MKTG Test 3 (Ch. 11-15 & Trademarks)
Demand-based pricing most closely relates to the _____ of services. a) perishability b) intangibility c) heterogeneity d) customer contact aspect e) inseparability
a
In which stage of the product life cycle do profits begin to decrease? a) Introduction b) Growth c) Maturity d) Decline e) Recovery
b
Which of the following phases of new-product development is likely the least costly for the firm? a) Commercialization b) Concept testing c) Business analysis d) Product development e) Test marketing
b
All of the following are types of direct marketing except a) catalog marketing. b) direct-response marketing. c) direct selling. d) television home shopping. e) online retailing.
c
What type of shopping center usually consists of several small convenience and specialty stores? a) Specialty b) Regional c) Neighborhood d) Convenience e) Community
c
A narrow product mix with a deep product line would most likely be carried by a) mass merchandisers. b) supermarkets. c) discount stores. d) specialty retailers. e) warehouse showrooms.
d
Elements that help create brand equity include all of the following except brand a) quality. b) associations. c) loyalty. d) recognition. e) awareness.
d
Of the different types of brands, the one that has experienced the steadiest growth is a) manufacturer. b) producer. c) generic. d) private distributor. e) imitator.
d
There are five elements that affect customers' perceptions of service quality. They are reliability, appearance of the tangibles, responsiveness, assurance, and a) credibility. b) experience within industry. c) responsibility. d) employee empathy. e) product knowledge.
d
Which of the following is not a factor used to classify wholesalers? a) Whether the wholesaler is owned by the producer b) Whether the wholesaler takes title to the products it handles c) The range of services offered by the wholesaler d) The price range of the products carried by the wholesaler e) The breadth and depth of the product lines carried by the wholesaler
d
Merchant wholesalers can be divided into two basic categories: a) general merchandise and general-line. b) rack jobbers and cash-and-carry. c) commission and fee-based. d) goods and services. e) full-service and limited service.
e
Stacey and Evan are preparing budgets for a new product as well as finalizing plans for the full-scale marketing and manufacturing of the new Genie-Vac. They are in the ____ phase of the new-product development process. a) test marketing b) business analysis c) concept testing d) product development e) commercialization
e
The primary purpose of a(n) _____ is to bring buyers and sellers together. a) commission merchant b) selling agent c) manufacturers' agent d) intermediary e) broker
e
The ability of a product to provide the same level of quality over time is called a) consistency. b) longevity. c) variability. d) status. e) image.
a
By locating in the Sears' stores, Lands' End can do all of the following, except a) facilitate comparison shopping. b) facilitate wholesale exchanges. c) create place utility. d) create time utility. e) facilitate consumer exchanges.
b
Piano teachers, tutors, attorneys, and consultants are most likely to price their services based on a) functions performed. b) time. c) objectives accomplished. d) demand. e) combination pricing.
b
Which stage of the product life cycle begins when a business reaches the breakeven point with the product? a) Maturity b) Growth c) Introduction d) Market testing e) Decline
b
Business products that are purchased routinely, do not become part of finished goods, and are expense items rather than capital goods are called a) raw materials. b) installations. c) accessory equipment. d) component parts. e) process materials.
c
Through the years, drugstores have added more unrelated products to their product mix, such as lawn care supplies, food items, housewares, and small appliances. This illustrates which of the following retail strategy issues? a) Tumbled product assortment b) Product line combination c) Scrambled merchandising d) Wheel of retailing e) Direct marketing
c
A product item is best described as a a) component of a marketing mix. b) particular brand. c) specific characteristic of a product. d) specific version of a product. e) unit of measure for the product.
d
The primary function of most wholesalers is to a) support the needs of the manufacturers and provide them with market information. b) provide for the unique needs of the individual retailers buying their merchandise. c) provide information system tracking of inventory for the ultimate consumer. d) perform physical distribution of products from manufacturers to retailers. e) develop and share database information about customers.
d
Product failure is a concern of all marketers. Which of the following phases of new-product development is best able to measure this concern? a) Screening b) Concept testing c) Business analysis d) Product development e) Test marketing
e
When banks add new services during the maturity stage, the objective they are most likely trying to achieve is a) pruning items from the product line. b) generating cash flow. c) maintaining their market share. d) filling geographic gaps. e) increasing their share of the customer.
e
Which of the following factors have contributed the least to the growth of services in the U.S. economy? a) Increased interest in travel and entertainment b) Increased number of women in the workforce c) Increased proportion of older people in the United States d) Increased interest of Americans in fitness and recreation e) Increased number of high-tech goods
e
Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume? a) Department stores b) Traditional specialty retailers c) Warehouse showrooms d) Direct marketers e) Discount stores
e
A company wanting to maintain market share during the maturity stage requires moderate to large a) advertising expenditures. b) distribution expenditures. c) production expenditures. d) price increases. e) packaging modifications.
a
A firm with a product in the decline stage of the product life cycle may decide to gradually reduce marketing expenditures and realign its marketing mix to one that requires fewer resources. This approach is called a) harvesting. b) investing. c) realigning. d) divesting. e) mixing.
a
Attributes which are assessed only during the consumption of a service are called a) tangibles. b) search qualities. c) experience qualities. d) use benefits. e) credence qualities.
a
Early in the commercialization phase, marketers must make decisions about a) warranties, repairs, and replacement parts. b) product features and breakeven points. c) functionality, safety, and convenience. d) the proposed marketing mix variables. e) which ideas to further pursue.
a
Energizer batteries would be classified as which type of product? a) Convenience b) Shopping c) Specialty d) Unsought e) Industrial service
a
One company markets such diverse products as Rosarita Mexican foods, Max Factor cosmetics, and Samsonite luggage. These various offerings exhibit this firm's product mix a) width. b) depth. c) length. d) volume. e) dimension.
a
Planters is concerned that acquiring a taste for its new product, honey-roasted macadamia nuts, takes time. Planters should use ___________ packaging for its new product. a) family b) multiple c) tamper-resistant d) unlabeled e) transparent
a
The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is a) quality. b) consistency. c) durability. d) styling. e) design.
a
The type of retail location that is commonly being preserved and revitalized in many cities is the a) traditional business district. b) free-standing structure. c) community shopping center. d) neighborhood shopping center. e) nontraditional shopping center.
a
The use of the telephone and other nonpersonal media to introduce products to consumers, who then can purchase the products through the mail, telephone, or the Internet is called a) direct marketing. b) telemarketing. c) remote purchasing. d) direct-response marketing. e) direct selling.
a
When a business finds itself squeezed out of a market for a product or loses interest in that product, it is a sign of being in the ___________ stage of the product life cycle. a) maturity b) growth c) introduction d) market reduction e) decline
a
A ___________ brand usually requires a producer to become involved in distribution, promotion, and pricing decisions. a) dealer b) manufacturer c) private distributor d) store e) wholesaler
b
A channel member that markets all of a manufacturer's goods, has authority over price, promotion, and distribution, but does not take title to the product is a a) general-line wholesaler. b) selling agent. c) commission merchant. d) manufacturers' agent. e) broker.
b
A complex product development process, including an extensive business analysis to determine the possibility of success, are hallmarks of a a) genuinely new product. b) radically new product. c) new product failure. d) controlled new product. e) market share advance.
