MKTG Test 6-11

Which of the following is the most likely to be seen as the major enduring asset of a company, outlasting the company's specific products and facilities? a) brands b) convenience products c) specialty products d) unsought products e) staples

a) brands

Seth's Pet Supplies divides the pet market according to the owners' race, occupation, income, and family life cycle. What type of segmentation does Seth's use? a) geographic b) behavioral c) lifestyle d) demographic e) psychographic

d) demographic

A _______ is defined as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. a) private brand b) service variability c) service d) product e) service encounter

d) product

John represents several small wineries in the Napa Valley. He has contractual authority to sell the wineries' entire output but never takes title to or possession the wines. John is a(n): 1. Agent 2. Broker 3. Merchant wholesaler 4. Cash-and-carry wholesaler

1. Agent

Soft drinks, soap, and magazines are examples of _____ products. 1. Convenience 2. Specialty 3. Unsought 4. Shopping

1. Convenience (Convenience goods such as those listed above are usually low priced, and marketers place them in many locations to make them readily available when customers need them.)

Airlines no longer give commission to travel agents for booking flights to customers. This is an example of: 1. Disintermediation 2. Selective distribution 3. Hybrid marketing channel 4. Disintegration

1. Disintermediation

The way the product is defined by consumers on important attributes-the place the product occupies in consumers' minds relative to competing products-is known as the product's: 1. Position 2. Perception 3. Benefit 4. Differentiation

1. Position

Styles, fads, and fashions have their own unique life cycles. Which of these product life cycles typically lasts the longest? 1. Style 2. Fad 3. Fashion 4. The overall length of the PLC does not vary; only the amount of time spent in each stage of the PLC varies between the three.

1. Style

New product development starts with ______. 1. idea generation 2. idea screening 3. concept development 4. concept testing 5. test marketing

1. idea generation

A firm is using _____ when it charges a high, premium price for a new product with the intention of reducing the price in the future. 1. price skimming 2. trial pricing 3. value pricing 4. market-penetration pricing 5. prestige pricing

1. price skimming

Setting price based on buyers' perceptions of value rather than on the seller's cost is called: 1. value-based pricing 2. customer-based pricing 3. Non-cost pricing 4. Competitive-based pricing

1. value-based pricing

A manufacturer of bicycles has fixed costs of $500,000 and variable costs of $30 per bicycle. If the company sells the bicycle for $80, how many bicycles must be sold to break even? 1. 6,250 2. 10,000 3. 16,667 4. 20,000

2. 10,000 Breakeven volume= fixed cost/(price-variable costs)

Abercombie & Fitch stores include loud music, loud interiors, and large graphics of young people in provocative poses, Which retail marketing mix element does this represent? 1. Service mix 2. Store atmosphere 3. Product assortment 4. Country range

2. Store atmosphere

A hospital purchases a new MRI machine costing millions of dollars. This is an example of a: 1. Service or supply 2. Part or material 3. Capital item-installation 4. Capital item-accessory

3. Capital item-installation (Installation items consist of major purchases and fixed equipment that are used in the production or operation of the firm's business.)

When a producer requires a dealer NOT to handle the competitors' products, it is engaging in: 1. Exclusive territorial agreement 2. Tying agreement 3. Exclusive dealing 4. Exclusive distribution

3. Exclusive dealing

Kraft markets several brands in multiple product categories, such as cheese and dairy products, cereals, and sauces. These items are examples of the: 1. Product line 2. Line filling 3. Product mix 4. Line extension

3. Product mix

Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers is known as: 1. Conventional distribution 2. Channel management 3. Supply chain management 4. Channel design

3. Supply chain management

To be useful, market segments must be all of the following EXCEPT: 1. Actionable 2. Measurable 3. Undifferentiable 4. Substantial

3. Undifferentiable (To be useful, market segments must be measurable, accessible, substantial, differentiable, and actionable.)

