Marketing Final

One advantage of non-price competition is that

A firm can build customer loyalty.

The owner of Big Jim's Motorcycles is opening a new retail location. Which of the following is most likely to be fixed cost for Big Jim's Motorcycles?

Building Rent

Marianna tells Rajesh that she likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. She is asking Rajesh to proceed to which stage of the new-product development process?

Business Analysis

One disadvantage of test marketing a new product is that

Competitors may copy the product

Early in the commercialization phase, marketers must make decisions about?

Warranties, repairs, and replacement parts

A product line is defined as

A group of closely related products that are considered a unit because of marketing, technical, or end-use considerations.

A(n) _______ is a concept, philosophy, or image.

Idea

The major characteristic of a private brand is that

Manufacturers are not identified on the product

Which of the following has a target market of consumers who live within two or three miles of its stores, or within a few minutes' walking or driving time?

Neighborhood Shopping Center

Which of the following is the best example of disruptive innovation?

Razor Blade

Convenience products are

Relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort.

Compared with other phases of the new-product development process, the largest number of new-product ideas is rejected during the _________ phase

Screening

Off-price retailers and category killers are both

Specialty retailers

T/F Barter is the older form of exchange

True

A narrow product mix with a deep product line would most likely be carried by

specialty retailers

Drop shippers

take title to but not physical possession of the goods.

Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?

Warehouse Club

The three major ways to modify a product include

aesthetic, quality, and functional changes

Which of the following is NOT a business product?

Calculators bought to help individuals complete their personal federal income tax forms.

A small self-service store that is open long hours and carries a shallow product mix in convenient locations is best described as a

Convenience store

Which type of retailer generally excepts lower margins than traditional retailers in exchange for higher sales volumes?

Discount stores

Which of the following products most likely to have an inverted C-shape demand?

Eternity Perfume

All the following are major steps in developing new products except

Evaluation of competitor's efforts.

All of the following are major steps in developing new products except

Evaluation of competitors' efforts

T/F A product line is a particular version of a product that can be designated as a distinct offering on the organization's list of products.

False

T/F Brand preference is the strongest form or degree of brand loyalty.

False

T/F Catalog marketing is one of the more flexible types of direct marketing.

False

T/F Concept testing gives reliable feedback, but a relatively high cost.

False

T/F Concept testing presents a small sample of potential buyers with a trail version of the new product to determine their initial reactions.

False

T/F Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product unattainable.

False

T/F Delivery, installation, financing, repair, warranties, and guaranteers are all examples of product features.

False

T/F Direct-response marketing is the performance of marketing-related activities by telephone.

False

T/F Discount stores are distinctive in that they usually are very service oriented.

False

T/F Disruptive innovations involve completely new technologies.

False

T/F During the growth stage, promotion costs rise as a percentage of total sales.

False

T/F Electricity is an example of a product that is price elastic.

False

T/F Factory outlet stores exist to compete with traditional retailers.

False

T/F Line extensions are less common than other new products because line extensions are more expensive and more risky.

False

T/F Marketers have little influence over shaping consumers' concepts or perceptions.

False

T/F New products are classified solely as innovations that have never been sold by any organization.

False

T/F Product design is the process of creating and designing products so that consumers perceive them as different from competing products.

False

T/F Profits for a firm are computed as follows: Profits=Total Revenue-Fixed Costs.

False

T/F Specialty retailers carry a broad product mix with deep product lines.

False

T/F Supermarkets specialize in selling shopping products.

False

T/F Test marketing should be conducted when a product has been given a low probability of success.

False

T/F The concept of product quality is the same from consumer to consumer and from consumer markets to organizational markets.

False

T/F The core product element of the total product can include installation, delivery, training, and financing.

False

T/F The marketing mix should be left along during the maturity stage of the product life cycle; tampering with it may bring an early death to the product.

False

T/F The phase-out approach to product deletion involves a process of continuous price increases to make as much profit as possible before the product is finally prices out of existence.

False

T/F The point at which marginal revenue equals marginal cost is the breakeven point.

False

T/F The two major product categories are business and institutional.

False

T/F Trial is the first stage of the product adoption process.

False

T/F Venture team members usually come from the same functional areas within the firm.

False

In which stage of the product life cycle do profits begin to decrease?

