Marketing Chapter 10

Star Wars dolls, book bags, sweatshirts and posters seemed to become popular overnight. After about six months, you were able to buy Star Wars products at flea markets and garage sales for less than 25 percent of their original cost. Star Wars-related products exemplify: A fad Technological obsolescence A style Product positioning A fashion

A fad

___________ are manufactured products that have undergone substantial processing before they are incorporated into more complex products. However, these products will undergo additional extensive processing as they are made into new products. As a result of this additional processing, these products lose their original shape and or become unidentifiable as a unique component of the final product. Raw materials Operating supplies Component parts Fabricating materials Accessory equipment

Fabricating materials

________ consist of capital items, such as buildings, dams, and major production line equipment. These products are typically expensive, capitalized on balance sheets, depreciated over time, and contribute substantially to the firm's scale of operations. Installations. Operating supply. Component part. Fabricating material. Accessory equipment.

Installations.

The adopter categories called innovators and early adopters are targeted primarily during which stage of the PLC? Introduction Growth Maturity Decline All of the above

Introduction

The adopter category called laggards is targeted beginning in which stage of the PLC? Introduction Growth Maturity Decline All of the above

Maturity

Demand for brands rather than for a product category is called: Selective demand Primary demand Category demand Elastic demand Inelastic demand

Selective demand

Which of the following is not a component of the services marketing mix? Service offering Service price Service distribution Service promotion Service quality

Service quality

The 'core values' component of the basic product is most closely associated with: The 'extra services' that provide added utility to customers, such as credit and delivery. The actual physical product that delivers benefits to the buyer. The 'total' product, including the actual physical product and the extra services provided. The product's brand name plus the actual physical attributes of the product. The fundamental benefits that the product delivers to buyers.

The fundamental benefits that the product delivers to buyers.

The breadth or width of a firm's product mix refers to: Sales volume in each product line. The assortment of sizes and colors within each product line. The market share for each product item in the mix. The number of different models available in a given product line. The number of product lines carried

The number of product lines carried

Because services are simultaneously produced and delivered, they cannot be separated from the persons who deliver them. The quality of the service and utility (value) delivered to customers result from the efforts of those who perform the service. This reflects which characteristic of services? Their perishability Their intangibility Their inseparability Their variability Their quality

Their inseparability

Services are produced and delivered by the service provider—usually at the location where the service is consumed. This reflects which characteristic of services? Their perishability Their intangibility Their inseparability Their variability Their quality

Their inseparability

When you work out at a health club, you receive no takeaway, except perhaps feelings of accomplishment, exhaustion or both. This reflects which characteristic of services? Their perishability Their intangibility Their inseparability Their variability Their quality

Their intangibility

Many professional service providers charge for missed appointments. This practice reflects what characteristic of services? Their perishability Their intangibility Their inseparability Their variability Their quality

Their perishability

Which of the following is not characteristic of services? Their perishability Their intangibility Their inseparability Their variability Their quality

Their quality

The fact that services are performed by individual providers makes the service experience may be different from customer to customer or to the same customer over. This reflects which characteristic of services? Their perishability Their intangibility Their inseparability Their variability Their quality

Their variability

With respect to the PLC, the x-axis most closely represents: Sales Costs Time Product Type None of the above

Time

The level of product that is most closely associated with brand image is: Core product Enhanced product Intangible product Physical product Total Product

Total Product

P&G has decided to add a line of life insurance instruments targeted to consumers of its existing brands. This decision will result in P&G increasing the ________ of its product mix. Width Depth Length Scope All of the above

Width

Services cannot be stored. If unsold the service is lost. This reflects which characteristic of services? their perishability Their intangibility Their inseparability Their variability Their quality

their perishability

A 24V battery-powered hand drill made by Black & Decker that is sold to a small manufacturer is best classified as: Accessory equipment A manufactured or component part An installation Operating supply A service

Accessory equipment

"Consistent delivery" for differentiating the services offered by a firm involves: Recruiting and training capable, expert service providers Training and maintenance programs that ensure its equipment and personnel consistently deliver a higher-quality service than its competitors Quality control programs to ensure high quality and consistent service delivery All of the above Only a and b above