b
A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n) a) department store. b) specialty retailer. c) category killer. d) off-price retailer. e) warehouse showroom.
b
All of the following are examples of full-service wholesalers except a) general merchandise wholesalers. b) mail-order wholesalers. c) rack jobbers. d) general-line wholesalers. e) specialty-line wholesalers.
b
Which is the most typical distribution channel used in nonprofit organizations? a) Nonprofit organization, intermediary, client b) Nonprofit organization, client c) Nonprofit organization, middleman, client d) Nonprofit organization, government, client e) Government, nonprofit organization, client
b
Which of the following is a full-service merchant wholesaler? a) Cash-and-carry wholesaler b) General merchandise wholesaler c) Drop shipper d) Mail-order wholesaler e) Truck wholesaler
b
Which of the following is the best example of a functional modification? a) Campbell's puts more of a higher-grade chicken in its classic chicken noodle soup. b) A smoke alarm is modified to be more sensitive to smoke at farther distances. c) Motorola uses a battery that allows its cell phones to charge back up more quickly. d) The manufacturer of the primer and sealer, Kilz, introduces an odorless variety. e) Friskies changes the ingredients in its cat food to a taste that is preferred by most cats.
b
Which of the following services falls closest to the middle of the tangibility continuum? a) College education b) Dinner at the Olive Garden c) A new Ford Escape d) A custom built yacht e) A trip to Brazil
b
A genuinely new product—like the iPhone once was—offers a) lower prices than existing products. b) at least two new product features. c) innovative benefits to consumers. d) better value than existing products. e) at least two new product features at a lower price.
c
A manufacturer-owned operation that provides services usually associated with agents is a a) facilitating agency. b) wholesaler. c) sales office. d) sales branch. e) public warehouse.
c
A product that is simply labeled with the product category is considered a a) private brand. b) no-name product. c) generic brand. d) poor quality item. e) lean manufacturer brand.
c
A runout policy of product deletion a) lets the product decline without changing the product strategy. b) is an immediate-drop decision. c) exploits any strengths left in the product. d) raises the price of the product continually to secure as much profit as possible before the product is priced out of the market. e) occurs when production cannot keep pace with demand because of material shortages.
c
Facilities, factories, and production lines with very large equipment are all classified as a) accessory equipment. b) permanents. c) installations. d) component parts. e) MRO facilities.
c
In service marketing, the most important link to the customer is a) effective advertising. b) good word-of-mouth communication. c) well-trained contact employees. d) the tangible aspects of the service. e) exceptional service quality.
c
Sara Lee Corporation manufactures desserts, breads, pantyhose, meats, and a variety of other products. These products make up Sara Lee's product a) line. b) item. c) mix. d) width. e) depth.
c
What is the most popular type of product sold through television home shopping? a) Electronics b) Clothing c) Jewelry d) Kitchen appliances e) Cosmetics
c
All of the following are types of limited-service merchant wholesalers except a) cash-and-carry wholesalers. b) truck wholesalers. c) mail-order wholesalers. d) specialty-line wholesalers. e) drop shippers.
d
Selling agents perform every wholesaling activity except a) transporting goods. b) setting prices. c) financing the products. d) taking title to products. e) inventory control.
d
The intangible products that most organizations use in their operations are called a) component parts. b) MRO supplies. c) process ideas. d) business services. e) installations.
d
Which stage of the product life cycle is characterized by intense competition? a) Decline b) Plateau c) Introduction d) Maturity e) Stabilization
d
A general merchandise retailer offers a) a single product line that is stocked in depth. b) few product lines with deep assortments of these lines. c) few choices of a large variety of product lines. d) products through the Internet and catalogs only. e) a variety of product lines that are stocked in depth.
e
Molly has been using a Bic disposable razor for her shaving needs for the last ten years. She doesn't really see the need to spend more money on razors, but she sees that it is becoming more difficult to find the Bic, and so she is considering the Venus Embrace. Molly is definitely not a(n) _______ in the product adopter categories, and is more likely to be _____. a) innovator; an early adopter b) early adopter; an innovator c) early majority; an early adopter d) innovator; an early majority e) innovator; a late majority
e
Private distributor brands are owned by a) manufacturers only. b) manufacturers and retailers. c) wholesalers only. d) manufacturers and wholesalers. e) wholesalers or retailers.
e
The difference between an agent and a broker is that an agent a) seeks profit, whereas a broker does not. b) is an intermediary, whereas a broker is not. c) represents the seller and a broker represents the buyer. d) determines who the consumers are, whereas the broker does not determine the customers. e) usually represents people on a permanent basis, whereas a broker usually does so on a temporary basis.
e
The primary advantage of automatic vending as a form of retailing is that a) it offers a low-cost, personal method of selling products. b) it provides a continuous service to consumers. c) since vending machines must be serviced frequently, the products they sell are always fresh. d) vending machines require very few repairs. e) it eliminates the need for sales personnel.
e
Which of the following is an example of a category killer? a) Sears b) Kmart c) Marshalls d) Lady Foot Locker e) Toys "R" Us
e
Automatic vending is a) a type of nonstore retailing. b) a specialty line retailer. c) not considered a form of retailing. d) a type of direct selling. e) a form of franchising.
a
During the decline stage of the product life cycle, a) sales rapidly decrease. b) market share is maintained. c) competition is at a peak. d) profits begin to fall. e) profits peak and then begin to decline.
a
Manufacturers' agents offer products that are both a) noncompeting and complementary. b) competing and specialized. c) unrelated and noncompeting. d) complementary and competing. e) unrelated and competing.
a
A merchant wholesaler a) arranges for transfer of goods directly to business and retail customers. b) takes title to goods, assumes risk associated with ownership, and buys and resells products. c) takes title and possession of goods and sells only to retailers. d) does not take title or possession of goods but facilitates exchanges between any parties. e) deals exclusively with business products.
b
Wal-Mart has its own fleet of trucks and works directly with producers to take care of the ordering, delivery, and handling of goods. In addition, Wal-Mart works directly with suppliers through its advanced system of inventory control and data processing. Wal-Mart is a) able to eliminate many of the functions typically performed by wholesalers. b) performing many of the critical functions of wholesalers through its own system. c) successfully using wholesalers to run its venerable chain of discount stores. d) using information technology to eliminate the need to perform typical wholesale functions. e) vertically integrated in order to produce and distribute all products itself.
b
A sign in a doctor's office waiting room says "Please be courteous of the others waiting with you." The doctor's office is trying to positively influence the _______ aspect of services. a) tangibility b) perishability c) inseparability d) customer contact e) heterogeneity
c
Alison lives in a remote area of Montana, where few good roads exist. She runs a small retail store specializing in western attire. Due to her remote location, Alison is most likely to obtain the merchandise for her store from a) rack jobbers. b) general-line wholesalers. c) mail-order wholesalers. d) truck wholesalers. e) specialty-line wholesalers.
