marketing exam 4
if Norwegian cruise lines increased the price of its 7-day package by 10% and as a result experienced 20% decline in customer bookings, Norwegians demand would be
elastic
Buyers want to exert only minimal effort to obtain shopping products
false
electricity is an example of a product that is price elastic
false
fixed costs vary with the number of units or products sold
false
line extensions are less common than other new products because line extensions are more expensive and more risky
false
marketers have little influence over shaping consumers concepts or perceptions
false
new products are classified solely as innovations that have never been sold by any organization
false
obtaining a specialty product involves a considerable amount of comparison activity
false
test marketing should be conducted when a product has been given a low probability of success
false
the two major product categories are business and institutional
false
trial is the first stage of the product adoption process
false
increasing the quality of a product may
give a firm an advantage over competing brands
which stage of product life cycle do profits begin to decrease
growth
an ______ is a concept, philosophy, or an image
idea
convenience products are
inexpensive, frequently purchased items & minimal purchasing effort.
the four major stages of a product life cycle incude
introduction, growth, maturity, and decline
a product item is best described as a
specific version of a product
the major drawback to using aesthetic modifications is
that the value of the modification is determined subjectively
Price is a key element in the marketing mix because it relates most directly to
the generation of total revenue
major characteristics of private brand
manufacturers are not identified on the product
product deletion
may be opposed by management
at the breakeven point
the money a company brings in from SELLING products equals the amount spent PRODUCING the products.
the first adopters are the innovators
true
the purpose of the pricing concept is to quantify and express the value of items in a market exchange
true
a product line is a particular version of a product that can be designated as a distinct offering on the organizations list of products
false
a run-out approach to product deletion lets the product decline without changing the marketing strategy
false
concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions
false
customers always interpret a higher price to mean a higher quality
false
delivery, installation, financing, repair, warranties, and guarantees are all examples of product features
false
disruptive innovations involve completely new technologies
false
during growth stage, promotion costs rise as a percentage of total sales
false
new products are classified solely as innovations that have never been sold by any organizations
false
profits for a firm are computed as follows profits=total revenue-fixed costs
false
the concept of product quality is the same from consumer to consumer and from consumer markets to organizational markets
false
the point at which marginal revenue equals marginal cost is the breakeven point
false
what degree of brand loyalty is the strongest and most desired by marketers
insistence
the three levels of brand loyalty from strongest to weakest are
insistence preference recognition
Louis is reading the online report of the tuition and fees he owes for this semester of college. Since he has signed up for online banking, he pays the amount immediately. The amount Louis just paid is considered to be
the price
a products classification can influence its price, distribution, and promotion
true
advertising used in the decline stage may prolong the life of the product
true
advertisting used in the decline stage may prolong the life of the product
true
barter is the oldest form of exchange
true
brand and product managers operate cross-functionally
true
changes in buyers attitudes, other components of the marketing mix, and uncontrollable environmental factors can influence demand
true
communicating product benefits to consumers is very important in the introduction stage
true
costs are a major issue when establishing price
true
designing a product that consumers perceive as different from competing products is an example of product differentiation
true
factors affecting pricing decisions can include demand, distribution, and the way in which the product is promoted
true
functional modifications usually require that the product be redesigned
true
nonprice competition allows a company to increase its brands unit sales through means other than changing the brands price
true
price cuts are typical in a products growth stage
true
price cuts are typical in products growth stage
true
price is the most easily adjusted ingredient in the marketing mix
true
price is the value that is exchanged for products in a marketing transaction
true
process materials are used directly in the production of products
true
profits decline in the maturity stage largely because of increase competition
true
during the maturity stage
some competitors are forced out
during maturity stage
some competitors are forced out.
a product mix is best described as
all products offered by a firm
Philip is on his way back to work when he realized he has a flat tire. He goes to Discount Tires and has a new tire installed. Phillips purchase of this tire is considered to be
an unsought good
which of the following is NOT a business product
Calculators bought to help individuals complete their personal federal income tax forms
which of the following products is most likely to have an inverted C-shaped demand curve
PERFUME
Which of the following is an example of functional modification?
Planter Nuts redesigns the packaging of its nut products so they are easier for those with arthritis to open
one advantage of non-price comp is
a firm can build customer loyalty
the three major ways to modify a product include
aesthetic, quality, and functional changes
the jolly green giant facilitated the development of
brand associations
the owner of Big Jims Motorcycles is opening a new retail location. Which of the following is most likeley to be a fixed cost for big jims motorcycles
building rent
Marianna tells Rajesh that she likes his teams idea about a new three lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits, she is asking Rajesh to proceed to which stage of the new product development process
business analysis
break-even analysis is a tool that marketers are likely to employ during the _____ stage of the new product development process
business analysis
one disadvantage of test marketing a new product is that
competitors may copy the product
although they become part of a larger product, ____ can often be easily identifies and distinguished on the larger product
component parts
The general auto insurance advertises its automobile insurance as :for a great low rate you can get online, go to the general and save some time!" general is engaging in
price competition
as richard works on prototype of a new action oriented computer game, he is engaging in which phase of the new product development process
product development
marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during
product development
three major ways in which marketers egage in product differentiation are
product quality, product desifn and features, product support services
which of the following is the best example of disruptive innovation
razor blade
if a product has an inelastic demand and the manufacturer raises its price
total revenue will increase
During the commercialization phase of new-product, plans for full scale manufacturing and marketing are refined and settled
true
For most products, the quantity demanded goes up as the price goes down
true
a customer looking for the lowest price on a mattress without concern for the quality of the mattress or the status gained by buying or using that certain brand is a price conscious customer
true
a product needs not be a physical product
true
