quiz help
Which of the following correctly defines a product?
A product is anything offered to a market that might satisfy a need or want.
Which type of consumer products are frequently purchased with little planning, little comparison or shopping effort, and low customer involvement?
Convenience products
_____________________ is the value of customer relationships that a brand creates.
Customer equity
If the company has selected its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. Of the following, which is NOT one of the common pricing objectives?
Grabbing international market share
Which of the following is true regarding the price-demand relationship?
If demand is elastic, sellers will consider lowering their prices.
When, if ever, is price discrimination allowed?
If the seller can prove that its costs are different when selling to different retailers, then it is legal.
Which of the following statements about new product development strategy is correct?
Innovation can be very expensive and very risky.
Which of the following statements regarding packaging is correct?
Innovative packaging can give a company an advantage over competitors and boost sales.
__________________ represent an internal source of new product ideas for a company.
Intrapreneurial programs
In determining product quality, what are the two dimensions of quality marketers must decide upon?
Level and consistency
When we see Hello Kitty on children's clothing, Disney characters on lunchboxes, and SpongeBob SquarePants on breakfast cereals, which form of brand sponsorship is being used?
Licensing
When Doritos comes out with new flavors of its tortilla chips, what brand development strategy does it employ?
Line extension
Which stage of the PLC is characterized by peak sales, low costs per customer, high profits, mainstream adopters, and a stable number of competitors that are beginning to decline?
Maturity
Which of the following statements concerning new products is correct?
Modified and improved products are considered new.
When Coca-Cola saw the growth of the bottled-water category, it launched DASANIÒ, its brand of bottled water. Which brand development strategy did Coca-Cola use in launching DASANI?
New brand
________________ is the service characteristic to which marketers need to pay close attention when there are fluctuations in demand.
Perishability
Of the following, which is true about pricing?
Price competition is a core element of our free-market economy.
Which of the following statements regarding the important decisions in the development and marketing of individual products is correct?
Product attributes that communicate and deliver benefits to the consumer include quality, features, and style and design.
______________________ is the step of the new product development process during which a physical product is first developed.
Product development
Which of the following would be an appropriate strategy during the growth stage of the product life cycle?
Spend a lot of money on product improvement, promotion, and distribution.
Nailit Cosmetics is advertising its newest line of nail polishes, made from a nontoxic, water-based nail polish with amazing summer colors. Nailit is selling the products in specially designed bottles that make application easier. Which of the following is a core customer value for Nailit's line of polishes?
The desire to have beautiful nails
Which of the following statements is true regarding product life cycle curves?
The sales of a typical product follow an S-shaped curve made up of five stages.
Internal factors that affect pricing include _________________.
The company's overall marketing strategy, objectives, and marketing mix
Which of the following is a pure tangible good?
Toothpaste
Which of the following statements regarding managing service quality is correct?
Unlike product quality, service quality will always vary.
Which of the following is considered part of an augmented product rather than that of an actual product or core customer value?
Warranty
________________________ is one major objective associated with a market-penetration pricing strategy.
Winning large market share
A company can obtain new products by buying a whole company, a patent, or a license to produce someone else's product through _______________________.
acquisition
Roshika has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as ________.
an indicator of quality
After market strategy is developed, the next step of the new product development process is _______________.
business analysis
Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Goldtone is using ________ to generate new product ideas.
crowdsourcing
Continually adjusting prices to meet the characteristics and needs of individual customers and situations is known as _______________________.
dynamic pricing
Ad agency Young & Rubicam's BrandAsset Valuator measures brand strength along four consumer perception dimensions. Brand ___________ is defined in terms of how highly consumers regard and respect the brand.
esteem
Crowdsourcing is used in the _______________________ step of the new product development process.
idea generation
Adding a new product line to an existing portfolio means that the line has __________________.
increased product mix width
A service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. This process is known as _________________________.
internal marketing
New product commercialization takes much thought and planning. The first critical step in the commercialization process is ____________________.
introduction timing
When a product is in the maturity stage of the PLC, the company tries to increase consumption by finding new users and new market segments for its brands. This attempt to increase consumption is known as ______________________.
