MKT Exam 2 (Ch 7- 11)

There are both internal and external sources for new product idea. _____ is a major internal source for new product ideas. - Company employees - Trade magazines - Competitors - Marketing research firms - Government agencies

Company employees

A company cannot stretch its product line upward.

False

Constantly reduced prices are not related to a brand's value in the eyes of customers.

False

________ contributes to a product's usefulness as well as to its looks. - Quality - Consistencv - packaging - Sensational style - Good design

Good design

________ products are those products purchased for further processing or for use in conducting a business. - Specialty - Shopping - Industrial - Convenience - Unsought

Industrial

The Crown Park Hotel generally caters to business customers during the weekdays, so weekends are relatively quiet. The hotel has decided to promote mini-vacation weekends for non-business customers as well. What is the Crown Park Hotel trying to do? - It is implementing premium pricing. - It is promoting complementary services. - It is trying to cultivate nonpeak demand. - It is putting reservation systems in place. - It is implementing differential pricing.

It is trying to cultivate nonpeak demand.

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. - Differentiation - Market segmentation - Positioning - Mass customization - Market targeting

Market segmentation

________ consists of evaluating each market segment's attractiveness and selecting one or more segments to enter. - Differentiation - Positioning - Mass customization - Market targeting - Market segmentation

Market targeting

________ refers to the amount of money charged for a product or service. - Wage - Cost - Value - Salary - Price

Price

Which of the following is true with regard to store brands? - Store brands are growing far slower than manufacturer's brands. - Increasing consumer distrust toward store brands has led to a store-brand slump. - Store brands are also known as national brands. - Store brands are created and owned by resellers of a product or service. - Store brands have been declining in popularity and strength for more than two decades.

Store brands are created and owned by resellers of a product or service.

Companies stretch upward to add prestige to their current products.

True

Which of the following states the product's membership in a category and then shows its point of difference from other members of the category? - a general need description - a vision statement - an order-routine specification - a mission statement - a positioning statement

a positioning statement

Style simply describes the ________ of a product. - appearance - quality - durability - long-term benefits - utility

appearance

Different car makes target benefit seeking. This is an example of ________ segmentation. - behavorial - life-cycle - demographic - psychographic - benefits

behavorial

Shimmer's, a breakfast cereals producer, has extended its special Harvest cereal brand into a full line of breakfast cereals plus fruit and sandwich spreads and yogurt shakes. This is an example of ________. - co-branding - cannibalization - line extension - licensing - brand extension

brand extension

A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________. - business analysis - product acceptance - business proposal - business feasibility plan - marketing strategy development

business analysis

Which of the following product mix pricing strategies did HP use when it set the price range of its printers low and the markup on its cartridges high? - by-product pricing - captive product pricing - product-segmented pricing - customer-segmented pricing - product bundling pricing

captive product pricing

Epson ________ pricing when it offers printers at a low cost, but places a high markup on the replacement ink cartridge that fit in the printers - product line - two-part - captive-product - optional-feature - by-product

captive-product

The practice of inviting customers, employees, independent researchers, or public into the new product innovation and development process is called ________. - idea screening - outsourcing - crowdsourcing - brainstorming - concept testing

crowdsourcing

Which of the following exemplifies a service? - laundry detergent - car - candy - laptop - education

education

Market targeting is ________. - differentiating the firm's market offering to create customer value - arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers - evaluating segment attractiveness and deciding how many and which segment(s) to serve - dividing a market into distinct groups of buyers who have different needs and characteristics - marketing to buyers with separate marketing strategies or mixes

evaluating segment attractiveness and deciding how many and which segment(s) to serve

Retailers such as Priceline.com and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an example of ________ pricing. - cost-plus - penetration - competition-based - everyday low - break-even

everyday low

Vivo offers an assortment of exclusive Canadian wines at incredibly low prices. These prices represent the daily prices of products sold by Vivo. This reflects Vivo's ________ pricing strategy. - break-even - skimming - markup - everyday low - cost-based

everyday low

Jay's noodle restaurant pays overhead each month, including rent, electricity, and salaries. These are ________ costs. - activity-based - variable - average - fixed - total

fixed

When a company goes after one or a few smaller niches, we call that a(n) _____marketing strategy. - local - focused - undifferentiated - individual - mass

focused

If demand dramatically changes with a change in price, the demand is ________. - variable - highly inelastic - derived - negative - highly elastic

highly elastic

Through ________, a service firm orients and motivates its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. - corporate image marketing - service variability - service inseparability - internal marketing - social marketing

internal marketing

Companies that set a low price for a new product in order to attract a large number of buyers and a large market share are using the ________ strategy. - inclusive pricing - market-skimming pricing - market-penetration pricing - cost-plus pricing - exclusive pricing

market-penetration pricing

When Samsung introduced its flat screen TV, it was priced at $899 for 48". This allowed Samsung to earn the maximum amount of revenue from the various segments of the market. Six months after the introduction, the price had come down to $699. What kind of a pricing did Samsung adopt? - market-skimming pricing - market-penetration pricing - loss-leader pricing - value pricing - target-return pricing

market-skimming pricing

Which of the following product mix pricing strategies involves pricing additional or accessory products sold along with the main product? - inclusive product pricing - product bundle pricing - by-product pricing - optional-product pricing - exclusive product pricing

optional-product pricing

Luke had a movie to watch at 7pm tonight, but he couldn't make it on time due to traffic. By the time he arrived, the movie had already begun an hour earlier and he has missed almost the whole movie. This illustrates the ________ of services. - perishability - variability - intangibility - homogeneity - heterogeneity

perishability

Philip Morris bought Miller brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What did the company try to build when they conveyed the fact that the beer contained one third less calories and hence it is less filling? - points-of-presence - points-of-conflict - points-of-difference - points-of-parity - points-of-inflection

points-of-difference

An attractive product idea must be developed into a ________ - brand placement - concept alternative - product concept - product strategy - brand personality

product concept

Which of the following stages of the new product development process occurs immediately after the completion of the business analysis for the product or service? - product design - idea screening - marketing strategy development - product activation - product development

product development

Which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the products, customer evaluations of different features, and competitors' prices? - product bundle pricing - optional product pricing - captive product pricing - by-product pricing - product line pricing

product line pricing

Low-interest financing and longer warranties are both examples of ________ pricing. - captive product - segmented - promotional - product form - product bundling

promotional

________ are industrial products. - major appliances - life insurance policies - laundry detergents - safty relays - legal services - legal services

safty relays

Which form of geographic pricing is a company using when it charges the same rate to ship a product anywhere in the United States? - psychological pricing - uniform-delivered pricing - zone pricing - basing-point pricing - FOB-origin pricing

uniform-delivered pricing

A well-known cosmetic company in New York City added new product lines in order to target a higher income market. In other words, it ________. - lengthened its existing product line - up market extension - engaged in market diversification - engaged in social marketing - decreased its product line consistency

up market extension

When we segment consumers based on segmenting markets into ex-users, first-time users, nonusers, potential users, and regular users of a product, we are referring to which of the following behavioral segmentation? - user status - usage rates - loyalty status - gender status - income status

user status

The break-even volume is the point at which ________. - when the total revenue equals the total cost - the company can pay off all its long-term debt - the production of one more unit will not lead to increase in demand - demand equals supply - a firm exceeds the sales forecast

when the total revenue equals the total cost

P&G produces foods, paper products, tooth brushes, hair shampoo, diapers, and detergent. P&G has a product ________ of multiple lines. - class - width - length - type - mix

width