c
What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level? a) Product development b) Evaluation of competitor's efforts c) Screening d) Idea generation e) Business analysis
c
When Lands' End sells its products through a catalog or the Internet, it is most likely a(an) ________, selling through _____. a) off-price retailer; direct marketing b) mass merchandiser; retail outlets c) retailer; direct marketing d) specialty retailer; retail outlets e) category killer; direct marketing
c
Which of the following best describes wholesalers? a) Organizations that buy products from producers and sell them to retailers. b) Individuals or organizations that purchase products and then resell them to other businesses and consumers. c) Organizations or individuals who buy products for resale to government, reseller, producer, and institutional users. d) Organizations or entities that buy products from government, reseller, and producer users and sell them to customers in bulk. e) Companies that make products that have a general appeal and are resold to retailers for a profit.
c
In order to justify direct-response marketing, a product really needs to be priced above a) $50. b) $10. c) $5. d) $20. e) $100.
d
Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during a) commercialization. b) screening. c) concept testing. d) product development. e) test marketing.
d
The lush tropical plants, aquarium, and stuffed animals represent the _______ of the Rain Forest Cafe'. a) product lines b) retail positioning c) scrambled merchandising d) atmospherics e) interior location
d
Old Navy sells only Old Navy labeled clothing in its retail stores. The Old Navy brand is not sold in any other outlet. Old Navy is a _____ brand. a) generic b) reseller c) manufacturer d) distribution e) private distributor
e
When a customer is aware that a brand exists and considers it a possibility if his preferred brand is out, he exhibits brand a) loyalty. b) insistence. c) preference. d) acknowledgement. e) recognition.
e
___________ provide an effective method of selling small items to customers in remote areas that other wholesalers might find unprofitable to serve. a) Desk jobbers b) Specialty-line wholesalers c) Cash-and-carry wholesalers d) Truck wholesalers e) Mail-order wholesalers
e
A product mix is best described as a) all products offered by a firm. b) product, distribution, promotion, and price. c) many products sold by one firm. d) all products of a particular type. e) a group of closely related products that are considered a unit because of market, technical, or end-use considerations.
a
A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers is called a) category management. b) scrambled merchandising. c) line extensions. d) aggregate management. e) wheel of retailing.
a
According to the text, a product is defined as a) anything the customer receives in an exchange. b) the physical object the customer receives in an exchange. c) the service that is rendered to a customer. d) the idea that the customer receives in an exchange. e) goods and services the customer receives in an exchange.
a
Advo Systems is an organization that mails product brochures and coupons to potential consumers who can then purchase these products by mail or by phone. Advo Systems illustrates which of the following methods of selling retail products? a) Direct-response marketing b) Party plan c) Catalog marketing d) Specialty retailing e) Direct selling
a
An agent that receives goods on consignment from local sellers and negotiates sales in large, central markets is called a a) commission merchant. b) sales branch agent. c) selling agent. d) manufacturers' agent. e) broker-agent.
a
As Lisa eats her morning bowl of Golden Grahams cereal, she reads about the calories, fats, carbohydrates, and vitamins she is ingesting. This information is required by the a) Nutrition Labeling Act. b) Food and Drug Administration. c) Fair Packaging and Labeling Act. d) Nutritional Content Disclosure Act. e) Federal Trade Commission.
a
Children with muscular dystrophy who receive treatments developed through research programs funded by MDA represent ___________ for this charitable organization. a) target publics b) target population c) general publics d) focus groups e) client publics
a
Compared with other types of retailers, department stores compete mainly on the basis of a) customer services. b) low prices. c) a very deep assortment of a few specific products. d) high sales volume. e) catalog sales.
a
Concerns about cannibalization of current product sales must be addressed in the ___________ phase of the new-product development process. a) screening b) concept testing c) business analysis d) product development e) test marketing
a
Drop shippers a) take title to but not physical possession of the goods. b) do not take title to or physical possession of the goods. c) take title to and physical possession of the goods. d) do not take title to but take physical possession of the goods. e) are similar to truck wholesalers but provide the extra service of placing products on retailers' shelves.
a
During the growth stage of the product life cycle, marketers must a) fortify the product position. b) move to exclusive distribution. c) raise the price. d) increase promotion as a percentage of sales. e) introduce private brands.
a
If a retailer needed help with store design and training sales personnel, it would most likely use the services of a a) full-service wholesaler. b) full-price wholesaler. c) rack jobber. d) cash-and-carry wholesaler. e) technical wholesaler.
a
In product modification, three conditions must be met to improve a firm's product mix: the product must be modifiable, customers must be able to perceive that a modification has been made, and a) modification should make the product more consistent with customers' desires. b) competing companies should not be aware of planned product modifications. c) modification should change customers' desires to provide greater satisfaction. d) management must perceive the modification as a reasonable and necessary action. e) production costs and materials needed should be limited.
a
Lynn Taylor sells Revlon cosmetics on consignment to grocery stores, maintains the display racks, and restocks when necessary. Lynn's job is best described as a a) rack jobber. b) drop shipper. c) general merchandise wholesaler. d) cash-and-carry wholesaler. e) truck jobber.
a
Maria asks Glenda what housecleaning service she would recommend in Oakview. Glenda responds that Pristine Cleaning is great if you can be assured that Janice will be the person assigned to your house. Glenda's recommendation addresses which of the following service features? a) Heterogeneity b) Intangibility c) Perishability d) Inseparability e) Homogeneity
a
Merchant wholesalers who specialize in just a few functions and pass others along to other intermediaries or customers are called a) limited-service wholesalers. b) wholesale service specialists. c) general-line wholesalers. d) specialty-line wholesalers. e) specialty-service wholesalers.
a
Multiple packaging encourages a) the consumer to try the product several times. b) higher consumption of all products. c) infrequent purchases. d) easier handling and storing of all products. e) environmentally responsible behavior.
a
Off-price retailers and category killers are both a) specialty retailers. b) discount stores. c) showrooms. d) general merchandisers. e) department stores.
a
Quality modifications are changes that relate to a product's a) dependability and durability. b) effectiveness and versatility. c) price and availability. d) reliability and value. e) value and durability.
a
Questions such as "How often would you buy this product?" and "Which features are of little or no interest to you?" are often proposed during a) concept testing. b) product development. c) screening. d) idea generation. e) test marketing.
a
Select the true statement about wholesaling. a) Wholesaling activities must be performed during distribution of all goods, whether or not a wholesaling institution is involved. b) Warehouses are necessary in order for the wholesaling function to be completed. c) Only wholesaling establishments can perform wholesaling activities. d) Wholesaling is an inefficient process that should be eliminated from the marketing channel. e) The biggest problem with the wholesaling process is that inefficient wholesalers can thrive, at the expense of consumers.
a
Self-service, general merchandise stores such as Kmart are known as a) discount stores. b) warehouse showrooms. c) catalog showrooms. d) superstores. e) specialty retailers.
a
Sherri McRae wants to establish a fashion wholesaling firm. Because of the risks involved in the rapid obsolescence of high-fashion items, Sherri does not want to establish an organization in which she has title to the garments. Which of the following types of wholesale establishments has she ruled out? a) Merchant wholesaler b) Agent c) Broker d) Functional middleman e) Commission merchant
a
The three major types of nonstore retailing are a) direct marketing, direct selling, and automatic vending. b) direct selling, automatic vending, and catalog retailing. c) direct marketing, direct selling, and mail-order. d) automatic vending, direct selling, and telemarketing. e) telemarketing, door-to-door, and mail-order.