Which of the following is NOT one of the four consumer perception dimensions used by ad agency Young & Rubicam to measure brand strength? 1. brand differentiation 2. brand knowledge 3. brand valuation 4. brand esteem 5. brand relevance

3. brand valuation

Which of the following are the three major types of vertical marketing systems? 1. corporate, contractual, and chain 2. contractual, corporate, and independent 3. corporate, contractual, and administered 4. administered, independent, and franchised 5. corporate, contractual, and task

3. corporate, contractual, and administered

What are the two ways that a company can obtain new products? 1. line extension and brand management 2. internal development and merger 3. new-product development and acquisition 4. service development and product extension 5. market mix modification and research and development

3. new-product development and acquisition

Which of the following best describes the role of a product steward? 1. To protect consumers from harm 2. To evaluate new-product ideas against a set of general criteria 3. To develop a product concept into a physical product 4. To protect the company from liability by identifying and solving potential product problems 5. 1 and 4

5. 1 and 4

Which of the following is NOT a typical supply chain member? 1. reseller 2. supplier 3. wholesaler 4. retailer's creditor 5. government agency

5. government agency

Sales of Product X have been declining steadily. Competitors show no sign of leaving the market, and advertising costs are moderate. The best strategy would probably be to: 1. Maintain the brand 2. Harvest the brand 3. Drop the brand 4. Reinvigorate the brand

2. Harvest the brand

What is the following an example? "To busy, mobile professionals who need to always be in the loop, BlackBerry is a wireless connectivity solution that gives you an easier, more reliable way to stay connected to data, people, and resources while on the go" a) positioning statement b) service differentiation c) concentrated segmentation

a) positioning statement

A _____ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges. a) product lines b) line extension c) private brand d) convenience product e) product bandwidth

a) product lines

What are the four steps, in order, to desinging a customer-driven marketing strategy? a) market segmentation, differentiation, positioning, and targeting b) positioning, market segmentation, mass marketing, and targeting c) market segmentation, targeting, differentiation, and positioning d) market alignment, market segmentation, differentiation, and market positioning e) market recognition, market preference, market targeting, and market insistence

c) market segmentation, targeting, differentiation, and positioning

In assessing which new features to add to a product, a company must weigh each feature's _____ to customers versus its _____ to the company. a) cost; line extension b) cost; service c) value; cost d) service; line extension e) equity; cost

c) value; cost

To cut the distribution costs at your rapidly growing chocolate factory, you purchase a controlling share of a trucking company. You have drawn the trucking company into a: 1. Corporate VMS 2. Contractual VMS 3. Conventional marketing channel 4. Franchise organization

1. Corporate VMS

Mercedes introduce C-Class cars for $30,000 without hurting its ability to sell other models priced at $100,000 or more. The new car was an example of successful: 1. Downward line stretching 2. Sideward line stretching 3. Upward line stretching 4. Product line filling

1. Downward line stretching

BMW allows only a limited number of dealers the right to distribute its products in certain cities in the US. What level of intensity is BMW using? 1. Exclusive 2. Limited 3. Selective 4. Intensive

1. Exclusive

Discounts offered to channel members for services they provide are called: 1. Functional discounts 2. Quantity discounts 3. Cash discounts 4. Seasonal discounts

1. Functional discounts

G.M. ships cars by rail from its primary plant. At certain locations along the railway, autos are unloaded from the train and moved to semi-truck car carriers, which deliver the vehicles to dealerships. The care manufacturer uses: 1. Intermodal transportation 2. Continuous inventory replacement 3. A just-in-time inventory system 4. Integrated logistics management

1. Intermodal transportation

Which of the following value propositions reflects status and a lofty lifestyle? 1. More for more 2. Less for more 3. More for same 4. Same for less

1. More for more (The "more for more" value proposition is used for upscale products and services that charge higher prices, give buyers prestige and status, and reflect a lofty lifestyle.)

________ describes how responsive demand will be to a change in price. 1. Price elasticity 2. Break-even pricing 3. The break-even chart 4. Target costing 5. Supply

1. Price elasticity

Kenmore appliances and Craftsman tools are brands that can only be purchased in Sears department stores. These brands are examples of: 1. Private brands 2. Generic brands 3. Licensed brands 4. Manufacturer brands

1. Private brands (Private brands--also called store brands or distributor brands--are those associated with a particular retailer and only available at those stores.)

