Test 2 Marketing

Which of the following statements is most likely true about the new product development process? a.) The first step in developing a new product involves determining any budgetary or distribution limitations. b.) Most firms discourage employees from contributing new product ideas because of legal concerns. c.) In most cases, concept testing is followed by concept development. d.) A product concept should be developed for each idea before it goes through idea screening. e.) Customers, competitors, and suppliers are major sources of new product ideas.

Customers, competitors, and suppliers are major sources of new product ideas.

Which of the following statements is most likely true about the product life cycle? a.) Throughout the product introduction stage, sales are zero. b.) The growth stage is the longest stage of the product life cycle. c.) Profits are nonexistent in the growth stage. d.) Growth is a period of rapid market acceptance and increasing profits. e.) Maturity is the period when sales fall off but profits continue to rise.

Growth is a period of rapid market acceptance and increasing profits.

Which of the following is true of the product life cycle (PLC)? a.) All products generally go through all five stages of the PLC. b.) All products pass through the stages of PLC in the same order. c.) It is generally difficult to forecast the sales level at each PLC stage. d.) The PLC concept can be applied to styles but not to fashions and fads. e.) Product forms have longer life cycles than product classes.

It is generally difficult to forecast the sales level at each PLC stage.

________ involves combining two or more systems of transportation to move products. Vertical transportation Disintermediation Just-in-time management Vertical integration Multimodal transportation

Multimodal transportation

Which of the following is true of the growth stage of the product life cycle? New competitors avoid the market. Prices tend to increase significantly. Early adopters stop buying the product. Profits are nonexistent at this stage. Sales start climbing quickly.

Sales start climbing quickly

________ products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. Convenience Capital Unsought Shopping Secondary

Shopping

________ is the stage where a product and its proposed marketing program are introduced into realistic market settings. Market strategy development Concept testing Test marketing Concept development Business analysis

Test Marketing

BerryBerry is a fruit juice company that has traditionally sold three varieties of mixed-fruit juices: DazzleBerry, AquaBerry, and GloBerry. The company wants to add more products to its product line. Which of the following is an example of brand extension for BerryBerry? a. )The company introduces BerryBliss, a dried berry snack mix for kids. b.) BerryBerry adds a new fruit juice flavor, TangyBerry. The company introduces a line of flavored milk and yogurt under a new brand name. c.) The company creates a new brand, NatureFresh, for a line of cosmetics based on fruit flavors and colors. d.) BerryBerry teams up with SFX, a sporting goods company, to introduce a line of energy bars called BerryBerry SFX.

The company introduces BerryBliss, a dried berry snack mix for kids.

Which of the following is true of downstream channels in a company's supply chain? They provide their expertise in product design. They manufacture the products of the company. They supply raw materials and components to the company. They contribute financially to the company during production. They form an intermediary link between the company and its customers.

They form an intermediary link between the company and its customers.

BerryBerry is a fruit juice company that has traditionally sold three varieties of mixed-fruit juices: DazzleBerry, AquaBerry, and GloBerry. The company wants to add more products to its product line. In this case, which of the following is an example of co-branding by BerryBerry? a.) The company introduces BerryBliss, a dried berry snack mix for kids. b.) BerryBerry adds a new fruit juice flavor, TangyBerry. c.) The company introduces a line of flavored milk and yogurt under a new brand name. d.) The company creates a new brand, NatureFresh, for a line of cosmetics based on fruit flavors and colors. e.) BerryBerry teams up with SFX, a sporting goods company, to introduce a line of energy bars called BerryBerry SFX.

e.) BerryBerry teams up with SFX, a sporting goods company, to introduce a line of energy bars called BerryBerry SFX.

Customers recognize the products of Breads & Butters, a coffee shop, by identifying the "twisted bread" logo that helped the firm revolutionize its products. In this case, the firm has differentiated itself through its ________. image people services channels positioning

image

Which type of market segmentation is generally used by marketers who sell products for the affluent segments of a population? usage rate occasion income benefits sought gender

income

A product line is most likely too long if managers can ________. decrease costs by adding items increase market share by adding items increase profits by dropping items decrease costs by dropping items increase profits by adding items

increase profits by dropping items

A&B's Smarter Planet campaign markets A&B as a company that provides innovative solutions that improve the world's IQ. This activity of A&B is an example of ________ marketing. segmented vertical organization horizontal diversified