All of the above

Which of the following are ways in which firms seek to manage their services brands? Find and promote a tangible object that represents the service image the firm wishes to project, such as Prudential's "rock" that signals strength and stability Identifying and promoting the key factors that are important for solidifying brand image Ensuring that these key factors are consistently performed and emphasized with each service encounter Having control programs in place to monitor service delivery and brand image All of the above

All of the above

During the introductory stage of a product's life cycle: The promotional program is designed to stimulate demand for the product category. There is very little direct competition. Costs are high. The profit curve is negative through most (perhaps all) of this stage. All of the above are true.

All of the above are true.

An oil drilling platform maintained by BP in the Gulf of Mexico is best classified as: Accessory equipment A component part An installation Operating supply Operating equipment

An installation

Which of the following is least characteristic of installations? Contribute significantly to the scale of operations Tend to be capitalized on balance sheets Tend to be 'expensed' over time Are 'used up' in daily operations Are relatively high cost items

Are 'used up' in daily operations

For ______________ products, consumers engage in no to little information search and rarely actively compare brands. They will readily purchase substitute brands if their preferred brand is unavailable. Shopping Convenience Specialty Emergency Low involvement

Convenience

Additives such as NutraSweet, a chemical sweetener, are combined with other ingredients to make food products. In the process, they lose their distinct identities. One can no longer tell NutraSweet from other ingredients used to make candy bars or soft drinks. NutraSweet is a: Raw material Operating supply Component part Fabricating material Accessory equipment

Fabricating material

Products such as flour, chemical additives of various types, steel, and aluminum ingots are usually classified as: Raw materials Operating supplies Component parts Fabricating materials Accessory equipment

Fabricating materials

Cappio was the first canned ready-to-drink coffee on the market. It had to create the demand for the product category. As soon as demand for the product was shown to exist, Coke and Pepsi began promoting their own brands of canned, ready-to-drink coffee. During which stage of the product life cycle would you expect to see competitors like Coke and Pepsi entering the market for this product? Development Introduction Growth Maturity Decline

Growth

Developing selective demand for brands is a fundamental objective of the _______________ stage of the PLC. Introduction Growth Maturity Decline All of the above

Growth

The adopter categories called the early majority and late majority are targeted beginning in which stage of the PLC? Introduction Growth Maturity Decline All of the above

Growth

Campbell's Soup Company recently ran a series of ads on TV in which a variety of new recipes for its soups were featured. This strategy generally is employed for products that are at the ______ stages of the PLC. Introduction only Introduction & growth Growth & maturity Maturity only Decline only

Growth & maturity

The classification scheme for consumer products divides these products into three basic categories defined by: The types of benefits the product delivers The general intensity of distribution for the products How the product is used by the consumer How much effort is expended in the purchase process None of the above

How much effort is expended in the purchase process

Purchases for ____________are unplanned. Decisions to buy the product type and brand are made on the spur of the moment as consumers are ostensibly shopping for other products. Shopping Staple Impulse Variety-seeking Low involvement

Impulse

The adopter category typically targeted first during the introductory stage of the PLC is: Innovators Early adopters Early majority Late majority Laggards

Innovators

Developing primary demand and stimulating trial for goods and services is a fundamental objective of the _______________ stage of the PLC. Introduction Growth Maturity Decline All of the above

Introduction

Industry sales are growing, but the rate of growth has slowed dramatically. The number of competitors is increasing and individual firms are spending large sums in order to buy market share from one another. As a result of increased marketing costs, profits are eroding. Which stage of the product life cycle seems to be indicated? Development Introduction Growth Maturity Decline

Maturity

Airlines, hotels, theaters, and restaurants reduce prices during slow periods to shift demand away from peak consumption periods where the danger exists that all service requests may not be honored. This pricing strategy is called: Peak-demand pricing Discount pricing Off-peak pricing Marginal pricing Mark-down pricing

Off-peak pricing

Consumable production supplies, such items as sandpaper, welding rods, emery cloth, and solvents are considered to be: Installations Operating supplies Component parts Fabricating materials Accessory equipment

Operating supplies

The 'convenience goods of the industrial market' are: Raw materials. Operating supplies. Component parts. Fabricating materials. Services.

