Unit 2 Exam Study Notes
Which of the following describes the process of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers? A. Positioning B. Market targeting C. Market segmentation D. Mass marketing E. Differentiation
A. Positioning
The Robinson-Patman Act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent ______________________. A. price discrimination B. retail price maintenance C. price-fixing D. predatory pricing E. deceptive pricing
A. price discrimination
When a college or university charges more for out-of-state students than in-state students, it is practicing ______________________. A. location-based pricing B. product form pricing C. promotional pricing D. time-based pricing E. customer-segment pricing
A. location-based pricing
Which of the following statements regarding the important decisions in the development and marketing of individual products is correct? A. Packaging decisions are not an important part of developing individual products. B. Product attributes that communicate and deliver benefits to the consumer include quality, features, and style and design. C. How a product is branded is separate from the development and marketing of individual products. D. Determining product support services is not part of the development of individual products. E. Product labeling is no longer subject to legal regulation.
B. Product attributes that communicate and deliver benefits to the consumer include quality, features, and style and design.
Amazon is now promising same-day pick-up of goods as well as local secure pick-up points. What point of differentiation is this? A. Channel differentiation B. Services differentiation C. People differentiation D. Image differentiation E. Product differentiation
B. Services differentiation
Groups of __________________ products consist of materials and parts, capital items, and supplies and services. A. unsought B. industrial C. shopping D. convenience E. specialty
B. industrial
Firms that manufacture seasonal products target their consumers primarily through ________ segmentation. A. income B. occasion C. psychographic D. demographic E. age and life-cycle
B. occasion
Marketers of brands understand that they must figure out how to reach ___________________ that can exert social influence on others. A. millennials B. opinion leaders C. baby boomers D. cultural segments E. social groups
B. opinion leaders
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. A. captive-product B. premium pricing C. market-penetration D. optional-product E. by-product
B. premium pricing
When a company lengthens a product line by adding more items beyond its current range, it is ________. A. decreasing the depth of the line B. stretching the line C. increasing the width of its product mix D. filling the line E. decreasing the width of its product mix
B. stretching the line
When Dr. Lawncare developed his revolutionary new solar-powered lawnmower, he expected that during the growth stage of the product life cycle ___________. A. there would be high costs per customer B. the company would see rising profits C. there would few competitors D. the company could anticipate customers as innovators E. there would be lagging adopters
B. the company would see rising profits
__________________ represent an internal source of new product ideas for a company. A. Distributors B. Customers C. Intrapreneurial programs D. Competitors E. Suppliers
C. Intrapreneurial programs
Which of the following statements regarding packaging is correct? A. Packaging should change every few months. B. Companies can say anything they want on product packaging. C. Product safety is not impacted by packaging. D. Innovative packaging can give a company an advantage over competitors and boost sales. E. Product strategy does not include packaging as an important consideration.
D. Innovative packaging can give a company an advantage over competitors and boost sales.
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? A. Multibranding B. Licensing C. Line extension D. New brand E. Brand extension
D. New brand
At one time, Miller Beer was known as the "champagne of bottled beer." It was targeted at an elite class of customers. Later, to increase sales, Miller was repositioned to attract members of the working middle class. What is this segmentation method called? A. Benefit B. Behavioral C. User status D. Psychographic E. Usage rate
D. Psychographic
Mi Rancho Supermarkets is a chain grocer that locates stores in neighborhoods with large Hispanic populations. Their stores carry a greater selection of Hispanic and Latin foods. The type of marketing that Mi Rancho uses is an example of ________. A. concentrated marketing B. target marketing C. differentiated marketing D. undifferentiated marketing E. micromarketing
E. micromarketing
When a retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store, it is practicing ___________________ pricing. A. geographical B. promotional C. psychological D. segmented E. optional-product
B. promotional
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? A. National branding B. Co-branding C. Distributor branding D. Store branding E. Private branding
B. Co-branding
______________________ determines if a buyer is satisfied or dissatisfied with a purchase. A. The number of alternatives considered in the purchase decision B. The relationship between the consumer's expectations and the product's perceived performance C. How others feel about the purchase D. The amount of information gathered in the decision-making process E. Whether or not the buyer experiences cognitive dissonance
B. The relationship between the consumer's expectations and the product's perceived performance
Which of the following is often considered a key business marketing strategy for winning and holding accounts? A. straight rebuy B. systems selling C. modified rebuy D. buying decision E. new task
B. systems selling
Which of the following statements is true regarding standardizing products for international markets? A. Markets and consumers all over the world are alike, so a company should always standardize international products. B. Standardization increases product design, manufacturing, and marketing costs. C. Standardization helps a company develop a different image in different countries. D. Standardization decreases product design, manufacturing, and marketing costs. E. Standardization ensures that products will succeed in foreign markets.
