Mkt350 exam 2
Co-branding can enhance consumer perceptions of product quality by linking two commodity brands. two substitute brands. two newly launched brands that few people recognize. a brand to an existing well-known quality brand.
a brand to an existing well-known quality brand. Reason: Correct. When two brands are combined in a co-branding offering, the stronger or more well-perceived brand may rub off on the less well-known of the two.
Whenever a product has a ______ level of complexity, it will consequently be ______ to try. low; hard low; easy moderate; impossible high; easy
low; easy
The packaging that the consumer uses is known as ______. the tangible package the primary package the secondary package the usable package
primary package
The ______ department can be considered an investment into a company's future, in which scientists work to solve problems and develop new ideas. diversification mergers and acquisitions research and development research and innovation
research and development
In order for a firm to successfully make a new product out of a competitor's product, that firm must engage in ______ to figure out how to bring an improved version to the market. reverse engineering research analysis competitor's engineering competitor's products
reverse engineering
Which pricing strategy appeals to customers who are price sensitive as well as to those who are not? Price skimming Everyday low pricing Price bundling High/low pricing
High/low pricing
If a firm sets prices similar to major competitors' prices, this is an example of ______ pricing. competitive parity premium pricing target profit pricing comprehensive
competitive parity
The five Cs of pricing include ______. corporate structure complaints complementary products cost considerations
cost considerations
What is the most important element to consider for firms that intend to use multiple media to deliver an advertisement? Consistency Versatility Compulsion Creativity
Consistency
Because they include information such as ingredients, nutrition, and the product benefits to a consumer, labels can be considered ______ tools. Financial Purchasing Communication Pricing
Communication
Marketers invest in developing a strong brand identity to help establish ______. strong mission statements stable market shares buyer loyalty habitual, unthinking purchases
buyer loyalty
During the ______ firms may pursue several strategies to increase their customer base or defend their market share. One such strategy may be to develop new features or reposition them. growth stage decline stage introduction stage maturity stage
maturity stage
Manufacturer brands such as Nike and Coca-Cola are also known as ______ brands. Premium Store National Generic
National
Which of the following is an example of a monetary sacrifice included in the overall price of a product or service? Shipping Competition Time Effort
Shipping
True or false: Both firms AND consumers can be innovators.
True
True or false: In general, customers are more sensitive to price increases than to price decreases.
True
True or false: Since test marketing costs are high, a company may choose to launch a new product without extensive test marketing and instead rely on instinct.
True
True or false: Targeting the wrong segment and poor positioning are contributing factors to the high rate of failure for new products.
True
When consumers experience brand loyalty, which feeling do they associate with the brand? Envy Trust Excitement Wonder
Trust
The point at which the number of units sold generates enough revenue to equal total costs is known as ______. price elasticity point value break-even analysis break-even point
break-even point
Variable costs _____ production volume. change with are unrelated to prevent large directly increase
change with
During the ______ stage of the product life cycle, firms attempt to reach new consumers by studying their preferences and producing many different product variations. introductory decline maturity growth
growth
Not every product follows the same life cycle curve; many products stay in the ______ stage for a very long time, often for years, due to strategies like adding new features to established products.
