MKTG 370 Final Quiz Guide

Brands can be owned by o Any firm o Manufacturers only o Wholesalers and retailers only o Retailers only o Private-label general retailers only

Any firm

Brand dilution is most likely to happen when o There are only two or three product categories marketed under the same brand name o Brand names seem too conservative o Newly introduced brands compete against existing ones o Brands are overextended and brand identity is damaged o There is "fit" between products sharing the same brand name

Brands are overextended and brand identity is damaged

Pioneer or breakthrough products o Always incorporate reverse engineering outputs o Never require the use of concept testing services o Can change consumer preferences o Will likely result in quick late majority buying o Must be geographically centered

Can change consumer preferences

Which of the following is not one of the five Cs of pricing? o Channel members o Company objectives o Cost o Customers o Collaboration

Collaboration

In many high-end markets, Ritz-Carlton hotels are in direct competition with Park Hyatt hotels. When it comes to pricing, Ritz-Carlton offers similar per night than the Park Hyatt hotels have. Ritz-Carlton employs a ____ pricing strategy o Target return o Competitive parity o Target profit o Sales oriented o Maximizing profits

Competitive Parity

Franchising business is a good example of what kind of vertical marketing system? a. Contractual b. Administered c. Independent d. Corporate e. Cooperative

Contractual

Linda bought a dress for a Christmas party online. The next time she turned on her computer, she was surprised to find special offers for matching accessories. This is an example of which marketing strategy? a. Personal selling b. Trade promotions c. Guerilla marketing d. Direct marketing e. Direct advertising

Direct marketing

Break-even analysis is useful because it allows managers to o Quantify the relationship between price elasticity and product elasticity o Estimate the quantity they will need to sell at a given price to break even o Determine the relationship between price and quantity demanded o Analyze the different elements contributing to their variable costs o Reposition products based on their break-even positioning revenue

Estimate the quantity they will need to sell at a given price to break even

A customized wedding gown is an example of a convenience product o True o False

False

A demand curve shows the relationship between income and demand o True o False

False

A period when sales decrease at an increasing rate indicates the beginning of the maturity stage of the product life cycle o True o False

False

An advertising campaign's objectives should not be specified and measurable a. True b. False

False

During brainstorming sessions, it is important that bad ideas are immediately rejected so that the group can concentrate on good ideas o True o False

False

IMC represents the product element of the marketing mix strategy a. True b. False

False

It always needs only one real good exposure to integrated marketing communications before consumers are moved to buy a. True b. False

False

Low failure rate, large number of competitors, and extended distribution network are typical of the introductory stage of its product life cycle o True o False

False

Private labels are inexpensive and low-quality imitations sold by street vendors o True o False

False

Products that have built loyal customer base feature higher price elasticity of demand o True o False

False

Test marketing term describes a situation when customers refine a firm's products based on their own ideas and specific needs o True o False

False

The more familiar customers are with a brand, the harder their decision-making process will be o True o False

False

When a company employs IMC strategy, it risks sending conflicting information that confuses customers a. True b. False

False

When they launched their PlayStation 3 game machines, Sony set up a high price, hoping to attract the most avid game players. This can be defined as penetration pricing strategy o True o False

False

Wholesalers are never used in an indirect marketing channel a. True b. False

False

A major pharmaceutical scandal shook people's trust in government institutions and their ability to protect public interests. To respond to the problem, the PR department of the Health Ministry launched an IMC campaign to positively influence public perception. The campaign turned out to be very successful and reported a positive change in the public perception of the Ministry. In the context of the communication process, this change in perception represents a. Encoding b. Translation c. Channeling d. Feedback e. Noise

Feedback

When a famous person writes a book, at least some customers will be willing to buy it. However, whether or not the book will generate high demand is difficult to predict. In this case, the publisher's inventory-related challenge is a. Having enough books to satisfy customer demands versus the cost of having the inventory b. Whether to price the books in the distribution center or at the retail store c. Which other books to promote along with this book d. Whether or not to display the book at the checkout counter e. How to get the author to sign copies of the book

