a) Category-consistent b) Category-specific c) Innovative d) Multiple-category e) Selective

A

42. The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ______ of services. a) heterogeneity b) customer contact aspect c) intangibility d) inseparability e) perishability

A

47. Maria asks Glenda what housecleaning service she would recommend in Oakview. Glenda responds that Pristine Cleaning is great if you can be assured that Janice will be the person assigned to your house. Glenda's recommendation addresses which of the following service features? a) Heterogeneity b) Intangibility c) Perishability d) Inseparability e) Homogeneity

A

50. Traditionally, the main advantage of a private brand over a manufacturer brand was the _____, but this advantage is gradually diminishing. a) better price b) higher quality c) more accessible distribution d) straightforward labeling e) friendlier customer service

A

54. The necessary interaction between service provider and customer that allows a service to be delivered is called a) customer contact. b) service exchange. c) marketing. d) relationship marketing. e) service contact.

A

82. Demand-based pricing most closely relates to the _____ of services. a) perishability b) intangibility c) heterogeneity d) customer contact aspect e) inseparability

A

83. 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 a) peak demand. b) preferred demand. c) off-peak demand. d) high-contact time. e) high intensity time.

A

86. Any service provider that offers time-sensitive services receives most of its revenue during a) peak demand. b) heavy use time. c) the off-season. d) preferred demand. e) customer contact time.

A

88. Which of the following service providers are most likely to bundle-price their services? a) Cable television companies b) Retail stores c) Airlines d) Theaters e) Doctors

A

According to the text, a product is defined as a) anything the customer receives in an exchange. b) the physical object the customer receives in an exchange. c) the service that is rendered to a customer. d) the idea that the customer receives in an exchange. e) goods and services the customer receives in an exchange.

A

After direct-marketing, the next slightly longer marketing channel adds a(n) a) retailer. b) producer. c) wholesaler. d) agent. e) consumer.

A

Although they become part of a larger product, _______ can often be easily identified and distinguished on the larger product. a) component parts b) accessory parts c) raw materials d) process materials e) MRO supplies

A

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? a) Business b) Process materials c) Raw material d) Convenience e) Consumer

A

An independent business that takes title to products and carries inventories is a(n) a) industrial distributor. b) intermediary. c) agency. d) wholesaler. e) producer.

A

As Jessica enters Best Buy's car electronics department, she is asked by the salesperson if she has seen the new plug-in cell phones with TV display. She answers that she didn't know that this type of phone accessory for cars was available. Based on this information, she is now in what stage of the product adoption process for this item? a) Awareness b) Interest c) Evaluation d) Trial e) Adoption

A

Changes that affect a product's versatility, effectiveness, convenience, or safety are called ___________ modifications. a) functional b) formal c) aesthetic d) quality e) package

A

Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called ___________ modifications. a) aesthetic b) functional c) operational d) quality e) feature

A

Concerns about cannibalization of current product sales must be addressed in the ___________ phase of the new-product development process. a) screening b) concept testing c) business analysis d) product development e) test marketing

A

Convenience products are a)relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort. b)frequently purchased items for which buyers are willing to exert considerable effort. c)frequently purchased items that are found in certain retail outlets. d)items that are expensive but are easy to purchase. e)items that require some purchase planning and for which the buyer often will not accept substitutes.

A

Dannon Yogurt represents what type of product for most consumers? a) Convenience b) Business c) Shopping d) Specialty e) Durable

A

During the decline stage of the product life cycle, a) sales rapidly decrease. b) market share is maintained. c) competition is at a peak. d) profits begin to fall. e) profits peak and then begin to decline.

A

The ability of a product to provide the same level of quality over time is called a) consistency. b) longevity. c) variability. d) status. e) image.

A

The three major ways to modify a product include a) aesthetic, quality, and functional changes. b) extensions, generations, and upgrades. c) color, size, and quantity modifications. d) styling, product features, and product design. e) quality, quantity, and design.

A

When Gillette developed the Venus razor in 1998, in which stage of the product life cycle was the Venus? a) Introduction b) Growth c) Profit d) Maturity e) Decline

A

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 a) poor timing. b) the company's failure to match product offerings to customer needs. c) ineffective branding. d) design problems. e) overestimation of market size.

A

When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a a) retailer. b) wholesaler. c) broker. d) functional middleman. e) producer.

A

103. 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 a) reliability. b) responsiveness. c) empathy. d) tangibles. e) assurance.

B

116. Which of the following is similar for both for-profit and nonprofit marketing? a) Emphasis on profit as a motive b) Ability to use effective marketing activities c) Concern for the entry of competitors into the field d) Complexity of the typical distribution channels e) Definition of target markets

B

135. The Pillsbury brand name would be characterized as a ___________ brand. a) private b) manufacturer c) store d) generic e) dealer

B

90. 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 a) brand extension. b) brand licensing. c) product continuation. d) private branding. e) individual branding.

B

99. A firm may decide that all packages should be similar and include one major element of the same design. This approach to promote an overall company image is called a) family extension. b) family packaging. c) overall packaging. d) package extension. e) selective packaging.

