Marketing Test 3

_____ are expressed in the form of a percentage, such as "3/10, n/30," or "3 percent, 10 days, net 30." A. Cash discounts B. Seasonal discounts C. Noncumulative quantity discounts D. Advertising allowances E. Cumulative quantity discounts

A. Cash discounts

_____ relates to how easily consumers can test and use the product. A. Trialability B. Availability C. Observability D. Compatibility E. Relative advantage

A. Trialability

In the grocery store, you can see the Kellogg's name on its Special K and Rice Krispies cereals, Eggo waffles, and Pop-Tarts. Having the Kellogg's name on all these various products is an example of the use of A. a family brand. B. individual brands. C. co-branding. D. rebranding. E. brand association.

A. a family brand.

When a firm attempts to determine whether the product will perform according to its design and whether it satisfies the need for which it was intended, it partakes in A. alpha testing. B. beta testing. C. postmarket testing. D. premarket testing. E. the product launch.

A. alpha testing.

The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service is referred to as A. brand equity. B. market value. C. brand awareness. D. perceived value. E. brand associations.

A. brand equity.

When Megan purchased several bottles of Pepsi beverages and snacks to bring to her family's holiday celebration, it represented the purchase of A. consumer products. B. specialty services. C. personal products. D. sought products. E. unsought goods.

A. consumer products.

Using the _____ pricing method, consumers may be willing to pay more for a particular product because, over its entire lifetime, it will eventually be less expensive to own than a cheaper alternative. A. cost of ownership B. improvement value C. premium D. competitor-based E. cost-based

A. cost of ownership

Poland Springs produces a variety of bottled water beverages, and as the market continues to show growth potential for new flavors and varieties of bottled water, the company should _____ its product lines. A. increase the depth of B. decrease the depth of C. increase the breadth of D. decrease the breadth of E. consolidate

A. increase the depth of Depth- How many different kinds of the same product

In some cases, _____ may never adopt a certain product or service since they rely on traditional products until they are no longer available. A. laggards B. innovators C. early adopters D. the late majority E. the early majority

A. laggards

Kraft, Nike, KitchenAid, and Sony are all examples of the use of _____ brands. A. manufacturer B. private-label C. premium D. generic E. copycat

A. manufacturer

Kellogg's has a variety of brands in its cookies and crackers _____, including Cheez-It crackers, Keebler Townhouse Club crackers, Famous Amos cookies, and Keebler Fudge Shoppe. A. product line B. product mix C. marketing mix D. augmented products E. brand extension

A. product line

Introduced in 1920, Band-Aid now has more than 40 products in its product line to help heal cuts and scrapes. Band-Aid has, over the years, increased its A. product line depth. B. product mix breadth. C. product line breadth. D. product mix depth. E. augmented product line.

A. product line depth.

The set of business activities that adds value to products and services sold to consumers for their personal or family use is referred to as A. retailing. B. marketing. C. wholesaling. D. distribution. E. supply chain management.

A. retailing.

Retailers may modify product, price, and/or promotion to attempt to increase their _____, which is the percentage of the customer's purchases made from that particular retailer. A. share of wallet B. consumer position C. distribution intensity D. retail position E. share of market

A. share of wallet

The most common implementation of a quantity discount at the consumer level is the _______ discount. A. size B. MSRP C. slotting D. zone E. premium

A. size

When a manufacturer based in New York City charges more to ship to customers in Los Angeles and less to ship to customers in Memphis, it is using A. zone pricing. B. variable pricing. C. uniform delivered pricing. D. flexible delivered pricing. E. inflated pricing.