Having enough books to satisfy customer demands versus the cost of having the inventory

Hot Pepper Productions is a production studio located in San Francisco. HPP decided to strengthen its distribution strategy. It stopped to sell through retail chains and launched its own rental store. In response, some of its retail partners started lawsuits against HPP. This situation can be described as a. Bilateral monopoly b. Dual distribution c. Horizontal conflict d. Vertical conflict e. Retailer monopoly

Horizontal Conflict

Greg is planning on advertising campaign to promote his kayak tour company. The success of his ad campaign depends on a. How many consumers know about his product offering b. The quality of his kayaks c. How accurately he can identify his target market d. His advertising budget e. Whether he can gain commitments from manufacturers for complementary products

How accurately he can identify his target market

One of the main reasons for a company to invest in development of a strong brand is because it helps o Increase consumer recognition and awareness of product offerings o Meet government regulations o Reduce product packaging o Sell advertising space o Minimize product line depth needed to be effective

Increase consumer recognition and awareness of product offerings

In an ____ marketing channel, none of the participants have any control over the others a. Cooperative b. Corporate c. Administered d. Parallel e. Independent

Independent

Customers might be unaware that Purina pet products and S. Pellegrino water are owned by the same company Nestle. Purina and S. Pellegrino are o Corporate brands o Individual brands o Traditional brands o Umbrella brands o Family brands

Individual brands

After identifying the target audience for the university's new advertising campaign, the advertising team needs to decide whether the advertising objective is to ____, ___, or ____ potential and/or existing students a. Pay, buy, entertain b. Push, pull, sell c. Beg, borrow, steal d. Develop, stimulate, ignore e. Inform, persuade, remind

Inform, persuade, remind

In the AIDA model, awareness leads to a. Interest, which hopefully leads to desire and then action b. Intention, which hopefully leads to desire and then attention c. Intention, which hopefully leads to desire and then action d. Integration, which hopefully leads to desire and then action e. Interest, which hopefully leads to determination and then action

Interest, which hopefully leads to desire and then action

Which of the following is a distinctive attribute of advertising a. It is a paid form of marketing communications b. It is often used in conjunction with consumer surveys c. It is designed to remind, rather than persuade consumers d. It is most effective in small niche markets e. It is less expensive than other forms of promotion

It is a paid form of marketing communications

Often parents of young kids choose to drive out of their ways to make sure children do not see McDonald's sign and request to stop. This suggests that the Golden Arches sign helps McDonald's save on marketing costs because customers o have memorized the McDonald's Menu o are sensitive to brand repositioning o prefer yellow to other colors o Know what the Golden Arches sign means o Recognize increases in product line depth

Know what the Golden Arches sign means

Julia is driving down Interstate 29 on her way from Sioux Falls to Kansas City and sees a billboard saying "South of the Border Restaurant and Motel is just 50 miles away." Julia has never heard of South of the Border before. After seeing the sign, she will most likely need additional exposure to the product before deciding whether to stop at South of the Border. This is an example of a. Subliminal advertising b. Lagged effect c. Rejection of advertising d. IMC strategy e. Product underwhelm

Lagged effect

Based on a typical demand curve, higher price is associated with o Greater production costs o Lower output of producers o Greater income effect o Lower cross-price elasticity o Lower quantity consumers will buy

Lower quantity consumers will buy

While just-in-time systems have many benefits, they might a. Decrease the accuracy of demand forecasts b. Make the logistics function more complicated c. Make distribution system less efficient d. Slowdown new product development e. Disappoint consumers

Make the logistics function more complicated

The commercial airline industry is considered what type of market (think in terms of the industry structure and number of firms in the market) o Monopoly o Duopoly o Pure competition o Oligopolistic competition o Monopolistic competition

