Marketing Exam 2
A blockbuster children's movie has been scheduled to air at the same time as the award show that will feature gowns similar to those the Swazzi plans to sell. Which of the following best justifies going ahead with plans to market Swazzi's line of gowns? a. Children and adults are likely to view the programs separately. b. Any setback that the movie presents will be easily offset by the fact that formal wear is trending up. c. Any setback that the movie presents will be easily offset by the fact that luxury items are trending up while necessities have dropped. d. Few members of the target market for gowns have children. e. Most children will prefer to watch award show and may watch the movie on DVR.
A
A colleague wants to evaluate the attractiveness of a particular market segment. Which of the following would be good advice for your colleague? A. Carefully consider the degree of competition and ease of entry into the segment. B. Fast growing segments are always attractive. C. If a segment is larger than others it should always be targeted. D. If there are powerful buyers in the segment it will drive prices up. E. A segment is attractive if there are substitute products available.
A
A marketing VP is promoting the idea that Smoothsayer makes a great gift. Which of the following would make the best advertising venue for promoting Smoothsayer as a gift? a. NFL football b. general women's magazine c. sophisticated women's magazine d. daytime talk shows that focus on women's issues e. parenting magazines
A
During the idea generation stage of the new product development process, it is important that __________. A. companies create a large number of ideas B. companies avoid crowdsourcing as a source of new ideas C. companies generate a small number of ideas that seem feasible D. companies realize that it is illegal to use competitors as a source of new ideas E. companies limit their ideas to those that come from their internal R&D departments
A
Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep monitoring, text notification, and wireless sync to their smart phone. In serving these two very different groups, Fitbit is using __________ segmentation. A. benefits sought B. usage rate C. demographic D. life-cycle stage E. personality
A
If a company adds a new product line to its existing portfolio, it has increased its __________. A. product mix width B. product mix depth C. product support services D. product mix consistency E. product line length
A
In the decline stage of the product life cycle, some companies continue to offer the product but reduce various costs, hoping that sales hold up. This is known as __________ the product. A. harvesting B. pruning C. liquidating D. dropping E.maintaining
A
Mothers Against Drunk Driving (MADD) runs advertising campaigns aimed at stopping drunk driving and preventing underage drinking. This is an example of __________. A. social marketing B. organization marketing C. corporate image marketing D. place marketing E. person marketing
A
One characteristic of services is their variability. What is the main reason for services being variable? A. Service quality depends on who provides them, as well as when, where, and how they are provided. B. Services cannot be stored for later use. C. Services cannot be seen, tasted, or felt before they are bought. D. Services cannot be separated from their providers. E. Services are tangible, and defects are impossible to prevent.
A
Price is the only part of the marketing mix that __________. A. produces revenue B. incurs costs C. is defined by the consumer D. attracts buyers E. does not play a role in creating customer value
A
The full mix of benefits on which a brand is differentiated and positioned is called a(n) __________. A. value proposition B. perceptual map C. mission statement D. positioning statement E. image statement
A
What are perceptual positioning maps used for? A. To show consumer perceptions of different brands on important product dimensions B. To show consumer perceptions of different brands on a single product dimension C. To find the best retail locations for a brand D. To compare a company's profitability with the profitability of competitors E. To show consumer perceptions of an individual brand on important buying dimensions
A
What is positioning? A. Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers B. Dividing a market into smaller groups of buyers C. A part of a company-driven marketing strategy D. Developing profiles of market segments E. Selecting which segments to enter
A
What is target costing? A. Setting a price and then setting costs that will ensure that the price is met B. Designing a product, then determining its cost and price C. Basing price on customer perceptions of cost D. Pricing products without any consideration to costs E. Setting acceptable costs and then setting the price
A
What must companies do to create successful new products? A. Understand its consumers, markets, and competitors and develop products that deliver superior value. B. Spend more on R&D than its competitors. C. Obtain successful products through acquisitions instead of doing internal development. D. Focus their new product development efforts only on consumers. E. Cut costs to keep the price of new products low.
A
When Doritos comes out with new flavors of their tortilla chips, what brand development strategy are they using? A. Line extension B. New brand C. Multibrand D. Brand extension E. Licensing
A
When Dr. Footcare developed and launched a revolutionary new walking shoe, he knew that during the introductory stage of the product life cycle (PLC) __________. A. sales would be slow and profits nonexistent B. sales would be high and profits would level off or decline C. profits would rise quickly and there would be rapid market acceptance of the product D. sales would be slow but profits would be high E. sales would fall and profits would drop
A
Which of the following correctly identifies the three major pricing strategies used by marketers? A. Customer valuedash-based pricing, cost-based pricing, and competition-based pricing B. Customer valuedash-based pricing, cost-based pricing, and revenue-based pricing C. Customer valuedash-based pricing, cost-based pricing, and profit-based pricing D. Customer valuedash-based pricing, revenue-based pricing, and profit-based pricing E. Customer valuedash-based pricing, revenue-based pricing, and competition-based pricing
A
Which of the following statements about price is correct? A. Customers have put increasing pricing pressures on many companies. B. Prices have no impact on a firm's bottom line. C. Marketers do not a have lot of flexibility in setting and changing price. D. Pricing is not a problem for marketing executives. E. Price is not an important competitive asset.