organization

Which of the following terms best describes the process of designing and producing a container or wrapper for a product? labeling positioning licensing packaging branding

packaging

Service perishability means that ________. service evaluation is highly subjective the quality of services depends on the provider services cannot be stored for later sale or use services cannot be seen, tasted, felt, heard, or smelled before they are bought services cannot be separated from their providers in most cases

services cannot be stored for later sale or use

Which of the following is a pure tangible good? shampoo a spa treatment financial advice a meal at a restaurant a medical check-up

shampoo

A refrigerator is an example of a(n)________ product. convenience shopping unsought specialty capital

shopping

The stage in which a product concept is presented to groups of target consumers physically or symbolically is referred to as ________. concept testing concept development test marketing marketing strategy development crowdsourcing

concept testing

Which of the following is true of RFID or "smart tag" technology? a.) "Smart tag" technology eliminates the need for intermediaries and facilitates a direct marketing system. b.) "Smart tag" technology can de-automate the entire supply chain. c.) The use of "smart tag" technology makes it difficult to know where a product is located physically within the supply chain. d.) Retailers and suppliers using "smart technology" have higher risks of shoplifting and robbery. e.) "Smart tag" can tell when it is time to reorder and can place orders automatically.

"Smart tag" can tell when it is time to reorder and can place orders automatically.

Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain? SoftStar BlueHill the consumer Abundon Kevin Pinker

Abundon

Which of the following is an example of licensing? a.) DMX, an electronics manufacturer, acquires Z-Elex, a start-up firm, and sells all Z-Elex's products under the DMX brand name. b.) Berry, a fruit juice company, uses a well-known cartoon character to promote the company's line of children's products and pays the creator of the cartoon character a fee. c.) XLC, a sporting goods firm, sponsors a number of top athletes in various sports and also hosts the XLC Sporting Achievement Awards. d.) ZetaBike, a bicycle manufacturer, teams up with VitaWater, a sports drink producer, to introduce ZetaVita, an energy drink. e.) Mason's, a retail chain, sells a number of different products from different manufacturers under the brand name Mason's.

Berry, a fruit juice company, uses a well-known cartoon character to promote the company's line of children's products and pays the creator of the cartoon character a fee.

In a sequential new product development process, which of the following is true of the product development step? a.) Product development is usually followed by a business analysis of the product. b.) Product development involves introducing a product into realistic market settings. c.) Product development avoids testing products on actual customers due to liability concerns. d.) Product development is usually followed by test marketing. e.) Product development helps top management review profit projections.

Product development is usually followed by test marketing.

Which of the following is an example of a horizontal conflict in a distribution channel? a.) a Nike shoe dealer complaining that the shoes provided to the dealer are defective b.) a Ford car dealer complaining that another Ford dealer is underpricing the same models c.) a FedEx agent complaining that a DHL agent is cutting off his business d.) a Walmart executive complaining to a Pepsi executive for not replenishing stocks on time e.) a Gucci executive complaining to Gucci's suppliers of delays in shipping consignments

a Ford car dealer complaining that another Ford dealer is underpricing the same models

Orion Steel is the chief provider of metals to Accline Cars, which manufactures two models of vehicles-cars and large buses. Accline dealers sell the firm's cars to individual citizens, but buses are sold directly to government entities. In such a distribution channel, which of the following would be considered a vertical conflict? a conflict between Orion Steel and Accline Cars a conflict between Orion Steel and Accline dealers a conflict between two Accline car dealers a conflict between Accline dealers and government entities a conflict between Accline Cars and its dealers

a conflict between Accline Cars and its dealers

Jupiter Steel is the chief provider of metals to Greystone Motors. Greystone Motors has two models of cars-one for commercial and ordinary consumers and another for professional car racing teams. Greystone Motors has designated dealers to sell its commercial cars to consumers, while racing cars are sold directly to the racing teams. In such a distribution channel, which of the following would be considered a horizontal conflict? a conflict between Jupiter Steel and Greystone Motors a conflict between Jupiter Steel and Greystone dealers a conflict between two Greystone Motors car dealerships a conflict between a Greystone Motors car dealership and a racing team a conflict between Greystone Motors and its car dealerships

a conflict between two Greystone Motors car dealerships

Pastaliano is a restaurant based in Illinois that exclusively sells Italian food. Pastaliano sells the rights to its recipes to a British firm, Clover Trading, which then opens an outlet in London under the Pastaliano brand name. Which kind of channel arrangement does Pastaliano most likely have with Clover Trading? a horizontal marketing system a direct marketing system an administered vertical marketing system a contractual vertical marketing system a corporate vertical marketing system

