Maketing #2

Under which new product development approach, a firm's departments work closely together in cross-functional groups, overlapping the steps in the product development process to save time and increase effectiveness?

team-based

A brand is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.

true

A firm can attack the more-for-more strategy of another firm by offering a brand of comparable quality at a lower price using a more-for-the-same strategy.

true

A laptop that is purchased for a graphic design studio is considered an industrial product.

true

A more-for-more market offering not only offers higher quality but also provides a consumer with prestige and status.

true

An independent logistics provider that performs all of the functions required to get a client's product to market is known as a third-party logistics (3PL) provider.

true

Both profit and not-for-profit organizations practice organization marketing, which entails activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization.

true

Brand equity is the differential effect that knowing the brand name has on customer response to the product and its marketing.

true

Business and consumer marketers use many of the same variables to segment their markets.

true

Concept testing refers to testing new product concepts with groups of target consumers.

true

Federal legislation on price-fixing states that sellers must set prices without talking to competitors.

true

Firms that use a customer-centered approach with team-based new product development can gain a big competitive edge by getting the right new products to market faster.

true

If the market is dominated by larger, lower-price competitors, the company may decide to target unserved market niches with value-added products and services at higher prices.

true

Interactive marketing means that service quality mainly depends on the quality of the interaction between the consumer and contact employee during a service encounter.

true

It is historically known that a vertical marketing system consists of producers, wholesalers, and retailers acting as a unified system.

true

It is possible that a horizontal marketing system can be developed between a firm and its competitor.

true

Which statement that describes price elasticity is correct?

-If demand is elastic rather than inelastic, sellers will consider lowering their prices. -If demand hardly changes with a small change in price, the demand is inelastic. -Price elasticity refers to how responsive demand will be to a change in price. - **All of the answers are correct. **

Which of the below describes product line pricing?

-In product line pricing, management must decide on the price steps to set between the various products in a line. -The price steps should consider cost differences between products in a line. -The price steps should account for differences in customer perceptions of the value of different features. - * All of the answers are correct. *

When people select, organize, and interpret information to form a meaningful picture of their world and surroundings, what process do they go through?

Perception

A business marketer normally deals with far fewer buyers than a consumer marketer.

True

In reverse auctions, companies put their purchasing requests online and invite suppliers to bid for their business.

True

Interpersonal factors are a major influence on business buyer behavior.

True

Systems selling is described as a business strategy in which business buyers prefer to buy a complete solution to a problem from a single seller rather than buying and consolidating separate products and services from several suppliers.

True

Which of the below is the most correct statement regarding social class?

Social classes show distinct product preferences in areas such as clothing.

Which of the below venue a company would use if it likes to directly sells its products to final customers?

a company's web site

About eighty-two percent of the global fast food restaurant, McDonald's, is owned and operated by its franchisers. What type of marketing system does this situation illustrate?

contractual vertical

Consumers use the same products/services as they progress through their life-cycle stages.

false

Exclusive dealing is illegal because they do not substantially lessen competition or tend to create a monopoly and forces both parties enter into the agreement involuntarily.

false

Firms can develop new products through acquisitions only.

false

From a form's perspective, a new market segment is more attractive if it is easy for its competitors to enter this market.

false

Hispanic Americans are the most affluent and brand conscious demographic segment in the United States.

false

In a "contractual" vertical marketing system, leadership over production and distribution is assumed through the size and power of one or a few dominant channel members.

false

In distribution channels, vertical conflicts happen between the same levels.

false

Life insurance is considered a convenience product.

false

Modifying a product is an ineffective strategy in the maturity period of the product life cycle because the product's decline is irreversible at this stage.

false

One of the cost-based pricing strategies is the everyday low pricing.

false

Personal sources of information normally inform the buyer, but commercial sources legitimize or evaluate products for the buyer.

false

Social class is determined by a single factor such as income.

false

The business analysis stage is the final step in the new product development process.

false

The smaller the gap between expectations and performance of a product, the greater a consumer's dissatisfaction.

false

Toyota, an automobile manufacturer, offers a new car model with features comparable to that of Honda brand. However, the Toyota model is priced lower than Honda's and includes a longer warranty. Toyota is most likely following a more-for-the-same strategy.

false

When compared to an undifferentiated targeting strategy, differentiated targeting strategy usually leads to reduced sales in each market segment.

false

When compared to an undifferentiated targeting strategy, differentiated targeting strategy usually leads to weaker product position in each market segment.

false

When developing a new product, concept testing should ideally be followed by the business analysis stage.

false

When using product bundle pricing, sellers combine several products and offer the bundle at an increased price for increased profit.

false

Whirlpool sets prices for its dishwashers at four different price levels based on quality, design, capacity and features. They range from $400 to $800. This is an example of optional product pricing.

false

Which of the below is a social factor that influences consumer buying behavior?

family

A detergent product is currently in its maturity stage of the product life cycle. The company decides to modify the product's market to improve its sales. Which strategy would the firm most likely to take?

find new market segments for the brand

Kmart and Walmart sell less expensive varieties of well-known branded products or new product lines with lower prices. Which pricing strategy have they been adopted.

good-value

Which of the below uses R-W-W framework in the new product development process?

idea screening

What type of logistics is it called when products and materials are moved from suppliers to the factory?

inbound

Hallmark sells greeting cards for all sorts of celebrations and expressions. What segmentation variable(s) is Hallmark using?

occasions and/or benefits

Under which market condition, the market includes just a small number of big firms that are very sensitive to prices and marketing strategies of each other?

oligopolistic competition

Which of the below is most likely an esteem need based on Maslow's hierarchy of needs?

status

If market researchers measure consumer responses to new products and marketing tactics in laboratory stores or virtual online shopping environments, what are they using?

stimulated test markets

Which of the below is a pricing strategy when a firm determines the price level at which it will break-even and/or earn the profit it wants to achieve?

target return

Which of the below is correct if a product is in the maturity stage of the product life cycle?