Operating supplies.

Which of the following best describes the primary distinction between component parts and fabricating materials? Parts undergo additional extensive processing as they are combined to make the larger product Materials undergo very little added processing as they are combined to make the larger product. The materials are always uniquely identifiable Parts undergo little or no additonal processing as they are combined into the larger product. The parts are always uniquely identifiable The only processing that materials recieve is to make them easier to ship, or to preserve them until they can be used. Parts undergo much more extensive processing None of the above is correct

Parts undergo little or no additonal processing as they are combined into the larger product. The parts are always uniquely identifiable

Which of the following forms of promotion is most closely linked with the ability to solidify brand image for the firm's services? Advertising Sales promotion Public relations Personal selling Publicity

Personal selling

Apple computers have been characterized as "works of art" rather than just computers. Apple's focus on design aesthetics and functionality has proven a key ingredient to Apple's success. Apple is doing a great job of managing the ____________ level of product. Augmented Core Enhanced Tangible Physical

Physical

The 'level of product' that is associated with the product's brand name, features, style, inherent quality and reliability, and functionality is called the: Core product Enhanced product Intangible product Physical product Total Product

Physical product

The company that is the first to introduce a new type of product to market often achieves a: Market penetration advantage Product development feature Diversification advantage Pioneer advantage Market development benefit

Pioneer advantage

With respect to product mix terminology, the range of brands within each of a firm's product lines are called: Product items Product line width B2C product depth Brand extension Brand breadth

Product items

Colgate produces a wide range of toothpastes, mouthwashes, toothbrushes, and related oral care products. With respect to product mix terminology, each of these categories of products within Colgate's portfolio are considered to be a(n): Product mix Product item Product type Consumer non-durable Product line

Product line

With respect to product mix terminology, a firm's closely related product items in terms of characteristics and function are referred to as: Product lines Product portfolios Product line width Flanker brands Item extensions

Product lines

All of the products offered for sale by a firm characterize its: Product mix Product line Product item set Brand set Product portfolio

Product mix

Taken together, all individual product items produced and sold by Nabisco comprise its: Product mix Product line Product item set Brand set Product portfolio

Product mix

The Clorox Company, a manufacturer of bleach, has added a line of bleach-free disinfectant wipes for cleaning up spills and sticky fingers. With the addition of the Clorox disinfecting wipes, the firm has changed its: Market position Product mix width or breadth Market segmentation strategy Product line depth Position in the product life cycle

Product mix width or breadth

Mined products, forestry products, and agricultural products are typically classified as: Raw materials Operating supplies Component parts Fabricating materials Accessory equipment

Raw materials

When introducing a new product, if the firm wishes to recoup its costs rapidly during the introductory phase of the PLC, it probably should employ a _________ pricing strategy. Penetration pricing Price discounting Marginal pricing Mark-up pricing Skim the cream (skimming)

Skim the cream (skimming)

"Exclusive distribution" is most associated with the distribution of ____________ goods. Shopping Durable Specialty Convenience B2C

Specialty

Advertising themes for ____________ goods generally focus on status and prestige. Attempts at comparative advertising have little effect on changing consumers' attitudes toward their preferred brand because pre-existing attitudes toward preferred brands are simply too strong. Shopping Durable Specialty Convenience B2C

Specialty

Consumers typically possess very strong brand preferences for ___________ goods. When such brand preferences exist, the consumer will accept no substitutes. Shopping Durable Specialty Convenience B2C

Specialty

In-store promotional stimuli, such as displays, shelf coupons, and point-of-purchase promotions are least likely to influence consumers' purchases of _____________ goods. Shopping Staple Specialty Variety-seeking Impulse

Specialty

_____________ goods are distributed on selective or even "exclusive" bases. A limited number of retail outlets, often only one or two, in a geographic area may be employed. Close, cooperative working relationships are developed with retailers in ways that are intended to mutually benefit producers and retailers. Shopping Durable Specialty Convenience B2C

Specialty

Candice insists on buying only Revlon cosmetics. Rather than purchasing other brands when Revlon is not available, Candice will postpone her purchase or drive substantial distances to find her preferred brand. To Candice, Revlon is what marketers refer to as a (select the best answer): Convenience good or product Shopping good or product Consumer good or product Status good or product Specialty good or product.