a contractual vertical marketing system

Crowbar Records used to sell its music CDs through a network of retail outlets, record stores, and music dealers but stopped using these agents with the advent of MP3 technology. Crowbar now sells its music independently on its Web site, through personal mail, and on social networking sites. Which type of marketing system has Crowbar most likely adopted? an administered marketing system a contractual marketing system a horizontal marketing channel a direct marketing channel a vertical marketing channel

a direct marketing channel

Which of the following would be considered an upstream partner in a company's supply chain? a.) a firm that resells a finished product and shares the net sales with the producer b.) a firm that provides technical expertise in the production of a product c.) a firm that markets a product to consumers through social media d.) a firm that buys products at wholesale cost from the company e.) a firm that exclusively markets a product to other businesses

a firm that provides technical expertise in the production of a product

Sonic Shack, an audio equipment retailer, signs an agreement with PineWire, a renowned electronics company, to sell PineWire products. The deal requires Sonic Shack to provide PineWire products with superior displays, shelf space, and promotion compared to competing products. Sonic agrees to these terms as PineWire products command a huge share in the market. Which of the following types of channel arrangements do PineWire and Sonic Shack most likely have? administered vertical marketing system corporate vertical marketing system indirect marketing system wholesaler franchise system horizontal marketing system

administered vertical marketing system

Zindle, an American smartphone-manufacturing firm, targets children below the age of ten by providing free games and applications. The firm's marketing approach is reflective of a(n.) ________ segmentation. age and life-cycle geographic occasion gender income

age and life-cycle

Demographic variables are the most popular bases for segmenting customer groups because they ________. create smaller segments create more easily accessible segments do not involve stereotypes are easier to measure involve fewer attributes to consider

are easier to measure

Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called ________ segmentation. behavioral psychographic age and life-cycle user status geographic

behavioral

The marketing manager at Frizzles' Eateries targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of low-fat, low-calorie meals that appeal to dieters. Frizzles' approach is best referred to as ________ segmentation. age and life-cycle user status benefit demographic geographic

benefit

Mintel Agro provides raw materials in the form of agricultural products to Kiltmark Food Company. Kiltmark produces flour-based edible products, which it distributes to a wholesale company called Yellowstar Trading. Yellowstar Trading then sells Kiltmark products to the discount retailer, Stroos. Stroos sells the products to consumers. Which of the following is considered a marketing intermediary in these transactions? only Kiltmark only Stroos only Yellowstar Trading both Yellowstar Trading and Stroos both Stroos and Mintel Agro

both Yellowstar Trading and Stroos

Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product? test marketing idea screening business analysis marketing strategy development concept testing

business analysis

Which of the following is most likely a true statement about shopping products? a.) Shopping products tend to be less expensive than convenience products. b.) The existence of such products is generally unknown to consumers. c.) Shopping products are purchased less frequently than convenience products. d.) Consumers typically spend very little time comparing shopping products. e.) A life insurance policy is an example of a shopping product.

c.) Shopping products are purchased less frequently than convenience products.

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy? a.) market segmentation, differentiation, positioning, and market targeting b.) positioning, market segmentation, mass marketing, and market targeting c.) market segmentation, market 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, market targeting, differentiation, and positioning

Introducing a new product into the market is called ________. test marketing segmentation product development commercialization market penetration

commercialization

Unlike other car rental agencies that are based in airports to serve travelers, Wheelz-On-Rent has a network of neighborhood offices. The firm strives to serve people who need car rentals for reasons other than vacation, such as when their own cars are being repaired. Wheelz-On-Rent caters to a large share of the small car rental market. From this description, it can be concluded that Wheelz-On-Rent most likely practices ________. undifferentiated marketing multi-segmented marketing individual marketing local marketing concentrated marketing

concentrated marketing

Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton is using ________ to generate new product ideas. marketing strategy development crowdsourcing concept development business analysis test marketing

crowdsourcing

Senz, an automobile manufacturer, produces low-end vehicles that are targeted toward lower-income consumer groups. Senz most likely segments the consumer market based on ________ variables. demographic psychographic universal geographic behavioral