A slowdown occurs in sales growth.

What are the different ways through which a company can achieve integrated logistics management?

Cross-functional teamwork inside the company ** All of the answers are correct ** Building logistics partnerships Outsourcing logistics to third-party logistics (3PL) providers

In a straight rebuy, a buyer considers a product or service for the first time.

False

Social class is determined by a single factor such as income.

False

Which one of the below describes a contractual vertical marketing system?

It consists of independent firms at different levels of production and distribution that join together through contracts to obtain more economies or sales impact than each could achieve alone.

Which mode of transportation is best for carrying perishable goods such as flowers to distant markets?

air carriers

Why is using demographic variables for segmentation purposes is the most popular method?

are easier to measure than other variables

Which of the below describes an individual's relatively consistent evaluations, tendencies, and feelings toward an idea or object.

attitude

Why are manufacturers use marketing intermediaries?

because they create greater efficiency in making goods available to target markets

Shampoo manufacturers may divide consumers into clusters with dry hair, oily hair, freeze hair, and fine hair. Which segmentation variable would the manufacturer be typically using?

benefit segmentation

Which of the below costs is most likely involved with commercialization?

building or renting a manufacturing facility

If two established brand names of different firms are used on the same product, what is this branding strategy called?

co-branding

________ is the degree to which an innovation fits the values and experiences of potential consumers.

compatibility

Which of the below sets the upper limit for a product's pricing?

consumer perceptions of value

Which of the below is a pricing strategy that involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk?

cost-based

If someone grows up in the U.S. and is exposed to such values as freedom, equality, hard work, individualism, material comfort, achievement and success, what are these symbolic values are called?

culture

If Tiffany, an upscale jewelry retailer, starts selling inexpensive watches to take advantage of huge growth in low-end customer segments, what is Tiffany most likely engaging in?

downward stretching

If a marketing research firm watches trends in consumer spending, income, savings, and interest rate, what type of information is this firm gathering on consumers?

economic situations

Many universities and fast food restaurants enter into contractual agreements with national brand soft drink firms to provide and sell only their brand-name products at the respective venues. What does this illustrate?

exclusive dealing

Which of the below is an industrial product classified as a capital item?

factory

Pet rocks quickly became popular and fell out of favor with consumers. What is pet rocks are considered?

fad

Orienting and motivating customer-contact employees and supporting service people to work as a team to provide customer satisfaction is known as ________ marketing.

internal

What do firms use to motivate their employees to create new product ideas?

intrapreneurial programs

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features?

introduction

A dog food manufacturer has just concept tested a new product idea, which is a chewable toy-food that not only entertains dogs but also cleans their teeth and provides the nutrition they need. The dog owners so far loved the idea. What is the next step in the new product development process?

marketing strategy development

When the size, purchasing power, and profiles of a market segment can be determined, the market segment is said to be ________.

measurable

If a firm tailors its products and marketing campaigns to cater to the specific preferences of individuals, what targeting strategy is this firm practicing?

micromarketing

A shoe manufacturer has been marketing its running shoes under the brand name "Champs" and basketball shoes under the brand name "Victory" in order to target two different athlete segments. What branding strategy is being used by this show manufacturer?

multi-brands

What does the second section of a marketing strategy statement of a new product describe?

planned price, distribution, and marketing budget for the first year

What does the illegal pricing practice called when a firm sells its products/services below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business?

predatory pricing

Cut Above, a local hair styling salon charges $20 for a haircut and $15 for a conditioning treatment. If the customer wants both, then it charges the combo price of $30. What is this pricing strategy called?

product bundle

In a car wash place, different levels of washes are offered for different price levels. What is this pricing strategy called?

product line pricing

Blueberry farmers in Maine grow, package, and distribute the same quality and size blueberries. No farmer can charge more than the same price going in the market without the risk of losing sales to other farmers. What economic scenario is this case portraying?

pure competition

After a makeup retailer advertises its products using a celebrity, the sales go up for its makeup products. From the customers perspective, the celebrity is a ____________.

reference group

Products like home appliances, furniture, even clothing sold in department stores are classified as _________ products.

shopping

Many companies are now installing integrated high-tech partnership relationship management (PRM) systems to coordinate their whole-channel marketing efforts, as well as supply chain management (SCM) software to help recruit, train, organize, manage, motivate, and evaluate relationships with channel partners.

true

Market segmentation is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior.

true

Marketing logistics — also called physical distribution — involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption, to meet customer requirements at a profit.

true

Perceptual positioning maps are used to analyze consumer perceptions of a brand relative to competing products.

true

Price plays only a small role in creating customer value and building customer relationships.

true

Product line stretching occurs when a company lengthens its product line beyond its current range.

true

Product mix width refers to the number of different product lines a firm carries.

true

Segmenting the consumer who buy products and/or services based on occasions is considered a behavioral segmentation variable.

true

The relatively lower costs involved with setting up an online store makes it more profitable to serve small niches.

true

The two dimensions of product quality are level and consistency.

true

When consumers react more favorably to a brand than to a generic or unbranded version of the same product, the brand is said to have positive brand equity.

true

Which of the below is made up of the company, its suppliers, distributors, and customers who partner with each other to improve the performance of the entire system?

value delivery network

Which of the below is a marketing intermediary?

wholesaler