D. Standardization decreases product design, manufacturing, and marketing costs.
Which of the following statements concerning new products is correct? A. To be considered new, the product must be something consumers have not seen before. B. Most new products succeed within two years of their introduction. C. A modified product is not considered a new product. D. Modified and improved products are considered new. E. Products that are merely improved in some way are not considered new.
D. Modified and improved products are considered new.
When, if ever, is price discrimination allowed? A. If the seller is selling via the Internet as its main channel, then it is legal. B. If the seller can prove that its revenue is affected when selling to similar retailers, then it is legal. C. If the seller can prove that it is allowable in certain states and local retailing areas, then it is legal. D. If the seller can substantiate that it is distributing internationally, then it is legal. E. If the seller can prove that its costs are different when selling to different retailers, then it is legal.
E. If the seller can prove that its costs are different when selling to different retailers, then it is legal.
______________________ is the step of the new product development process during which a physical product is first developed. A. Test marketing B. Idea generation C. Concept development and testing D. Marketing strategy development E. Product development
E. Product development
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. a style B. a fad C. a normal product life cycle curve D. a failure E. a fashion
E. a fashion
A company can obtain new products by buying a whole company, a patent, or a license to produce someone else's product through _______________________. A. new product development B. product improvements C. new product brands D. product enhancements E. acquisition
E. acquisition
Continually adjusting prices to meet the characteristics and needs of individual customers and situations is known as _______________________. A. segmented pricing B. promotional pricing C. cash rebates D. psychological pricing E. dynamic pricing
E. 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. A. equity B. relevance C. knowledge D. differentiation E. esteem
E. esteem
When marketers want to promote their products and services through word-of-mouth marketing programs, they typically begin by ________. A. developing print and radio advertisements B. withdrawing from online social networks C. identifying and targeting late adopters D. pushing one-way commercials at customers E. generating person-to-person brand conversations
E. generating person-to-person brand conversations
If competitors cannot easily copy the benefit a company chooses to promote, that benefit is said to be _________. A. distinctive B. superior C. profitable D. affordable E. preemptive
E. preemptive
Dividing buyers into groups based on social class, lifestyle, or personality characteristics is called ________ segmentation. A. behavioral B. user status C. geographic D. age and life-cycle E. psychographic
E. psychographic
Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a(n) ______________ approach to new product development. A. crowdsourced B. sequential C. customer-centered D. intrapreneurial E. systematic
E. systematic
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? A. Private brands B. Manufacturer's brand C. Generic brands D. Private labels E. Co-brands
A. Private brands
Which of the following statements regarding managing service quality is correct? A. Unlike product quality, service quality will always vary. B. Customer retention is not related to service quality. C. Setting standards is not important in delivering service quality. D. Service recovery is unimportant in managing service quality. E. Service quality is easier to define and judge than product quality.