maturity
Fixed costs ______. are not important to setting prices for products and services go up and down regardless of changes in production remain at the same level despite changes in production are only as fixed as production volume
remain at the same level despite changes in production
Consumers' ability to replace other products with the focal brand is known as ______. the substitution effect cross-price elasticity the income effect price elasticity of demand
the substitution effect
One of the most critical elements of success in new product launches is ______ the introduction, such as scheduling the release of a movie to match school holidays. promoting market testing accelerating timing
timing
Variable cost per unit times quantity equals ______. total variable cost total revenue total cost break-even point
total variable cost
What is another term for maintaining consistency across styles when using multiple media? Integrated marketing Goal setting Unique selling proposition Posttesting
Integrated marketing
Which of the following words best describes the advantage of using an IMC program over a single marketing communication element in order to deliver a message to the target audience? Evolution Familiarity Uniqueness Integration
Integration
Put the stages in the product life cycle in order from first to last, with the first stage at top. Decline Growth Intro Maturity
Intro Growth Maturity Decline
How do consumers generally describe the role of price in their purchase decisions? Not very important Somewhat important Totally irrelevant Extremely important
Extremely important
While early adopters are crucial to the success of a new product, they still only make up a relatively small percentage of the total consumers in a given product market. This percentage is approximately how big? 34% 13.5% 16% 2.5%
13.5%
Which of the following does a break-even analysis provide? An average price to charge under certain conditions Specific prices for a variety of products An ideal price for any quantity sold An accurate prediction of units sold
An average price to charge under certain conditions
Which of the following does a break-even analysis provide? An ideal price for any quantity sold Specific prices for a variety of products An accurate prediction of units sold An average price to charge under certain conditions
An average price to charge under certain conditions
Which of the following best describes how managers have historically treated pricing? As a way to control markets As an afterthought As a way to trick competitors As their primary objective
As an afterthought
Products whose demands are positively related to one another are known as ______ products. price-elastic complementary substitute price-inelastic
Complementary
True or false: In recent years, sales of store brands have declined significantly.
False
True or false: Prototypes are never crafted individually.
False
Which of the following traits are associated with the innovators consumer group? Pride in keeping products as long as they can Risk averse Highly knowledgeable (about the product/service) Risk takers
Highly knowledgeable (about the product/service) Risk takers
When developing an ad campaign firms must ensure that they apply many of the ______ strategies. RFP GATT IMC STP
IMC
Which of the following are benefits of the high/low pricing strategy? (Select all that apply.) It attracts consumers at both ends of the price sensitivity scale. It smooths out demand. It generates excitement due to the limited duration of sales. It offers a consistent price level at all times. It serves two different market segments.
It attracts consumers at both ends of the price sensitivity scale. It generates excitement due to the limited duration of sales. It serves two different market segments.
_________ or breakthrough products are brand new products that establish a completely new market or radically change both the rules of competition and consumer preferences in a market.
Pioneer
How do managers use break-even analysis? To identify the elements of the marketing plan that will generate the best results To estimate demand for a product at different prices To find a production quantity where, for a given price, costs are equal to revenues To see how costs will change as a manufacturer gains experience producing a product
To find a production quantity where, for a given price, costs are equal to revenues
A break-even analysis graph shows curves for which of the following? (Select all that apply.) Multiple select question. Total Costs Target return price Revenue Fixed Costs
Total Costs Revenue Fixed Costs
When a new product is launched in a market where similar items are already being sold, how is the price typically determined? Price skimming Penetration pricing Quantity discounts Value-based methods
Value-based methods
Licensing is an effective way for a brand to improve its ______. Overhead Visibility Customer Satisfaction Perceived Value
Visibility
The diffusion of innovation curve refers to the rate in which consumers ______ a given product or service. talk about sample adopt repurchase
adopt
Status quo pricing ______. leads the competition in setting prices stays the same despite competitors' prices does the opposite of the competition to generate increased profits changes prices only to meet those of competition
changes prices only to meet those of competition
A restaurant sets the prices on its menu at about $1 below those of its competitors. Unlike other restaurants, it does not offer weekly specials at a large discount nor does it offer coupons. This business is using the ______ pricing method. high/low everyday low quantity discount price bundling
everyday low
For a firm, rent, landscaping, and insurance are examples of ______ costs. variable reimbursed total fixed
fixed
Price is the one element in the marketing mix that ______. generates revenues does not require decision making is the least important generates costs