a
The three major ways to modify a product include a) aesthetic, quality, and functional changes. b) extensions, generations, and upgrades. c) color, size, and quantity modifications. d) styling, product features, and product design. e) quality, quantity, and design.
a
Three major ways in which marketers engage in product differentiation are a) product quality, product design and features, and product support services. b) product quality, product support services, and packaging. c) product support services, product design and features, and product positioning. d) product positioning, product quality, and product management. e) product positioning, product design and features, and product promotion.
a
Traditionally, the main advantage of a private brand over a manufacturer brand was the _____, but this advantage is gradually diminishing. a) better price b) higher quality c) more accessible distribution d) straightforward labeling e) friendlier customer service
a
What type of retailing began with Montgomery Ward in the late 1800s? a) Catalog marketing b) Department stores c) Direct selling d) Discount retailing e) Franchising
a
When Anheuser-Busch added Michelob Light to the line of Michelob beers, the firm was using ___________ branding. a) brand-extension b) individual c) exclusive d) selective e) existing
a
Which of the following stages of the product life cycle is likely to see dealers offered promotional assistance from the producer? a) Maturity b) Growth c) Introduction d) Market reduction e) Decline
a
Which of the following tactics would typically be employed when a product is in the growth stage of its life cycle? a) Lowering prices after developmental costs have been recovered b) Raising promotion expenditures as a percentage of total sales c) Moving from intensive to selective distribution d) Raising prices to encourage competitors to enter the market e) Reducing the number of product models in the product line
a
Which of the following wholesalers never take actual possession of the goods? a) Drop shippers b) Cash-and-carry wholesalers c) Truck jobbers d) Mail-order wholesalers e) Rack jobbers
a
Wholesalers frequently help retailers with developing a marketing strategy, especially as it relates to the _____ component of the marketing mix. a) distribution b) promotion c) product d) price e) channel
a
A new variety of Doritos is initially introduced in Ft. Worth, Texas; Columbia, South Carolina; Peoria, Illinois; and Spokane, Washington. After its initial success, Frito Lay markets the Doritos in those entire states, then the adjacent states, and finally the entire country. Frito-Lay is using a _____ for its new variety of Doritos. a) multi-stage introduction b) roll-out approach c) test-market expansion d) mass commercialization e) trickle-down approach
b
An ad that stresses "Get the real Proactiv Solution; accept no substitutes!" is best geared for which stage of the product life cycle? a) Introduction b) Growth c) Stabilization d) Expansion e) Decline
b
An example of an emerging type of power shopping center might contain a) JC Penney's, Sears, some specialty shops, McDonalds, and Dairy Queen. b) Michael's, Office Depot, T.J. Maxx, and Circuit City. c) Liz Claiborne, Van Heusen, Corning Ware, and Mikasa outlets. d) Safeway, CVS, and Subway. e) a Supercenter Wal-Mart.
b
An individual moves into the adoption stage of the adoption process at the point when he or she a) is self-motivated to get information about the product. b) begins using that specific product. c) seriously considers whether the product will satisfy his or her needs. d) experiences the product for the first time. e) becomes aware that the product exists.
b
Based on what he has heard regarding the profitability of such items, Paul Goldstein is considering adding a fresh shellfish case in his grocery store. Paul knows very little about this product or the concerns of shoppers who buy shellfish. He is looking for help in display set-up and merchandising ideas. He should contact which of the following types of wholesalers? a) General-line b) Specialty-line c) General merchandise d) Rack jobber e) Limited-service merchant
b
Because Gem Supply's sales have continued to decline, the jewelry manufacturer has found that the costs associated with maintaining its own five-person sales force are prohibitive. The firm's marketing director begins to look for a small company or individual willing to perform the sales function for Gem Supply in its least productive region, the Far West. The ideal entity would carry complementary but non-competing lines. Such a firm or individual would be classified as a a) rack jobber. b) manufacturers' agent. c) specialty-line wholesaler. d) selling agent. e) commission merchant.
b
Category killers compete primarily on the basis of a) enormous product selection and sales expertise. b) low prices and enormous product availability. c) convenient locations and customer services. d) rock-bottom prices and moderate selections. e) one-stop shopping and product availability.
b
Hair stylists find it challenging to market their service because the customer must be involved in production (i.e., the haircut). This illustrates which of the following unique features of services? a) Intangibility b) Inseparability c) Perishability d) Heterogeneity e) Homogeneity
b
Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Krackel, Hershey's Kisses, Reese's Peanut Butter Cups, Rolo, and Twizzlers. These candies best illustrate Hershey's product mix a) width. b) depth. c) length. d) volume. e) life cycle.
b
If Ralph Lauren, a designer of fine clothing, authorized Dan River Mills to market a line of sheets under the Ralph Lauren name - this arrangement is an example of a) brand extension. b) brand licensing. c) product continuation. d) private branding. e) individual branding.
b
If a nonsmoker dines in a restaurant without a no-smoking section, then the overall quality of service experienced by the nonsmoking customer probably declines. This is an example of which of the following service characteristics? a) Perishability b) Inseparability c) Heterogeneity d) Intangibility e) Homogeneity
b
If the manufacturer of Cool Whip were to introduce an orange-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of a) a brand extension. b) line extension. c) functional modification. d) quality modification. e) a new-to-the-world product.
b
In product modification, the first issue to consider is whether a) existing customers can perceive that a product modification has been made. b) the product is modifiable. c) quality is modified. d) modification will make the product more consistent with customers' desires. e) modification will provide greater satisfaction to the consumer.
b
Independent intermediaries that represent two or more sellers and usually offer customers complete product lines in a restricted territory are called a) commission merchants. b) manufacturers' agents. c) selling agents. d) truck wholesalers. e) brokers.
b
Intermediaries owned by manufacturers that sell products and provide support services to the manufacturers' sales forces are known as a) manufacturers' agents. b) sales branches. c) selling agents. d) sales offices. e) commission merchants.
b
Kyle Jackson, one of the staff members at the YMCA, suggested that the "Y" offer discounted memberships to senior citizens over the age of 65; however, they could only use the facility between the hours of 9:00 am and 4:00 pm. Kyle's plan is most likely addressing the issue with ______, and relates to the ______ characteristic of services. a) peak demand; intangibility b) off-peak demand; perishability c) off-peak demand; heterogeneity d) demand-based pricing; heterogeneity e) preferred demand; perishability
b
Laura goes to Walmart and buys some clothing, a DVD, and all the groceries she needs for her family. What type of retailer is this particular Wal-Mart? a) Supermarket b) Superstore c) Hypermarket d) Discount store e) Department store
b
Mark Bradley's company takes orders from its collection of retail customers and arranges the shipment of goods directly from manufacturers or other wholesalers to its customers' businesses. Mark is operating as a a) mail-order wholesaler. b) drop shipper. c) desk wholesaler. d) truck jobber. e) specialty-line wholesaler.
b
Martin owns and operates a wholesale hardware business that supplies small hardware parts to various manufacturers in the area. He takes title to the hardware and assumes all risks associated with ownership. Martin is a a) rack jobber. b) merchant wholesaler. c) wholesaler agent. d) drop shipper. e) sales branch.