demographic

Zista, a boutique that caters to the clothing needs of women, manufactures two different lines of fashion wear based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged women, and the other line targets younger professionals and homemakers. Zista most likely segments the consumer market based on ________ variables. geographic psychographic universal demographic behavioral

demographic

Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ________ marketing. concentrated differentiated individual mass local

differentiated

For over ten years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books online through studysmart.com, a popular online retailer that sells textbooks published by different companies. Recently, Erudite stopped selling its books through studysmart.com and set up its own website for selling its books. This change in channel organization is called ________. disintermediation intensive distribution brokering franchising selective distribution

disintermediation

Which statement about convenience products is most likely true? a.) They are distributed exclusively in only one or a few outlets per market area. b.) They are products that consumers rarely consider buying. c.) Luxury cars and designer clothes are examples of convenience products. d.) Consumers need to make special purchasing efforts to buy such products. e.) They are bought by consumers frequently and with minimal comparison.

e.) They are bought by consumers frequently and with minimal comparison.

Internal sources of new product ideas for a company include its ________. customers distributors suppliers employees competitors

employees

The Memphis Rock chain of restaurants has a deal with WestEnd Cola, according to which it will serve only WestEnd sodas at its restaurants. What strategy has most likely been adopted by WestEnd Cola? horizontal price fixing disintermediation exclusive dealing selective distribution horizontal integration

exclusive dealing

Flurrbies, a line of winter accessories by a leading fashion label, quickly fell in and out of favor with customers. Flurrbies represents an example of a(n.)________. form fashion fad style drift

fad

Pacific Fisheries groups its customers by regions in the U.S., such as Midwest, Northeast, and Southwest. For each region, Pacific Fisheries tailors a different set of advertisements and promotions. Based on which of the following segmentation variables does the firm divide its market? behavioral factors personality characteristics geographic location benefits sought demographics

geographic location

TruMart, a leading retail chain, decides to open a restaurant inside its stores, so the firm partners with MeatMe, a popular burger chain. MeatMe opens a restaurant inside TruMart. The MeatMe chain of restaurants also has a deal with Westman Cola to serve only Westman soft drinks at its outlets. This arrangement will benefit all three companies. What kind of channel arrangement is being followed in this case? administered vertical marketing system horizontal marketing system direct marketing system contractual vertical marketing system corporate vertical marketing system

horizontal marketing system

Quest Inc. recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Quest managers will most likely use ________ next to arrive at a realistic number of ideas to adopt. crowdsourcing idea screening concept testing concept development business analysis

idea screening

BritWay Ventures, a leading producer of soft drinks, is considering a differentiated marketing strategy. It is most likely important that the company weighs increased sales against ________ before selecting this strategy. decreased production increased demand increased costs decreased prices increased profits

increased costs

Producers of popular beverages often partner with global music channels to target consumers through a variety of promotional events and advertisements. This approach to marketing is referred to as ________ segmentation. intermarket income age and life-cycle occasions gender

intermarket

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features? product development introduction growth maturity adoption

introduction

Sweet & Cream, a popular frozen yogurt chain, attracts new customers by adding new flavors to its famous frozen yogurt product line. In this case, the company has developed its brand with ________. brand extensions line extensions multibranding new product lines co-branding

line extensions

Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It invites proposals from independent dealers who are willing to set up exclusive showrooms that only sell Rage's superbikes. Chosen dealers will sell and service the superbikes, and Rage will oversee national advertising. This is most likely an example of a(n.)________. administered vertical marketing system horizontal manufacturing marketing system manufacturer-sponsored retailer franchise system manufacturer-sponsored wholesaler franchise system direct marketing system

manufacturer-sponsored retailer franchise system

Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the PLC. introduction maturity growth decline incubation

maturity

When the size, purchasing power, and profiles of a market segment can be determined, the market segment is said to be ________. accessible substantial actionable observable measurable

measurable

Household Storez, a local retail store, claims to offer better products at lower prices than other retail stores. In this case, the firm's positioning reflects a ________ value proposition. more-for-the same more-for-less same-for-less more-for-more same-for-more

more-for-less

Rad, a manufacturer of luxury watches, charges a higher price for its products than its competitors. Despite the high prices, the brand is popular among customers for its quality and service in comparison to cheaper alternatives available in the market. In this case, Rad offers a(n. ________ value proposition. more-for-more more-for-the-same more-for-less all-or-nothing same-for-less