B

A channel of distribution is defined as a group of individuals and organizations that a) consumes about one-half of every dollar spent on products in the United States. b) directs the flow of products from producers to customers. c) links producers to other marketing intermediaries. d) takes title to products and resells them. e) manages transportation and warehousing functions.

B

A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances? a) When the firm wants specialized personnel to follow up the work of the sales force b) When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force c) When only one or two channels of distribution are available for products d) When the sales force is large and the marketer is thinking of cutting it down e) When customers are highly concentrated in one geographic area

B

Aggressive pricing is typical during the ___________ stage of the product life cycle. a) decline b) growth c) introduction d) plateau e) stabilization

B

By receiving orders online instead of through a paper-based ordering system, Barnes and Nobles has been able to save time and money on a) electronic data interchange. b) order entry. c) inventory management. d) order delivery. e) order handling.

B

Competitive interference with a test-marketing program is called a) tactical interference. b) jamming. c) test interference. d) squeezing. e) ramming.

B

Karla tells Jeff that she likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. She is asking Jeff to proceed to which stage of the new-product development process? a) Idea generation b) Business analysis c) Commercialization d) Test marketing e) Screening

B

MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets a) services. b) ideas. c) goods. d) tangible products. e) features.

B

Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use? a) Producer, consumer b) Producer, wholesaler, retailer, consumer c) Producer, wholesaler, agent, retailer, consumer d) Producer, retailer, consumer e) Retailer, consumer

B

Nick Arnold's Auto Towing Service would best be described as a(n) __________ product. a) convenience b) unsought c) specialty d) durable e) shopping

B

One disadvantage of test marketing a new product is that a) the product is distributed on a regional basis. b) competitors may copy the product. c) the results give little indication of the product's future success. d) price, advertising, and packaging cannot be varied from market to market. e) it might fail before it can be commercialized.

B

Possession utility is best described as a) products being available in places where the customers wish to purchase them. b) the customer having access to the product to use now or store and use later. c) having a company's products available when a customer needs them. d) being able to legally own a product despite restrictions on trade. e) getting the products to the consumers in as short of time as possible for ownership.

B

Product deletion a) tends to be an easy task for most organizations. b) may be opposed by management. c) involves immediate termination. d) is a matter of indifference to customers. e) usually occurs only with convenience items.

B

The result of an inventory stockout is usually an increase in a) inventory costs. b) lost sales. c) net profit. d) customers. e) prices.

B

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. a) maturity b) decline c) growth d) introduction e) reorganization

B

To make intangible products more tangible or real to the consumer, marketers often a) use low prices on intangible goods. b) use symbols or cues to help symbolize product benefits. c) use external reference prices. d) use multiple channels of distribution. e) offer more support services with such products.

B

Tojitos Mexican Restaurant purchased several large ovens for use in remodeling its kitchens. These ovens are an example of which type of business product? a) Raw materials b) Installations c) Accessory equipment d) Component parts e) Process materials

B

Top managers at Cincinnati Microwave believe that they have a successful working prototype of their new radar detector and plan to go directly to regional commercialization of the new product. In this instance, they are contemplating skipping the __________ phase of the new-product development process. a) screening b) test marketing c) product development d) business analysis e) idea generation

B

Victor thinks that a Lexus coupe is a quality vehicle, yet compared to a Mercedes Benz, he feels the quality of a Lexus is not as high. This demonstrates that the dimension of _____ is relative or difficult to describe without a basis of comparison. a) consistency of quality b) level of quality c) differentiation d) product features e) product positioning

B

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 a) harvesting. b) divesting. c) investing. d) realigning. e) squashing.

B

110. Offering pet owners who recommend Prize Pet Grooming to a friend $10 off their next grooming bill is a program designed primarily to a) increase perceptions of service quality. b) elevate expectations. c) encourage word-of-mouth communication. d) standardize the service offering. e) increase advertising effectiveness.

C

A(n) _____ is a concept, philosophy, or image. a) product b) good c) idea d) service e) issue

C

During the introduction stage of a successful product, profits are usually a) at their highest point. b) negative and decreasing. c) negative and increasing. d) positive and increasing. e) declining.

C

If buyers choose certain types of products by the way they look, smell, taste, or sound, marketers should focus most on appropriate a) line extensions. b) quality modifications. c) aesthetic modifications. d) sensory systems. e) functional modifications.

C

In which of the following situations is dual distribution likely to be determined illegal? a) A manufacturer sells its product online and through independent and company-owned retail outlets. b) A manufacturer opens its own retail outlets across the country and sells its entire line of products. c) A producer uses company outlets to dominate independent retailers that carry its products. d) A producer sells its products both to wholesalers who deal with small and medium-sized retailers and directly to retailers. e) A producer charges higher prices at its company-owned retail outlets than independent retailers charge for the same products.

C

Introducing new products is risky and so is a) performing marketing research. b) keeping tabs on the actions of competitors. c) not introducing new products. d) generating new product ideas. e) addressing customers' concerns about products.