b
Production and consumption of services must simultaneously occur due to the _____ characteristic of services. a) Intangibility b) Heterogeneity c) Customer contact d) Perishability e) Inseparability
b
Retailing is best characterized as a) large organizations that carry wide and deep product mixes. b) transactions in which the buyer intends to consume the product through personal, family, or household use. c) arrangements whereby a supplier grants a dealer the right to sell its products. d) transactions in which the purchaser intends to use the product for resale or for business operations. e) exchanges that take place only in a store or service establishment.
b
Select the true statement regarding nonprofit marketing. a) Nonprofit marketing strategy should be developed to offer unrestricted alternatives and distribution activities that help accomplish the organization's goals. b) Segmentation techniques used to identify target markets in for-profit businesses are also applicable to reaching nonprofit target markets. c) A nonprofit organization usually attempts to serve fewer market segments than a for-profit organization. d) Selection of the target market is the only major strategy development task in nonprofit marketing. e) The narrowest definition of price should be used in developing the marketing mix strategy.
b
Tasha is shopping for personal care items at her local Target. She walks by one aisle and sees a floor-standing display for the new Venus Embrace. She hadn't thought about buying a new razor, but the display has caught her attention. Which stage of the product adoption process is Tasha most likely in at the present time? a) awareness b) attention c) evaluation d) trial e) adoption
b
The Rain Forest Cafe' and T-Rex Cafe' are usually located in tourist-dense areas or large shopping malls in order to capture walk-by traffic. If the restaurants' primary focus was to obtain customers who are walking by, they would definitely not want which of the following locations? a) strip centers b) free-standing buildings c) regional shopping centers d) the Mall of America e) a traditional business district
b
The major drawback to using aesthetic modifications is a) the cost of the modifications. b) that the value of the modification is determined subjectively. c) the need for redesign of the product. d) a possible decrease in market share. e) that there is no differentiation for the product in the market.
b
Victor thinks that a Lexus coupe is a quality vehicle, yet compared to a Mercedes Benz, he feels the quality of a Lexus is not as high. This demonstrates that the dimension of _____ is relative or difficult to describe without a basis of comparison. a) consistency of quality b) level of quality c) differentiation d) product features e) product positioning
b
What is a potential disadvantage of direct selling? a) Commissions for salespeople are usually low. b) Some customers view direct selling negatively. c) Personal attention tends to be lacking. d) Product demonstrations are difficult in this type of selling. e) Consumers must go out of their way.
b
When Natalie and Chris analyze the results from the recently completed test market to determine if any changes in the marketing mix are needed, they are in the ___________ phase of the new-product development process. a) idea generation b) commercialization c) test marketing d) business analysis e) screening
b
When Sony realized its CD players were in the decline stage, it decided to immediately withdraw all of its marketing support from these declining products, an approach known as a) harvesting. b) divesting. c) investing. d) realigning. e) squashing.
b
Which of the following is not one of the basic types of franchising arrangements? a) A producer franchising a number of stores to sell a particular brand of product b) A wholesaler franchising a number of producers c) A producer franchising a number of wholesalers to sell to retailers d) The franchising of brand names, techniques, procedures, or services e) All of these are basic types of franchising.
b
Which of the following services would a wholesaler least likely provide to a manufacturer? a) Assume the risks of selling to poor credit customers b) Look for and coordinate supply sources c) Pay the costs of transporting goods d) Provide up-to-date information on market developments e) Serve as an extension of the manufacturer's sales force
b
A major advantage of using individual branding is that a) the promotion of one of the company's brands will also promote the company's other brands. b) this branding policy will prevent the overextension of a brand name to products that are completely unrelated to the original. c) a poor quality product will not contaminate all of the company's other products with negative images. d) a specific brand name for each product will help the company grow during times of economic recession. e) the quality of one of the company's products will help increase the perceived quality image of the company's other related products.
c
A retailer engaged in direct marketing would probably select television home shopping over online retailing to sell a new kitchen device because of a) lower costs of selling. b) easier financial transactions. c) superior ability to demonstrate the product. d) superior ability to offer the product at a lower price. e) decreased cycle time.
c
After building a prototype of his new device, Brad 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. a) product design b) screening c) product development d) concept testing e) test marketing
c
Angela Barton approaches David Hughes, owner of Hughes Auto Parts, to talk about the possibility of adding a new line of products to his store. Angela tells David that the product is a line of high-quality driving sunglasses. She offers to set up the display, service and restock it weekly, and maintain billing and inventory records. She tells David that all she needs is a couple of square feet of space. Angela is in the business of serving retailers as a a) general-line wholesaler. b) specialty-line wholesaler. c) rack jobber. d) full-service merchant wholesaler. e) cash-and-carry wholesaler.
c
Brad operates a wholesale company that specializes in providing a wide variety of services to its customers, which are all restaurants. He carries a wide assortment of restaurant equipment and cookware. Brad's business is a a) general merchandise wholesaler. b) rack jobber. c) general-line wholesaler. d) specialty-line wholesaler. e) limited-service wholesaler.
c
Chelsea has extensive contacts in the real estate business and brings together buyers and sellers. Although she assumes no risks, she can offer specialized knowledge about real estate. Chelsea is a a) commission merchant. b) selling agent. c) broker. d) specialty-line wholesaler. e) sales branch agent.
c
Customers rely on ______ for product availability, breaking larger quantities into smaller ones, technical advice and service, financial assistance, and suitable assortments. a) full-line retailers b) limited-service wholesalers c) full-service wholesalers d) commission merchants e) cash-and-carry wholesalers
c
Greg Prakash works with a group of farmers who provide him with a regular supply of a variety of fresh vegetables. He picks up their produce and has a regular route of grocers and restaurants who purchase quantities of the items he has on any given day. Greg's operation is which type of wholesaler? a) Drop shipper b) General-line c) Truck d) Cash-and-carry e) Specialty-line
c
Identifying an unserved or underserved market segment and serving it through a strategy that is distinguished in the mind of the consumer is called a) the marketing concept. b) the wheel of retailing. c) retail positioning. d) targeted retailing. e) scrambled merchandising.
c
If Jason Carter, product manager at SeaRay Boats, became aware that Bass Boats, Inc., was in the process of test marketing a new line of shallow-water fishing boats in the southeast region, he might want to engage in ___________ to reduce the validity of the other firm's results. a) testing interference b) leadership pricing c) jamming d) test marketing e) stress marketing
c
In comparison to Lands' End, Sears has a product mix that is most likely a) wider but not deeper. b) deeper but not wider. c) wider and deeper. d) narrower and deeper. e) narrower, but not deeper.
c
In franchising, which of the following is not a benefit that the franchiser gains? a) The franchiser can gain more rapid product distribution. b) The franchiser can acquire capital more quickly for expanding production. c) The franchiser gains more control over how the franchisees operate the establishments. d) The franchiser benefits from the fact that franchisees tend to be highly motivated to succeed, which in turn leads to higher sales and higher royalties. e) All of these are benefits for the franchiser.
