mktg 350 exam 2

Prices of products are often higher in a foreign country than the home country due to transportation charges, taxes, tariffs, and exchange rate fluctuations. This change in price from home country to foreign country is referred to as ________. A. market price B. cost-based pricing C. price escalation D. cost-plus pricing

C. price escalation

When Sunshine Inc., a cosmetics manufacturer, introduced an additional line of perfumes, the response from its existing customers was good. According to Igor Ansoff's Product-Market Matrix, this is an example of the ________ strategy. (1 point) A. market diversification B. market penetration C. product development D. market development

C. product development

In the context of positioning errors, when consumers have only a vague idea about the company and its products, and do not perceive any real differentiation, it is called ________. A. fuzzy positioning B. uninformed positioning C. under positioning D. repositioning

C. under positioning

________ is the most common method for entering foreign markets. A. Licensing B. Direct foreign investment C. Franchising D. Exporting

D. Exporting

2. Which of the following criteria for market segmentation is least likely to enable successful segmentation? A. It should be measurable. B. It should be of sufficient size. C. It should be reachable in terms of communication. D. It should be undifferentiated.

D. It should be undifferentiated.

________ target markets are those segments that have reasonable potential but for one reason or another are not best suited for development immediately. A. Tertiary B. Perceptual C. Primary D. Secondary

D. Secondary

Courtney always prefers Coca-Cola products. She does not consider other beverages, even when they are cheaper than Coca-Cola. Which of the following benefits of brand equity for customers does this exemplify? A. brand awareness B. brand assets C. brand strategy D. brand loyalty

D. brand loyalty

Costco and Visa joined together to offer a Costco-Visa card that allows users to get rebates on their purchases at Costco while expanding the reach of Visa to Costco members. This is an example of ________. A. family branding B. stand-alone branding C. licensing D. cobranding

D. cobranding

Segmenting markets means that a company is ________. A. identifying the customers who have frequently purchased competitor's products or services B. identifying and calculating the churn rate in different markets C. selecting a corporate position to communicate to potential customers D. dividing the market into meaningful smaller markets based upon common characteristics

D. dividing the market into meaningful smaller markets based upon common characteristics

Offering other manufacturers the right to use the brand in exchange for a set fee or percentage of sales is known as ________. A. family branding B. benchmarking C. cobranding D. licensing

D. licensing

What are two main product objectives?

Growth and Profit

The first step in moving into global markets is to evaluate the market opportunities. A. True B. False

true

The perceived quality of a brand enables companies to extend the product range, can lead to a price premium opportunity, and is a differentiator in the market. A. True B. False

A. True

International Delight coffee creamers frequently adds new flavors to its product offerings. This would be an example of a ________ extension. A. line B. category C. basic D. service

A. line

Dell used its brand to expand into new areas including printers and consumer electronics such as LCD and plasma televisions. Dell engaged in a ________ extension. A. line B. category C. basic D. service

B. category

Different target markets will view the same product in completely different ways. A. True B. False

A. True

Target marketing is the process by which ________. A. a company evaluates market segments and decides which ones have the most potential for development B. a company collects cookies to track everyone who visits its website C. the market is divided into cohesive groups

A. a company evaluates market segments and decides which ones have the most potential for development

People around the world prefer Swiss watches over watches manufactured in other countries. In the context of product issues, which of the following best describes the customer's perception? A. country-of-origin effect B. manufacturing C. brand strategy D. fitting the product to the culture

A. country-of-origin effect

Time Express, a well-established North American delivery service, wants to expand service into Central and South America. According to Igor Ansoff's Product-Market Matrix, this is classified as the ________ strategy. (1 point) A. market development B. product differentiation C. market diversification D. market penetration

A. market development

Lever Brothers, a worldwide leader in consumer products, follows a brand strategy in its personal care division with nine brands (AXE, Dove, Lifebuoy, Lux, Ponds, Rexona, Sunsilk, Signal, and Vaseline) that operate independently of one another. This is an example of ________ branding. A. national B. store C. family D. stand-alone

A. national

Super-Mart decides to create its own brand of personal care products. It enters into an agreement with a large manufacturer of this type of product to supply Super-Mart with the products that will carry its newly formed brand's name. This is an example of ________ branding. A. national B. store C. family D. stand-alone

A. national

products that will carry its newly formed brand's name. This is an example of ________ branding. A. national B. store C. family D. stand-alone

A. national

Pierre Cardin partnered with several other product manufacturers and attached its name to a wide assortment of products including clothing, housewares, and even cosmetics. Eventually, its brand image became diluted and lost its influence as a luxury manufacturer. Which of the following disadvantages of cobranding does this example illustrate? A. overexposure B. lack of perceived quality C. accommodation D. loss of control