A. zone pricing.

_______ measures how many consumers in a market are familiar with the brand and what it stands for and have an opinion about it. A. Brand equity B. Brand awareness C. Brand perception D. Brand association E. Brand loyalty

B. Brand awareness

_______ are crucial to the success of any new product or service because they help the product gain market acceptance by spreading positive word of mouth about the new product. A. Laggards B. Innovators C. Early adopters D. The late majority E. The early majority

B. Innovators

_____ distribution helps a seller maintain a particular image and control the flow of merchandise into an area which makes this approach attractive to many shopping goods manufacturers, such as most apparel items, home items like branded pots and pans or sheets and towels, branded hardware and tools, and consumer electronics. A. Variable B. Selective C. Intensive D. Exclusive E. Collective

B. Selective

____ occurs when parties at different levels of the same marketing channel (e.g., manufacturers and retailers) agree to control the prices passed on to consumers. A. Horizontal price fixing B. Vertical price fixing C. Loss leader pricing D. Predatory pricing E. Price discrimination

B. Vertical price fixing

When Ben & Jerry's Ice Cream tests all its proposed new flavors on its own employees at its corporate headquarters in Vermont, it is partaking in A. Nielsen testing. B. alpha testing. C. beta testing. D. the product launch. E. postmarket testing.

B. alpha testing.

Patagonia reinforces its image of selling high-quality, environmentally friendly sports equipment in its stores, catalogs, and website. Which of the following omnichannel challenges has Patagonia overcome by emphasizing function, not fashion, in the descriptions of its products in all of its channels? A. integrated CRM B. brand image C. pricing D. supply chain E. cannibalization

B. brand image

Star Wars memorabilia has been continually successful since the first film was released in the 1970s, and the most recent film releases have led to a massive increase in sales. This is an example of A. brand equity. B. brand licensing. C. brand awareness. D. co-branding. E. brand associations.

B. brand licensing.

Which of the following falls into the category of being a general merchandise retailer? A. bank B. category specialist C. supermarket D. convenience store E. warehouse club

B. category specialist

In the new product development process, when companies provide brief written descriptions of the product and what customer needs it would satisfy, sometimes including visual images of what the product would look like it involves A. idea generation. B. concept testing. C. product development. D. market testing. E. product launch.

B. concept testing.

Which of the following food retailers is a self-service retail food store offering groceries, meat, and produce with limited sales of nonfood items? A. convenience store B. conventional supermarket C. category specialist D. supercenter E. warehouse club

B. conventional supermarket

When choosing retail partners, a high-end cosmetics manufacturer like Estée Lauder would most likely not choose to sell to CVS or Dollar General due to A. channel structure. B. customer expectations. C. channel member characteristics. D. distribution intensity. E. networking capabilities.

B. customer expectations.

If the _______ buying group is relatively small, the number of people who ultimately adopt the innovation likely will also be small. A. laggard B. early adopters C. innovator D. the late majority E. the early majority

B. early adopters

Luxury goods firms such as Coach use a(n) _____ distribution strategy to limit sales to one or only a few select, higher-end retailers in each region, because selling its product in full-line discount stores or off-price retailers would weaken its image. A. collective B. exclusive C. intensive D. selective E. variable

B. exclusive

A full-line discount store is a type of ____________ retailer. A. service B. general merchandise C. inclusive D. Internet E. exclusive

B. general merchandise

During the ___________ stage, firms attempt to reach new consumers by studying their preferences and producing different product variations—varied colors, styles, or features—which enable them to segment the market more precisely. A. introduction B. growth C. maturity D. first E. decline

B. growth

A(n) _____ strategy is attractive because it attracts two distinct market segments: those who are not price sensitive along with more price-sensitive customers. A. cost-based pricing B. high/low pricing C. predatory pricing D. EDLP E. competitor-based pricing

B. high/low pricing

A(n) _____ strategy relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases. Multiple Choice A. predatory pricing B. high/low pricing C. cost-based pricing D. EDLP E. competitor-based pricing

B. high/low pricing

Which of the following terms refers to the process by which ideas get transformed into new offerings, including products, services, processes, and branding concepts that will help firms grow? A. marketing B. innovation C. strategic planning D. concept testing E. product development

B. innovation

Distribution intensity is commonly divided into three levels. What are they? A. primary, secondary, and tertiary B. intensive, exclusive, and selective C. local, regional, and national D. minimal, acceptable, and preferred E. standard, limited, and exclusive

B. intensive, exclusive, and selective

The introduction of the Apple iPod is an example of a(n) _____ because its introduction to the market radically changed consumer preferences and the entire competitive landscape. A. fad B. pioneer C. early adopter D. imitator E. laggard

B. pioneer

People who are considered "innovators" in that they are willing to pay a higher price to obtain a new product or service, would likely not object to a _______ strategy. A. price lining B. price skimming C. predatory pricing D. price fixing E. bait-and-switch pricing

B. price skimming pricing strategy in which a marketer sets a relatively high initial price for a product or service at first, then lowers the price over time.