A. Unlike product quality, service quality will always vary.
________________________ is one major objective associated with a market-penetration pricing strategy. A. Winning large market share B. Preventing customer dissatisfaction C. Skimming off small but profitable market segments D. Avoiding everyday low pricing E. Attracting buyers willing to pay a higher price
A. Winning large market share
Kidcomp, an American computer-manufacturing firm, targets children younger than age 10 by providing free games and applications. The firm's marketing approach is reflective of ________ segmentation. A. age and life-cycle B. income C. lifestyle D. geographic E. gender
A. age and life-cycle
Which stage of the product life cycle normally lasts longer than the others and poses great challenges to marketing management? A. Introduction B. Maturity C. Growth D. Product development E. Decline
B. Maturity
Of the following, which is true about pricing? A. Companies usually are free to charge whatever prices they wish. B. Price competition is a core element of our free-market economy. C. Federal law is the overriding authority on pricing. D. Companies have no obligation to consider broader societal pricing concerns. E. Companies do not need to communicate reasons for price increases to customers.
B. Price competition is a core element of our free-market economy.
A purse company's ads feature the members of a popular housewives reality show. Product sales increase significantly among fans. From fans' viewpoint, the housewives reality show is a ______________. A. late-majority adopter B. reference group C. membership group D. family group E. lagging adopter
B. reference group
Service _______ means that the quality of services depends on who provides them as well as when, where, and how they are provided. A. perishability B. variability C. inseparability D. packaging E. intangibility
B. variability
Which of the following correctly defines a product? A. Products include tangible objects and services but not events or people. B. Products are only tangible objects offered to a market to satisfy a want or need. C. A product is anything offered to a market that might satisfy a need or want. D. A product is not a part of the overall market offering. E. Products have two levels: the actual product and the augmented product.
C. A product is anything offered to a market that might satisfy a need or want.
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? A. Preventing competition B. Customer retention and building profitable customer relationships C. Grabbing international market share D. Avoiding government intervention E. Supporting resellers and gaining their support
C. Grabbing international market share
Which of the following is true regarding the price-demand relationship? A. If demand is inelastic, a small change in price will result in a large change in demand. B. A demand curve shows the number of units a company will produce in a given time period at different prices that might be charged. C. If demand is elastic, sellers will consider lowering their prices. D. Price elasticity measures how responsive price will be to a change in demand. E. Demand and price are directly related—the higher the price, the greater the demand.
C. If demand is elastic, sellers will consider lowering their prices.
Dividing a market into smaller segments of buyers with distinct needs or behaviors that might require separate marketing strategies is known as ______________________. A. mass marketing B. differentiation C. market segmenting D. positioning E. market targeting
C. market segmenting
Bath & Body Works uses _____________ pricing when the company offers "three-fer" deals on its products (such as soaps, lotions, and moisturizers). A. two-part B. by-product C. product bundle D. product line E. captive-product
C. product bundle
The marketing manager at Only Organic Delicatessen targets customers who are focused on organic, healthy food choices but who still want to dine out. The restaurant chain offers a wide variety of organic, low-fat, locally raised produce and foods. Only Organic's approach is best referred to as ________ segmentation. A. user status B. benefit C. psychographic D. age and life-cycle E. geographic
C. psychographic
To create successful new products, a company must _______. A. focus its new product development efforts only on consumers and deliver value B. obtain successful products through acquisitions instead of doing internal development C. understand its consumers, markets, and competitors and develop products that deliver superior value to customers D. cut costs to keep the price of new products low while delivering acceptable quality E. spend more on research and development (R&D) than its competitors and understand its consumers
C. understand its consumers, markets, and competitors and develop products that deliver superior value to customers
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. A. freight-absorption pricing B. uniform-delivered pricing C. zone pricing D. free on board (FOB) origin E. base-point pricing
C. zone pricing
Which of the following refers to the degree to which an innovation fits the values and experiences of potential consumers? A. Divisibility B. Complexity C. Compatibility D. Communicability E. Relative advantage
C. Compatibility
Which of the following statements regarding the business market is correct? A. The business market is not as large as the consumer market in terms of dollars spent and items purchased. B. Business buying decisions are less complex than consumer buying decisions. C. Many sets of business purchases are made for one set of consumer purchases. D. In the business market buying process, buyers and sellers are less dependent on each other than in the consumer market. E. The business market has more buyers than the consumer market.