Oligopolistic competition

In which of the cases is demand likely to be least elastic? o A specific brand of cereal o Theater tickets o Restaurant meals o Prescription drugs o Spring break vacations

Prescription Drugs

A set of all the goods and/or services that a firm markets to its consumers is referred to as o Product mix o Product categories o Product breadth o Product line depth o Product line

Product Mix

At the break-even point o Fixed costs are zero o Costs are zero o Price is maximized o Contribution per unit is zero o Profits are zero

Profits are zero

Rebate tactics are considered an attractive promotional tool because a. They always generate repeat customers b. Rebates are the only type of sales promotion proven to impact sales c. They are easier for the consumer to use than are coupons d. Rebates increase sales, but firms may not have to pay of all the rebates offered e. The retailer and manufacturer always split the cost

Rebates increase sales, but firms may not have to pay of all the rebates offered

Because manufacturers with just-in-time delivery systems produce merchandise closer to the time of sale, they can a. Use exclusive distribution agreements b. Eliminate the dispatcher function c. Use integrated supply chain systems d. Organize cooperative agreements among competing manufacturers to reduce oversupply at retail stores e. Reduce inventories required to address retailers' demand

Reduce inventories required to address retailers' demand

Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their o Observability o Trialability o Compatibility o Relative advantage o Associated services

Relative advantage

Jelena just bought a gourmet cake store. She is working with a local artist who is designing her logo and print advertisements. Jelena looks over the various designs and color options. She needs to remember that the creative aspect of advertising design a. Will determine pretesting and posttesting options b. Dictates tracking options c. The most important thing defining the success of the campaign d. It the least important aspect of the advertising campaign e. Should not overshadow the message

Should not overshadow the message

Which of the following would not be part of the launch of a new product o Determining the marketing budget for the first year of the product o Making decisions regarding positioning the product o Starting to make preliminary decisions about the target market o Reviewing previously conducted research o Finalizing the marketing mix variables

Starting to make preliminary decisions about the target market

TT Toys produces and sells toys. The company recently started buying paint for its toys from a Chinese firm. This Chinese company is party of TT Toys' a. Distribution department b. Corporate vertical marketing system c. Supply chain d. Delivery department e. Voluntary chain

Supply Chain

Which of the statements below is not true about loyal customers? o Brand loyal customers do not need persuasion to buy the firm's brands o The marketing costs of reaching loyal customers are typically very high o Brand loyal customers are unlikely to switch to competitor's brands o Brand loyal customers generate positive word of mouth o Firms tend to reward brand loyal customers with extra benefits

The marketing costs of reaching loyal customers are typically very high

Stacy is planning on a new marketing campaign to build brand awareness for a new line of wearables. To accomplish this goal, the least important information to be included in promotions is o The brand name o The slogan o The product history o The logo o The packaging

The product history

Manufacturers engage in direct distribution channels and sell through retailers because a. Manufacturers have no logistics specialists b. Retailers buy from wholesalers c. These are the only options available for manufacturers d. They create value for customers through convenience e. They are affordable

They create value for customers through convenience

Zappos, an online shoe store, offers an easy, no-hassle return procedure. This relates to the __ of its products o Relative advantage o Complexity o Observability o Compatibility o Trialability

Trialability

Bertha wants to measure the effectiveness of her company's advertising campaign. To do so, she will have to assess elements of the campaign before, during, and after the campaign runs a. True b. False

True

Breakthrough innovations can significantly strengthen firm position in marketplace o True o False

True

Majority of new products fail o True o False

True

When buying a cell phone, the product you are purchasing is more than just the phone o True o False

True

Which of the following is the best example of a mass media advertising channel? a. Red state talk radio b. Weight watchers magazine c. USA today d. Home and garden tv e. The golf channel

