Marketing Exam 2 Review

If a segment is large enough or profitable enough to serve, it is ______________. a. measurable b. differentiable c. accessible d. substantial e. actionable

d. substantial

At which stage of the new product development process is a physical product first​ developed? a. idea generation b. marketing strategy development c. concept development and testing d. test marketing e. product development

e. product development

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. user status b. usage rate c. benefit d. behavioral e. psychographic

e. pyschographic

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. many sets of business purchases are made for one set of consumer purchases. c. the business market has more buyers than the consumer market. d. in the business market buying process, buyers and sellers are less dependent on each other than in the consumer market e. business buying decisions are less complex than consumer buying decisions

b. many sets of business purchases are made for one set of consumer purchases

Which of the following is a personal factor that influences a consumer's buying behavior? a. motivation b. occupation c. status d. social networks e. family

b. occupation

Which brand dimension is defined as how consumers feel a brand meets their needs? a. equity b. relevance c. esteem d. differentiation e. knowledge

b. relevance

In the early 1970's, Gary Dahl sold pet rocks. The product had a short, temporary period of unusually high sales driven by customer enthusiasm and immediate product popularity, but then the sales declined very quickly. The PLC sales pattern for pet rocks is known as _____________. a. a fashion b. a normal product life cycle curve c. a fad d. a failure e. a style

c. a fad

When a product is in the decline stage of the PLC, a company may reduce various costs, hoping that sales hold up. In other words, they are __________ the product. a. maintaining b. growing c. harvesting d. dropping e. milking

c. harvesting

The Learning Institute recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Learning Institute managers will most likely use​ ________ next to arrive at a realistic number of ideas to adopt. a. crowdsourcing b. business analysis c. idea screening d. concept development e. concept testing

c. idea screening

This adopter group is skeptical and only adopts new products after a majority of people have tried it. a. early mainstream b. early adopters c. late mainstream d. innovators e. lagging adopters

c. late mainstream

According to the model of buyer behavior, what is in a buyer's black box? a. the four P's b. purchase behavior c. the buyer's characteristics and the buyer's decision process d. cultural forces e. attitudes and preferences

c. the buyer's characteristics and the buyer's decision process

Marketers must be careful to guard against stereotypes when using​ ________. a. psychographic segmentation b. age and life cycle segmentation c. demographic segmentation d. income segmentation e. benefits segmentation

b. age and life cycle segmentation

The marketing manager at Arbor's Delicatessen 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. Arbors' approach is best referred to as _____________ segmentation. a. age and life cycle b. pyschographic c. benefit d. user status e. geographic

b. pyschographic

When a company lengthens a product line by adding more items beyond its current range, they are _____________. a. decreasing the depth of the line b. stretching the line c. decreasing the width of their product mix d. increasing the width of their product mix e. filling the line

b. stretching the line

Which of the following statements concerning new products is correct? a. a modified product is not considered a new product b. to be considered new, the product must be something consumers have not seen before. c. modified and improved products are considered new d. most new products succeed within two years of their introduction e. products that are merely improved in some way are not considered new

c. modified and improved products are considered new

_________ is NOT a characteristic important in influencing an innovation's rate of adoption. a. relative advantage b. divisibility c. motivation d. communicability e. complexity

c. motivation

When Coca-Cola saw the growth of the bottled water category, they launched Dasani, its brand of bottled water. Which brand development strategy did Coca-Cola use in launching Dasani? a. line extension b. multibranding c. new brand d. licensing e. brand extension

c. new brand

Firms that manufactures seasonal target their consumers primarily through ________ segmentation a. demographic b. income c. occasion d. age and life cycle e. pyschographic

c. occasion

Which of the following needs is in Maslow's hierarchy is generally satisfied first? a. esteem needs b. self-actualization needs c. physiological needs d. safety needs e. social needs

c. physiological needs

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. concept development b. marketing strategy development c. test marketing d. crowdsourcing e. business analysis

d. crowdsourcing

What is the nature of demand in business markets? a. demand in business markets is elastic b. demand in business markets does not fluctuate c. business market demand is independent of consumer market demand d. demand in business markets is derived demand e. demand in business markets fluctuated less than in consumer markets

d. demand in business markets is derived demand

At which stage of the new product development process is crowdsourcing used? a. product development b. idea screening c. commercialization d. idea generation e. marketing strategy development

d. idea generation

In determining product quality, what are the two dimensions of quality marketers must decide upon? a. consistency and conformance b. level and price c. consistency and packaging d. level and consistency e. level and conformance

d. level and consistency

Items such as technical specifications, quantity, delivery time, return polices and warranties are included in the ______________. a. product specification b. proposal solicitation c. general need description d. order routine specification e. supplier selection

d. order routine specification

For which service characteristic do marketers need to pay close attention to fluctuations in demand? a. inseparability b. intangibility c. tangibility d. perishability e. variability