generates revenues
A demand curve enables a firm to examine prices ______. in terms of supply or how many producers offer the same good or service in terms of demand and the firm's objectives relative to each of the orientation strategies simultaneously relative to profits
in terms of demand and the firm's objectives
If a company needs to raise the prices of some its products, it should choose to raise the prices of ______ products because relatively fewer customers will stop buying the product as a result. commodity inelastic elastic moderately priced
inelastic
When a 10% decrease in price results in less than a 10% increase in quantity sold, demand for the product or service is described as ______. price sensitive commodity-like elastic inelastic
inelastic
Price is one of the ______ in a consumer's purchase decision. most time-consuming factors least important factors most important factors last steps
most important factors
Firms measure the success of a new product by its technical ______, customer acceptance and its satisfaction of the firm's financial requirements. analysis ratios performance costs
performance
The equation for price elasticity of demand is the percentage change in quantity demanded divided by percentage change in ______. supply profits perceptions price
price
The ratio of change in a price and its effect on the quantity of the product demanded is known as ______. the downward-sloping demand curve prestige products and services price elasticity of demand price elasticity of supply
price elasticity of demand
When a new product appeals to consumers who are willing to pay a premium price to have an innovation first, marketers should use a ______ strategy. market penetration cost-of-ownership price skimming reference point
price skimming
Emerging new trends or changes in consumer tastes can fragment ______ markets, which would open new market opportunities. new saturated declining relevant
saturated
When the change in demand for one product negatively affects the demand for another product, the items are known as ______ products. unreliable complementary substitute variable
substitute
A brand that is projected to earn $1 billion over the next 12 months has a high brand ______. expectancy power value recognition
value
Primary labor and materials are also known as ______ because they change with production volume. total costs fixed costs costs variable costs
variable costs
When a firm changes its packing as a means of repositioning the product, what is it trying to accomplish? (Select all that apply.) Attract a new target market Move the product to a different store aisle or shelf Appear more up to date Change production facilities
Attract a new target market Appear more up to date
A new clothing brand is struggling to gain market share due to consumers' lack of familiarity with the brand and concerns about the quality of its products. How could the company use co-branding to enhance consumers' perceptions? By linking with another unknown brand to combine marketing efforts By linking with a brand that has high name recognition but relatively lower quality By extending its brand name to a line of complementary products By linking with a brand that is well known for its quality
By linking with a brand that is well known for its quality
_______ products are items whose demands are positively related, so that they rise and fall together. An example would be Blu-ray players and Blu-ray discs.
Complementary
Identify the steps taken by firms that have products in the decline stage of the product life cycle. Completely exit market Add more inventory Create surveys to find the problem Target a niche segment
Completely exit market Target a niche segment
True or false: In order to achieve success, a brand must have a name that is a part of the English language.
False
True or false: The sole purpose of a product package is to protect the product from damage while in the supply chain.
False
In addition to consumers, innovators may also come from which group? Firms Product developers Manufacturers Laggards
Firms
What happens during an industry shakeout in the growth stage of the product life cycle? Firms that have not established a strong hold in the market decide to exit. A number of new competitors enter the market. Consumer tastes shift, and firms adjust their product features. Sales decline, and firms compete heavily on price.
Firms that have not established a strong hold in the market decide to exit.
Under competitive ______ companies set their prices close to those of their major competitors.
Parity
Firms must continually introduce new products with improved features and find new uses for existing products to defend market share from _______. stagnation innovation decline competition
competition
Identify potential impacts to the company when a new product launch is a failure. (Select all that apply.) Company may fail Top executives face possible imprisonment Product may not recover from failure Negative financial impacts
Company may fail Product may not recover from failure Negative financial impacts
New research has led to analytical tools that can help identify which aspect of the product life cycle? Firms with the highest chance of success Competitors' pricing strategies Key turning points Number of firms that will shake out
Key turning points
with _____ pricing, also known as individualized pricing, companies charge different prices based on the type of customer, the day of the week, and the level of demand.
Dynamic
What are the four stages that a product passes through as it enters, gets established in, and ultimately leaves the marketplace? (Select all that apply.) Introduction Decline Growth Maturity Laggard
Introduction Decline Growth Maturity
Under competitive ________ , companies set their prices close to those of their major competitors.