USA Today

Linda is a representative for intel. She attends an IT conference to give a presentation about a new processor which is being manufactured by intel. Linda's presentation is part of intel's IMC effort and it represents the following: a. Noise generated by the promotional message b. Decoding of the product message c. A communication channel d. Encoding of the product message e. Feedback for the promotional message

encoding of the product message

It is impossible to integrate marketing communications across all platforms, including social media a. True b. False

false

A store buys cakes from local bakeries and resell them to its customers. What kind of marketing channel is the store engaged? a. Horizontal b. Vertical c. Direct d. Multi-step e. Indirect

indirect

The salvation army runs a campaign over the Christmas holidays called the mobile bell ringer. Volunteers send text messages to their friends' cell phones asking them to donate. Which type of marketing communication does this represent? a. Trade promotions b. Mobile marketing c. Personal selling d. Ambush marketing e. Public relations campaign

mobile marketing

Which of the following is an example of personal selling strategies? a. Ads in online games b. Banners on the website c. Billboards d. Print advertisements e. Teleconferencing

teleconferencing

Generally, which of the following media outlets relies on a mix of visual and auditory techniques and is typically very expensive? a. Newspapers b. Word of mouth c. Billboards d. Television e. Social media

television

When DuPont, a manufacturer of nylon, originally used for hosiery, promotes its use to produce rugs, DuPont is attempting to extend the product's lifecycle by changing its package o True o False

False

When a firm has a particular profit goal as its overriding concern, it will use target return pricing to meet the profit objective o True o False

False

The goal of IMC campaign is to a. Get the right message to the right audience through the right media b. Maximize media coverage c. Minimize negative publicity during the crisis times d. Drive consumers to a company's website e. Replace cause-related marketing with non-cause-related marketing

Get the right message to the right audience through the right media

The communication process includes all of the following except a. Transmitter b. Receiver c. Consideration d. Sender e. Communication channel

consideration

Marketers involved with new product development and sales should consider their product offering on multiple levels. Which of the following levels includes financing and warranties? o Co-brand o Actual product o Core product o Augmented product o Modified product

Augmented Product

Generally, less money is spent on advertising in B2B marketing because a. B2B marketing usually more relies on personal selling tactics b. Publicity is the most effective advertising in B2B markets c. It would be expensive to use advertising in B2B markets d. B2B markets are too homogeneous to use advertising e. Business customers prefer coupons

B2B marketing usually more relies on personal selling tactics

It is not uncommon that pioneering companies lose their market leadership and market shares to competitors that o Create similar products with reduced value to consumers o Target late maturity consumers o Ignore patents and copyrights o Utilize alpha-beta testing o Capitalize on the pioneer weaknesses

Capitalize on the pioneer weaknesses

Yesterday, Linda witnessed a very unpleasant argument between the manage of the store where she works and a representative of a company that sells high-quality hardware tools. The rep requested that his products should be displayed at the best, most visible shelves in the store, to stimulate sales. The store manager disagreed, and the conversation turned into a loud argument. What linda observed was an example of a. Channel conflict b. A failure of the distribution system c. Passive aggressive behavior d. Negotiations e. Retailer sales tactics

Channel conflict

Tom is selling yachts somewhere on the east coast of the US. He has difficulty selling large yachts locally because there are limited places to dock them. The spaces to dock them are an example of o Competitive parity products o Substitute products o Status quo pricing products o Complementary products o Purely competitive products

Complementary products

Often, advertisers will employ a variety of media to deliver their message. When using different media, advertisers need to deliver a. Value-based assessment b. Consistent and compelling message conveyed across all media channels c. Selective, continuous pulsing d. Emotional appeal to a mass market e. Mild puffery

Consistent and compelling message conveyed across all media channels

Under which of the following conditions is a product most likely to have an elastic demand? a. Consumers can easily find close substitutes for the product b. The marginal cost of producing the product is equal to its marginal revenue c. A large portion of a person's budge is spent on the product d. The fixed costs associated with producing the product are higher than the variable costs associated with it

Consumers can easily find close substitutes for the product

In general, setting prices based on costs provides limited benefits because o Consumers are cost-conscious o Customers are always right o Consumers make their purchase decisions based on perceived value o Producers rarely know what their costs are o Producers need to avoid creating a cost competitive parity debate