Costco's surprise offerings of seconds, overstocks, and closeouts-occasionally including diamonds-is an example of how a retailer can differentiate itself through ___________. 1. Product assortment 2. Service mix 3. Experiential retailing 4. store atmosphere 5. high-low pricing

1. Product assortment

Priceway grocery stores frequently advertise some products at very low prices to attract customers to the store in the hope that they will buy other items at normal markups. What price-adjustment strategy is Priceway using? 1. Promotional pricing 2. Reference pricing 3. Low-High pricing 4. Segmented pricing

1. Promotional pricing

_______ includes all activities involved in selling goods and services to those buying for resale or business use. 1. Wholesaling 2. Retailing 3. Franchising 4. Discounting 5. Disintermediation

1. Wholesaling

Honda, a popular brand of automobile, also markets several other products with the Honda name, such as motorcycles, generators, and lawn equipment. This is an example of which brand development strategy? 1. Line extension 2. Brand extension 3. New market 4. Multibrand

2. Brand extension (A brand extension strategy extends a current brand name to new or modified products in a new category.)

Before moving further with the new-product development process, you are asked to review the sales, costs, and profit projections for a new product to find out whether they satisfy your company's objectives. Which step of the new-product development process is this? 1. Idea generation 2. Business analysis 3. Quantitative analysis 4. Qualitative analysis

2. Business analysis (Business analysis involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives.)

A store that is open 24 hours a day and offers a limited line of frequently purchased products is called a: 1. Specialty store 2. Convenience store 3. Superstore 4. Department store

2. Convenience store

Several successful companies develop new products that focus on solving consumers' problems to create more satisfying experiences. Which approach to new-product development is this? 1. Externally-focused 2. Customer-centered 3. Simplistic-centered 4. Problem-focused

2. Customer-centered

Katie is married with two children. She is a college graduate with a household income of $85,000 per year. What type of segmentation variables are being used to describe Katie? 1. Geographic 2. Demographic 3. Psychographic 4. Behavioral

2. Demographic (Demographic segmentation divides the market into groups based on variables such as age, gender, family, size, family life cycle, income, occupation, education, religion, race, generation, and nationality.)

Scott was checking airline prices on the Internet and noticed that prices changed throughout the day and on different days when he checked. This type of pricing routinely practiced by industries such as airlines and hotels is called: 1. Reference pricing 2. Dynamic pricing 3. Captive-product pricing 4. Zone pricing

2. Dynamic pricing

Internet-enabled mobile phones are currently experiencing rapid market acceptance and increasing profits. Which stage of the product life-cycle does this represent? 1. Introduction 2. Growth 3. Maturity 4. Decline

2. Growth

Kroger grocery stores frequently use price promotions on products normally sold at higher prices to encourage customers to visit the store. Which pricing strategy does this represent? 1. Vertical pricing 2. High-low pricing 3. EDLP (Every Day Low Price) 4. Low-high pricing

2. High-low pricing

If a company doing business in Europe and Asia groups together customers from each country that share similar needs and buying behavior, it is using: 1. Psychographic segmentation 2. Intermarket segmentation 3. Concentrated marketing 4. Mass customization

2. Intermarket segmentation

In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness? 1. Product development 2. Introduction 3. Growth 4. Maturity 5. Adoption

2. Introduction

Wholesalers perform all of the following functions EXCEPT: 1. Selling and promoting 2. Manufacturing 3. Financing 4. Warehousing

2. Manufacturing

Your product gradually gains popularity and seems to have settled into a long maturity, yet you soon realize that you must sell it abroad to keep sales healthy. In other words, you must: 1. Modify the product 2. Modify the market 3. Modify the marketing mix 4. Modify the promotion budget

2. Modify the market

Consumers used to be the only ones able to purchase Dell computers directly from the manufacturer. Now consumers can purchase from retailers such as Office Depot as well as directly from Dell. This is an example of a(n): 1. Horizontal distribution system 2. Multichannel distribution system 3. Logical distribution system 4. Disintermediated distribution system

2. Multichannel distribution system

"A berry flavored, low-cal drink appealing to women who need a quick energy boost while on the go" would be considered a: 1. Product idea 2. Product concept 3. Product image 4. Marketing strategy statement

2. Product concept (A product IDEA is an idea for a possible product that the company can see itself offering to the market. A product CONCEPT is a detailed version of the idea stated in meaningful consumer terms.)