C. Many sets of business purchases are made for one set of consumer purchases.
Which of the following refers to setting prices based on buyers' perception of value rather than on the seller's cost? A. Cost-based pricing B. Cost-plus pricing C. Value-added pricing D. Customer value-based pricing E. Good-value pricing
D. Customer value-based pricing
The Ritz-Carlton has carefully created a strong and distinctive differentiation strategy, which is supported by everything the company says, is, and does. Which type of differentiation is this? A. People differentiation B. Channel differentiation C. Services differentiation D. Image differentiation E. Product differentiation
D. Image differentiation
Which of the following statements is true regarding product life cycle curves? A. Marketing strategies do not change for different life cycle stages. B. All products follow the traditional five-stage PLC model. C. Managing products through their life cycle is an easy task. D. The sales of a typical product follow an S-shaped curve made up of five stages. E. Once a product reaches the decline stage, it cannot be recycled back to growth.
D. The sales of a typical product follow an S-shaped curve made up of five stages.
Internal factors that affect pricing include _________________. A. The company's overall marketing strategy, objectives, and the nature of the market B. The company's overall marketing strategy, objectives, and demand C. The nature of the market, demand, and the economy D. The company's overall marketing strategy, objectives, and marketing mix E. The company's overall marketing strategy, the nature of the market, and demand
D. The company's overall marketing strategy, objectives, and marketing mix
Heeltoe, a boutique that caters to the footwear needs of women, manufactures two different lines of footwear 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. Heeltoe most likely segments the consumer market based on ________ variables. A. geographic B. behavioral C. psychographic D. demographic E. universal
D. demographic
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 _________________________. A. service differentiation B. external marketing C. interactive marketing D. internal marketing E. supplier and vendor marketing
D. internal marketing
The type of segment characteristic in which the size, purchasing power, and profiles of the segments can be quantified is known as _______________________ A. substantial B. differentiable C. accessible D. measurable E. actionable
D. measurable
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 ______________________. A. harvesting the market B. market stimulation C. milking the market D. modifying the market E. market maintenance
D. modifying the market
A manufacturer of half-ton pickup trucks creates a positioning map for the U.S. half-ton pickup market. The position of each circle on the map indicates the brand's perceived positioning on two dimensions: price and orientation (economy versus performance). The size of each circle indicates the brand's relative market share. This is an example of a ________________. A. competitively positioned map B. competitive map C. target segment map D. perceptual positioning map E. psychographic map
D. perceptual positioning map
H2Coast, an automobile manufacturer, produces fuel-efficient hybrid vehicles that are targeted toward high-end exotic-vehicle collectors with ample leisure time. H2Coast most likely segments the consumer market based on ________ variables. A. universal B. geographic C. behavioral D. psychographic E. demographic
D. psychographic
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?" A. cost-plus pricing B. target return pricing C. EDLP D. target costing E. value-added pricing
D. target costing
When marketers aggressively promote only one benefit to the target market, the benefit promoted is known as the product or service's _____________________. A. unique difference proposition B. unique product proposition C. unique position proposition D. unique selling proposition E. unique benefit proposition
D. unique selling proposition
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? A. market-skimming pricing B. product bundle pricing C. psychological pricing D. market-penetration pricing E. captive-product pricing
D. market-penetration pricing
____________________ is a characteristic important in influencing an innovation's rate of adoption and described by the degree to which the innovation may be tried on a limited basis. A. Motivation B. Complexity C. Relative advantage D. Divisibility E. Communicability
D. Divisibility
The business buying process can be a complex and complicated process with eight basic stages. Which of the following is the first stage in this process? A. Supplier selection B. Supplier search C. Proposal solicitation D. Problem recognition E. General need description
D. Problem recognition
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. A. optional-product B. product bundle C. product line D. by-product E. captive-product
A. optional-product
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. A. predatory pricing B. deceptive pricing C. price maintenance D. price discrimination E. price-fixing