A
Which of the following statements about service marketing is correct? A. Training current employees better and hiring new ones with more skills can increase service productivity. B. Due to the variability of services, top service companies set modest service-quality standards. C. Service marketers cannot differentiate their offerings. D. Social media is not useful to service marketers. E. It is easier to define service quality than product quality.
A
Which of the following statements is correct regarding the functions channel members perform? A. Channel members create greater efficiencies than manufacturers could achieve on their own. B. Finding and engaging customers and potential buyers is not a function performed by channel members. C. Channel members do not get involved in financing long dash—in other words, the acquisition and use of funds to cover the costs of the channel work. D. Channel members fulfill a variety of functions, but in doing so do not take any risks. E. Manufacturers can decrease costs by taking on more channel functions.
A
Which of the following statements regarding concentrated marketing is correct? A. Concentrated marketing involves higher-than-normal risks. B. Concentrated marketing targets a small share of a large market. C. Concentrated marketing is generally not a profitable strategy. D. Marketers cannot effectively fine-tune the marketing mix to the needs of a narrow, carefully designed segment. E. Concentrated marketing is not feasible for small companies.
A
Which of the following statements regarding demographic segmentation is correct? A. Consumer needs, wants, and usage rates vary closely with demographic variables. B. Demographics are rarely used anymore for market segmentation. C. Demographic segmentation divides a market based on age, personality, and benefits sought. D. Demographic variables are difficult to measure. E. Demographics segmentation uses lifestyle as the primary measure for segmentation.
A
Which of the following statements regarding international distribution channels is correct? A. Due to logistics costs in China, the majority of companies can only access affluent areas of major cities. B. Rural China now has a centralized, adequate distribution system. C. Distribution systems do not vary widely from country to country. D. For Western companies, India's distribution system is easy to navigate. E. Global marketers find that it is unnecessary to adapt their channel strategies in different countries.
A
Which of the following statements regarding marketing channel behavior and design is correct? A. The success of individual channel members depends on the overall channel's success. B. Conflicts rarely occur in marketing distribution channels. C. Vertical marketing systems lack leadership and power, often resulting in damaging conflict and poor channel performance. D. A conventional distribution channel consists of one or more independent producers, wholesalers, and retailers acting as a unified system. E. Distribution channels are nothing more than simple collections of firms tied together by various flows.
A
__________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line. A. Full-line forcing B. Exclusive distribution C. An exclusive territorial agreement D. Intensive distribution E. Exclusive dealing
A
A _________ is anything that can be offered to a market that might satisfy a need or a want. a. position b. product c. promotion d. none of the above
B
According to the text, the most successful new products satisfy three criteria. What are these criteria? A. They appeal to a wide variety of consumers, are priced low, and can be mass marketed. B. They solve a major customer problem, are differentiated, and offer a compelling value proposition. C. They are differentiated, copy successful competitor products, and are priced low. D. They are something that has never been seen before, are priced low, and are offered on a limited basis. E. They solve a major customer problem, are differentiated, and are priced low.
B
According to the text, what are the three levels on which brands can be positioned? A. Product attributes, desirable benefits, and brand equity B. Product attributes, desirable benefits, and beliefs and values C. Quality, features, and desirable benefits D. Brand equity, brand value, and brand sponsorship E. Product attributes, price, and packaging
B
After the company has defined its channel objectives, it should next identify its major channel alternatives in terms of the types of intermediaries, the number of intermediaries, and __________. A. whether to use intensive or exclusive distribution B. the responsibilities of channel members C. the length of the channel D. economic criteria E. consumer needs
B
Another option you are considering is a value-based approach using good-value pricing. Which of the following accurately describes a good-value pricing approach? a. A less expensive model that has fewer features than the name brand product b. A less expensive model that has features that are similar to the name brand product c. A less expensive model that has more features that are similar to the name brand product d. a deluxe model that has better features and a higher price than the name brand product e. a deluxe model that has better features and a much lower price than the name brand product
B
As Vice President of Marketing for Holden-Evan, a highly successful consumer products company, you have been asked by your superiors to price a new product for the company, an electric razor. Your first chore is to determine the basis on which you will determine price. Before you have a chance to analyze the situation, an advisor from sales tells you that this razor will never break into a tough market unless it has an absolute rock-bottom price. Which of the following identifies the best reason for why you should ignore advice to employ a competitive price approach in which you undercut all competitors? a. Low-priced razors are often considered "cheap" and don't sell well. b. By setting the price before you know the costs, you could lose money on every razor you sell. c. The best way to enter into a tough market is with promotion, not a low price. d. When buying a durable product like an electric razor, consumers don't pay attention to price. e. The best way to enter into a tough market is with high quality, not a low price
B
As Vice President of Marketing for Holden-Evan, a highly successful consumer products company, you have been asked by your superiors to price a new product for the company, an electric razor. Your first chore is to determine the basis on which you will determine price.Before you have a chance to analyze the situation, an advisor from sales tells you that this razor will never break into a tough market unless it has an absolute rock-bottom price.Which of the following identifies the best reason for why you should ignore advice to employ a competitive price approach in which you undercut all competitors? a. Low-priced razors are often considered "cheap" and don't sell well. b. By setting the price before you know the costs, you could lose money on every razor you sell. c. The best way to enter into a tough market is with promotion, not a low price. d. When buying a durable product like an electric razor, consumers don't pay attention to price. e. The best way to enter into a tough market is with high quality, not a low price.