Parity
Another name for a store brand is a(n) ______ brand private-label family national individual
Private-Label
A firm that joins with other firms as well as government and educational institutions to research a costly new technology is participating in which of the following? Licensing Outsourcing Internal research and development Research consortium
Research consortium
What is the most likely result of a co-branding effort between two brands that have completely different customers? The brand with the least amount of name recognition will improve sales, while the other brand will lose sales. Both brands will improve sales. The brand with the most brand loyalty will improve sales, while the other brand will remain stagnant. The entire effort will fail for both brands.
The entire effort will fail for both brands.
Through the effective use of concept testing, firms may be able to avoid which issue? The high costs of unnecessary product development Taking the time for premarket testing Obtaining consumers' purchase intentions The high costs of research and development
The high costs of unnecessary product development
Research shows the product life cycle concept is a valid idea, based on what? Managers' experiences Common marketing industry knowledge The performance of several major products The history of dozens of products
The history of dozens of products
Crucial to the success of new products are early adopters, who are responsible for influencing what? The other three categories of consumers Product features and innovations The greatest amount of sales revenue Early reviews of the product
The other three categories of consumers
While new products can become huge success stories, they have a high failure rate. In many cases imitators capitalize on the ______ of pioneers and subsequently gain advantage in the market. ambition importance weaknesses strengths
Weaknesses
What can marketers learn from the diffusion of innovation theory? (Select all that apply.) Which markets are likely to be most receptive to new products or services The amount of time before a competitor releases a similar product The length of the product life cycle in a given industry The rate at which consumers are likely to adopt a new product or service
Which markets are likely to be most receptive to new products or services The rate at which consumers are likely to adopt a new product or service
During intense competition, a firm needs ______ to defend its market share from competition. product stability market maturation constant innovation pricing inflexibility
constant innovation
Sometimes the cost per unit of a new product will decrease as the total sales increase. This is known as the ______ effect. experience curve accumulation multiplier exponential
experience curve
What is the name for the point at which the lines on a break-even analysis graph intersect? Profit ceiling Break-even point Fixed-cost point Variable-cost point
Break-even point
True or false: Most brands marketed in the United States are manufacturer brands.
True
What are some of the benefits a brand can receive from a licensing agreement? (Select all that apply.) Additional revenues Improved customer loyalty Increased brand equity Lower production costs
Additional revenues Increased brand equity
Which of the following are among the five categories of consumers determined by how soon they adopt a product? Early majority Late adopters Laggards Innovators
Early majority Laggards Innovators
Which factor has contributed to the increased presence of store brands in recent years? Increased regulation of international trade Stronger competition among manufacturers Declining overall demand among consumers Growth and consolidation of retail firms
Growth and consolidation of retail firms
Which of the following are limitations to break-even analysis? (Select all that apply.) It cannot help managers assess their pricing strategies. It must be conducted several times at different quantities. It cannot predict how many units will sell. It uses an average price rather than specific prices.
It must be conducted several times at different quantities. It cannot predict how many units will sell. It uses an average price rather than specific prices.
Which of the following do companies take into account when engaging in dynamic pricing? (Select all that apply.) Level of demand Type of customer Time of day Competitive parity
Level of demand Type of customer Time of day
The equation for price elasticity of demand is the percentage change in quantity demanded divided by percentage change in ______. supply perceptions price profits
Price
Firms with products in mature markets may seek new market segments by doing what? (Select all that apply.) Changing their ad campaigns Adding new features to their products Reducing prices on older versions of a product Entering new geographic markets
Reducing prices on older versions of a product Entering new geographic markets
Burger King launched the "Whopper Bar," serving beer as well as burgers in a test market in Miami. Which of the following would have been elements of a good plan for this test market? (Select all that apply.) Running the TV ads planned for the full launch Testing a scaled-back version of the full Whopper Bar, with only one type of beer Offering the complete menu planned for the full launch Selling beer at 50% off the price to be charged for the full launch
Running the TV ads planned for the full launch Offering the complete menu planned for the full launch
As a consumer, being an innovator in a given product category can mean engaging in a number of behaviors. Which behavior would best illustrate an innovator? Lining up at the Starbucks drive-through for a cup of coffee Sleeping outside Best Buy for the latest game console Buying a used car on eBay Getting premium gasoline from the Shell station
Sleeping outside Best Buy for the latest game console
Which of the following are reasons that firms implement a market penetration pricing strategy? (Select all that apply.) To earn profits To discourage competitors To resist change To build sales To establish market share To raise production costs above the competition
To earn profits To discourage competitors To build sales To establish market share
How does penetration pricing discourage rival companies from entering the market? (Select all that apply.) Usually none of the companies make much profit in this situation. It negates the experience curve effect, which usually helps competitors. It encourages price skimming, which is too risky for most companies to engage in. Competitors who enter the market will temporarily face higher unit costs.
