marketing final exam

the marketing mix should be left alone during the maturity stage of the product life cycle; tampering with it may bring an early death to the product t/f

false

the two major product categories are business and institutional t/f

false

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

product development

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

evaluation of competitors efforts

Buyers want to exert only minimal effort to obtain shopping products

false

a firm that competes on a price basis is unable to change prices frequently t/f

false

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

a run-out approach to product deletion lets the product decline without changing the marketing strategy t/f

false

brand preference is the strongest form or degree of brand loyalty t/f

false

concept testing gives reliable feedback, but at a relatively high cost t/f

false

consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable

false

fixed costs vary with the number of units produced or sold t/f

false

line extensions are less common than other new products because line extensions are more expensive and more risky t/f

false

product design is the process of creating and designing products so that consumers perceive them as different from competing products t/f

false

product mix refers to a related group of products in the product line

false

profits for a firm are computed as follows: Profits = Total Revenue - Fixed Costs t/f

false

test marketing should be conducted when a product has been given a low probability of success

false

the core product element of the total product can include installation, delivery, training, and financing t/f

false

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 priced out of existence

false

the point at which marginal revenue equals marginal cost is the break even point t/f

false

venture team members usually come from the same functional areas within the firm t/f

false

a(n) ideas is a concept, philosophy, or image

idea

the three levels of brand loyalty from strongest to weakest are

insistence, preference, recognition

the width of a product mix is measured by the number of product

lines a company offers

the major characteristic of a private brand is that

manufactures are not identified on the product

product deletion

may be opposed by management

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

as Richard works on the prototype of a new action-oriented computer game, he is engaging in which phase of the new-product development process?

product development

______________ refers to how a product is conceived, planned, and produced

product positioning

three major ways in which marketers engage in product differentiation are

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

if Umbro faces a standard demand curve that exists for most products, as it raises the price of its soccer balls, the

quantity demanded goes down

which if 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

what step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level?

screening

Which factor is least likely to affect pricing decisions?

shifting stock values

the major drawback to using aesthetic modifications is

that the value of the modification is determined subjectively

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

the generation of total revenue

at the breakeven point,

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

a product need not be a physical product

true

a product's classification can influence its price, distribution, and promotion

true

a products classification can influence its price, distribution, and promotion t/f

true

a service is intangible and is the result of the application of human or mechanical efforts to people or objects

true

advertising used in the decline stage may prolong the life of the product t/f

true

business analysis provides a tentative sketch of a product's profitability t/f

true

changes in buyers attitudes, and other components of the marketing mix, and uncontrollable environmental factors can influence demand. t/f

true

designing a product that customers perceive as different from competing products is an example of product differentiation t/f

true

during the commercialization phase of new product development, plans for full scale manufacturing and marketing are refined and settled t/f

true

factors affecting pricing decisions can include demand, distribution, and the way in which the product is promoted. t/f

true

for most products, the quantity demanded goes up as the price goes down t/f

true

functional modifications usually require that the product be redesigned t/f

true

use of the product is the most important means of distinguishing consumer products from business products

true

early in the commercialization phase, marketers must make decisions about

warranties, repairs and replacement parts

during the maturity stage

some competitors are forced out.

a product item is best described as a

specific version of a product

non-price competition allows a company to increase its brands unit sales through means other than changing the brands price. t/f

true

price is the value that is exchanged for products in a marketing transaction t/f

true

products decline in the maturity stage, largely because of increased competition t/f

true

the buyers intent can determine whether the item is classified as a consumer or business product

true

the first adopters of a product are the innovators

true

at what point does a firm maximize profit?

The point at which marginal cost equals marginal revenue

one advantage of non-price competition is that

a firm can build customer loyalty

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 product mix is best described as

all products offered by a firm

phillip is on his way to work when he realizes he has a flat tire. he swings into discount tires and has a new tire installed. phillips purchase of a new tire in this situation is considered to be

an unsought good

the three major ways to modify a product include

asthetic, quality and functional changes

the jolly green giant used by the green giant company's facilitates the development of

brand associations

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

building rent

Products are classified as being business or consumer products according to the

buyers intended use of the product

which of the following products is most likely to have an inverted C - shaped demand curve?

eternity purfume

which of the following is NOT a business product

calculators bought to help individuals complete their personal federal income tax forms

one disadvantage of test marketing a new product is that

competitors may copy the product

although they become part of a larger product, ______________________ can often be easily identified and distinguished on the larger product

component parts

if Norwegian Cruise Lines increased the price of its seven-day cruise package by 10% and, as a result, experienced a 20% decline in customer bookings, Norwegian's demand would be

elastic