more-for-more

Sportware, a leading shoe manufacturer, markets sneakers under the brand name "Athletix" and dress shoes under the brand name "Cameo" in order to target the two different market segments. What branding strategy is most likely being used by Sportware? brand extensions line extensions multibrands new brands co-brands

multibrands

Clara's, a cosmetics manufacturer, sells many of its products through retail outlets. However, the firm sells a few expensive, popular products only through direct selling methods. What kind of channel arrangement does Clara's follow for all of its products together? horizontal marketing system multichannel distribution system administered vertical marketing system contractual vertical marketing system corporate vertical marketing system

multichannel distribution system

Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements? direct distribution system horizontal marketing system corporate vertical franchise system multichannel distribution system administered vertical marketing system

multichannel distribution system

Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on ________. demographic variables geographic regions multiple segmentation bases behavioral variables psychographic segmentation bases

multiple segmentation bases

Product mix width refers to the ________. a.) number of versions offered for each product in the line b.) ways in which the various product lines are related c.) number of different product lines the company carries d.) total number of items a company carries within its product lines e.) total market share captured by the entire product line

number of different product lines the company carries

Argonaut Food Stores, a retail giant, hires better-skilled employees than its competitors by employing strategic recruitment practices. It also conducts highly specialized training programs for its employees. In this case, Argonaut has focused on gaining a strong competitive advantage through ________ differentiation. image people services product channel

people

The second part of a marketing strategy statement describes the ________ of a new product. marketing mix strategy profit goals planned price target market planned value proposition

planned price

Zeal is a popular automobile brand, and its positioning statement reads as follows: "For upscale American families who require large vehicles, Zeal is the automobile of choice." Which of the following mandatory elements is missing from the positioning statement? point of difference target audience brand name product category need

point of difference

Flores Fashions promotes its clothing by emphasizing the durability and quality of the fabrics it uses. The company has positioned its brand based on ________. product benefits product attributes beliefs and values market share brand loyalty

product attributes

Tavera, an automobile company, experienced a significant decline in sales over the last 10 months of its flagship car, Tetra. In response, Tavera reduced its R&D, advertising, and sales expenditures for Tetra in an attempt to improve short-run profits. Which term best describes Tavera's actions with regards to Tetra? sales outsourcing product modification industry repositioning product harvesting marketing mix modification

product harvesting

Which of the following characteristics of a product is defined as "freedom from defects"? quality feature style value design

quality

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance departments work in cross-functional groups to save time and money in the new product development process. From this description, it can be inferred that Fantastic Flavors uses a(n)________ approach. intradepartmental new product development sequential new product development team-based new product development simulated test market controlled test market

team-based new product development

If a product passes both the concept test and the product test, the next step is most likely to be ________. marketing strategy development product development test marketing business analysis concept development

test marketing

Wayne Industries, a retail and home improvement store, is developing a new lawnmower. The marketing strategy for the product has already been developed and presented. A prototype has also been developed by the company's R&D team. The prototype is now being tested rigorously to ensure that there are no product liability issues. Once the prototype of the lawnmower passes product tests, the next step is most likely to be ________. test marketing portfolio analysis commercialization internal marketing business analysis

test marketing

Silkskin Cosmetics is advertising its newest line of eye makeup. Made from all-natural ingredients, the products are hypoallergenic. Silkskin is selling the products in specially designed tubes that make application easier. Which of the following is a core customer value for Silkskin's line of eye makeup? the natural ingredients the Silkskin brand the products' revolutionary packaging the hypoallergenic properties of the products the desire for having beautiful eyes

the desire for having beautiful eyes

Product mix length refers to the ________. a.) number of versions offered for each product in the line b.) ways in which the various product lines are related c.) number of different product lines the company carries d.) total number of items a company carries within its product lines e.) total market share captured by the entire product line

total number of items a company carries within its product lines

Reverse logistics refers to moving ________. unwanted, excess products from resellers to producers raw materials from suppliers to the factory excess materials from the factory to suppliers finished products from the factory to customers finished products from producers to resellers

unwanted, excess products from resellers to producers

In a ________, producers, wholesalers, and retailers act as a unified system. In such a structure, one channel member owns the others, has contracts with them, or has so much power that they all cooperate. direct marketing system horizontal distribution channel lateral marketing system conventional distribution channel vertical marketing system

vertical marketing system

Which of the following would be considered part of an augmented product rather than that of an actual product or core customer value? product features warranty brand name design packaging

warranty