B
Beyond the nature of the market, demand, and the economy, what other factors in a firm's external environment must a company consider when setting prices? A. The company's overall marketing strategy and selecting target markets B. Resellers, the government, and social concerns C. The company's overall marketing strategy and marketing mix D. The government, resellers, and profit objectives E. Resellers, the government, and the marketing mix
B
Caroline is married with two children. She is a college graduate with a household income of $75,000 per year. What type of segmentation variables are being used to describe Caroline? A. Geographic B. Demographic C. Psychographic D. Behavioral
B
Choosing a differentiated targeting strategy has many benefits, but a potential downside is that __________. A. focusing on what is common in consumers can potentially appeal to the largest number of buyers B. it can increase costs C. the demand for customized products is decreasing D. serving one or a few smaller segments can limit sales E. offering one marketing mix can limit sales
B
Companies should take a holistic approach to new product development. This means that the process should be __________. A. customer-centered, compartmentalized, and systematic B. customer-centered, team-based, and systematic C. customer-centered, team-based, and haphazard D. compartmentalized, team-based, and company-centered E. compartmentalized, sequential, and company-centered
B
Duracell is well known for manufacturing and marketing batteries. Recently they launched the Duracell Powermat, which is a wireless charger for mobile devices. Which brand development strategy did Duracell use in this example? A. New brand B. Brand extension C. Licensing D. Line extension E. Multibrand
B
If a company finds that a new product concept is acceptable and should be moved forward, what is the next step in the new product development process? A. Business analysis B. Marketing strategy development C. Commercialization D. Product development E. Test marketing
B
In promoting Smoothsayer, your first inclination is to target the 35 and up market because the product is primarily an anti-aging cream. However, an associate points out that Smoothsayer is an effective acne fighter and protects against the sun's harmful UV rays. How do these facts change your thinking about Smoothsayer's target market? a. The strategy shouldn't change. Smoothsayer should still be targeted at the 35 and up market exclusively. b. Smoothsayer should be targeted at the 35 and up market that spends a lot of time outdoors. c. Smoothsayer should be targeted at the 35 an up market that still has problems with acne. d. Smoothsayer should be targeted at the 35 and up market that spends a lot of time outdoors and still has problems with acne. e. Smoothsayer should be primarily targeted at the 35 and up market, but the younger market should not be ignored.
B
In which type of market does no buyer or seller have much impact on setting the going market price? A. Oligopolistic competition B. Pure competition C. Monopolistic competition D. B2B market E. Pure monopoly
B
In 2001, Apple opened its first Apple stores in the United States. These stores were owned and operated by Apple. This is an example of which type of vertical marketing system (VMS)? A. Franchise B. Corporate C. Conventional D. Administered E. Contractual
B
Luxury automobile manufacturers typically add quality, services, and other features to differentiate their offers and thus support their higher price. This is an example of __________. A. everyday low pricing B. value-added pricing C. good-value pricing D. customer-based pricing E. cost-based pricing
B
One key function of channel members is __________, which involves shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging. A. negotiating B. matching C. promotion D. contact E. risk taking
B
Psychographic segmentation divides buyers into different segments based on __________. A. lifestyle and income B. lifestyle and personality C. lifestyle and geography D. personality and income E. age and life-cycle stage
B
There is a growing segment of people who want food that tastes good and is also good for them. This healthy-living segment represents which segmentation base? A. Geography B. Lifestyle C. Age D. Gender E. Usage rate
B
To succeed in France, McDonalds had to __________. A. use local bakeries to supply their baguettes B. tailor their operations to local French preferences C. keep the same restaurant design as in the United States D. standardize their products E. use the same cheeses on their burgers that are used in the United States
B
Walmart has a lot of power and exerts strong influence on the suppliers they buy from. This channel power is an example of a(n) __________ vertical marketing system (VMS). A. contractual B. administered C. corporate D. franchise E. conventional
B
What is the first thing marketers must do when using value-based pricing? A. Convince buyers that the product's value at a given price justifies the purchase. B. Assess customer needs and value perceptions. C. Design a quality product. D. Determine product costs. E. Set the target price to match customer perceived value.
B
Which of the following is a reason that producers use marketing channels and channel intermediaries? A. Marketing channel decisions require only a short-term commitment. B. Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers. C. Using channel intermediaries increases the number of contacts with customers. D. The reduced costs of using channel intermediaries offsets the inefficiencies of marketing channels. E. Using marketing channels allows producers to retain full control over how and to whom they sell their products.
B
Which of the following statements about new product development strategy is correct? A. A new product will succeed as long as it priced correctly. B. Innovation can be very expensive and very risky. C. New products are not a key source of growth for companies. D. New products are usually successful because consumers like new things. E. Developing new products is optional for companies with established brands.