What is the core customer value for travelers who stay overnight at hotels? 1. Free continental breakfast and newspaper 2. Relaxation and a good night's sleep 3. In-room iron, hairdryer, and Internet access 4. Location near the airport

2. Relaxation and a good night's sleep

______ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. 1. Franchising 2. Retailing 3. Brokering 4. Wholesaling 5. Disintermediation

2. Retailing

Walmart, Toys 'R Us, and Best Buy are examples of stores that would be classified as: 1. Specialty retailers 2. Self-service retailers 3. Limited-service retailers 4. Full-service retailers

2. Self-service retailers

Changing the same price plus freight to all customers, regardless of their location, is called: 1. Non-promotional pricing 2. Uniform-delivered pricing 3. Zone pricing 4. Price conformity

2. Uniform-delivered pricing

The number of different product lines a company carries constitutes a product mix's: 1. Depth 2. Width 3. Consistency 4. Match

2. Width

With product bundle pricing, sellers can combine several products and offer the bundle ________. 1. as a working unit 2. at a reduced price 3. as a complete self-service package 4. as a reward to loyal customers 5. as segmented pricing

2. at a reduced price

Marketing channel design calls for analyzing consumer needs, setting channel objectives, _____, and evaluating them. 1. establishing budget guidelines 2. identifying major channel alternatives 3. asking approval from regulators 4. seeking legal recommendations 5. measuring objectives

2. identifying major channel alternatives

Computer printers have become very inexpensive. However, the replacement ink cartridges can cost almost as much as the printer. What product mix pricing strategy is being used? 1. Everyday low pricing 2. Competition-base pricing 3. Captive-product pricing 4. High-low pricing

3. Captive-product pricing

Monthly costs such as rent, interest, and salaries that must be paid regardless of output each month are: 1. Nonvariable costs 2. Commitment costs 3. Fixed Costs 4. Variable costs

3. Fixed Costs

Initially, you price your new motorcycle at $30,000, but then drop the price to $27,000. Consequently, demand for the new motorcycle jumps by 40%. In this case, demand is: 1. Highly inelastic 2. Highly unpredictable 3. Highly elastic 4. Highly variable

3. Highly elastic

Some Walmart stores in the Southeastern US offer several Mexican brands to cater to the large Mexican population in that area. This is an example of: 1. Undifferentiated marketing 2. Loyalty marketing 3. Local marketing 4. Economic marketing

3. Local marketing (Local marketing involves tailoring brands and promotions to the needs and wants of local customer groups.)

Diamond manufacturers encourage women to purchase a diamond ring for their right hand to express their achievement and individuality. Whereas the left hand diamond ring says "we," the right hand diamond ring says "me." Which behavioral segmentation basis is this? 1. Gender segmentation 2. Loyalty status segmentation 3. Occasion segmentation 4. Economic segmentation

3. Occasion segmentation (Occasion segmentation can help firms build up product usage. This is encouraging women to have two diamond rings-one to signify their relationship and another to express themselves.)

Ace Hardware is a group of independent retailers who set up a central buying organization and conduct joint promotion efforts. Which organizational approach is this? 1. Warehouse club 2. Franchise 3. Retailer cooperative 4. Contract chain

3. Retailer cooperative

A moving company's ads stress the loving care taken when packing, loading, and unloading the client's possessions. The competitive advantage being promoted is based on: 1. Image differentiation 2. Product differentiation 3. Services differentiation 4. Channel differentiation

3. Services differentiation (Services differentiation can be gained through speedy, convenient, or careful delivery.)

A new breakfast cereal is promoted and sold in a single city for a short time. If successful, the product has passed the ____ stage of the new product development process. 1. Commercialization 2. Regional rollout 3. Test market 4. Concept testing

3. Test market

Consumer perceptions of the product's value set the ______ for prices. 1. demand curve 2. floor 3. ceiling 4. variable cost 5. image

3. ceiling

Price discrimination is legal under which of the following conditions? 1. when a manufacturer and reseller have agreed upon a specified retail price for a product 2. when a manufacturer sells to retailers in different markets 3. if a seller can prove its costs per unit are different when selling to different retailers 4. if a seller advertises prices that are not actually available to customers 5. if a seller has not communicated with competitors before announcing prices

3. if a seller can prove its costs per unit are different when selling to different retailers

Nicole is willing to pay more for name brand products because she believes that she attains greater value. This describes which concept? 1. Intangibility 2. Brand superiority 3. Brand extension 4. Brand equity

4. Brand equity (Brand equity is the positive differential effect that knowing the brand name has on customer response to the product or service.)