Consumers make their purchase decisions based on perceived value

For an advertiser, the target audience can be understood as a. Consumers who like the product b. Consumers whom its research designates as its target market c. Consumers who are unaware of the product d. Consumers who prefer the competitors' similar products e. Consumers who haven't been using the product

Consumers whom its research designates as its target market

For a brand name to be successful, it should be o A catchy, tongue-twisting phrase o Easy for consumers to recognize and remember o A visual image containing human characters o Associated with a sports or movie superstar

Easy for consumers to recognize and remember

A firm's marketing communication strategy is formulated specifically to a. Effectively communicate the value of a firm's products b. Increase its presence in all public media c. Maximize returns on advertising investments d. Control its public image e. Manipulate its intensity

Effectively communicate the value of a firm's products

Brand ___ is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service o Equity o Licensing o Association o Solvency o positioning

Equity

A firm should choose all promotional elements in its promotion mix and use them in equal degrees a. True b. False

False

Glenn is trying to promote his new, self-published financial guidebook. By directly promoting it to readers in the wall street journal, he is using a push strategy a. True b. False

False

The advertising message "people are no looking for quarter-inch drill bits; they are looking for quarter-inch holes" suggests that advertising messages need to a. Employ in puffery b. Emphasize product quality c. Focus on technological advances of the product d. Inform consumers of opportunities e. Focus on solving consumer problems

Focus on solving consumer problems

Unlike advertising, public relations a. More expensive b. Converts mass media advertising into direct marketing c. Does not belong to marketing era d. Is being developed and executed by human resource department e. Generate "free" media attention

Generate "free" media attention

Jenny is working on an advertisement to promote consumer awareness of the danger of solar radiation causing skin cancer. Jenny's first concern will be to a. Enlist creative advertising designers b. Put together advertising budget c. Get consumers' attention d. Use public relations to buy advertising space

Get consumers' attention

When Krista considers upgrading her computer, she always asks advice from Jim, a friend who always has the newest technology. For Kris, Jim is an o Late adopter o Early majority adopter o Innovator o Late majority adopter o laggard

Innovator

In a market with ___ there are many firms providing differentiated product o Monopolistic competition o Pure competition o A monopoly o A duopoly o Oligopolistic competition

Monopolistic competition

Lewis is considering how to allocate the IMC budget for his new climbing equipment store. He knows having experiences salesforce in his store can simplify buyers' purchase decisions. He should also consider that, compared to other IMC alternatives, personal selling is a. False, but ineffective b. Pretty simple to implement c. Rather cheap d. Rarely used e. More expensive

More expensive

The __ is the ratio of the percentage change in quantity demanded to the percentage change in price o Break-even point o Price elasticity of demand o Cross-price elasticity of demand o Demand curve o Income elasticity of demand

Price elasticity of demand

Reminder advertising is primarily used to a. Persuade consumers to change existing perceptions b. Gather information about consumers c. Create and build brand awareness d. Prompt repurchase of a product e. Accelerate market acceptance

Prompt repurchase of a product

Alameda Corp a manufacturer of audio equipment, has developed a new wireless speaker to be mounted on a desktop. The tiny, yet strong, twin speakers use Bluetooth to stream music directly from a PC or MP3 player. The small wireless speaker, which is radically different from anything currently on the market, can most likely be classified as o No-name product o Lower-priced product o Radical innovation o Repositioned product o Revision of an existing product

Radical innovation

Which of the following is not one of the four product life cycle stages? o Stagnation o Decline o Maturity o Growth o Introduction

Stagnation

A situation when a firm such as Barton, San Francisco decides to sell its line of exclusive men's shirts online directly to consumers, as opposed to its usual wholesale channels can be characterized as vertical conflict a. True b. False

True

Curtis traded in his old Buick for a new Lexus sedan which he really wanted and was saving money for a long time. Here, the Lexus is considered a specialty product o True o False

