TEST 003

Scenario 12.3 (Glenwood Pet Hospital...)

$60

if safeway foods advertises 2-liter bottles of pepsi for 89 cents to generate store traffic that will purchase other items at regular prices, the grocer is using...

A price leader

when designing a package, which characteristic is least important?

An association with the company's brand mark

which of the following statements is true about breakeven analysis?

At the breakeven point, the firm's sales revenue equals the sum of its fixed and variable costs.

....Which of the following steps in the new-product development process should you overhaul in order to address the CEO's concerns?

Business analysis

if Coca-Cola sets its twelve-pack price to match the price charged by PepsiCo, Coca-Cola is using which of the following pricing methods?

Competition-based

when are marketers least likely to change a products design, style, or other attributes?

Decline

Brandon orders 16 dozen fishing lures...

F.O.B. destination

the annual consumer reports rating of your company's flagship product was just released. In general the ratings were good but not great. Based on consumer comments, it appears that many consumers have a negative view of the product's convenience and safety attributes. What should your company do?

Make functional modifications to the product.

which of the following bases for pricing is most commonly used by retailers?

Markup pricing

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

Razor blade

... Based on this information, which of the following explanations could explain why the competitors total sales revenue increased?

The demand for the company's products is inelastic, so total sales revenue increases when prices are raised

in product modification, three conditions must be met to improve a firms product mix: the product must be modifiable, customers must be able to perceive the a mod has been made, and...

The mod should make the product more consistent with the customers' desires

You are the general manager of the machining products division of a diversified manufacturing company in Des Monies, Iowa.

Transfer pricing

as Georgina enters Audio Jetz car electronics department, she is asked by the salesperson if she has seen the new plug-in cell phones with coffee warming app. She says she didn't know that this type of app for cars was available. She is now in what stage of the product adoption process for this item?

awareness

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...

brand licensing

If a woman was given total marketing responsibility over diet cherry coke, she would hold the position of________________ manager

brand manager

McDonalds golden arches are a classic example of a __________

brand mark

break-even analysis is a tool marketers are most likely to employ during the _____________ stage of the new-product development process.

business analysis

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

buyer's intended use of the product

Some grocery stores collect data on competitive prices

by using comparison shoppers

which of the following is not a business product?

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

A sony laptop that has an intel logo on its keyboard in an example of...

co-branding

Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Rolo, Twizzlers, and much more. These candies best illustarte Hershey's product mix...

depth

tia loves new electronic products, but she also wants to make sure she gets good value for her money. Tia most likely fits into which category?

early majority

Prudential insurance uses "the rock" symbol to communicate stability and security to customers. This is their attempt to help customers better understand its services by...

emphasizing tangible cues in promoting the service

sales usually start to decline during the _______ stage of the products life cycle.

end of maturity

Saresh owns the Change Now, a salon specializing in the unique hair needs of minority populations. Recently, he has been trying to improve the quality of service received by his customers. However, he has experienced difficulty in finding ways to standardize and control the quality of service. Saresh's problem illustrates which of the following unique features of service?

heterogeneity

Greenspace is an environmental organization with the mission to "ensure the ability of the earth to nurture life in all its diversity." It engages in much advocacy related to environmental issues including climate change, deforestation, overfishing, and more. Greenspace's main product is most likely a(n)...

idea

R. J. Reynolds markets several brands of cigarettes, including Vantage, Camel, Winston, and Salem. This is an example of which type of branding policy?

individual

the three levels of brand loyalty from strongest to weakest are...

insistence, preference, recognition

sales of Schwinn's apartment sized exercise machine have experienced a steady climb; however, the profits have been negative. The product is most likely in the ______________ stage of the product life cycle.

introduction

The test marketing stage ________________

is a sample launching of the entire marketing mix.

which of the following statements about labeling is false?

labels do not have to disclose nutritional information

_____________ is the development of a product that is closely related to one or more products in a firm's existing product line but is designed specifically to meet somewhat different customer needs.

line extension

shopping products have a _______ inventory turnover and need _______ distribution outlets than convenience goods.

lower, fewer

which of the following tactics would typically be employed when a product is in the growth stage of its life cycle?

lowering prices after developmental costs have been recovered

Firestone notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's

marginal revenue

which of the following can thwart tampering and shoplifting?

packaging

Dylan is interested in determining how customers consider his firm's dietary product compared with its competitors. He begins to take surveys, and gathers feedback and begins to compare and contrast. Dylan is engaging in...

perceptual mapping

Courtney prefers to buy Pantene shampoofor colored hair; however, if that is not in stock, she will buy L'Oreal or Garnier Fructis. Her level of brand loyalty is...

preference

The newest version of a product like Bose headphones is likely to use _________________, while the new version of Red Bull is likely to use _________________.

price skimming; penetration pricing

Lindsay's company plans to release a new version of its signature TV set. This TV will have more advanced features, including better sound quality and high definition. They plan to discontinue the older version once this newer version is launched. This is an example of a ___________

product modification

Odd-number pricing is...

psychological pricing strategy

Your company has a product that is struggling in its market. However, the product appears to have some strength left that can be exploited. which of the following product deletion actions would be most appropriate?

reduce the price and implement a run-out strategy

A new variety of Cheetos is initially introduced in Fort Worth Texas, and a various other cities, when it sees success in these cities they are released to those states then eventually to the whole country. Frito-Lay is using a ____________ for its new variety of Doritos

rollout approach

During the new product development process, two of the stages designed to reject possible product ideas that are likely to fail are ___________, which analyzes a product idea to see if it matches an organizations objectives and recourses, and ____________, which involves asking potential buyers about their attitudes and initial buying intentions regarding the product.

screening; concept testing

Larissa is a concert promoter who works for Kanye West. She works very hard to make sure most of Kanye's concerts are sold out because she understands the concept of perishability, which means...

that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again.

Tesla vehicles have the unique characteristics

to avoid competition

what is the primary distinction between a line extension and a product modification

with product mods, the original product is replaced in the product line while both the old and new products remain in the case of a line extension