c
Karen Shapiro has been a buyer for Ocean Mist, a large cranberry processor, for several years. Believing that she knows a great deal about cranberries, their growers, and processors, she decides to go into business for herself. Karen wants to assume no risks of spoilage or price fluctuations. She sees herself as simply bringing the growers and processors together. Her new company would be a a) sales agent. b) commission merchant. c) broker. d) sales branch. e) sales office.
c
Many cellular phone plans contain a certain number of anytime minutes and then either significantly more or even unlimited night and weekend minutes. This is an example of a) time-based pricing. b) off-peak demand. c) demand-based pricing. d) time dependence pricing. e) bundled costing.
c
Multiple packaging is a) likely to decrease serving size. b) the same as family packaging. c) likely to increase demand. d) the most effective type of packaging for decreasing demand. e) the most expensive type of packaging.
c
Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as a) market development. b) regional commercialization. c) roll-out. d) market extension. e) competitive jamming.
c
Private distributor brands are owned by retailers and do not identify the manufacturer of the product. Which of the following is an example of a private distributor brand? a) Green Giant corn b) IBM computers c) Sears Kenmore washers d) Little Debbie snack cakes e) Nike Air Jordan basketball shoes
c
The Fair Packaging and Labeling Act focuses on the voluntary adoption of packaging standards by firms within industries. It also provides enforcement power to the Federal Trade Commission and the Food and Drug Administration, and establishes a) specific package colors for selected product categories. b) package design approval procedures. c) mandatory labeling requirements. d) designated package sizes for certain product categories. e) packaging regulations from the Consumer Product Safety Commission.
c
Veronica Montez works for Bicardi at a location away from the manufacturing plants. She provides wholesale services to wholesale and retail customers, but her facility does not carry inventory. Veronica works at a a) sales branch. b) manufacturers' agency. c) sales office. d) retail outlet. e) commission brokerage.
c
What are a marketing manager's two options during the decline stage? a) Reintroduce the product to new markets or stop sales immediately b) Speed up the product's decline or increase advertising c) Attempt to postpone the decline or accept its inevitability d) Divesting the brand or reinvesting in the brand e) Accept the decline or phase the product out
c
What is the primary difference between an agent and a broker? a) An agent gets compensated based on commission while a broker generally charges fees for his services. b) A broker works only for a seller whereas an agent can represent a buyer or a seller. c) An agent represents a company on a permanent basis while a broker is employed temporarily. d) An agent has much more extensive knowledge about the products he deals with than a broker does. e) Brokers have long-term relationships with their customers while an agent's relationships are generally short-lived.
c
Which of the following issues is least important in using co-branding effectively? a) The brands involved should represent a complementary fit in a customer's mind. b) The brands that are teamed together should not lose their individual identities. c) The brands involved should be owned by different companies. d) Co-branding should be done in a way so that it is obvious which brand is the main brand or key brand. e) Co-branding should take advantage of the distribution capabilities of the brands involved.
c
"How much quality should we build into the product?" is a question that marketers ask during the ___________ phase of new-product development. a) commercialization b) concept testing c) business analysis d) product development e) test marketing
d
A difference between manufacturers' agents and selling agents is that a) selling agents have little control over the marketing mix of the manufacturers they represent. b) selling agents represent retailers. c) manufacturers' agents do not offer retailers aid in advertising or promotional material. d) selling agents do not have the territorial restrictions that manufacturers' agents do. e) selling agents represent wholesalers.
d
A suggested approach to deleting products, in which each product is evaluated periodically to determine its impact on the overall effectiveness of the firm's product mix, is called a(n) a) evaluation study. b) formal evaluation. c) product inspection. d) systematic review. e) reassessment examination.
d
A wholesaler that carries a wide product mix but offers only limited depth within product lines is called a a) specialty-line wholesaler. b) limited-service wholesaler. c) rack jobber. d) general merchandise wholesaler. e) general-line wholesaler.
d
Although it has a strong customer base, Sato Japanese Restaurant rarely attracts customers by methods other than word-of-mouth communication. The manager believes this can be explained by the restaurant's location in a rough area in the city and its run-down appearance. In other words, potential customers are most concerned about a) reliability. b) assurance. c) responsiveness. d) tangibles. e) empathy.
d
Brittany recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Brittany was trying to overcome the ______ aspect of services. a) heterogeneity b) perishability c) customer contact d) intangibility e) inseparability
d
Business products are a) purchased for personal consumption. b) chosen on the basis of preferences expressed by a business procurement department. c) purchased for both their functional aspects and their psychological rewards. d) classified according to their characteristics and intended uses. e) not purchased by nonbusiness organizations.
d
By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform all of the following physical distribution activities except a) inventory planning. b) transportation. c) materials handling. d) unit pricing. e) communication.
d
Calhoun Produce, a ___________, takes possession of truckloads of tomatoes, arranges for storage, and transports them to auctions to be sold. a) manufacturer's agent b) selling agent c) commission broker d) commission merchant e) selling broker
d
Casey is searching the website of Megabus.com for the schedule and fares of a trip between Buffalo, NY and New York City. Case is most likely in which of the following stages of the product adoption process? a) adoption b) trial c) evaluation d) interest e) awareness
d
During the maturity stage a) product modifications are unnecessary. b) there is less emphasis on changing a product's price. c) marketing strategies are rarely altered. d) some competitors are forced out. e) limited advertising expenditures are required to maintain market share.
d
Heinz promoting its vinegar as an effective cleaner for wall, glass, and kitchen and bathroom surfaces would most likely be a strategy for the _____ stage of the product life cycle. a) introduction b) decline c) growth d) maturity e) competitive
d
In the packaging for a new line of beef jerky, Hormel should avoid the use of which color? a) Red b) Yellow c) Orange d) Green e) Clear
d
Many cities are revitalizing their downtown areas by bringing in new retail establishments. They are building new civic structures, passing ordinances that encourage the restoration of historic buildings, and developing mixed-use structures that include retail, residential, and other uses. These areas are best described as a) neighborhood shopping centers. b) community shopping centers. c) traditional shopping centers. d) traditional business districts. e) free-standing structures.
d
Norah operates an upscale shop that does both pet grooming and human manicures and pedicures. She is reaching a market segment with people who place great value on their dogs and are concerned with their own appearance, yet pressed for time. No other businesses meet the needs of these consumers. Which strategic issue in retailing does Norah appear to have addressed? a) Store image b) Location c) The wheel of retailing d) Retail positioning e) Scrambled merchandising
d
Service marketers make promises to customers, suggesting that the customer place some degree of trust in the service provider. In this way, service marketers are trying to address the challenge of the service characteristic of a) perishability. b) heterogeneity. c) inseparability. d) intangibility. e) customer contact.
d
Thad Rather works for a company that markets all of Celetron's products. Thad's company acts as the marketing department for Celetron, performing all marketing functions without actually taking title to the goods. Thad's company is a a) commission merchant. b) manufacturers' agent. c) sales branch. d) selling agent. e) full-service wholesaler.
d
The development of a container and graphic design for a product is called a) licensing. b) labeling. c) preparing. d) packaging. e) distributing.
