MRKT exam 4

A product item is best described as a

A specific version of a product

What is the primary difference between an agent and a broker?

An agent represents a company on a permanent basis while a broker is employed temporarily.

The jolly green giant used by the Green Giant Company facilities the development of

Brand associations

Which of the following is NOT a business product?

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

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

Home Depot

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

T

Warehouse clubs are able to offer a broad range of merchandise because their product lines are shallow and their sales volumes high. T/F

True

One disadvantage of test marketing a new product is that

competitors may copy the product.

Although they become part of a larger product, ____ can often be easily identified and distinguished on the larger product.

component parts

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

convenience store.

The use of the telephone and other non-personal media to introduce products to consumers, who then can purchase the products through the mail, telephone, or the internet is called

direct marketing

The three major types of nonstore retailing are

direct marketing, direct selling, and vending.

All of the following are types of direct marketing except

direct selling.

A wholesaler that carries a wide product mix but offers only limited depth within product lines is called a

general merchandise wholesaler.

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

idea

Merchant wholesalers who specialize in just a few functions and pass others along to other intermediaries or customers are called

limited-service wholesalers.

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

lines a company offers.

Location is important to a retailer because

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

The major characteristic of a private brand is that

manufacturers are not identified on the product.

Product deletion

may be opposed by management.

Manufacturers' agents offer products that are both

noncompeting and complementary.

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

price competition

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

product development.

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

quantity demanded goes down.

Convenience products are

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

Walmart, Macy's, are Nordstrom are examples of

retailers.

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

screening

During the maturity stage

some competitors are forced out.

Off-price retailers and category killers are both

specialty retailers

Safeway and SuperValu are all considered

supermarkets.

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

superstore

Drop shippers

take title to but not physical possession of the goods.

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.

television home shopping

Early in the commercialization phase, marketers must make decisions about

warranties, repairs, and replacement parts.

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

wholesaler; retailer

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

Neighborhood shopping center

Barter is the oldest form of exchange. T/F

True

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

True

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

True

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

True

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

True

The product development stage determines the technical feasibility of producing the new product. T/F

True

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

True

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

buyer's intended use of the product

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

total revenue will increase.

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

Business analysis

Charlotte and Grace own and operate a small restaurant. On a weekly basis, thev so 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 grocery store. Sam's is serving as a _______ wholesaler for these entrepreneurs.

Cash-and-Carry

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

Discount stores

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

Eternity perfume

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

F

Customers always interpret a higher price to mean higher quality. T/F

False

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

False

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

False

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

False

Disruptive innovations involve completely new technologies.​ T/F

False

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

False

Fixed costs vary with the number of units produced or sold. T/F

False

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

False

Obtaining a specialty product involves a considerable amount of comparison activity. T/F

False

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

False

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

False

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

False

Supermarkets specialize in selling shopping products. T/F

False

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

False

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

False

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

False

The coordination of selling efforts within a community shopping center is usually minimal. T/F

False

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

False

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

False

Wholesaling is the final part of the marketing process in which exchanges are entered into for personal, family, or household purposes. T/F

False

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

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

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

Insistence

The four major stages of a product life cycle include

Introduction, growth, maturity, and decline.

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

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

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

Product Development

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

Product design

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

Product development

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

Razor blade

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

Screening

A brand name is the part of the brand that is spoken. T/F

T

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

T

Price cuts are typical in a product's growth stage. T/F

T

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

T

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

T

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

T

Exterior atmospheric elements include the appearance of the storefront, display windows, store entrance, and amount of traffic congestion. T/F

True

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

True

For most products, the quantity demanded goes up as the price goes down. T/F

True

Functional modifications usually require that the product be redesigned. T/F

True

Retailing includes all transactions in which the buyer intends to consume the product through personal, family, or household use. T/F

True

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

True

One advantage of nonprice competition is that

a firm can build customer loyalty.

The three major ways to modify a product include

aesthetic, quality, and functional changes.

A product mix is best described as

all products offered by a firm.

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

an unsought good.

Break-even analysis is a tool that marketers are likely to employ during the ____ stage of the new-product development process

business analysis

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

elastic.

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

evaluation of competitors' efforts.

The test marketing stage

is a sample launching of the entire marketing mix.

The primary advantage of vending as a form of retailing is that

it eliminates the need for sales personnel.

The major drawback to using aesthetic modifications is

that the value of the modification is determined subjectively.

At the breakeven point,

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

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

F

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

F

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

F

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

F

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

FALSE- they are classified as innovative or modified

Of the following choices, which would be the easiest brand name to legally protect?

Tarzink Yogurt

Department stores are characterized by wide product mixes. T/F

True

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

True

Direct marketing is the selling of products outside the confines of a retail facility. T/F

True

Dollar General is an example of an extreme-value store. T/F

True

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

True

Exterior atmospheric elements include the appearance of the storefront, display windows, store entrance, amount of traffic congestion. T/F

True

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

F

A run-out approach to product deletion lets the product decline without changing the marketing strategy. T/F

False

At what point does a firm maximize profit? T/F

False

Buyers want to exert only minimal effort to obtain shopping products. T/F

False

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

False

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

False

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

False

At what point does a firm maximize profit?

The point at which marginal cost equals marginal revenue

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

The price