B
Which of the following statements about segmentation is true? A. Market segmentation is part of a company's value proposition. B. Different segments might require different marketing strategies or mixes. C. Most companies today mass market and do not segment their markets. D. Buyers within a market segment have different needs, characteristics, and behaviors. E. Segmentation identifies individual buyers that can be targeted with a market offering.
B
Which of the following statements is correct regarding different types of markets? A. Under oligopolistic competition, the market consists of many buyers and sellers trading in a uniform commodity and sellers do not spend much time on marketing strategy. B. Under oligopolistic competition each seller is alert and responsive to competitors' pricing strategies and marketing moves. C. In a pure monopoly, the market consists of many buyers and sellers trading over a range of prices. D. Under monopolistic competition the market is dominated by one seller. E. Under pure competition sellers spend considerable time on marketing strategy and pricing decisions.
B
Which of the following statements regarding a just-in-time logistics system is correct? A. Just-in-time logistics systems ensure that new stock arrives at least one week before it is needed. B. Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations. C. Just-in-time logistics systems greatly increase inventory-carrying and inventory-handling costs. D. Just-in-time logistics systems eliminate the need for forecasting. E. Just-in-time logistics systems allow producers and retailer to carry large amounts of inventory.
B
Which of the following statements regarding managing brands is correct? A. Brand audits are only necessary when launching a new brand. B. Customers' engagement with brands and customers' brand experiences are the key elements in maintaining a brand's position. C. The only company departments that must truly embrace a brand are sales and marketing. D. Once a brand's position is firmly established, further communicating that position to consumers is a waste of resources. E. Successful branding is unrelated to managing customer touchpoints.
B
Which of the following statements regarding segmentation is correct? A. Marketers typically use one variable to segment their markets. B. Consumer and business marketers use many similar variables, but business marketers use additional variables to segment their markets. C. The business market is homogenous and is not segmented D. As gender roles have changed, gender is no longer a useful form of segmentation. E. The use of demographics to segment markets has declined in recent years.
B
You are leaning toward Carnaby Street as the clothing line you will recommend to the New Product Development Committee. Which of the following best supports the Carnaby Street line as the best choice? a. Black tie formal events are decreasing in popularity. b. Classic styles are growing in popularity. c. The very young 19-26 demographic is currently slow. d. There is high interest among all demographics for British fashions in the 1960s. e. A feature film that focuses on the loose moral atmosphere of Swinging Sixties is due to come out this year.
B
You have dismissed using political orientation as a segmentation variable. However, new information about Smoothsayer may change your mind. Which of the following makes the best case for including political orientation as a key segmentation variable? a. Smoothsayer is made from ingredients that are imported from France, Morocco, and Malaysia. b. Smoothsayer is union-made, organic, its factory is carbon neutral, and no animals were harmed during the making or testing of the product. c. Smoothsayer is not the most expensive beauty cream on the market. d. Smoothsayer is made from all-natural ingredients. e. Smoothsayer is used by a number of famous people, including movie stars, politicians, first ladies, artists, musicians, and business executive.
B
Cross-functional teamwork within the company, building logistics partnerships, and third party logistics are all important elements of __________. A. multimodal transportation B. integrated logistics management C. sustainable supply chains D. supply chain management E. reverse logistics
B
A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity is called a(n) __________. A. trend B. style C. fad D. fashion E. aberration
C
As the Vice President of Marketing of high-end Swazzi clothing chain, it is your job to develop a new premium line of designer women's clothing. You are considering three approaches: gowns inspired by award show participants for the older demographic, a 1960s retro line called Camaby Street for the 24-37 demographic, and a line aimed at the 17-25 demographic based on fashions worn by current rock stars. Your first task to determine whether price should be a factor that should be considered in the development of a clothing line from the beginning. Which of the following identifies the strongest reason for why price should be considered at the earliest stage of product development? a. Price will help determine sales. b. Price will help determine profits. c. Price is part of the product design. d. Price will help determine the market for the product. e. Price will help determine how the product is promoted.
C
Customer product with unique brand identification for which buyers are willing to make a special purcahse effort is called _______ product. a. convenience b. shopping c. specialty d. unsought
C
Due to changes in technology, a recent trend is for product or service producers to cut out intermediaries and go directly to final buyers. This is one form of __________. A. a vertical marketing system B. disengagement C. disintermediation D. channel dissolution E. channel distress
C
Furniture, major appliances, clothing, and hotel services are classified as __________ products. A. specialty B. industrial C. shopping D. unsought E. convenience
C
Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a(n) __________ approach to new product development. A. haphazard B. sequential C. systematic D. team-based E. customer-centered
C
Materials and parts, capital items, and supplies and services are groups of __________products. A. unsought B. convenience C. industrial D. specialty E. shopping
C
Most products today are in which stage of their product life cycle? A. Product development B. Decline C. Maturity D. Growth E. Introduction
C
On a break-even chart, the break-even volume is located __________. A. at the intersection of total revenue and fixed costs B. at the intersection of total revenue and target profit C. at the intersection of total revenue and total costs D. at the intersection of total revenue and variable costs E. at the intersection of target profit and total costs
C
Service quality greatly depends on the quality of the buyer-seller interaction during the service encounter. This is known as __________. A. internal marketing B. image differentiation C. interactive marketing D. the service profit chain E. external marketing
C
The amount of money charged for a product is its __________. A. breakeven point B. revenue C. price D. profit E. cost
C
The committee agrees that the true strength of the Carnaby Street line is the enduring public interest in the sixties and its effect on the market. The Carnaby Street line is chosen. Which lesson do you take away from this decision? a. Quality workmanship is important. b. There is no predicting the taste of the public. c. Some fashions never go out of style. d. People want to relive the past over and over again. e. Formal wear is likely never to become popular again.