Specialty good or product.

__________ are regularly purchased and consumed for basic lifestyle maintenance. Consumers typically restock these goods when visiting supermarkets. These goods routinely end up on shopping lists. Shopping Staple Specialty Emergency Low involvement

Staple

According to the text, what can be said about the general quality of products made in the US today? Quality is generally lower for US products now, as compared to products made in the past. Product quality continues to decline as a result of firms moving to lower quality materials in an effort to control costs. Quality is no longer a major tool for positioning and differentiation. The delivery of high quality now is viewed as a necessary condition to effectively compete in industries. All of a, b, and c are true.

The delivery of high quality now is viewed as a necessary condition to effectively compete in industries.

One of the most important technological advances in services delivery (services distribution) is: The internet and apps that allow firms to directly interface with customers Databases containing extensive information that can be "mined" to better understand customers' services needs Sophisticated statistical programs that can search for clusters of potential customers in geographic markets Extensive and rapid supply chains that ensure service providers have better tools and materials to improve the quality of services delivery. All of a, b, c above

The internet and apps that allow firms to directly interface with customers

Consumers cannot judge the quality of a service encounter prior to its actual delivery. As a result, consumers often seek out cues in the service-delivery environment in order to predict the level of service they can expect. This reflects which characteristic of services? Their perishability Their intangibility Their inseparability Their variability Their quality

Their intangibility

That aspect of a 'product' that is most responsible for creating 'brand image' is: Core product. Tangible or physical product. Augmented product. Total product. Customer service.

Total product.

Consumers are buying _______________ goods when they switch between brands of convenience goods out of boredom or the desire to change. Purchases may have been preplanned in that consumers "knew" they were going to purchase a specific product or brand but changed their minds in-store, deciding to try something different. Shopping Staple Impulse Variety-seeking Low involvement

Variety-seeking

Consumers may switch between different brands of some convenience goods out of boredom, just to change things up. These brand-switching behaviors are known as ______________. Purchases may have been preplanned in that consumers "knew" they were going to purchase a specific product or brand but changed their minds in-store, deciding to try something different. Routine decision making Inertia decisions Impulse decisions Variety-seeking decisions Complex decisions

Variety-seeking decisions

______________ includes most office equipment, such as printers, computers, copy machines, and office mailing equipment. These products are often expensed when purchased rather than being depreciated over time. Installations Operating supply Component part Fabricating material Accessory equipment

Accessory equipment

______________ undergo extensive additional processing during their conversation into other products. The only initial processing received is to preserve them during storage while awaiting shipping to production facilities or to make the product easier and/or less expensive to ship. Raw materials Operating supplies Component parts Fabricating materials Accessory equipment

Accessory equipment

A product's core benefits and physical characteristics comprise the ______________ level of product. Basic Augmented Enhanced Extended Fundamental

Basic

Dupont's Quallofil is an insulating material used in multiple applications. One natural application is as the insulating material in sleeping bags. Quallofil is considered to be a: Raw material Operating supply Component part Fabricating material Accessory equipment

Component part

When motor oil or anti-freeze is placed in automobile engines when they are manufactured, they are considered to be __________. Raw materials Operating supplies Component parts Fabricating materials Accessory equipment

Component parts

______________ have undergone extensive processing. In turn, these products are merged with other products as they are assembled into more complex final products. These products can always be identified as unique components of final products into which they are incorporated. Raw materials Operating supplies Component parts Fabricating materials Accessory equipment

Component parts

Air filters installed in new trucks at the factory are best classified as __________________, while these same filters when replaced by the owner (a trucking company) are probably ______________. Raw materials, component parts. Fabricating materials, component parts. Operating supplies, component parts. Installations, component parts. Component parts, operating supplies.