d
What product(s) is Megabus marketing? a) Megabus is a service and therefore is not marketing a product. b) The ride between cities is a service product and is the only one Megabus is marketing. c) The ride between the cities, which is the core product, plus the supplemental features of Wi-Fi, video screens, and other technology. d) The ride between cities, which is a convenience product. e) The ride between cities, which is a shopping product.
d
What type of wholesaler transports a limited line of products directly to customers for immediate inspection and selection? a) On-site wholesalers b) Cash-and-carry wholesalers c) Rack jobbers d) Truck jobbers e) Drop shippers
d
Which of the following best illustrates how a firm can use a symbol to make an intangible product more tangible? a) McDonald's arches b) Mercedes Benz emblem c) Nike swoosh d) Traveler's Insurance umbrella e) Arrows on Wrigley gum packages
d
Which of the following laws was enacted by Congress in 1988 to strengthen trademark protection? a) Brand Protection Act b) Lanham Act c) Trademark Infringement Act d) Trademark Law Revision Act e) U.S. Patent and Trademark Act
d
Which of the following products is an example of a manufacturer brand? a) Sears Kenmore washing machines b) JC Penney jeans c) Kmart tires d) Pioneer stereos e) Safeway tomato sauce
d
Which type of franchising is most popular in the soft-drink industry? a) The manufacturer authorizes a number of retail stores to sell a certain brand name item. b) Several manufacturers authorize one retail chain to sell a variety of brand name items. c) A franchiser supplies techniques, brand names, or other services besides complete products. d) A manufacturer licenses distributors to sell a given product to retailers. e) A distributor provides a brand name product and marketing assistance to one retailer.
d
A general-line wholesaler would be expected to carry a ___________ product mix. a) wide and deep b) wide and shallow c) narrow and shallow d) wide e) narrow and deep
e
A large retailer selling food and most routinely purchased consumer products is a a) hypermarket. b) supermarket. c) discount store. d) Warehouse club e) Superstore
e
A light bulb can be considered all of the following except a) a consumer product. b) a business product. c) either a consumer product or a business product. d) a business product if it is used to light an assembly line in a factory. e) a consumer product if it is used to light the office of the board of directors.
e
A shopping center that contains stores owned by manufacturers who make a special effort not to conflict with traditional retailers is a(n) a) strip mall. b) neighborhood shopping center. c) off-price mall. d) lifestyle shopping center. e) outlet shopping center.
e
Agents and brokers that facilitate and negotiate purchases but do not actually take title to products are also known as a) functional wholesalers. b) commission wholesalers. c) hands-off intermediaries. d) contract negotiators. e) functional middlemen.
e
An arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration is a) selling products on consignment. b) retailing. c) wholesaling. d) licensing. e) franchising.
e
Andrea owns and operates a small novelty store that sells home décor, gifts, jewelry, and gourmet snacks. Because her business is very small, many wholesalers will not deal with her, so she relies primarily on _____ for the survival of her business. a) drop shippers b) truck wholesalers c) rack jobbers d) specialty-line wholesalers e) cash-and-carry wholesalers
e
Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost. Because Bauman had been facing stiff competition in the medium-grade carpet industry, it started using the new material in all of its carpeting and reducing its prices. This is an example of a(n) a) aesthetic modification. b) line extension. c) material adjustment. d) functional modification. e) quality modification.
e
Because some products are not doing well, Jonathan Moore thinks that the company should set up a procedure to evaluate each product so that management will know when and how a product should be discontinued. He is suggesting a a) product-drop decision. b) discontinuance procedure. c) performance review. d) closing system. e) systematic review.
e
By using Johnson Wholesale Co. for its distribution needs, the Apex Production has a distinct competitive advantage because the services performed by Johnson allow Apex to a) provide quality merchandise to consumers. b) focus on increasing production capacity. c) focus on increasing working capital. d) reduce manufacturing costs to retailers. e) focus on producing products that meet consumers' needs.
e
Cigarette manufacturer Philip Morris uses the services of Universal Corporation, the world's largest buyer and processor of leaf tobacco, which provides financing for its customers. This means that Universal is a a) cash-and-carry wholesaler. b) general merchandise wholesaler. c) limited-service wholesaler. d) rack jobber. e) full-service wholesaler.
e
Compared to creating and developing a brand from scratch, a firm sometimes buys a brand from another company at a premium price because outright purchase is a) more challenging strategically. b) less time consuming. c) less risky. d) less expensive. e) less expensive and less risky.
e
Distribution for nonprofit organizations is a) unimportant because physical movement does not take place. b) not an important decision. c) coordinated by middlemen. d) inefficient rather than efficient. e) typically characterized by short channels.
e
Frito-Lay, which is widely known for producing chips and other snack products, tried to introduce Frito-Lay lemonade. The reason this new product failed is likely because of a) poor timing. b) the failure to match product offerings to customer needs. c) technical problems. d) overestimation of market size. e) ineffective branding.
e
Full-service, specialty-line wholesalers that own and maintain displays in discount stores and supermarkets are called a) specialty-line wholesalers. b) full-service stockers. c) in-store maintainers. d) assemblers. e) rack jobbers.
e
Functional modifications usually require that the product be a) less specific. b) limited to its functions. c) more appealing. d) more technical. e) redesigned.
e
Ideally, test marketing should follow which stage in the new-product development process? a) Commercialization b) Business analysis c) Screening d) Limited production e) Product development
e
Jack and Amy Douglas are purchasing their first home and have certain expectations for the mortgage company with which they are working. After a long series of "unexplainable" delays, Jack and Amy become very frustrated and decide to stay in their apartment at least another year. The mortgage company failed to provide service within Jack and Amy's a) specifications. b) desired responsiveness. c) perceptions of quality. d) service acceptance. e) zone of tolerance.
e
Josh tells the loan officer at First Bank and Trust that Clarksville really needs a store that offers high-quality fishing gear to enthusiasts and provides the service and advice that many people want. No other store in the area seems to provide this combination. Josh is trying to use ___________ to support his request for a loan to start such a retail operation. a) scrambled merchandising b) location analysis c) the wheel of retailing d) product mix width e) retail positioning
e
Laura Lucas and Marie Clark own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase the food items and cleaning supplies they need for their business. With the exception of the volume they purchase and the items' intended use, this grocery shopping trip is identical to a weekly trip by their families to a grocery store. Sam's is serving as a ___________ wholesaler for these entrepreneurs. a) general-line b) specialty-line c) full-service merchant d) truck e) cash-and-carry
e
Minerals, chemicals, timber, and agricultural products are considered a) process materials. b) accessory materials. c) MRO supplies. d) component parts. e) raw materials.
e
Products used directly in the production of a final product but are not easily identifiable are categorized as a) accessory products. b) component parts. c) MRO supplies. d) assembly components. e) process materials.