C
The most basic level of a product is called its _________. a. augmented product b. actual product c. core benefit d. position
C
The strategy of __________ means that the firm attempts to offer the right combination of quality and good service at a fair price. A. value-added pricing B. cost-based pricing C. good-value pricing D. everyday low pricing E. customer-based pricing
C
Using __________, the customer shares real-time data on sales and current inventory levels with the supplier. The supplier then takes full responsibility for managing inventories and deliveries. A. RFID B. piggybacking C. vendor-managed inventory D. reverse logistics E. just-in-time logistics systems
C
Walmart created the Great Value brand for their food products and the Equate brand for their pharmacy, health, and beauty products. Walmart does not manufacture any of these products. Which type of brand sponsorship is Walmart using? A. A co-brand B. A national brand C. A private brand D. A licensed brand E. A manufacturer's brand
C
What are the four major functions of logistics? A. Inventory management, transportation, shipping, and warehousing B. Warehousing, inventory management, retailing, and logistics information management C. Warehousing, inventory management, transportation, and logistics information management D. Warehousing, inventory management, transportation, and retailing E. Retailing, inventory management, transportation, and logistics information management
C
What does the process of designing marketing channels start with? A. Identifying the types of intermediaries to use B. Identifying the number of intermediaries to use C. Analyzing consumer needs D. Evaluating major channel alternatives E. Setting channel objectives
C
What is the overall purpose of differentiation? A. To allow a firm to offer the lowest prices B. To market high quality products C. To create superior customer value D. To select the segment or segments to enter E. To divide the market into smaller groups of buyers
C
When a company lengthens a product line by adding more items within that lines current range, they are __________. A. stretching the line downward B. increasing the width of their product mix C. filling the line D. stretching the line upward E. decreasing the depth of the line
C
Which base of segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product? A. Demographic B. Geographic C. Behavioral D. Economic E. Psychographic
C
Which factor sets the ceiling on setting a product's price? A. Demand B. Revenue C. Customer's value perceptions D. Company costs E. Competitors
C
Which factor sets the floor on setting a product's price? A. Demand B. Customer's value perceptions C. Product costs D. Revenue E. Competitors
C
Which of the following is an example of horizontal channel conflict? A. A consumer complaining to a producer about the quality of a product. B. A retailer complaining about a producer's pricing. C. A Ford dealer complaining that another Ford dealer is advertising in their territory. D. A retailer complaining about receiving damaged goods from a wholesaler. E. A consumer complaining to a retailer about the service they received.
C
Which of the following is a cost-based pricing approach? A. Value-added pricing B. Competition-based pricing C. Break-even pricing D. High-low pricing E. EDLP pricing
C
Which of the following statements concerning new products is correct? A. Products that are merely improved in some way are not considered new. B. A modified product is not considered a new product. C. Modified and improved products are considered new. D. To be considered new, the product must be something consumers have not seen before. E. Most new products succeed within two years of their introduction.
C
Which of the following statements is true regarding standardizing products for international markets? A. Standardization helps a company develop a different image in different countries. B. Standardization ensures that products will succeed in foreign markets. C. Standardization decreases product design, manufacturing, and marketing costs. D. Markets and consumers all over the world are alike, so a company should always standardize international products. E. Standardization means that marketers do not have to adapt their product offerings for different international markets.
C
Which of the following statements is true regarding costs? A. Totals costs are the sum of long-run average costs and short-run average costs. B. Costs do not vary with different levels of production. C. Average cost tends to decrease with accumulated production experience. D.Experience curve pricing is a low risk strategy. E. Variable costs vary directly with the level of sales.
C
Which of the following statements regarding customer value-based pricing is correct? A. Using this strategy, marketers first design the product and marketing program, then set the price. B. Customer valuedash-based strategy begins with determining product costs. C. In using this strategy, companies often find it hard to measure the value customers attach to their product. D. Using this strategy, marketers must convince buyers that the product's value at that price justifies its purchase.
C
Which of the following statements regarding socially responsible product decisions is correct? A. When companies drop products, they do not have any obligations to suppliers, dealers, and customers. B. Safety legislation has not yet been passed to regulate toys, automobiles, and fabrics. C. The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition. D. Companies can safely ignore patent laws. E. Manufacturers are generally not concerned with product liability.
C
Which of the following would be an appropriate strategy during the maturity stage of the product lifecycle? A. Shift some advertising from building product awareness to building product conviction and purchase. B. Use promotional spending to inform consumers and get them to try the product. C. Modify the market, product offering, or marketing mix. D. Select products to maintain, harvest, or drop. E. Produce basic versions of the product and focus on selling to those buyers who are most ready to buy.