A. overexposure

1. ________ percent of the world's economic growth in the next 20 years is predicted to come from emerging markets, such as China and India. A. 90 B. 75 C. 10 D. 52

B. 75

. Small companies have to invest a lot of money to go global. A. True B. False

B. False

A good branding strategy can overcome a product that fails to deliver on the value proposition by infusing it with the brand image. A. True B. False

B. False

Brand-loyal customers are less forgiving of problems related to the brand, which hinders the company's ability to respond to a negative experience. A. True B. False

B. False

When the product is wrong, skilled marketing communication and pricing sophistication can correct the problems. A. True B. False

B. False

. The owners of NK Medical Equipment have been developing the brand equity of their MRI and CAT scan equipment. Now, on the mention of NK's machines, radiologists and hospital purchasing agents usually say that they have heard of NK's offerings and are interested in learning more about them. This response signals a familiarity and potential commitment to the brand. In this case, which dimension of brand equity has been achieved by NKMedical Equipment? A. brand loyalty B. brand awareness C. brand assets D. perceived quality

B. brand awareness

The brand name "Bailey's" is used for a variety of products including liqueur, coffee creamer, and candies. This is an example of a ________ strategy. A. licensing B. family branding C. national or store branding D. education

B. family branding

Age is a commonly used method of segmentation. Age alone, however, may be dangerous because ________. A. chronological age and psychological age are the same B. grouping older customers into one group is an approach that fails to consider the vast differences in other important variables C. older consumers exhibit very little differences from person to person on things such as income, mobility, and work status D. this approach ignores chronological age

B. grouping older customers into one group is an approach that fails to consider the vast differences in other important variables

Delxen Inc., a multinational company, uses the same prices for all its products globally. This type of pricing is called ________. A. going-rate price B. one world price C. local market condition price D. cost-based price

B. one world price

In the 1970s, Michelob beer changed its advertising messages frequently and saw sales plummet. Slogans like "Weekends were made for Michelob," "Put a little weekend into your weekday," and "Special times deserve a special beer" had consumers checking their calendars to find the right time to drink a Michelob. Michelob was suffering from the positioning error of ________. A. over positioning B. doubtful positioning C. confused positioning D. under positioning

C. confused positioning

Ford Motor Co. introduced its automobile called Nova in Mexico. It faced difficulty in selling the car because "Nova" in Spanish means "It doesn't go." This illustrates a problem with ________. A. country-of-origin effect B. quality C. fitting the product to the culture D. brand strategy

C. fitting the product to the culture

Since Maytag's appliances have earned a reputation as being reliable and durable, John decided to buy a new Maytag washing machine, and was willing to buy it despite the fact that it was more expensive than other brands. Which dimension of brand equity does this example illustrate? A. brand loyalty B. brand connections C. perceived qualityD. brand strategy

C. perceived quality

1. A(n) ________ is defined by the American Marketing Association as "a name, term, design, symbol, or any other feature that identifies one seller's goods or services as distinct from those of other sellers." A. product B. profile C. identity D. brand

D. brand

KFC is very protective of its "Seven Herbs and Spices" recipe, which, in the view of the company, gives it a significant competitive advantage over other restaurants, and will use any legal resource available to protect its patented formula. Which dimension of brand equity does this example illustrate? A. brand loyalty B. perceived quality C. brand awareness D. brand assets

D. brand assets

An understanding of marketing beyond home markets develops over time as a company gets more international business experience. This process is referred to as the ________. (1 point) A. international experience continuum B. global learning continuum C. global acceptance curve D. global experience learning curve

D. global experience learning curve

Bliss Massage Therapy Center maintains a database of over 700 clients and sends each one a special discount offer in the month of his or her birthday. Managers hope that as existing customers use the discount, they will see an overall growth in sales. According to Igor Ansoff's Product-Market Matrix, this is an example of the ________ strategy? A. market diversification B. product differentiation C. market development D. market penetration

D. market penetration

Many countries restrict marketing to children more severely than in the United States. A firm considering direct foreign investment would report this finding under the heading of ________. A. technology transfer B. legal issues C. transaction costs D. marketing communication barriers

D. marketing communication barriers

Coca-Cola changes the taste of its soft drinks to meet local market preferences. This is an example of ________. A. hybrid products B. product invention C. direct product extension D. product adaptation

D. product adaptation

What are the five stages of product life cycle? At which stage, sales are growing at an increasing rate?

Product development, introduction, growth, maturity, and decline. Sales are growing at an increasing rate in the growth stage.

What is the definition of product strategy? What are three components of product strategy?

Product strategy is the action plan for the product. The 3 components are where are we headed, how will we get there?, and what will we do?.