The complete set of Kellogg's offerings representing its _____ includes ready-to-eat cereal, toaster pastries, wholesome portable breakfast snacks, cookies, crackers, and natural and organic brands. A. product line B. product mix C. marketing mix D. product variability E. brand extension

B. product mix

For most products, the UPC code would be located on the _____ package. A. primary B. secondary C. extended D. inside E. principal

B. secondary

_____ pricing methods do not recognize the role that consumers or competitors' prices play in the marketplace. A. Value-based B. Improvement value C. Cost-based D. Cost of ownership E. Competitor-based

C. Cost-based

When marketers develop nonphysical aspects of an offering by adding warranties, financing and after-sales service, they are focusing on the A. core customer value. B. actual product. C. augmented product. D. segmented product. E. secondary product.

C. augmented product.

The Victorinox Swiss Army Company is well known for its Swiss Army knives. The company also makes and markets its Swiss Army brand of watches, travel gear, cutlery, and even fragrances. This represents a _____ strategy. A. brand repositioning B. co-branding C. brand extension D. line extension E. brand dilution

C. brand extension

The earning potential of a brand over a 12-month period is known as its A. price potential. B. asset base. C. brand value. D. market share. E. market equity.

C. brand value.

Although they enjoy novelty and are considered to be opinion leaders, _____ are not the first to purchase new product innovations. A. laggards B. innovators C. early adopters D. the late majority E. the early majority

C. early adopters

At which stage in the product life cycle do sales experience their most rapid increase? A. product development B. introduction C. growth D. maturity E. decline

C. growth

In response to increased consumer demand for healthful beverages, companies like Coca-Cola and Pepsi introduced new product lines like fruit juice to _____ their product mix. A. increase the depth of B. decrease the depth of C. increase the breadth of D. decrease the breadth of E. consolidate

C. increase the breadth of Breadth- how many different products they have

If Kleenex produced a new, eco-friendly personal-sized package of tissues, which it intended to get into as many retail outlets as possible, it should choose a(n) _____ distribution strategy. A. variable B. selective C. intensive D. exclusive E. collective

C. intensive

Generally, the _____ and _____ sophisticated the channel member, the less likely that it will use supply chain intermediaries. A. smaller; less B. smaller; more C. larger; more D. shorter; more E. larger; less

C. larger; more

Supermarket chains often implement _____, a pricing tactic of selling leading brands of products below their own cost to build store traffic. A. price lining B. value-in-use C. leader pricing D. predatory pricing E. cost-based pricing

C. leader pricing

The objective of _____ is to build sales, market share, and profits quickly by providing an incentive to purchase the product immediately. A. price lining B. price skimming C. market penetration pricing D. price fixing E. experience curve effects

C. market penetration pricing

People who get Botox treatments consider it to be a private matter, therefore, they do not discuss it with others. This lowers the level of _____, slowing down the diffusion process. A. trialability B. complexity C. observability D. compatibility E. relative advantage

C. observability

When Suddenlink Communications offers its customers a discount when they order their television, Internet, and phone service all with Suddenlink on just one bill, it is an example of A. leader pricing. B. quantity discounting. C. price bundling. D. a markdown. E. a rebate.