C
A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges are called a(n) __________. A. product mix B. product portfolio C. product stretch D. product line E. product level
D
An advisor argues that if you can get occasional users of beauty creams to purchase Smoothsayer, you will be moving into an untapped market and gaining new customers. He wants to make occasional users your primary audience. Which of the following statements best argues against this suggestion? a. Occasional users are not likely to be able to afford Smoothsayer. b. Occasional users tend to be young women in their 20s and early 30s. c. Occasional users would not be interested in Smoothsayer's anti-acne or UV protection properties. d. You would need to obtain several occasional users to equal the purchases of a single daily user. e. It would be more difficult to convince occasional users of the benefits of Smoothsayer than daily users.
D
An associate recommends that you emphasize the low price of the Carnaby Street line in your presentation to the NPD committee. The Carnaby Street mini-dress, for example, will sell for $335 while a typical awards gown will sell for $1750. Show you follow your associate's suggestion? a. Yes, consumers these days are looking at price above all other concerns. b. Yes, you should be able to sell three Carnaby Street items for every gown you can sell. c. Yes, luxury items are not currently selling well. d. No, price is not a critical issue for your sophisticated, affluent target market. e. No, price is important only for items that sell for less than $100.
D
As a marketing manager of Holden-Evan, a health, home, and beauty consumer products company, your task is to determine how best to target and position several new beauty products. Smoothsayer, an expensive new skin cream, is one of the products you are analyzing. In choosing segmentation variables for Smoothsayer, which of the following identifies the strongest reason for choosing social class as one of your segmentation variables? A. Studies show that only the deathly use beauty creams regularly. B. Studies show that middle class women use beauty creams, but wealthy women rely almost exclusively on spa treatments for beauty. C. Studies show that the use of expensive beauty creams cuts across all socioeconomic groups. D. Smoothsayer costs $300 a jar so it is not for everyone. E. Smoothsayer is expensive but it is seen as a status symbol among middle class women.
D
At which stage of the new product development process is a physical product first developed? A. Marketing strategy development B. Concept development and testing C. Test marketing D. Product development E. Idea generation
D
CVS pharmacy stores have recently stopped selling cigarettes. For cigarette manufacturers, this highlights the challenge of __________ channel members. A. rewarding B. evaluating C. motivating D. selecting E. compensating
D
For which service characteristic do marketers need to pay close attention to fluctuations in demand? A. Tangibility B. Intangibility C. Variability D. Perishability E. Inseparability
D
It seems clear that Smoothsayer has appeal to both the 35 and up market and the younger market. To reach both segments, an advisor suggests that you launch two separate market campaigns, one aimed at the older market, the other aimed at the younger market. Which conclusion is the best response to this suggestion? a. It is a bad idea because two separate market campaigns will create confusion among consumers. b. It is a bad idea. Marketers never launch separate market campaigns because they are too expensive and too hard to implement. c. It is a good idea. The more market campaigns you launch, the more likely you are to succeed. d. It is a good idea as long as the two market campaigns are designed to complement one another. e. It is neither a good or bad idea. It is impossible to predict how market campaigns will do before they are launched.
D
One recent development in generating new product ideas is for a company to invite broad communities of people- such as employees, customers, and even the public at large into the innovation process. This is known as __________. A. test marketing B. crowdfunding C. intrapreneurial idea generation D. crowdsourcing E. concept testing
D
Product planners think of products on three levels. Which of the following correctly identifies the three levels? A. The core customer value, the actual product, and the quality level B. The branding, the quality level, and the design C. The core customer value, the actual product, and the product's position D. The core customer value, the actual product, and the augmented product E. The branding, the packaging, and the core customer value
D
Retailers such as Macy's and JC Penney charge higher prices on an everyday basis, but run frequent promotions to lower prices temporarily on selected items. This is an example of __________. A. break-even pricing B. value-added pricing C. cost-plus pricing D. high-low pricing E. EDLP pricing
D
Services cannot be seen, tasted, felt, heard, or smelled before they are bought. In other words, services are __________. A. variable B. perishable C. tangible D. intangible E. inseparable
D
The length of a channel is determined by __________. A. the number of retailers in the channel B. the number of wholesalers in the channel C. the number of final consumers D. the number of intermediary levels E. the number of producers
D
The number of items in a product line represents the __________ and the total number of product lines a company carries represents the __________. A. product line length; product line width B. product mix length; product mix depth C. product mix depth; product line width D. product line length; product mix width E. product line width; product mix length
D
Two external factors which must be considered in pricing decisions are __________. A. the marketing mix and the nature of the market B. company objectives and the marketing mix C. the marketing mix and demand D. demand and the nature of the market E. the marketing mix and the economy
D
Typically, consumers put in minimum time and effort when buying products such as laundry detergent, candy, and fast food. These types of goods are classified as __________ products. A. specialty B. augmented C. shopping D. convenience E. unsought