Usually none of the companies make much profit in this situation. Competitors who enter the market will temporarily face higher unit costs.
When consumers see new packaging on a product that is otherwise untouched, they tend to ______. be more interested in trying the product pay more attention to the product's ingredients look for a more familiar label elsewhere expect a price discount
be more interested in trying the product
The theory that helps marketers understand the product or service adoption rates of consumers is called ______. product pickup propensity (PPP) consumer life cycle distribution of consumer adoption diffusion of innovation
diffusion of innovation
When there are many substitute products available, the price elasticity of demand for a given product will likely be ______. lower more inelastic higher better
higher
After product development, firms conduct premarket tests, which help determine ______. whether a product will perform according to its design how many customers will try and then continue to use it a product's functionality, performance, and potential problems whether a product satisfies the need for which it was intended
how many customers will try and then continue to use it
with ______ quo pricing, companies change their prices only to meet those of their competitors.
status
Pricing is difficult to manage because it is the least ______ of the four Ps. important understood variable relevant
understood
Other elements in the marketing mix may or may not be perfect, but if the price is wrong, revenue ______. will not accrue might accrue will be optimal will accrue
will not accrue
Which of the following are benefits of the high/low pricing strategy? (Select all that apply.) It smooths out demand. It serves two different market segments. It generates excitement due to the limited duration of sales. It attracts consumers at both ends of the price sensitivity scale. It offers a consistent price level at all times.
It serves two different market segments. It generates excitement due to the limited duration of sales. It attracts consumers at both ends of the price sensitivity scale.
_______ refers to the evaluation of an advertisement's impact after it has already run. This is the final stage of assessment, where advertisers determine the sales and/or communication impact of the ad campaign.
Posttesting
Risks in co-branding include: customers for the two brands being too different conflicts of interest between the co-brands profitability is too high increased revenues and costs for both brands' owners
customers for the two brands being too different conflicts of interest between the co-brands
Profit alone ______ how many units should be sold before a firm breaks even. does illustrate does not indicate indicates calculates
does not indicate
The five Cs of pricing include ______. complaints complementary products corporate structure cost considerations
cost considerations
Sometimes, firms have difficulty moving through the brainstorming process themselves. When this occurs, they can hire outside firms such as IDEO, which help to create an environment that is conducive to ______. debating research creativity profiting
creativity
Loyalty toward a particular brand makes other brands seem less substitutable, which decreases ______. the complementary nature of demand the overall price the inelastic nature of demand the price elasticity of demand
the price elasticity of demand
Some products, such as appliances, stay in the maturity stage for a long time and are unlikely to decline unless what occurs? Marketers change their tactics. A superior solution replaces them. Manufacturers add new features. Competitors lower their prices.
A superior solution replaces them.