C. price bundling.

As the size of retail firms has increased through growth and consolidation, more retailers have developed _____ merchandise, which they use to establish a distinctive identity. A. generic B. copycat C. private-label D. manufacturer E. co-branded

C. private-label

Francesca spent a lot of time shopping for her wedding dress, spending considerable time and effort visiting some of the finest bridal shops in the area. For Francesca, her wedding dress is a(n) _____ product. A. convenience B. unsought C. specialty D. shopping E. augmented

C. specialty

With use of _______ pricing, a shipper charges one rate no matter where the buyer is located. A. zone B. even C. uniform delivered D. category delivered E. cost-based

C. uniform delivered

In terms of a pricing strategy, _____ adds value by reducing consumers' search costs; consumers can spend less of their valuable time comparing prices, including sale prices, at different stores. A. cost-based pricing B. high/low pricing C. predatory pricing D. EDLP E. competitor-based pricing

D. EDLP Every day low price

Retailers using a high/low pricing strategy often communicate this through the creative use of _____, which is the price against which buyers compare the actual selling price of the product and that facilitates their evaluation process. A. price lining B. the improvement value C. prices ending in odd numbers D. a reference price E. the cost of ownership

D. a reference price

Brand equity is determined by four aspects of a brand which include all of the following except A. brand awareness. B. perceived value. C. brand associations. D. brand quality. E. brand loyalty.

D. brand quality.

Some grocery retailers have invested in their own private brands, charging just slightly lower than national brands to signal the quality of the products is good, involving the use of A. variable costing. B. cost-based pricing. C. value-based pricing. D. competition-based pricing. E. predatory pricing.

D. competition-based pricing.

If a firm deletes an entire product line, it has A. increased its depth. B. decreased its depth. C. increased its breadth. D. decreased its breadth. E. diversified.

D. decreased its breadth.

When developing strategies for working with retailers, manufacturers must consider whether they should sell in more than one outlet (e.g., store, catalog, and Internet). Which of the following factors for establishing a relationship with retailers deals with this? A. choosing retail partners that will carry the products B. identifying the appropriate types of retailers to carry the products C. developing a retail strategy that implements the four Ps D. determining whether or not to use an omnichannel strategy E. allocating inventory throughout the channel of distribution

D. determining whether or not to use an omnichannel strategy Omnichannel is a multichannel approach to sales that seeks to provide the customer with a seamless shopping experience whether the customer is shopping online from a desktop or mobile device, by telephone or in a bricks and mortar store

A brand that is developed by a national brand vendor, often in conjunction with a retailer, and is sold exclusively by the retailer is referred to as a(n) A. category specialist. B. selective brand. C. category killer. D. exclusive brand. E. co-op brand.

D. exclusive brand.

In addition to offering the potential to build sales, market share, and profits, _____ discourages competitors from entering the market because the profit margin is relatively low. A. price lining B. price skimming C. predatory pricing D. penetration pricing E. experience curve effects

D. penetration pricing

Although both Saks Fifth Avenue and JCPenney are department stores, their images could not be more different. Thus, when Coach considers which of these firms is most appropriate for its new line for men, it must keep in mind customers' perceived images of these retailers'__________ relationship. A. price-quality B. product-quality C. place-quantity D. price-quantity E. Product placement

D. price-quantity

Manufacturers attempt to reduce retail price competition among retailers and support the manufacturer's merchandise by encouraging retailers to A. engage in predatory pricing whenever possible. B. offer slotting allowances to customers. C. offer loss leader pricing whenever possible. D. sell their merchandise at the MSRP. E. refrain from offering cash discounts.

D. sell their merchandise at the MSRP.

Criticized by small manufacturers of grocery products, _____ are fees paid to retailers simply to get new products into stores or to gain more or better shelf space for their products. A. seasonal allowances B. cash discounts C. advertising allowances D. slotting allowances E. quantity discounts

D. slotting allowances fee charged to produce companies or manufacturers by supermarket distributors (retailers) in order to have their product placed on their shelves

Offering a one-stop shopping convenience to customers, _______ combine a supermarket with a full-line discount store. A. specialty stores B. big box retailers C. category specialists D. supercenters E. warehouse clubs

D. supercenters

The last group of buyers to enter a new product market are _____, and when they do, the product has achieved its full market potential. A. laggards B. innovators C. early adopters D. the late majority E. the early majority

D. the late majority

Insurance companies expend a lot of effort marketing their offerings, mainly due to the fact that insurance is a(n) _____ that consumers don't normally think about much. A. specialty product B. shopping product C. convenience product D. unsought product E. augmented product

D. unsought product

Companies like Tiffany's go to great lengths to protect themselves through the use of trademarks and copyrights. This best represents which of the following advantages of branding? A. Brands facilitate purchases. B. Brands establish loyalty. C. Brands protect from competition. D. Brands can reduce marketing costs. E. Brands are assets.