Growth

When Cameron was visiting family in Missouri, he ate a flavor of Boulder Canyon Kettle Chips that he had never seen before. When he returned home to Virginia, he could not find the flavor in any store. Which of the following reasons most likely explains why he could not find the flavor at home?

He was visiting a city being used as a Boulder Canyon's test market.

Which of the following is an example of a category killer?

Home Depot

What degree of brand loyalty is the strongest and most desired by marketers?

Insistence

The three levels of brand loyalty from strongest to weakest are

Insistence, preference, recognition

The four major stages of a product life cycle include.

Introduction, growth, maturity, and decline.

Stores that buy manufacturer's second, overruns, returns, and off-season production and sell these products at below wholesale prices, are called

Off-price retailers

Which of the following is an example of a functional modification?

Planters Nuts redesigns the packaging of its nut products so they are easier for those with arthritis to open.

The General Auto Insurance advertises its automobile insurance as "For a great low rate you can get online, go to the General and save some time!" General is engaging in

Price Competition

After building a prototype of his new device, Barry is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the ____ phase of the new-product development process.

Product Development

Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during?

Product Development

Three major ways in which marketers engage in product differentiation are

Product quality, product design and features, and product support services.

Which factor is least likely to affect pricing decisions?

Shifting Stock Values

A product is best described as a

Specific version of a product

Elena goes to Walmart and buys come clothing, a Blu-ray disc, and all the groceries she needs for her family. What type of retailer is this particular Walmart?

Superstore

The major drawback to using aesthetic modifications is

That the value of the modification is determined subjectively

T/F A customer looking for the lowest price on a mattress without concerns for the quality of the mattress or the status gained by buying and using a certain brand is a price-conscious customer.

True

T/F A product need not be a physical product

True

T/F A product's classification can influence its price, distribution, and promotion.

True

T/F A service is intangible and is the result of the application of human or mechanical efforts to people or objects.

True

T/F Advertising used in the decline stage may prolong the life of the product.

True

T/F Brand and product managers operate cross-functionally.

True

T/F Business analysis provides a tentative sketch of a product's profitability.

True

T/F Changes in buyers' attitudes, other components of the marketing mix, and the uncontrollable environmental factors can influence demand.

True

T/F Communicating product benefits to consumers is very important in the introduction stage.

True

T/F Costs are a major issue when establishing price.

True

T/F Designing a product that customers perceive as different from competing products is an example of product differentiation.

True

T/F During the commercialization phase of new-product development, plans for full-scale manufacturing and marketing are refined and settled.

True

T/F Extreme-value stores are a fraction of the size of conventional discount stores.

True

T/F Laggards are the last to adopt a new product and usually distrust new products.

True

T/F Price is the most easily adjusted ingredient in the marketing mix.

True

T/F Price is the value that is exchanged for products in a marketing transaction.

True

T/F Process materials are used directly in the production of products.

True

T/F Profits decline in the maturity stage, largely because of increased competition.

True

T/F Store atmospherics are used to create emotional effects that enhance the probability of purchasing.

True

T/F The first adopters of a product are the innovators.

True

T/F The major drawback is using aesthetic modifications is that their value is determined subjectively.

True

T/F The purpose of pricing concept is to quantify and express the value of items in a market exchange.

True

T/F Use of the product is the most important means of distinguishing consumer products from business products.

True

Philip is on his way to look when he realizes he has a flat tire. He swings into Discount Tires and has a new tire installed. Phillip's purchase of a new tire in this situation is considered to be?

an unsought good

Location is important to a retailer because

location determines the trading area from which the store must draw its customers.

Price is a key element in the marketing mix because it relates directly to

the generation of total revenue

At breakeven point,

the money a company brings in from selling products equals the amount spent producing the products.

Louis is reading the online report of the tuition and fees he owes for this semester of college. Since he has signed up for online banking, he pays the amount immediately. The amount Louis just paid is considered to be

the price

Price is

the value that is exchanged for products in a marketing transaction

If a product has an inelastic demand and the manufacturer raises its price,

total revenue will increase

Peter works for a company that buys snacks such as chips, cookies, and candy in bulk from manufacturers. Peter's company than repackages them and sells them to vending companies that have vending machines at government institutions. Peter most likely works for a(n)__________, while the vending machine company is a(n) _________.

wholesaler;retailer