A firm that joins with other firms as well as government and educational institutions to research a costly new technology is participating in which of the following? Outsourcing Research consortium Internal research and development Licensing
Research consortium
Greenbelt Foods introduced a new low-sugar juice for kids that comes in a spill-proof containers. The product was extremely popular with kids and parents. Several months later, two of Greenbelt's competitors introduced their own versions of the product. The competitors' offerings are examples of ______ products. licensed pioneering laggard copycat
copycat
When products reach the growth stage of the product life cycle, firms typically attempt to reach new customers by adjusting which aspects of a product? (Select all that apply.) Styles Name Features Colors
Styles Features Colors
A percentage increase in the quantity demanded for Product A results in a percentage decrease in quantity demanded for Product B. Products for which demand is negatively related are known as ______ products. complementary variable price-inelastic substitute
Substitute
On which of the following does brand loyalty have the most significant effect? Income effect Cross-price elasticity Substitution effect Complementary product effect
Substitution effect
Which of the following are advantages to firms of owning their own brands? (Select all that apply.) Control over marketing strategy Ability to create brand equity Choice of market segments and positioning Lower manufacturing costs
Control over marketing strategy Ability to create brand equity Choice of market segments and positioning
The majority of the brands marketed in the United States are ______ brands. copycat manufacturer generic private-label
Manufacturer
Lance enjoys owning new gadgets that make his life easier, but he is cautious. He doesn't want the hassle of working through all the initial problems with new technology, so he waits until those problems have been solved. Lance probably belongs to which of the adopter groups in the first half of adopters? Early Adopters Late Majority Laggards Innovators Early Majority
Early Majority
Joanna is interested in new electronics products, but she prefers to wait a few weeks to buy them until technology bloggers post their initial opinions. Joanna probably belongs to which of the adopter groups? Innovators Early majority Late majority Early adopters Laggards
Early adopters
Which government agency is responsible for enforcing product labeling laws in the United States for consumer products? Office of the Inspector General Bureau of Economic Analysis National Institutes of Health Food and Drug Administration
Food and Drug Administration
The diffusion of innovation curve illustrates the typical rate of adoption for a product or service among consumers. According to the curve shown, when would marketers expect to see the highest frequency of purchases for a given product or service? Toward the end of the curve In the middle of the curve At the beginning of the curve
In the middle of the curve
Hightower Industries wants to be a pioneering firm in the robotics and artificial intelligence industry. Which strategy is the company most likely to pursue? Copy existing products on the market that have significant potential for growth Read trade journals to understand what other companies in the market are pursuing Purchase the rights to products developed by overseas producers Invest heavily in research and development
Invest heavily in research and development
What are some advantages experienced by pioneer firms over later entrants? Low failure rate once new product launches More likely to command a greater market share over a longer period More readily recognizable to consumers Lower costs since the market is smaller Establish an early market share lead
More likely to command a greater market share over a longer period More readily recognizable to consumers Establish an early market share lead
In distinguishing between firm strategies for developing new products, a pioneer firm will be more likely to rely on its ______, whereas a follower firm will be more likely to ______ for ideas. look inside; scan the perimeter R&D department; scan the market market scan; research the development look within; scan the outside
R&D department; scan the market
Why might it be an advantage for a company to launch a product without test marketing it? They could get the product to market before the competition. They could have more time to develop expensive add-ons for the product. Consumers respond best to products they have never heard of. Relying on intuition is more effective than test marketing.
They could get the product to market before the competition.
Early adopters, although not as fast as innovators, are quick to purchase a new product or service. Identify all of the following characteristics that are typically associated with early adopters. are less risk seeking than innovators tend to be opinion leaders of particular product categories are youngest in age of all the consumer category groups have less disposable income than innovators
are less risk seeking than innovators tend to be opinion leaders of particular product categories
If a concept test ______ customers' expectations, it is doubtful it would succeed if it were to be produced and marketed. fails to meet visualizes satisfies exceeds
fails to meet
During concept testing it is important to present a brief written description to ______ to obtain their reactions to the idea(s) presented. the firm's shareholders potential buyers or users engineers within the firms executives within the firms
potential buyers or users
Sales of digital cameras have leveled off, and some producers have started to notice a decline in their profits. Consumers who purchase their first digital camera at this point are called ______. the early majority early adopters the late majority laggards
the late majority
When Ben & Jerry's Ice Cream tests all of its new flavors on its own employees at its corporate headquarters in Vermont, it is engaging in what kind of testing? Premarket tests Beta testing Alpha testing Test marketing
Alpha Testing
Innovators on the diffusion of innovation curve usually stay well informed about the product category. Which of the following are the most likely ways an innovator might keep up to date about new developments in 3D televisions? Examine the older televisions of various friends. Attend the annual Consumer Electronics Show to see the newest models. Talk to friends and family who have purchased the 3D TV Participate in a discussion forum about new TV technology.