modifying the market
The illegal practice of ______________________ is selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business.
predatory pricing
When Apple introduced its iPhone X, it priced the new product at nearly $1,000, considerably higher than competing smart phones. Apple was pursuing a ___________________ new product pricing strategy.
premium pricing
The Ford Mustang is offered in several different models. Ford uses __________ pricing to determine the price steps between the different models.
product line
When a retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store, it is practicing ___________________ pricing.
promotional
When a company lengthens a product line by adding more items beyond its current range, it is ________.
stretching the line
Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a(n) ______________ approach to new product development.
systematic
Which of the following reverses the usual process of first designing a new product, determining its cost, and then asking, "Can we sell it for that?"
target costing
When Dr. Lawncare developed his revolutionary new solar-powered lawnmower, he expected that during the growth stage of the product life cycle ___________.
the company would see rising profits
Service _______ means that the quality of services depends on who provides them as well as when, where, and how they are provided.
variability
Which of the following incorporates the advantage of brands operating in different categories with the combined brands creating broader consumer appeal and greater brand equity?
Co-branding
Intuit Labs, a division of Intuit, the accounting and payroll software developer, follows a "Design for Delight (D4D)" development philosophy, which states that products should delight customers by providing experiences that exceed expectations. Which new product development approach is Intuit using?
Customer-centered new product development
Sadie's Restaurant has listened to its customers over the years and is now able to offer the right combination of quality and good service at a fair price. Which pricing strategy is Sadie's using?
Good-value pricing
Gillette charges a fairly low price for its razors (relative to costs) and a high price for razor blades. It is using a strategy of ___________ pricing.
captive-product
When a college or university charges more for out-of-state students than in-state students, it is practicing ______________________.
location-based pricing
A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?
market-penetration pricing
A car buyer can choose a base model at one price, or one with a premium sound and navigation system at a higher price. This is an example of _______ pricing.
optional-product
When sellers set prices in conjunction or collaboration with one another, this illegal practice is known as _______________.
price-fixing
Which of the following is NOT a product life cycle (PLC) stage?
Commercialization
Which stage of the product life cycle normally lasts longer than the others and poses great challenges to marketing management?
Maturity
A variation of break-even pricing is ____________________, which uses the concept of a break-even chart that shows the total cost and total revenue expected at different sales volume levels.
Target return pricing
Which of the following statements regarding socially responsible product decisions is correct?
The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition.
Which of the following statements is correct concerning service marketers going global?
The trend toward growth of global service companies is expected to continue in the near future.
Which of the following statements about service marketing is correct?
Training current employees better and hiring new ones with more skills can increase service productivity.
The three functions of __________ include identifying, describing, and promoting the product.
labeling
The Robinson-Patman Act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent ______________________.
price discrimination
Bath & Body Works uses _____________ pricing when the company offers "three-fer" deals on its products (such as soaps, lotions, and moisturizers).
product bundle
New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound, super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing?
Value-added pricing
Which of the following refers to setting prices based on buyers' perception of value rather than on the seller's cost?
Customer value-based pricing
Groups of __________________ products consist of materials and parts, capital items, and supplies and services.
industrial
To create successful new products, a company must _______.
understand its consumers, markets, and competitors and develop products that deliver superior value to customers
Kroger, headquartered in Cincinnati, Ohio, is one of the nation's largest grocery chains. It owns several brands sold in its stores, including Private Selection, Heritage Farm, and Simple. These brands represent which type of brand sponsorship?
Private brands
______________________ protect consumers from harm and the company from liability by proactively ferreting out potential product problems.
Product stewards
The quality of services depends on who provides them as well as when, where, and how they are provided. Which characteristic of services does this describe?
Variability
In the early 1970s, Gary Dahl sold Pet Rocks. The product had a short, temporary period of unusually high sales driven by consumer enthusiasm and immediate product popularity, but then sales declined very quickly. The PLC sales pattern for Pet Rocks is known as ________________.
a fad
UPS uses _________________, which charges different prices for shipping depending on an item's destination. The more distant the city where the package is being shipped, the higher the price UPS charges.
zone pricing