A. predatory pricing
The Ford Mustang is offered in several different models. Ford uses __________ pricing to determine the price steps between the different models. A. product line B. optional-product C. product bundle D. two-part E. captive-product
A. product line
Which of the following describes the process of dividing markets into groups based on consumers' knowledge, attitudes, uses, or responses? A. Psychographic segmentation B. Economic segmentation C. Geographic segmentation D. Behavioral segmentation E. Demographic segmentation
D. Behavioral segmentation
Which of the following is NOT one of the typical advantages of e-procurement systems? A. Improving customer-supplier relationships B. Eliminating paperwork C. Finding better supplier resources D. Reducing time between order and delivery E. Allowing buyers to focus on more strategic issues
A. Improving customer-supplier relationships
Which of the following are tradition-bound, suspicious of changes, and adopt the innovation only when it has become something of a tradition itself? A. Lagging adopters B. Innovators C. Early mainstream D. Early adopters E. Late mainstream
A. Lagging adopters
Which type of consumer products are frequently purchased with little planning, little comparison or shopping effort, and low customer involvement? A. Specialty products B. Convenience products C. Industrial products D. Capital products E. Shopping products
B. Convenience products
In determining product quality, what are the two dimensions of quality marketers must decide upon? A. Level and conformance B. Level and consistency C. Level and price D. Consistency and conformance E. Consistency and packaging
B. Level and consistency
According to the model of buyer behavior, what is in a buyer's "black box"? A. The buyer's wants, needs, and preferences B. The buyer's characteristics and decision process C. The buyer's economic and social preferences D. The buyer's purchase and post-purchase behavior E. The buyer's attitudes and preferences
B. The buyer's characteristics and decision process
Which of the following lists the five steps of the buyer decision process in the correct order? A. Need recognition, purchase decision, information search, evaluation of alternatives, and post-purchase behavior B. Need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior C. Need recognition, evaluation of alternatives, information search, purchase decision, and post-purchase behavior D. Need recognition, information search, purchase decision, evaluation of alternatives, and post-purchase behavior E. Purchase decision, need recognition, information search, evaluation of alternatives, and post-purchase behavior
B. Need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior
________________ is one problem with business-to-business e-procurement. A. Reduced purchasing efficiency B. Suppliers being pitted against one another C. Increased transaction costs D. Increased paperwork requirements E. Increased time between order and delivery
B. Suppliers being pitted against one another
Which of the following is NOT a product life cycle (PLC) stage? A. Decline B. Maturity C. Commercialization D. Growth E. Introduction
C. Commercialization
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? A. Crowdsourcing B. Marketing strategy development C. Customer-centered new product development D. Team-based new product development E. Systematic new product development
C. Customer-centered new product development
Consumers obtain information from numerous sources. Which of the following involves dealer and manufacturer websites, packaging, and displays? A. Personal sources B. Public sources C. Commercial sources D. The internet E. Media sources
C. Commercial sources
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? A. High-low pricing B. Break-even pricing C. Cost-based pricing D. Good-value pricing E. Value-added pricing
D. Good-value pricing
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? A. Cost-plus pricing B. High-low pricing C. Breakeven pricing D. Value-added pricing E. EDLP
D. Value-added 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. A. two-part B. by-product C. product bundle D. captive-product E. product line
D. captive-product
Which of the following is likely to slow the adoption of a new technology? A. Divisibility B. Relative advantage C. Communicability D. Conceptual complexity E. Compatibility
D. Conceptual complexity
_____________________ is the value of customer relationships that a brand creates. A. Brand differentiation B. Customer value C. Brand equity D. Brand value E. Customer equity
E. Customer equity
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? A. Product development B. Decline C. Growth D. Introduction E. Maturity
E. Maturity
What is the nature of demand in business markets? A. Demand in business markets does not fluctuate. B. Demand in business markets is elastic. C. Demand in business markets fluctuates less than in consumer markets. D. Business market demand is independent of consumer market demand. E. Demand in business markets is derived demand.
