Marketing Quiz 3, Exam 2 Practice

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features? a. product development b. introduction c. growth d. maturity e. adoption

b. introduction

Sweet & Cream attracts new customers by adding new flavors to its frozen yogurt product line. In this case, the company has developed its brand with ____. a. brand extensions b. line extensions c. multibranding d. new product lines e. co-branding

b. line extensions

A company designs what it considers to be a good product, calculates the expenses of making the product, and sets a price that adds a standard markup to the cost of the product. This approach to pricing is called _____ pricing. a. value-added b. good-value c. cost-plus d. competitor-based e. break-even

c. cost-plus

Which of the following sets the upper limit for a product's pricing? a. profits b. product costs c. consumer perceptions of value d. elements of the product mix e. competition

c. consumer perceptions of value

_____ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk. a. competition - based b. value - added c. cost-based d. good-value e. demand-based

c. cost-based

The first part of a marketing strategy statement describes the _____ of a new product. a. planned price b. marketing budget c. marketing mix strategy d. target market e. planned long-run sales

d. target market

______ is used to study the course of a product's sales and profits for the duration that it is produced and sold in the market. a. a sequential product development process b. a product life cycle c. business analysis d. vendor analysis e. portfolio analysis

b. a product life cycle

Which of the following is an example of an industrial product grouped under capital items? A. factory B. cement C. crude petroleum D. coal E. paint

A. factory

Specialty products are consumer products and services that customers generally buy __________. A. To conduct business B. Frequently and immediately C. Based on ready and availability D. Without making comparisons E. With minimal effort

D. Without making comparisons

Parvon is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely to achieve this goal? a. find a new market segments for the brand b. improve the overall quality of the products c. reduce mass media advertising expenses d. offer improved services to new buyers e. conduct controlled test marketing activities

a. find new market segments for the brand

A firm uses _____ when it charges a high, premium price for a new product with the intention of reducing the price in the future. a. market-skimming pricing b. target costing c. deceptive pricing d. market-penetration pricing e. predatory pricing

a. market-skimming pricing

A product is in the maturity stage of the product life cycle, and the company decides to modify the marketing mix. Which of the following steps is the company most likely to take? a. use aggressive sales promotions b. change features of the product c. improve product quality d. find new uses for the product e. explore new market segements

a. use aggressive sales promotions

Qriosity Inc. released a new antivirus program at half-price to attract buyers. This is most likely an example of ____. a. market-skimming pricing b. market-penetration pricing c. optional-product pricing d. by-product pricing e. allowance pricing

b. market-penetration pricing

The strategy of setting a low initial price to attract a large number of buyers quickly and win a large market share is referred to as ______. a. market-skimming pricing b. market-penetration pricing c. value-added pricing d. target costing e. deceptive pricing

b. market-penetration pricing

Under _____, the market consists of many buyers and sellers trading over a range of prices rather than a single market price. a. pure competition b. monopolistic competition c. oligopolistic competition d. a pure monopoly e. a pure monopsony

b. monopolistic competition

Combining several products and offering the collection at a reduce price is referred to as ______ pricing. a. by-product b. product bundle c. captive-product d. optional-product e. product line

b. product bundle

Pricing a product based on consumers' reference prices is referred to as ______ pricing. a. geographical b. psychological c. allowance d. by-product e. captive-product

b. psychological

Glow, a gift card store, offers a price reduction to customers who buy Christmas cards the week after Christmas. In this case, the store offers a _____. a. functional discount b. seasonal discount c. promotional allowance d. trade-in allowance e. quantity discount

b. seasonal discount

When demand hardly changes with a small change in the price of a product, then the demand for the product is best described as _______. a. elastic b. flexible c. inelastic d. variable e. cyclical

c. inelastic

Product mix width refers to the ____. a. number of versions offered for each product in the line b. ways in which the various product lines are related c. number of different product lines the company carries d. total number of items a company carries within its product lines e. total market share captured by the entire product line

c. number of different product lines the company carries

Store brands are also known as ____ brands. a. national b. manufacturer's c. private d. extended e. licensed

c. private

Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product? a. the product's quality supports its high price. b. alternative products can enter the market easily c. the market for the product is highly price sensitive d. prices increase incrementally as sales volume increases e. production costs rise with an increase in marketing efforts

c. the market for the product is highly price sensitive

Which of the following statements is most likely true about the product life cycle? a. Throughout the product introduction stage, sales are zero. b. The growth stage is the longest stage of the product life cycle c. Profits are nonexistent in the growth stage d. Growth is a period of rapid market acceptance and increasing profits e. Maturity is the period when sales fall off but profits continue to rise

d. Growth is a period of rapid market acceptance and increasing profits

_______ involves using an existing brand name for a new product category. a. line extension b. co-branding c. new branding brand extension d. brand extension e. multibranding

d. brand extension

Introducing a new product into the market is called ____. a. test marketing b. segmentation c. product development d. commercialization e. market penetration

d. commercialization

Xenon, a leading consumer-electronics manufacturing company, markets its products under the company's own brand name. In this case, Xenon has sponsored its products by promoting them as _____ brands. a. licensed b. private c. store d. national e. distributor

d. national

What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency? a. segmented pricing b. psychological pricing c. geographical pricing d. promotional pricing e. dynamic pricing

d. promotional pricing

Lengthening a product line beyond its current range is referred to as product line ______. a. filling b. strengthening c. mixing d. stretching e. widening

d. stretching

Setting a price for products that must be used along with a main product is known as ______ pricing. a. by-product b. market-penetration c. product line d. product bundle e. captive-product

e. captive-product

Which of the following statements is most likely true about the new product development? a. The first step in developing a new product involves determining any budgetary or distribution limitations. b. Most firms discourage employees from contributing new product ideas bc of legal concerns. c. In most cases, concept testing is followed by concept development. d. A product concept should be developed for each idea before it goes through idea screening. e. Customers, competitors, & suppliers are major sources of new product ideas.

e. customers, competitors and suppliers are major sources of new product ideas.

Brand _____ is the differential effect that knowing the brand name has on customer response to the product its marketing. a. capital b. loyalty c. wealth d. esteem e. equity

e. equity

Expanding a product line by adding more items within the present range of the line is known as product line_____. a. stretching b. widening c. strengthening d. mixing e. filling

e. filling

Which of the following is true about the introduction stage of a new product? a. profits are typically high b. promotion spending is relatively low c. less money is needed to attract distributors d. companies tend to avoid basic versions of the product e. sales growth tends to be slow

e. sales growth tends to be slow

Service inseparability means that ____. a. the evaluation of services is subjective and changes from customer to customer b. service quality depends on who provides them and how they are provided c. services cannot be stored for later sale or use d. services cannot be seen, tasted, felt, heard, or smelled before they are bought e. services become a part of their providers, whether the providers are people or machines

e. services become a part of their providers, whether the providers are people or machines