Component parts, operating supplies.

When expanding the firm's product mix by adding new product lines the least risky approach is to ensure that these new lines are ___________ existing lines in the mix. Inconsistent with Consistent with Differentiated from Of higher quality than Priced lower than

Consistent with

As a mechanism for services differentiation, Bonded Inspections of Dallas specializes in non-destructive testing by using an array of innovative technologies in gamma ray, ultrasonic, magnetic particle, x-ray, and phased array penetrant systems wielded by a team of highly trained employees. Bonded clearly differentiates itself with: Continuous service innovation Consistent delivery of services Services branding Consistent quality in service delivery

Continuous service innovation

In-store stimuli such as end-of-aisle displays, shelf coupons, or free samples are often enough to stimulate purchases of ____________ goods. Convenience Shopping Specialty Emergency Low involvement

Convenience

Products purchased as 'routine decisions' are generally: Convenience Shopping Specialty Emergency Low involvement

Convenience

Since consumers are more likely to brand-switch, marketers advertise their brands extensively in mass media. Advertising costs are normally initiated and paid for by the product's manufacturers to create top-of-mind brand awareness via a "pull effect." This description applies primarily to _______________ goods. Shopping Durable Specialty Convenience B2C

Convenience

Products that tend to be purchased on impulse or to seek variety are: Accessory equipment Specialty goods Shopping goods Convenience goods Impulse goods

Convenience goods

The 'staple good' is most closely associated with the _____________ category of products. Accessory equipment Specialty goods Shopping goods Convenience goods None of the above

Convenience goods

________________ are purchased with little effort and include most products purchased in grocery stores, convenience stores, hardware stores, drug stores. Convenience goods Shopping Specialty Emergency Low involvement

Convenience goods

Which of the following products is characterized by the requirement for 'intensive distribution.' Installations. Shopping goods. Specialty goods. Accessory equipment. Convenience goods.

Convenience goods.

When video games were first introduced, they were played on 16-bit game computers. As soon as the 32-bit machines were introduced, sales for the 16-bit games and players quickly fell. The 16-bit product category entered the _____ stage of its product life cycle. Development Introduction Growth Maturity Decline

Decline

When P&G adds a new laundry detergent (a flanker brand) to its existing line of detergents it has changed the ___________ of its product mix. Width Depth Breadth Scope All of the above

Depth

Consumers are generally more concerned with time and place utility when making purchases for _____________ goods. These purchase conditions make consumers less price sensitive and willing to pay more to obtain the product when and where it is needed. Shopping Staple Specialty Emergency Low involvement

Emergency

____________ are products which consumers use up and must restock quickly. Alternatively, a unique need might arise that requires immediate satisfaction, such as an umbrella on a rainy day. Shopping Staple Specialty Emergency Low involvement

Emergency

Because many consumers see no differences between products at the basic level, proper management of the ___________ level of product allows the firm to differentiate its product from those of competitors. Core product Enhanced product Intangible product Physical product Total Product

Enhanced product

The 'level of product' that most closely represents the 'extra utility' provided by services such as credit, warrantees, delivery, post-sale service, etc. is called the: Core product Enhanced product Intangible product Actual or tangible product Total Product

Enhanced product

Like many characters created for commercials, the Chihuahua in the Taco Bell commercials has appeared on T-shirts, caps, cups, and posters--some licensed, many not. Soon some other commercials will capture the attention of the American consumer, and some other character(s) will appear on T-shirts, caps, cups, and posters. These commercial-derived products are examples of: Product positioning Fads Fashions Postponed obsolescence Forecasted trends

Fads

Consistent with the ___________ most intangible services contain a product component, just as many tangible products contain a service component. There may be no such thing as either a pure service or pure product. Marketing mix Classification of consumer goods Product-market matrix BCG Growth-Share matrix Goods-services continuum

