Exam 2 Marketing
A discount house can store and transport merchandise that is purchased directly from the producer, thus eliminating the need for a wholesaler. This is an example of vertical channel integration.
true
A nonprofit organization may exist in an environment in which its goals are opposed by some members of society.
true
A product line includes a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations.
true
A product need not be a physical product.
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An example of a nonstore retailer is a vending machine.
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An important question in the business analysis stage of new-product development is, "Is demand strong enough to justify entering the market and will this demand endure?"
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Both production and consumption of services occur at the same time.
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Communicating product benefits to consumers is very important in the introduction stage.
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Conflicts with the retailer may develop if the dealer decides to place too much emphasis on competing product lines.
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Convenience products usually are distributed intensively because sales of these products tend to have a direct relationship to availability.
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Demand for a product category rather than for a specific brand is called primary demand.
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Demand-based pricing means lower prices during times of lower demand and higher prices during times of higher demand.
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Department stores are characterized by wide product mixes.
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Direct marketing is the selling of products outside the confines of a retail facility
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Effective promotional programs require management efforts such as planning, organization, implementation, and control.
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Firms that desire to convey an exclusive image for their products may wish to limit the number of outlets available.
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Firms that link the purchase of their product to philanthropic efforts practice cause-related marketing.
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Functional modifications usually require that the product be redesigned.
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If integrated marketing communications works as intended, customers should receive clear and consistent messages.
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Long-term commitments usually characterize the relationships among channel members.
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Many of the so-called new products that are launched each year are in fact line extensions.
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Marketing channels create several types of utility including time, place, possession, and form.
true
Off-price retailers seek to attract relatively affluent consumers who are price-conscious and knowledgeable about brand names.
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One of the best ways to better understand customer needs and expectations is to ask contact employees.
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Promotion can assist salespeople in finding likely sales prospects
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Rapid feedback enables communicators to quickly improve the effectiveness of their communication.
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Relatively few product ideas are put into the product development stage.
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Retailers form an important link in the marketing channel because they are both marketers and customers.
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Sales peak in a product's maturity stage, but profits don't.
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Selective demand is demand for a certain brand.
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Service, repair work, and accessories may be important considerations in a consumer's decision to purchase a particular shopping product.
true
Services are highly perishable and cannot be inventoried for future use.
true
Store atmospherics are used to create emotional effects that enhance the probability of purchasing.
true
Supporting services, such as installation and guarantees, are part of a product.
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Test marketing is a sample launching of the entire marketing mix.
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The atmosphere and décor of a retail store, the variety and depth of product choices, the customer support, even the sounds and smells all contribute to the experiential element of its total product.
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The depth of a product mix is measured by the average number of product types in a product line.
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The major drawback in using aesthetic modifications is that their value is determined subjectively.
true
The purpose of a marketing channel is to make products available at the right time at the right place in the right quantities.
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The role of promotion is to communicate.
true
Time spent in test marketing can benefit a firm's competitors
true
Using promotional efforts that encourage the trial use of some services can be an effective way for customers to assess the quality of the offered service.
true
Warehouse showrooms are able to sell products at low prices by passing some of their marketing functions on to consumers.
true
When higher-priced or technically complex business products are involved, business customers prefer to deal directly with producers rather than through intermediaries.
true
Because services are intangible by nature, marketers should downplay the tangibles associated with a particular service (such as facilities or employees).
false
Concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions.
false
Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable.
false
Discount stores are distinctive in that they usually are very service-oriented.
false
Feedback does not exist for mass communication.
false
Firms marketing a quality product that generates strong sales can afford to keep expenses down by eliminating new-product development.
false
Franchised outlets are generally less successful than independently owned businesses.
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Inventory decisions seldom have a strong impact on physical distribution costs and on the level of customer service provided.
false
Per-unit gross margins on convenience products are relatively high.
false
Pinpointing a target market should be done only after the selection of a marketing mix.
false
Quality modifications never seek to reduce product quality.
false
Service industries account for less than 50 percent of the U.S. gross domestic product.
false
Services are products that can be touched and felt.
false
Supply chain management combines two or more stages of the marketing channel under one management.
false
When encoding a message, the source should use signs or symbols that are new to the audience.
false
Wholesalers rarely handle credit for retailers and producers.
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