D
What are the four special service characteristics marketers must consider when designing marketing programs? A. Tangibility, inseparability, variability, and perishability B. Intangibility, inseparability, conformity, and perishability C. Intangibility, inseparability, variability, and substitutability D. Intangibility, inseparability, variability, and perishability E. Tangibility, substitutability, variability, and conformity
D
What are the three broad targeting strategies used by marketers? A. Undifferentiated marketing, differentiated marketing, and concentrated marketing B. Differentiated marketing, concentrated marketing, and micromarketing C. Mass marketing, undifferentiated marketing, and micromarketing D. Mass marketing, differentiated marketing, and micromarketing E. Mass marketing, differentiated marketing, and concentrated marketing
D
What is a product concept? A. An idea for a new product B. A new product which is ready to be test marketed C. A working model of a new product D. A detailed version of a new product idea stated in meaningful consumer terms E. The image of a new product in consumer's minds
D
What is the first step of the new product development process? A. Concept development and testing B. Idea screening C. Business analysis D. Idea generation E. Marketing strategy development
D
When segmenting international markets, marketers often can form segments of consumers who have similar needs and buying behaviors even though they are located in different countries. This is called __________. A. cultural segmentation B. geographic segmentation C. global segmentation D. intermarket segmentation E. intra-market segmentation
D
When segmenting international markets, markets can be grouped according to language, religion, customs, and values. This type of segmentation is based on __________ factors. A. psychographic B. geographic C. economic D. cultural E. demographic
D
Which government agency has the authority to ban or seize potentially harmful products and set severe penalties for violation of the law? A. The Environmental Protection Agency (EPA) B. The Federal Trade Commission (FTC) C. The Small Business Administration (SBA) D. The Consumer Product Safety Commission (CPSC) E. The Food & Drug Administration (FDA)
D
Which of the following descriptions best represents targeting a demographic segment? A. Promoting a smartphone with longer battery life B. Promoting cranberry sauce for the Thanksgiving holiday C. Marketing athletic clothing for sports enthusiasts D. Marketing prepackaged lunches for children E. Rewarding heavy users of a product
D
Which of the following statements regarding marketing channel design is correct? A. It is important to let the responsibilities of channel members evolve as their relationship develops. B. In global markets, channel systems are the same in different countries. C. Marketers should always maximize the number of intermediaries used in a channel. D. Channel alternatives should be evaluated against economic, control, and adaptability criteria. E. Channel objectives should be set in terms of profitability.
D
Which of the following statements regarding standard test marketing is correct? A. New products are always test marketed. B. If test marketing is successful, the next step is to develop the product. C. Test marketing is conducted in a simulated market setting. D. Test marketing can be costly and delay commercialization of the product. E. A company usually tests only a small part of its marketing program in a test market.
D
Which targeting strategy focuses on common consumer needs, as opposed to different needs? A. Local marketing B. Differentiated marketing C. Individual marketing D. Mass marketing E. Concentrated marketing
D
business buyers can be segmented by all of the following factors except: A. geographic B. demographics C. benefits sought D. psychographic
D
New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound and super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing? A. Cost-plus pricing B. EDLP pricing C. Break-even pricing D. Value-added pricing E. High-low pricing
D
A firm improves product quality and adds new product features and models. It also shifts some advertising from building product awareness to building product conviction and purchase. At which stage of the product life cycle would this be a recommended strategy? A. Product development B. Introduction C. Maturity D. Decline E. Growth
E
A(n) __________ shows the number of units the market will buy in a given time period at different prices. A. supply curve B. perceptual map C. production schedule D. value curve E. demand curve
E
BMW says their cars are "The Ultimate Driving Machine". Ford trucks are "Built Ford Tough". Which type of differentiation do these examples represent? A. People differentiation B. Image differentiation C. Services differentiation D. Channel differentiation E. Product differentiation
E
Charles Revson, who started Revlon, once said "We sell hope." Revson was defining the __________ of Revlon cosmetics. A. augmented product B. quality level C. design D. branding E. core customer value
E
Companies now use __________ and supply chain management software to help recruit, train, organize, manage, motivate, and evaluate channel partners. A. customer relationship management B. distribution centers C. channel management D. logistics E. partner relationship management
E
During concept testing, who is the product concept actually tested on? A. Broad groups of consumers B. Internal R&D engineers C. Employees in the company's marketing department D. Competitors E. Groups of target customers
E
Firms producing consumer electronics, furniture, and home appliance brands typically distribute their products __________. A. through value added resellers B. through franchises C. exclusively D. intensively E. selectively
E
How is price determined using cost-plus pricing? A. The price is set based on competitor's prices. B. The price is set by determining the customer's value perceptions. C. The price is set so that total revenue covers total costs. D. The price is set based on demand. E. The price is set by adding a standard mark-up to the cost of the product.