True

Marketing channel management creates value by getting products to customers efficiently a. True b. False

True

Packaging creates customer value by increasing shelf life and protecting products o True o False

True

Price elasticity of demand measures how changes in a price affect the quantity of the product demanded o True o False

True

Retail chains optimize product distribution by reducing the number of necessary transactions and providing a wide assortment of goods conveniently available in one location a. True b. False

True

Which of the options below explains a difference between vertical and horizontal conflicts? a. There is no big difference between vertical and horizontal conflict. In either case, multiple marketing institutions get involved b. Vertical conflict occurs between different levels in a marketing channel, while horizontal conflict occurs among channel members on the same level c. Vertical conflict occurs when a wholesaler chooses to bypass a producer, while horizontal conflict occurs when a producer chooses to bypass a wholesaler d. Vertical conflict is found when manufacturers practice multiple distribution strategies, while horizontal conflict is found when manufacturers practice a single distribution strategy e. Vertical conflict is primarily characterized by lying and breaking contractual agreements, while horizontal conflict is primarily characterized by hiding and withholding information

Vertical conflict occurs between different levels in a marketing channel, while horizontal conflict occurs among channel members on the same level

Ken works for a company that buys products from the manufacturer and resells them to retailers, who them sell the products to consumers. Ken's company is a a. Retailer b. Retail distribution center c. Manufacturer's representative d. Store representative e. Wholesaler

Wholesaler

One problem facing advertisers is that consumers screen out messages that are not relevant to them a. True b. False

true

When planning on including advertising as party of an IMC campaign, firms need to remember that a. Government regulations have significantly decreased allowable advertising frequencies to senior audiences b. It is hard to break through the clutter of other messages targeted for the same audience c. It is more expensive than personal selling d. It works only when communicating to the first-time consumers only e. It is considered old-fashioned by many millennials

It is hard to break through the clutter of other messages targeted for the same audience

Violet farms sells multiple goods such as foods and beverages. The company plans to introduce a new product in the next year. It is a spicier variant of its tomato ketchup aimed at the millennials. Which of the following categories of new products will the spicier ketchup represent? o Radical innovation o Addition to existing product line o New product line o Discounted product o Repositioned product

Addition to existing product line

After seeing advertisements for the Toyota Highlander, Sandra got interested and did some further research. However, after figuring out the price for a new Toyota highlander, she decided to buy a Nissan Rogue instead. This situation can be described as an example of the lagged effect a. True b. False

False

Channel conflicts most often happen among the members of a corporate vertical marketing system a. True b. False

False

Coercive power is based on getting a channel member to behave in a certain way because of a contractual agreement between the two firms a. True b. False

False

Integrated marketing communications views the elements of promotion mix (advertising, PR, direct marketing, online marketing, etc.) as isolated components a. True b. False

False

A key advantage of direct marketing, as compared to other IMC elements like advertising and sponsorships, is a. It is very inexpensive and thus used primarily in B2B marketing b. It uses the rule of thumb budgeting method c. It can be more effective, when dealing with large consumer audience d. Always requires face-to-face contact e. It allows for personalization of the message

It allows for personalization of the message

What makes a high/low pricing strategy appealing to sellers? o It attracts two distinct market segments o It allows the seller to market itself as an "everyday low-price leader" o It doesn't require the seller to continually offer sales or deep discounts o It allows sellers to capture the most profit from a new product or service o It reduces the need for slotting and advertising allowances

It attracts two distinct market segments

Companies might be reluctant to extend their strong, successful brands to new products because o The current economy can support only a limited number of product options o It is often difficult to get additional marketing communication coverage for the brand o Federal Trade Commission regulations limit the number of products that can be marketed under an individual brand name o It is costly to maintain many product lines, and it might weaken the brand's meaning o Manufacturing divisions usually control brand expansion and are often in conflict with the marketing division