Attend the annual Consumer Electronics Show to see the newest models. Participate in a discussion forum about new TV technology.
If you are a customer of a company and are asked to use a product prototype, you would be engaging in what type of testing? Test marketing Beta testing Alpha testing Focus group testing
Beta testing
For concept testing a new fitness tracking device, a firm would present a concept statement to which group? Innovators who purchase the latest smart phones Doctors and nutritionists Consumers who jog or go to the gym Health technology product developers
Consumers who jog or go to the gym
Which of the following can a firm accomplish with knowledge gained from the diffusion of innovation theory? Extending the product life cycle for its most profitable product lines Anticipating future changes in consumer tastes and trends Identifying the competitor that is most likely to produce a product that will disrupt the market Developing effective marketing strategies to increase product acceptance across all consumer groups
Developing effective marketing strategies to increase product acceptance across all consumer groups
The risks associated with brand licensing include which of the following? Diluting brand equity Increasing production costs Slowing distribution times Losing brand visibility
Diluting brand equity
After signing a number of licensing agreements to allow their characters to appear on clothing, toys, and video games, the makers of a popular television show saw viewership decline and consumer perceptions of the show start to fall. What is the most likely reason for this phenomenon? Unfulfilled consumer demand Dilution of brand equity through overexposure Increased competition from similar brands Increased production costs
Dilution of brand equity through overexposure
Apple created an entirely new brand that started with the iPod and evolved into different product categories (e.g., iPhone, iPad) before anyone else could catch on. Thus, Apple was the ______, which made the firm easily recognizable to consumers, helping it to gain an early market share lead. bold brand first mover imitator late entrant
First mover
Firms solicit customer input through which methods? (Select all that apply.) Focus groups Surveys Informal discussions Product reviews
Focus groups Surveys Informal discussions
While pioneers capture an early and commanding market share, imitators often enter the market and gain which advantages? (Select all that apply.) Focus marketing efforts on demand for their brand Capitalize on the pioneer brand's weaknesses Offer the first product in the market Can offer better products at lower prices
Focus marketing efforts on demand for their brand Capitalize on the pioneer brand's weaknesses Can offer better products at lower prices
Innovators generally keep themselves knowledgeable about the product category through which activities? (Select all that apply) Frequenting product-specific blogs Attending product-related seminars Disregarding the trends of the market Subscribing to trade magazines
Frequenting product-specific blogs Attending product-related seminars Subscribing to trade magazines
Identify one of the disadvantages from being a first mover. Not being able to diversify like other firms Having to establish the market all alone Having lower prices than competitors Having to develop new features for the product
Having to establish the market all alone
Listening to customer input helps firms with which tasks? Idea generation and product development Research and development Reverse engineering and analyzing competition Sales and Marketing
Idea generation and product development
Toyota sells cars under several brands: Lexus, for luxury cars, Scion, for targeting young consumers, and Toyota for its mid-market cars. Toyota is using a(n) ______ brand naming strategy to target different market segments. Private Label Family Individual Generic
Individual
Labels must comply with laws and regulations and must include which of the following? (Select all that apply.) Safety precautions How the product was transported Ingredients contained in the product Where the product is sold
Ingredients contained in the product Safety precautions
Branding includes which of the following? Logos Distinctive packaging Slogans Augmented services
Logos Distinctive packaging Slogans
Some analysts have attributed the success and quick diffusion of the Apple iPod in part to the white earbuds. At the time, earbuds were not seen as often, and most headphones were black, not white. As knowledge of the iPod spread, the white earbuds could be seen even if the iPod itself was out of sight. This is an example of which of the factors that affect speed of diffusion? Observability Trialability Compatibility Complexity Relative advantage
Observability
_________ test is when a company shows potential customers a product or service before they actually bring it to market.
Premarket
People prefer that the __________ package on their products is convenient in terms of storage, use, and consumption.