e
Safe Auto Insurance advertises "minimum coverage for minimum budgets" for its automobile insurance. Which of the following best describes Safe Auto's approach? a) Customers often use price as an indicator of quality, and Safe wants to be seen as a low-quality provider. b) This type of advertising makes insurance more tangible to the customer. c) Safe wants to reassure customers that they provide the highest level of service quality available. d) Because market conditions limit prices on auto insurance, Safe uses this approach to gain customers. e) For some services, customers look for the low-cost provider, which is what Safe claims to be
e
The difference between absolute and relative product failure is a) absolute product failure can be fixed by repositioning or improving the product, whereas relative product failure is permanent. b) relative product failure loses money on its investment, whereas absolute product failure returns a small profit. c) relative product failure is the result of poor timing, whereas absolute product failure is the result of the lack of the ability to provide benefits that satisfy customers' desires. d) absolute product failure is caused by design problems, whereas relative product failure is caused by poor promotion or distribution. e) absolute product failure results in a loss on the investment and is deleted from the product mix, whereas relative product failure results in a small profit, and improvements or repositioning can create success later.
e
The full and legal name of an organization is called the a) trademark. b) legal title. c) organizational name. d) brand name. e) trade name.
e
The marketing of products to ultimate consumers through face-to-face sales presentations either at home or the workplace is called a) direct marketing. b) direct-response marketing. c) telemarketing. d) personal selling. e) direct selling.
e
Victor knows that if he decides to buy a franchise, he will most likely have to supply a) management know-how and labor. b) buildings and daily operations. c) marketing assistance and management know-how. d) a percentage of total sales and expertise. e) labor and daily operations.
e
When a retailer advertises a product and makes it available for purchase through telephone or mail orders, the retailer is using a) direct selling. b) television home shopping. c) telemarketing. d) automatic vending. e) direct-response marketing.
e
When determining how a product is conceived, planned, produced, and even its physical appearance and its specific characteristics, one is really talking about the product's a) positioning. b) level and consistency of quality. c) ability to meet customer service needs. d) design, styling, and level of quality. e) design, styling, and features.
e
When products are presented to television viewers, who can purchase them by calling a toll-free number and paying with a credit card, ________ is being used. a) telemarketing b) television marketing c) direct-response marketing d) e-marketing e) television home shopping
e
Which of the following is not an advantage of franchising for the franchisee? a) The franchisee can capitalize on the business experience of others. b) When problems arise, the franchisee can obtain guidance and advice from the franchiser. c) Franchised outlets are usually more successful than independently owned businesses with respect to long-term survival. d) The franchisee can participate in national promotional campaigns sponsored by the franchiser. e) The franchisee gives up a certain amount of control when participating in a franchise agreement.
e
With respect to retailing, what is the "party plan"? a) A sales representative has a party at her home to demonstrate products to a group of friends and associates. b) A party is set up that demonstrates a product and provides free samples of the product to all in attendance. c) An individual is asked to tell two friends about a product, who are in turn each asked to tell two friends, etc. until a sufficient number of people are reached. d) A store has a special sale that resembles a party, and those who come are asked to buy the featured products. e) A consumer acts as a host and invites friends to view merchandise in a group setting, where a salesperson demonstrates the products.
e
The most recent act passed by Congress that addresses the protection of trademarks is the a) Lanham Act. b) Trademark Law Revision Act. c) Counterfeit Protection Act. d) U.S. Patent and Trademark Act. e) Fair Trademark and Brand Name Usage Act.
b
The willingness and readiness of employees to meet the needs of the customer while providing the service is an important dimension of service quality called a) reliability. b) responsiveness. c) empathy. d) tangibles. e) assurance.
b
Tojitos Mexican Restaurant purchased several large ovens for use in remodeling its kitchens. These ovens are an example of which type of business product? a) Raw materials b) Installations c) Accessory equipment d) Component parts e) Process materials
b
Retail facilities located in big, low-cost buildings with large on-premise inventories and minimal services are called a) catalog showrooms. b) category killers. c) warehouse showrooms. d) warehouse clubs. e) display outlets.
c
Sales and cost analyses occur most frequently in what stage of the new-product development process? a) Screening b) Product development c) Test marketing d) Commercialization e) Business analysis
c
The series of thick and thin lines that electronically identify many products is called a(n) a) stock keeping unit. b) brand name identifier. c) universal product code. d) price bar. e) inventory control symbol.
c
The unique dining experiences offered by the Rain Forest Cafe' and T-Rex Cafe' represent the strategic issue of ___________ addressed by the restaurants. a) retail location b) product mix c) retail positioning d) the wheel of retailing e) customer segmentation
c
The well-known brand AT&T (American Telephone and Telegraph) would most likely be classified as a) fanciful. b) generic. c) descriptive. d) suggestive. e) arbitrary
c
A change in package size is a strategy that can help boost sales in the ___________ stage of the product life cycle. a) maturity b) growth c) introduction d) market reduction e) decline
a
Which of the following types of products would be the most difficult to brand? a) Wheat b) Soap c) DVD players d) Automobiles e) Tax preparation services
a
Which type of retail outlet can have up to 200,000 square feet? a) Superstores b) Supermarkets c) Discount stores d) Department stores e) Category killers
a
___________ packaging means that the product is packaged in line with the packaging practices associated with a particular product category. a) Category-consistent b) Category-specific c) Innovative d) Multiple-category e) Selective
a
Competitive interference with a test-marketing program is called a) tactical interference. b) jamming. c) test interference. d) squeezing. e) ramming.
b
________ have been successful because consumers are willing to drive significant distances to save money buying manufacturers' closeouts and irregulars. a) Off-price shopping centers b) Outlet shopping centers c) Regional shopping centers d) Power shopping centers e) Lifestyle shopping centers
b
A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is best described as a a) discount store. b) department store. c) convenience store. d) supermarket. e) category killer.
c
A customer who really wants to buy a certain brand but will settle for others if her first choice is unavailable displays brand a) recognition. b) acceptance. c) preference. d) insistence. e) acknowledgement.
c
Walmart and Target are both examples of a) department stores. b) category killers. c) discount stores. d) supermarkets. e) warehouse clubs.
c
All packaging must at a minimum a) protect and preserve the contents in the package. b) clearly communicate the contents and the product's benefits. c) be tamper-proof and safe for children. d) comply with the FDA's packaging regulations. e) be made out of the most cost-effective materials available.
d
An open-air shopping center that features upscale specialty, dining, and entertainment stores, usually owned by national chains, is generally called a(n) a) regional shopping center. b) neighborhood shopping center. c) community shopping center. d) lifestyle shopping center. e) outlet shopping center.
d
The management at Kohler Inc., a manufacturer of sinks, tubs, and other plumbing products, thinks that there will soon be a major growth in home remodeling due to rising interest rates. The management decides to use ___________ in several key cities to provide support services for its sales force in those areas, carry inventory, and offer credit and other services to its retail plumbing customers. a) sales agents b) commission merchants c) broker offices d) sales branches e) facilitating agencies
d
The move to sell Land's End products inside of Sears' stores may lead to potential problems with the customer's perception of Lands' End quality, in part due to the functional and psychological picture in the consumer's mind of Sears' stores. This picture is called the ________ of Sears. a) store location b) atmospherics c) product depth d) store image e) interior persona
d
The phase of the new-product development process when the organization determines the technological feasibility of producing the product at a cost that results in a reasonable selling price is a) test marketing. b) commercialization. c) concept testing. d) product development. e) business analysis.
d
The target market of a regional shopping center typically includes at least _____ people. a) 25,000 b) 50,000 c) 100,000 d) 150,000 e) 250,000
d