Goods-services continuum

During the _____ stage of the product life cycle, both sales and profits rise, numerous competitors enter the market, and sellers use promotional programs to stimulate demand for their brands. Development Introduction Growth Maturity Decline

Growth

You are the brand manager for Tide (P&G brand) and are considering ways to revive lagging sales. Recognizing that your brand and the product category as a whole are 'mature,' you are examining several strategic options. Which of the following is least likely to be a viable alternative to accomplish your sales goals? Introduce a 'brand extension' to capitalize on Tide's existing brand equity. Introduce a 'quality improvement' (e.g. "new and improved") under the same brand. Re-launch Tide using a new positioning strategy i.e. reposition the brand. Introduce a "feature improvement" via a change in packaging that adds a 'snap-top' lid. Harvest the brand.

Harvest the brand.

The classification scheme for organizational goods is based on: How much effort is expended in their purchase The relative costs of the product The degree to which the product contributes to the firm's scale of operations How the product is used in the firm The relative complexity of the product

How the product is used in the firm

Which of the following is an unlikely management strategy to use for a product in the decline stage of its product life cycle? Revitalize the product in some way in order to attract new users. Prune out unprofitable models and sizes. Abandon the product. Increase the depth of the product line by adding new line extensions or flanker brands. Cut all costs to the bare minimum.

Increase the depth of the product line by adding new line extensions or flanker brands.

When a trucking company buys more trucks to haul goods for its customers or an airline company buys more jet-liners to ferry people from place to place they are purchasing ___________ . Installations Operating supply Component part Fabricating material Accessory equipment

Installations

The transition of a product into the decline stage of its PLC is most likely a result of: Entry of competitive brands into the market. Decision by the early and late majority to adopt the product. Transition of the product from exclusive or selective distribution to intensive distribution. Introduction of a new, substitute technology. Inability of the producer to find additional uses for the product that can be promoted to existing markets.

Introduction of a new, substitute technology.

As described by the product life cycle, the profit curve for most new products: Is unaffected by the product life cycle Is negative through most (perhaps all) of the introductory stage of the product life cycle Has exactly the same shape as the sales volume curve Will not vary from product to product Is negative during all of the growth stage of the product life cycle

Is negative through most (perhaps all) of the introductory stage of the product life cycle

Brand product life cycles generally are more erratic in shape and duration than are product category life cycles because: Brand life cycles are composites of various industry life cycles i.e. life cycles for several product categories or classes are averaged to yield the brand life cycle Marketing managers are continually adjusting their marketing programs for brands as market and environmental conditions change Life cycles for product categories are not affected by changing marketing environments All of the above None of a, b, c above

Life cycles for product categories are not affected by changing marketing environments

Ford motor company purchases anti-freeze in bulk from DuPont Corporation. This anti-freeze is placed in the radiators of its new cars prior to their being shipped to the dealers. The anti-freeze is: Accessory equipment Operating supply Manufactured or component part Manufactured or fabricating material Raw material

Manufactured or component part

Dial Company introduced liquid soap in 1988. Today competition in the industry is intense. The manufacturers of liquid soap are adopting a defensive positioning strategy and intensive product distribution. Their promotions appeal to brand loyalty. From this information, you know that liquid soap is in the _____ stage of its product life cycle. Development Introduction Growth Maturity Decline

Maturity

Products like Campbell's soups have been around for decades. Now Campbell spends much of its advertising dollars on publishing recipes that use Campbell's soups as one of their main ingredients. This strategy suggests that Campbell's soup is in the _____ stage of its product life cycle. Development Introduction Growth Maturity Decline

Maturity

Which of the following in least important for firms seeking to manage their services brand? Monitoring and responding to changes made by direct competitors. Identifying and promoting key factors that are important for solidifying brand image Ensuring that these key factors are consistently performed and emphasized with each service encounter Having control programs in place to monitor service delivery and brand image Find and promote a tangible object that represents the service image the firm wishes to project, such as Prudential's "rock" that signals strength and stability

Monitoring and responding to changes made by direct competitors.