E
If men and women respond similarly to the same marketing mix, they do not constitute distinct, identifiable segments. Gender would not be an effective base for segmentation in this example because the segments are not __________. A. measurable B. accessible C. substantial D. actionable E. differentiable
E
In an R-W-W framework, "R" stands for "real." In order to qualify as "real" the product must satisfy a genuine need in the market place. Which of the following best describes the genuine need that the Carnaby Street clothing line fulfills? a. It fulfills a practical need, the way a raincoat protects you from rain. b. It fulfills a psychological need, the way a mini-dress can make you feel young and attractive. c. It fulfills an identity need, the way fashionable shoes can make you feel like a part of a group or trend. d. It fulfills a wardrobe need, the way a suit can give you something appropriate to wear to a business meeting. e. all of the above
E
In determining product quality, what are the two dimensions of quality marketers must decide upon? A. Consistency and packaging B. Level and price C. Level and features D. Consistency and design E. Level and consistency
E
Internal factors that affect pricing include __________. A. the company's overall marketing strategy, objectives, and the nature of the market B. the company's overall marketing strategy, objectives, and demand C. the nature of the market, demand, and the economy. D. the company's overall marketing strategy, the nature of the market, and demand. E. the company's overall marketing strategy, objectives, and marketing mix
E
On the My M&Ms website buyers can place custom orders for M&Ms. They can choose their own colors, put a personalized text message on the candies, and even upload a photo to be placed on each M&M. Which targeting strategy is M&M using for My M&Ms? A. Concentrated marketing B. Undifferentiated marketing C. Local marketing D. Differentiated marketing E. Individual marketing
E
The process of evaluating each market segment's attractiveness and selecting one or more market segments to enter is called __________. A. market segmentation B. differentiation C. a customer-driven marketing strategy D. positioning E. market targeting
E
The company, suppliers, distributors, and customers who open "partnerclose" with one another to improve the performance of the entire system make up the __________. A. downstream network B. marketing channel network C. upstream network D. supply chain network E. value delivery network
E
When setting channel objectives, companies should state the objectives in terms of __________. A. expected profitability B. exclusive distribution arrangements C. competitor's objectives D. the length of the channel E. targeted levels of customer service
E
Which of the following best describes brand equity? A. The return on investment a firm receives from a brand B. The extent to which two different brands in the same product category are similar C. The total financial value of a brand D. That the brand is legally protected from imitation E. A measure of the brand's ability to capture consumer preference and loyalty
E
Which of the following correctly defines a product? A. A product is the overall market offering. B. A product consists of the actual product and the augmented product. The core customer value is not part of a product. C. Products include tangible objects and services but not events or people. D. Products are tangible goods only. E. A product is anything offered to a market that might satisfy a need or want.
E
Which of the following is true regarding the price-demand relationship? A. Price elasticity measures how responsive price will be to a change in demand. B. If demand is inelastic, a small change in price will result in a large change in demand. C. A demand curve shows the number of units a company will produce in a given time period at different prices that might be charged. D. Demand and price are directly relatedlong dash—the higher the price, the greater the demand. E. If demand is elastic, sellers will consider lowering their price.
E
Which of the following statements regarding individual product decisions is correct? A. Consumers see branding as separate from the product. B. Product design and product style mean the same thing. C. The sole function of packaging is to hold and protect a product. D. Quality is important but it is not used to position products. E. Customer service is an important element of product strategy.
E
Which of the following statements regarding marketing logistics is correct? A. It is important for companies to improve logistics even though logistics are not a source of competitive advantage. B. Sustainability is not relevant to marketing channel logistics and the supply chain. C. Marketing logistics handle only outbound logistics. D. The goal of marketing logistics is to maximize sales. E. The goal of marketing logistics should be to provide a targeted level of customer service at the least cost.
E
Which of the following statements regarding positioning is correct? A. Once established, a strong position is never lost. B. Once a positioning strategy is identified, it is typically very easy to implement. C. Abruptly changing a position is an effective strategy when consumer needs change. D. Establishing a position usually takes a very short amount of time. E. Positions must adapt over time to meet changing consumer needs.
E
Which of the following statements regarding the growth stage of the product life cycle is correct? A. Sales will be slow and profits will level off or decline. B. Sales begin to climb slowly. C. Early adopters are not yet buying the product. D. The company will still be free of competition. E. Companies face a trade-off between high market share and high profits.
E
Which type of market consists of many buyers and sellers trading over a range of prices rather than a single market price? A. Oligopolistic competition B. Pure monopoly C. Pure competition D. Uniform commodities E. Monopolistic competition
E
Which value proposition is the most difficult to sustain in the long run? A. The same for less B. Less for much less C. More for more D. More for the same E. More for less
E
You are considering a cost-plus pricing method for the razor. Which of the following identifies the greatest danger in using this pricing method? a. The price that is set will increase demand dramatically. b. The price that is set will be too low. c. The price that is set will fail to factor in fixed costs. d. The price that is set will be variable and unstable. e. The price that is set will dramatically decrease demand.
E
You considered abandoning the Carnaby Street line when you heard that a department store chain was coming out with a line that was based on 1960s British styles. However, the Carnaby Street line features silks and suedes, while the competitor's clothes are printed cottons only. Does Swazzi have a competitive advantage over the department store's line? a. Yes, silks and suedes are much more stylish and desirable than cottons. b. Yes, silks and suedes are much more expensive than cottons. c. No, silks and suedes are much less stylish and desirable than cottons. d. No, silks and suedes are much less expensive than cottons. e. No, whether silks and suedes are more desirable than cottons is a completely subjective matter that can't be predicted.
E
Another value-based approach is value-added pricing. Which of the following products is using a value-added pricing approach? a 3G smart phone with all standard features and a few very exciting extra features at a price that is higher than the industry standard
a 3G smart phone with all standard features and a few very exciting extra features at a price that is higher than the industry standard