C

The main objective of physical distribution should be to a) decrease costs while increasing market coverage. b) increase service and market coverage. c) decrease costs while increasing service. d) increase market coverage and channel power. e) balance costs and market coverage.

C

137. Silk Soymilk's strategy of packaging all its products in a similar design is known as ___________ packaging. a) overall b) individual c) genetic d) family e) multiple

D

71. The amount of annual losses companies suffer from counterfeit products is estimated to be a) $500-$800 million. b) $3-$5 billion. c) $30-$50 billion. d) $250-$350 billion. e) $600-$800 billion.

D

76. Symbols such as the Travellers' Financial Services umbrella are designed to help customers overcome the ________ of services. a) heterogeneity b) unpredictability c) inseparability d) intangibility e) perishability

D

82. ___________ occurs when two or more brands are placed on a single product. a) Brand extension b) Brand licensing c) Line family branding d) Co-branding e) Cohort branding

D

85. When a theater entices customers to see movies during the daytime by offering tickets at a reduced price, it is trying to solve the services marketing problem of a) inseparability. b) intangibility. c) customer contact. d) off-peak demand. e) heterogeneity.

D

95. The development of a container and graphic design for a product is called a) licensing. b) labeling. c) preparing. d) packaging. e) distributing.

D

A ______ is responsible for a product, product line, or several distinct products in an interrelated group within an organization. a) product marketer b) brand manager c) market manager d) product manager e) line manager

D

A product item is best described as a a) component of a marketing mix. b) particular brand. c) specific characteristic of a product. d) specific version of a product. e) unit of measure for the product.

D

A single leader who controls and organizes a marketing channel is called a a) channel champion. b) distribution leader. c) marketing maverick. d) channel captain. e) lead distributor.

D

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) a) evaluation study. b) formal evaluation. c) product inspection. d) systematic review. e) reassessment examination.

D

After a company has created a prototype during the product development stage, its performance, or ___________ must be tested. a) appeal to customers b) dependability c) durability d) functionality e) pricing

D

The four major stages of a product life cycle include a) prosperity, recession, depression, and recovery. b) specialty, convenience, shopping, and unsought goods. c) decline, stabilization, exposure, and growth. d) introduction, growth, maturity, and decline. e) awareness, interest, trial, and adoption.

D

The group of people that management has assembled to take on the task of new-product development is best described as a) a buying center. b) a product development task force. c) a marketing development team. d) a venture team. e) a brand management team

D

Which of the following is the most commonly used channel for distributing business products? a) Producer, agents, industrial distributors, organizational buyers b) Producer, industrial distributors, organizational buyers c) Producer, agents, organizational buyers d) Producer, organizational buyers e) Industrial distributors, organizational buyers

D

Which of the following physical distribution functions involves design and operation of facilities for storing goods? a) Order processing b) Materials handling c) Transportation d) Warehousing e) Inventory management

D

Which stage of the product life cycle is characterized by intense competition? a) Decline b) Plateau c) Introduction d) Maturity e) Stabilization

D

25. The full and legal name of an organization is called the a) trademark. b) legal title. c) organizational name. d) brand name. e) trade name.

E

90. American Life uses leather-look portfolios and high-quality paper and printing for its life insurance policies in order to indicate a) the success of its business. b) the intangibility of its service. c) the tastes of its management. d) the inseparability of its agents and customers. e) the quality of its services.

E

92. Consumers look closely at service quality when comparing competing services because a) they perceive all services to be essentially the same. b) they typically have very few services from which to select. c) all services are priced about the same. d) quality is the only relevant service characteristic. e) services are very difficult to evaluate.

E

92. In a brand licensing arrangement, the licensee is responsible for a) providing the brand name to another organization for use in promoting products. b) collecting the royalties from sales of the licensed products. c) half of the financial losses in the event that the licensed brand is a failure. d) the production, but not the marketing of the licensed product. e) the manufacturing, marketing, and financing of the licensed product.

E

According to the text, physical distribution cost tradeoffs enable firms to a) resolve pricing conflicts among channel partners. b) minimize risk during test marketing of new products. c) reduce costs of all distribution functions simultaneously. d) resolve pricing conflicts within industry sectors. e) utilize resources for greatest cost-effectiveness.

E

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 a) shifting costs to suppliers. b) maximizing costs. c) maximizing technology implementation. d) cooperation with competitors. e) customer relationships.

E

As her Internet quilt and bed linen business grew, Danielle could no longer perform all the distribution activities, so she hired a shipper and an information technology firm to assist with these functions. Danielle is using _____ for physical distribution for her business. a) producers b) wholesalers c) retailers d) selling agents e) outsourcing

E

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 a) raw material. b) processed component. c) component part. d) service. e) business product.

E

Functional modifications usually require that the product be a) less specific. b) limited to its functions. c) more appealing. d) more technical. e) redesigned.

E

Product deletion can best be described as the process of deleting a product from the product mix when it a) is perceived as a failure by top management. b) is reviewed negatively by a systematic review board. c) increases production costs and decreases profits. d) no longer responds to promotional efforts. e) no longer satisfies a sufficient number of customers.

E


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