d. perishability

When we see Hello Kitty on children's clothing, Disney characters on lunchboxes, and Sponge Bob Squarepants on breakfast cereals, which form of brand sponsorship is being used? a. store branding b. national branding c. Co-branding d. private branding e. licensing

e. licensing

Grocers in neighborhoods with a large Hispanic population typically carry more brands that Hispanic consumers prefer than grocers in other neighborhoods. This is an example of​ ________. a. individual marketing b. concentrated marketing c. differentiated marketing d. undifferentiated marketing e. local marketing

e. local marketing

Which of the following is a social factor that influences consumer buying behavior? a. occupation b. life-cycle stage c. economic situation d. personality e. roles and status

e. roles and status

Age, personality, buying style, and job position are __________ factors that can influence the business buying decision process. a. individual b. interpersonal c. cultural d. economic e. organizational

a. individual

Which of the five characteristics identified in the text has an inverse relationship with an​ innovation's rate of​ adoption? As this characteristic​ increases, the rate of adoption is slower. a. complexity b. compatibility c. divisibility d. relative advantage e. communicability

a. complexity

If competitors cannot easily copy the benefit a company chooses to​ promote, that benefit is said to be​ _________. a. profitable b. superior c. affordable d. preemptive e. distinctive

d. preemptive

Which of the following is a variable used to segment consumer buyers that is not used to segment business buyers? a. personal characteristics b. purchasing approaches c. situational factors d. pyschographics e. operating characteristics

d. pyschographics

A purse company's ads feature the members of a popular housewives reality show. Product sales increase significantly among the fans. From the fans' viewpoint, the housewives reality show is a(n) _______________. a. membership group b. family group c. late-majority adopter d. reference group e. lagging adopter

d. reference group

In a ___________, the business-to-business buyer reorders something without modifications. a. buying decision b. modified rebuy c. new task d. straight rebuy e. system selling

d. straight rebuy

After ideas are​ screened, the next stage of the new product development process is​ _____. a. product development b. test marketing c. idea generation d. commercialization e. concept development and testing

e. concept development and testing

If a company adds a new product line to its existing portfolio, it has increased its ___________. a. product mix consistency b. product support services c. product line length d. product mix depth e. product mix width

product mix width

What is dividing a market into smaller segments of buyers with distinct needs or behaviors that might require separate marketing strategies?

Market segmenting

_________ consists 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. mass marketing c. differentiation d. market targeting e. market segmentation

a. positioning

Five steps of the Buyer Decision Process

need recognition, information search, evaluation of alternatives, purchase decision, post purchase behavior

_________ refers to the degree to which innovation appears superior to existing products. a. communicability b. relative advantage c. complexity d. compatibility e. divisibility

b. relative advantage

Consumers can obtain information from any of several sources. Which source is the most effective in that they legitimize the​ product? a. commercial sources b. personal sources c. the internet d. media sources e. public sources

b. personal sources

Which of the following is considered part of an augmented product rather than that of an actual product or core customer value? a. packaging b. warranty c. brand name d. design e. product features

b. warranty

One problem with business-to-business e-procurement is that it ____________. a. increases paperwork requirements b. increases the time between order and delivery c. can erode long-standing customer-supplier relationships d. reduces purchasing efficiency e. increases transaction costs

c. can erode long-standing customer-supplier relationships

When Dr. Lawncare developed his revolutionary new solar powered​ lawnmower, he knew that during the introductory stage of the product lifecycle​ ___________. a. sales would be low and profits would be high b. sales would be slow and profits would level off or decline c. sales would slow and profits non-existent d. profits would rise quickly and there would be rapid market acceptance of his product e. sales would fall and profits would drop

c. sales would slow and profits non-existent

Which of the following is a pure tangible good? a. a medical checkup b. a meal at a restaurant c. toothpaste d. financial advice e. a spa treatment

c. toothpaste

Many marketers think that companies should aggressively promote only one benefit to the target market. The benefit promoted is known as​ a(n) ________. a. unique benefit proposition b. unique difference proposition c. unique selling proposition d. unique position proposition e. unique product proposition

c. unique selling proposition

Kroger sponsors such brands as Private Selection, Heritage Farm, and Simple Truth. Kroger does not manufacture any of these products. Which type of brand sponsorship is Kroger using? a. a co-brand b. a manufacturer's brand c. a national brand d. a private brand e. a licensed brand

d. a private brand

___________ refers to the practice of including ethnic themes and cross-cultural practices within a company's mainstream. a. viral marketing b. cause marketing c. buzz marketing d. a total market strategy e. guerilla marketing

d. a total market strategy

_________ is the first stage in the new product adoption process. a. adoption b. evaluation c. interest d. awareness e. trial

d. awareness

The value of customer relationships that a brand creates is called _________. a. brand value b. brand differentiation c. customer value d. customer equity e. brand equity