E. Brands are assets.

_____ refers to the process by which the use of a product, service, or process spreads throughout a market group over time and across various categories. A. Innovation B. Fashion cycles C. Market segmentation D. The product life cycle E. Diffusion of innovation

E. Diffusion of innovation

_____ represent(s) a substantial portion of the population, and few new products and services can be profitable until this large group buys them. A. Laggards B. Innovators C. Early adopters D. The late majority E. The early majority

E. The early majority

_____ are large retailers (100,000 to 150,000 square feet) that offer a limited and irregular assortment of food and general merchandise, little service, and low prices to the general public and small businesses. A. Convenience stores B. Conventional supermarkets C. Category specialists D. Supercenters E. Warehouse clubs

E. Warehouse clubs

In a failed attempt at extending its brand to a new product line, Bic introduced a line of disposable underwear. To the extent that this brand extension adversely affected consumers' perceptions about its current product lines, this could lead to A. rebranding. B. co-branding. C. product labeling. D. brand licensing. E. brand dilution.

E. brand dilution.

Brian never spends a lot of time or thought picking up lunch when he is at work. For him, lunch items would be considered to be _____ products. A. service B. unsought C. specialty D. shopping E. convenience

E. convenience

The 5.5 million vinyl long-playing (LP) records sold in the United States per year pales in comparison with the 1.26 billion digital downloads. The grooves in vinyl records create sound waves that are similar to those of a live performance, however, which means they provide a more authentic sound, which in turn means nightclub DJs, discerning music listeners, and collectors will always prefer them. Firms that sell LPs position themselves for a niche segment of diehard consumers. They are in the _____ stage. A. product development B. introduction C. growth D. maturity E. decline

E. decline

Although the number of their physical stores is limited, L.L.Bean is widely known for offering unique, high-quality merchandise. Adding an Internet channel was particularly attractive because it allowed the company to _____ without having to build new stores. A. integrate its CRM B. personalize offerings C. gain consumer insights D. increase customer satisfaction and loyalty E. expand its market presence

E. expand its market presence

When using a market penetration strategy, as sales continue to grow, the costs continue to drop, allowing even further reductions in the price. This is due to A. markdowns. B. price lining. C. seasonal discounts. D. improvement value. E. experience curve effects.

E. experience curve effects.

Rather than carrying 20 brands of laundry detergent, ________ offer one or two brands and sizes, one of which is a store brand. A. extreme-value retailers B. category specialists C. off-price retailers D. department stores E. limited-assortment supermarkets

E. limited-assortment supermarkets

In managing its product portfolio, 3M demands that a specific percentage of its yearly sales come from new products introduced within the previous few years to better withstand external shocks and A. respond to fashion cycles. B. change customer preferences. C. improve business relationships. D. hedge against market saturation. E. manage risk through diversification.

E. manage risk through diversification.

The majority of the brands marketed in the United States are _____ brands. A. store B. generic C. copycat D. premium E. manufacturer

E. manufacturer

Which of the following entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product's form and features or a service's features? A. market testing B. concept testing C. product launch D. idea generation E. product design

E. product design

The _____ stage of the new product development process can involve the development of a prototype for alpha or beta testing. A. market testing B. concept testing C. product launch D. idea generation E. product development

E. product development

Manufacturers like _____ because it allows them to offer price cuts to consumers directly, rolling them out and shutting them off quickly. A. markdowns B. quantity discounts C. seasonal discounts D. coupons E. rebates

E. rebates

All of the following are reasons that compel firms to continue introducing new products and services except A. to adapt to changing customer needs. B. to combat market saturation. C. to diversify risk. D. to respond to fashion cycles. E. to drive the competition out of business.

E. to drive the competition out of business.