With respect to pricing services, during periods of slow demand, services marketers may employ ___________ to encourage and elevate demand. Peak-demand pricing Discount pricing Off-peak pricing Marginal pricing Mark-down pricing

Off-peak pricing

Utilities such as heating fuels, water, and electricity are all consumed in the firm's daily operations and are repurchased, essentially, automatically. These products are considered to be: Installations Operating supply Component part Fabricating material Accessory equipment

Operating supply

The primary pricing strategy(ies) employed by firms during the introductory stage of the PLC is (are): Penetration pricing Price discounting Marginal pricing Mark-up pricing All of the above

Penetration pricing

When introducing a new product, if the firm wishes to build market share rapidly during the introductory phase of the PLC, it probably should employ a _________ pricing strategy. Penetration pricing Price discounting Marginal pricing Mark-up pricing Skim the cream (skimming)

Penetration pricing

Buyers can elevate their social status, or social class positions, by purchasing and displaying _____________ goods that "lesser" others can directly or indirectly observe, but probably cannot purchase for themselves. Shopping Durable Specialty Positional B2C

Positional

______________ goods are things or experiences that are valuable largely because other people cannot have or enjoy them. Examples include expensive paintings, sculptures, very expensive fine wines, and extremely expensive stays in luxury hotels. Shopping Durable Specialty Positional B2C

Positional

The primary pricing strategy(ies) employed by firms during the introductory stage of the PLC is (are): Price skimming Price discounting Marginal pricing Mark-up pricing All of the above

Price skimming

Demand for a product category rather than single brands is called: Selective demand Primary demand Category demand Elastic demand Inelastic demand

Primary demand

In terms of the product life cycle, the soft-drink market is basically a mature market. There are still many profitable small regional soft drinks, such as Big Red, Cheerwine, and Vernors. What type of product strategy would you expect these small bottlers to use? Product differentiation Product diversification Product line pruning Harvesting Product divestment

Product differentiation

Which of the following is least representative of the installation as an organizational product? Tends to be very expensive Usually capitalized on balance sheets and depreciated over time. Contributes substantially to the firm's 'scale' of operations. Probably requires rather extensive decision making when purchased. Purchase decisions tend be solely the responsibility of purchasing agents.

Purchase decisions tend be solely the responsibility of purchasing agents.

_________ entail actions performed by people or machines that deliver desired values to customers. Reward systems Customer relations Customer incentives Services Buying behaviors

Services

__________ entail the performanceof specialized activities by individuals or organizations for purposes of benefiting other entities (usually customers). Reward systems Customer relations Customer incentives Services Buying behaviors

Services

Consumers are most likely to engage in 'extensive' decision making for ___________ goods. Convenience Shopping Specialty Emergency Low involvement

Shopping

Consumers usually actively seek information about alternative brands before making decisions for ____________products. Generally, more time is spent comparing alternatives for this type of good than for any other. Shopping Durable Specialty Convenience B2C

Shopping

Patricia extensively compared brands and prices for SLR camera equipment prior to finally deciding on the Nikon D300. Pat essentially has treated camera equipment as a ___________ good. Convenience Low involvement Shopping Emergency Specialty

Shopping

_______ generally include clothing, jewelry, automobiles, electronics, homes, major appliances, small appliances, recreational equipment, and gifts. Shopping Durable Specialty Convenience B2C

Shopping

_____________ are those for which consumers compare alternative brands against one another or compare the same brands across multiple retail settings prior to making a purchase decision. Shopping Durable Specialty Convenience B2C

Shopping

Which of the following is least likely to contribute to the general increase in profits experienced by products that have entered the growth phase of the PLC? Revenues are increasing due to the increased popularity and sales of the product Unit costs are declining due to scale economies in production Spending on advertising and other forms of promotion tends to be drastically reduced during this stage. Unit costs are declining due to decreases in variable costs per unit resulting from experience curve gains None of the above is correct they all are likely to occur

Spending on advertising and other forms of promotion tends to be drastically reduced during this stage.