Primary
Which of the following are roles played by packaging? Promoting product features or changes Improving the design of the product itself Adjusting product sizes for different markets Differentiating a product from competitors
Promoting product features or changes Adjusting product sizes for different markets Differentiating a product from competitors
The ______ packaging is the exterior wrapper that contains the product as well as the UPC label used by retailers.
Secondary
Identify the three interrelated factors firms use to measure the success of a new product. (Select all that apply.) The extent of customer acceptance Satisfaction of firm's financial requirements The degree of consumer dissonance Satisfaction of technical requirements such as performance
The extent of customer acceptance Satisfaction of firm's financial requirements Satisfaction of technical requirements such as performance
Manufacturer brands such as Kraft and Nike are owned and managed by whom? A generic conglomerate The manufacturer The retailer The private label
The manufacturer
How do brands improve consumers' shopping experience? (Select all that apply.) They help shoppers distinguish between similar products. They indicate a certain level of quality. They make it easier to decide which products to buy. They signal that a product is interchangeable with competitors' offerings.
They help shoppers distinguish between similar products. They indicate a certain level of quality. They make it easier to decide which products to buy.
True or false: During test marketing, a firm will introduce all the elements of the marketing mix to determine demand for the entire market.
True
Using the diffusion of innovation theory, what can a firm can predict? Which consumers will buy a new product immediately and which will buy it later What kinds of products will be most successful in the market Which brands will be their main competitors in the marketplace When sales will level off and start to decline
Which consumers will buy a new product immediately and which will buy it later
A newly formed coffee company should not have much trouble finding coffee drinkers in America to purchase a new type of coffee maker. However, a company selling gear for the game of cricket might have a difficult time being successful in the United States. They would probably be more successful in India or Australia. The degree to which one's product is consistent with the needs and habits of target consumers is known as ______. compatibility relative advantage trialablity complexity
compatibility
For many Americans, the daily ritual of having a coffee is almost automatic and assumed. The same can be said for the Chinese but with tea. For a firm that is marketing a product, this example serves as a reminder to consider the ______ of your product and its intended target market. drinkability needs compatibility values
compatibility
Trialability and _________ refer to how complicated a product is and how easy or hard it is to try.
complexity
Since brands are easily recognized by consumers and signify a certain quality level to buyers, brands ______. help consumers to make quick decisions reduce prices increase the competition from other brands make it more difficult for consumers to make decisions
help consumers to make quick decisions
Some firms use ____ for each of their products, as opposed to the same name or brand for all their product lines and products. exclusive cobrands copycat brands individual brands generic brands
individual brands
If a company invests all its time and effort into a new product and the product fails, ______. the new product would have to be a Cash Cow the manager should be fired for taking risks it will be extremely difficult for the firm to recover the firm cannot recover
it will be extremely difficult for the firm to recover
Purchasing a coffee from a coffee shop, for example, is a ______ purchase decision than purchasing a cell phone from a large retail store. more complex less innovative less complex more innovative
less complex
_________ is the first physical form or service description of a new product, still in rough form, that has the same properties as the product.
prototype
Manufacturers tend to manage their own brands because it allows them to ______. expand their product lines retain control over their marketing strategies spend less on marketing efforts outsource the creation of their brand equity
retain control over their marketing strategies
A product's exterior wrapper or exterior carton that contains additional product information is known as the ______. secondary package tertiary package outer package primary package
secondary package
By the time the late majority enters the market, sales tend to ______. grow slowly increase dramatically stabilize or decline slightly disappear completely
stabilize or decline slightly
Brands have value as corporate assets and the "value of the brand" refers to ______. the relative market share of the brand the marketing budget dedicated to promoting the brand the earning potential of the brand over the next year the cost of creating the brand logo and other symbols
the earning potential of the brand over the next year