It is costly to maintain many product lines, and it might weaken the brand's meaning

Brent is a sales rep for an established roofing materials manufacturer. Currently sales are solid, but Brent is concerned for the company has not invested in new product development and has not introduced any new products in over three years. Without new products, Brent can market his current products only to his current customers or o Diversify o Market the same products to similar customers o Focus on concept testing o Expand his early adopter market segment o Intensify his prototyping

Market the same products to similar customers

Price can be defined as ___ that buyers are willing to make to acquire a specific product or service o Fixed cost o Target return o Amount of money o Overall sacrifice o Substitution

Overall sacrifice

Recently, changes in advertising regulations allowed Big Pharma companies to start promoting their products through traditional media like radio and TV. Now, it is common to see ads on TV ending "ask your doctor about" 'ABC' drug." In addition to creating awareness about their drugs, the companies are most likely hoping to a. Reduce advertising by competitors b. Strengthen the feedback loop c. Prompt consumers to investigate further d. Promote public interest communications e. Offer objective and task marketing communications

Prompt consumers to investigate further

Which of the listed below is not the important function of a product label o Listing the ingredients o Identifying the brand and building brand image o Protecting against damage to the product o Providing consumer information to assist in purchasing o Promoting the brand or complementary brands

Protecting against damage to the product

In which of the following types of market structures would a producer have the least amount of influence in setting prices? a. Pure competition b. Monopolistic competition c. Oligopoly d. Monopoly

Pure competition

Krista is developing pricing strategy to help her firm's organic juices to become the leading brand in the market. To succeed, she should remember that o Companies can gain market share by offering low-quality products at a high price o Price wars are the way to become the dominant brand o Rarely is the lowest-price offering the dominant brand in a market o Prestige products need to be competitively priced o Total value equals total cost minus variable costs leading to price escalation

Rarely is the lowest-price offering the dominant brand in a market

Curtis uses only premium quality eco-friendly Dixon Fire golf balls. If he finds inexpensive golf ball in the rough, he gives it away. Loyal customers like Curtis allow Dix Fire to charge its products and not lose many sales. By building a strong brand, Dixon Fire has effectively o Focused on the competitive parity point for its products o Shifted the golf ball market from a monopoly to pure competition o Increased the income effect for its products o Increased the cross-price elasticity for its products o Reduced the price elasticity of demand for its products

Reduced the price elasticity of demand for its products

Some products may stay comfortably in the maturity phase of the product of the product life cycle until a new product emerges to replace them. An example of such a mature product is o Refrigerators o Smartphones o Hybrid cars o E-books o None; no product can stay in the maturity phase and survive for very long

Refrigerators

Some firms adopt vendor-managed inventory systems. The main characteristics of such system is that a. Companies send information to their competitors b. Customers send information to retailers only c. Senior managers send information to sales personel d. Companies send information directly to the retail customers e. Retailers provide sales data to the manufacturer

Retailers provide sales data to the manufacturer

When Joe's Chicken Shack wants chicken delivered in smaller batches more frequently, it offers its distributers an incentive in the form of special bonuses to change their schedules. Joe's demonstrates which kind of power? a. Positive b. Information c. Market d. Reward e. Coercive

Reward

Which of the cases below is not a reason for a firm to discontinue an item within a product line? o The firm has decided to capture new markets o The product undermined its own brand o The product being eliminated is unprofitable o The firm decided to refocus marketing efforts elsewhere o The firm must respond to evolving markets

The firm has decided to capture new markets

Compared to convenience products, shopping products are a. Available everywhere, including department stores, gas stations, and vending machines b. Sold through aggressive personal selling and highly persuasive advertising c. Purchased without significant planning d. Usually more expensive and are found in fewer stores

Usually more expensive and are found in fewer stores

At the end of a brainstorming session, participants are often asked to o Identify the worst idea o Defer to management for the final decision o Identify which idea each person proposed o Vote on the best idea o Propose one more new idea each

Vote on the best idea