Customers, competitors, distributors and suppliers, and others are considered which type sources for new product ideas? 1. Primary sources 2. Secondary sources 3. Internal sources 4. External sources

4. External sources

Walmart has been successful in trimming distribution costs by requiring teamwork, both inside the company and among all of its venders in the channel. This is an example of: 1. Conventional channel management 2. Corporate marketing system 3. Horizontal marketing system 4. Integrated logistics management

4. Integrated logistics management

Molly is a future salesperson working for an independent firm whose sales force handles related products from many companies. Molly is a(n): 1. Corporate salesperson 2. Logistical agent 3. Industrial distributor 4. Manufacturer's agent

4. Manufacturer's agent

A drug store bundles together shampoo, conditioner, hair spray, and a hair brush and offers them all to the customer for one price. The retailer is performing the ____ channel function. 1. Information 2. Promotion 3. Contact 4. Matching

4. Matching

Truck wholesalers (truck jobbers) are a type of limited service wholesaler that does NOT: 1. Assume title and risk 2. Warehouse products or carry inventory 3. Offer delivery and transportation 4. Offer credit or financing

4. Offer credit or financing

Hotels and resorts charge lower prices in the off-season to offset the ____ of service characteristic. 1. Inseparability 2. Variability 3. Intangibility 4. Perishability

4. Perishability (Unsold hotel rooms cannot be inventoried and stored for sale at a later time; therefore, lower prices are set during the off-season to stimulate room demand.)

If a product concept survives the business analysis, it moves into the ____ stage of the new product development process. 1. Concept testing 2. Market testing 3. Market development 4. Product development

4. Product development

Business buyers can be segmented by all of the following factors EXCEPT: 1. Geography 2. Demographics 3. Benefits sought 4. Psychographics

4. Psychographics (Psychographics refers to the activities, interests, and opinions of individuals. Business markets are segmented using factors that describe a firm.)

Service providers must consider 4 special service characteristics when designing marketing programs. Which is NOT one of these characteristics? 1. Service intangibility 2. Service inseparability 3. Service perishability 4. Service heterogeneity 5. Service variability

4. Service heterogeneity

Market penetration pricing works best when all EXCEPT which the following conditions are met? 1. Consumers are price sensitive 2. Per unit production and distribution costs fall as sales volume rises 3. The low prices keep competitors at bay 4. The product has a premium image

4. The product has a premium image

Which of the following target market strategies is LEAST likely to succeed when marketing a good or service in the US? 1. Micromarketing 2. Concentrated marketing 3. Differentiated marketing 4. Undifferentiated marketing

4. Undifferentiated marketing (Diverse consumer needs and the large number of brands found in the US make it highly unlikely that a firm will be able to develop a single product capable of satisfying every consumer.)

The _____ concept suggests that many new forms of retailing begin as low-margin, low-price, low-status operations, which take the piece of other such retailers who have, over time, added services and moved upscale. 1. Retail life cycle 2. Merchant wholesaling 3. Scrambled merchandising 4. Wheel-of-retailing

4. Wheel-of-retailing

Retail convergence means greater _____ for retailers and greater difficulty in ______ offerings. 1. differentiating; pricing 2. sales; differentiating 3. profit margin; sales 4. competition; differentiating 5. independence; differentiating

4. competition; differentiating

MKTG logistics involves getting the right product to the right customer in the right place at the right time. Which one of the following is NOT included in this process? 1. planning the physical flow of goods and services 2. implementing the plan for the flow of goods and services 3. controlling the physical flow of goods, services, and information 4. gathering customer's ideas for new products 5. planning the flow of logistic information to meet customer requirements for profits

4. gathering customer's ideas for new products

Because names, labels and colors may not easily translate from one country to another, international marketers must carefully assess _________. 1. product safety regulations 2. market rollout 3. the product life cycle 4. packaging 5. styles

4. packaging

Savvy wholesalers realize that their only reason for existence comes from increasing the efficiency and effectiveness of the _____. 1. retailer 2. industry 3. distribution system 4. end customer 5. entire marketing channel

5. entire marketing channel

In general, a company should enter only segments in which it can ____ and ______. a) offer lower prices; ship faster b) offer superior value; gain advantages over competitors c) offer superior value; ship faster d) gain advantages over competitors; offer new products e) identify behaviors; understand spending power

b) offer superior value; gain advantages over competitors