E. Demand in business markets is derived demand.
_________ refers to the practice of integrating ethnic themes and cross-cultural practices within a company's mainstream marketing. A. Viral marketing B. Guerilla marketing C. Total market strategy D. Cause marketing E. Buzz marketing
Total market strategy
Socially responsible target marketing would classify which of the following as an especially vulnerable target market for harmful or controversial products? A. Children B. Single households C. Baby boomers D. Wealthy consumers E. Females
A. Children
The website leftyslefthand.com markets products to left-handed consumers only. Which targeting strategy does this represent? A. Concentrated marketing B. Undifferentiated marketing C. Differentiated marketing D. Micromarketing E. Segmented marketing
A. Concentrated marketing
__________________ segments are those segments that are conceptually distinguishable and respond differently to different marketing mix elements and programs. A. Differentiable B. Measurable C. Actionable D. Accessible E. Substantial
A. Differentiable
Which of the following is a personal characteristic influencing a consumer's buying behavior? A. Occupation B. Social networks C. Status D. Family E. Motivation
A. Occupation
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. A. crowdsourcing B. marketing strategy development C. business analysis D. test marketing E. concept development
A. crowdsourcing
The type of segmentation that forms segments of consumers who have similar needs and buying behaviors even though they are located in different countries is known as _________. A. intermarket segmentation B. lifestyle segmentation C. geographic segmentation D. behavioral segmentation E. demographic segmentation
A. intermarket segmentation
New product commercialization takes much thought and planning. The first critical step in the commercialization process is ____________________. A. introduction timing B. market share goals C. revenue goals D. the value proposition E. the target market
A. introduction timing
When Doritos comes out with new flavors of its tortilla chips, what brand development strategy does it employ? A. New brand B. Line extension C. Multibrand D. Brand extension E. Store brand
B. Line extension
______________________ protect consumers from harm and the company from liability by proactively ferreting out potential product problems. A. Product managers B. Product stewards C. Ombudsmen D. Attorneys E. Brand managers
B. Product stewards
Which of the following would make a segment less attractive to enter? A. Very few substitute products B. A lack of aggressive competitors C. New entrants finding it easy to enter the segment D. Buyers with weak bargaining power E. Suppliers with weak bargaining power
C. New entrants finding it easy to enter the segment
Which of the following is NOT a social factor influencing consumer buying behavior? A. Online social networks B. Word of mouth C. Opinion leaders D. Cognitive dissonance E. Reference groups
Cognitive dissonance
What is the first step of the buyer decision process? A. Alternative evaluation B. Purchase decision C. Information search D. Need recognition E. Post-purchase behavior
D. Need recognition
___________________ consists of many different people who play multiple roles in the buying process. A. Buying agents B. The buying center C. The purchasing team D. The buying nucleus E. Buying actors
B. The buying center
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? A. Perishability B. Tangibility C. Inseparability D. Intangibility E. Variability
E. Variability
The three functions of __________ include identifying, describing, and promoting the product. A. product lines B. innovation C. product design D. packaging E. labeling
E. labeling
Which of the following statements about new product development strategy is correct? A. Innovation can be very expensive and very risky. B. A new product will succeed as long as it is priced correctly. C. New products are not a major source of growth for companies. D. Good advertising creates successful new products. E. New products are usually successful because consumers like new things.
A. Innovation can be very expensive and very risky.
Which of the following needs in Maslow's hierarchy is generally satisfied first? A. Physiological needs B. Social needs C. Esteem needs D. Safety needs E. Self-actualization needs
A. Physiological needs
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? A. Store branding B. Licensing C. Co-branding D. Private branding E. National branding
B. Licensing
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? A. The products' revolutionary packaging B. The desire to have beautiful nails C. The nontoxic properties of the products D. The natural ingredients E. The Nailit brand
B. The desire to have beautiful nails
Which of the following statements regarding socially responsible product decisions is correct? A. Manufacturers are generally not concerned with product liability. B. The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition. C. Companies can safely ignore patent laws. D. Safety legislation has been passed to regulate chemical substances, drugs, and poisons, but not toys, automobiles, or fabrics. E. When companies drop products, they do not have any obligations to suppliers, dealers, and customers.