d. customer equity

When marketers want to promote their products and services through word-of-mouth marketing programs, they typically begin by ___________. a. identifying and targeting late adopters b. developing print and radio advertisements c. pushing one-way commercials at customers d. generating person-to-person brand conversations. e. withdrawing from online social networks

d. generating person-to-person brand conversations

When manufacturers launch products using their own brand names, which sponsorship option are they using? a. distributor branding b. private branding c. store branding d. national branding e. co-branding

d. national branding

___________ show consumer perceptions of their brands versus those of competing products on important buying dimensions. a. psychographic maps b. target segment maps c. competitively positioned maps d. perceptual positioning maps e. competitive

d. perceptual positioning maps

What determines if a buyer is satisfied or dissatisfied with a purchase? a. the amount of information gathered in the decision process b. the number of alternatives considered in the purchase decision c. whether or not the buyer experiences cognitive dissonance d. the relationship between the consumer's expectations and the product's perceived performance e. how others feel about the purchase

d. the relationship between the consumer's expectations and the product's perceived performance

Which of the following statements is true regarding managing service quality? a. service recovery is unimportant in managing service quality b. service quality is easier to define and judge than product quality c. setting standards is not important in delivering service quality d. unlike product quality, service quality will always vary e. customer retention is not related to service quality

d. unlike product quality, service quality will always vary

Service _________ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought. a. perishability b. inseparability c. packaging d. variability e. intangibility

e. intangibility

Service marketing requires ___________. This means that the service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. a. external marketing b. the service firm to focus only on the customer c. interactive marketing d. image differentiation e. internal marketing

e. internal marketing

What is the first step of the buyer decision process? a. postpurchase behavior b. information search c. purchase decision d. alternative evaluation e. need recognition

e. need recognition

To be more socially​ responsible, some companies are appointing​ _____________. Their job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems. a. product champions b. attorneys c. brand managers d. product managers e. product stewards

e. product stewards

Which of the following is an external source of new product ideas for a company? a. hackathons b. intrapreneurial programs c. innovation d. R & D e. Trade magazines

e. trade magazines

Which of the following correctly defines a product? a. a product is anything offered to a market that might satisfy a need or want b. products have two levers -- the actual product and the augmented product c. products are only tangible objects offered to a market to satisfy a want or need d. products include tangible objects and services but not events or people e. a product is not a part of the overall market offering

a. a product is anything offered to a market that might satisfy a need or want

Intuit follows a​ "Design for Delight​ (D4D)" development philosophy that products should delight customers by providing experiences that exceed expectations. Which new product development approach is Intuit​ using? a. customer-centered new product development b. crowdsourcing c. systematic new product development d. marketing strategy development e. team-based new product development

a. customer-centered new product development

Which of the following statements about new product development strategy is correct? a. innovation can be very expensive and very risky b. new products are usually successful because consumers like new things c. new products are not a major source of growth for companies d. a new product will succeed as long as it is priced correctly e. good advertising creates successful new products

a. innovation can be very expensive and very risky

A company launching a new product at the commercialization stage of new product development must first decide on​ ___________. a. introduction timing b. profit goals c. the target market d. the value proposition e. market share goals

a. introduction timing

Which of the following would make a segment less attractive to enter? a. new entrants finding it easy to enter the segment b. buyers with weak bargaining power c. suppliers with weak bargaining power d. a lack of aggressive competitors e. very few substitute products

a. new entrants finding it easy to enter the segment

All the people involved in the buying decision in an organization are collectively known as​ _______. a. the buying center b. buying actors c. the purchasing team d. buying agents e. the buying nucleus

a. 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. variability b. intangibility c. tangibility d. perishability e. inseparability

a. variability

In which type of buying situation will a buyer usually go through all the stages of the business buying​ process? a. a modified rebuy b. a new task buying situation c. the purchase of a business service d. a straight rebuy e. the purchase of raw materials

b. a new task buying situation

Through __________ a company can obtain new products by buying a whole company, a patent, or a license to produce someone else's product. a. idea generation b. acquisition c. internal R & D d. product life cycle strategies e. new product development

b. acquistion

Which of the following types of marketing involves creating opinion leaders to serve as brand ambassadors to spread the word about a company's products? a. social marketing b. buzz marketing c. traditional marketing d. direct marketing e. values marketing

b. buzz marketing

Socially responsible target marketing would classify which of the following as an especially vulnerable target market for harmful or controversial products? a. single households b. children c. females d. baby boomers e. wealthy consumers

b. children

Which type of consumer products are frequently purchased with little planning, little comparison or shopping effort, and low customer involvement? a. shopping products b. convenience products c. specialty products d. industrial products e. capital products

b. convenience products

Identifying, describing, and promoting the product are three functions of ____________. a. design b. labeling c. packaging d. support services e. product lines

b. labeling

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. store brand d. multibrand e. brand extension

b. line extension