B. The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition.
Which of the following is considered part of an augmented product rather than that of an actual product or core customer value? A. Product features B. Warranty C. Brand name D. Design E. Packaging
B. Warranty
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 ________. A. a limited-time offer B. an indicator of quality C. an indicator of geographic pricing D. a type of segmented pricing E. an indicator of the cost of production
B. an indicator of quality
After market strategy is developed, the next step of the new product development process is _______________. A. commercialization B. business analysis C. concept development D. prototyping E. idea generation
B. business analysis
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. A. High-low pricing B. Everyday low pricing (EDLP) C. Target return pricing D. Value-added pricing E. Competition-based pricing
C. Target return pricing
Crowdsourcing is used in the _______________________ step of the new product development process. A. product development B. commercialization C. idea generation D. idea screening E. marketing strategy development
C. idea generation
Adding a new product line to an existing portfolio means that the line has __________________. A. increased product support services B. extended product line length C. increased product mix width D. altered its product mix consistency E. differentiated its product mix depth
C. increased product mix width
Which of the following is a pure tangible good? A. A meal at a restaurant B. Financial advice C. A medical checkup D. Toothpaste E. A spa treatment
D. Toothpaste
Munoz Specialty Foods groups its customers by regions in the United States, such as Midwest, Northeast, and Southwest. For each region, Munoz creates a different set of advertisements and promotions. On which of the following segmentation variables does the firm divide its market? A. Benefits sought B. Personality C. Behavioral D. Demographic E. Geographic
E. Geographic
________________ is the service characteristic to which marketers need to pay close attention when there are fluctuations in demand. A. Variability B. Inseparability C. Tangibility D. Intangibility E. Perishability
E. Perishability
When sellers set prices in conjunction or collaboration with one another, this illegal practice is known as _______________. A. price-fixing B. price discrimination C. predatory pricing D. retail price maintenance E. deceptive pricing
A. price-fixing
When Subaru of America allows Outback buyers to customize cars to meet their exact needs and preferences, it is practicing which type of marketing? A. Segmented marketing B. Differentiated marketing C. Micromarketing D. Undifferentiated marketing E. Concentrated marketing
C. Micromarketing
Which of the following is a variable used to segment business buyers that is not used to segment consumer buyers? A. Psychographics B. Purchasing approaches C. Operating characteristics D. Personal characteristics E. Situational factors
C. Operating characteristics
Which of the following would be an appropriate strategy during the growth stage of the product life cycle? A. Use promotional spending to inform consumers and get them to try the product. B. Modify the market, product offer, and marketing mix. C. Spend a lot of money on product improvement, promotion, and distribution. D. Produce basic versions of the product and focus on selling to those buyers who are the most ready to buy. E. Shift some advertising from building product awareness to building product conviction and purchase.
C. Spend a lot of money on product improvement, promotion, and distribution.
Which of the five characteristics identified has an inverse relationship with an innovation's rate of adoption, meaning as this characteristic increases, the rate of adoption is slower? A. Divisibility B. Compatibility C. Communicability D. Complexity E. Relative advantage
D. Complexity
Which of the following statements is correct concerning service marketers going global? A. One industry that still has not globalized is retailing. B. Due to the nature of their business, professional service firms cannot expand their business to foreign markets. C. Compared with product marketers, service marketers do not face any additional challenges when going global. D. The growth of global service companies is expected to decline in the near future. E. The trend toward growth of global service companies is expected to continue in the near future.
E. 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? A. Companies should strive to streamline services to increase efficiency. B. It is easier to define service quality than product quality. C. Service marketers do not need to differentiate their offerings. D. Due to the variability of services, top service companies set modest service-quality standards. E. Training current employees better and hiring new ones with more skills can increase service productivity.
E. Training current employees better and hiring new ones with more skills can increase service productivity.
