Test 2
Which of the following statements is true of cultural factors that influence consumer behavior?
Social classes show distinct product and brand preferences in areas such as clothing and travel
Which of the following statements is true regarding social classes in the United States
Social classes show distinct product preferences in clothing and automobiles
The customer-driven marketing strategy involves four steps: market segmentation, market targeting, positioning, and differentiation.
TRUE
Bailey's Burgers promotes the Bailey's Jumbo Burger as a fun snack for teens and young adults. In this instance, Bailey's Burgers is practicing ________ segmentation.
age and life-cycle
Neutron Inc. is conducting a business analysis to determine which of the many newly developed apps should be released. To estimate sales, the company must
consider the sales history of similar products
The buyer decision precess consists of five stages. Which of the following is NOT one of these stages?
conspicuous consumption
When it first opened stores across the United States, Bateman's, an office supply chain store, had the best product selection, the best service, and the lowest prices compared to other office supply chain stores. As a result, Bateman's captured a significant chunk of the market in the short run. Which of the following positioning strategies did Bateman's most likely use?
more for less
Ferrari sports cars claim superior quality, performance, and style. Ferrari provides "perfection" at a premium price to keep its brand image intact. Which type of value proposition does Ferrari most likely position its products with?
more for more
Which of the following is true about multivariable segmentation systems
multiple segmentation bases help identify smaller, better-defined target groups
Big Moose Toys=market pioneer. Needs to make the new launch strategy for Bubble consistent with the intended
product positioning
A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimals sales quota. Which of the following is LEAST likely to have been the cause of the failure?
product research was too extensive
Which of the following best characterizes the decline stage of product development?
sales and profits decline
Yummy Peanut Butter created a new coconut-flavored peanut butter that it tested in a small number of representative cities. The company plans to use the results to forecast national sales and profits. Which of the following did the firm use?
standard test markets
Generation Xers, share the childhood experiences of higher parental divorce rates, recession, and corporate downsizing. They tend to care about the environment and value experience over acquisition. Generation Xers make up a
subculture
At Fantastic Flavors, employees from marketing, design, production, and finance work in a cross functional groups to save time and money in the new product development process. Fantastic Flavors uses a
team-based new-product development approach
Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is
test marketing
Which of the following is true of test marketing?
test marketing costs can be high, and it takes time that may allow competitors to gain advantages
Which of the following is a disadvantage of using a differentiated marketing strategy?
the costs of doing business
Steelz Inc. has designed a process that manufactures an improved version of steel more efficiently. In considering the launch of this new steel in the market, the firm must first decide on
timing
Which of the following is the most likely reason that employees regularly attend trade shows and seminars?
to get new-product ideas
Which of the following describes the role of a product steward
to protect the company from liability by proactively ferreting out potential product problems
Which of the following statements is true of the idea generation stage in the new-product development process?
truly innovative companies develop extensive innovation networks that capture ideas and inspiration from every possible source
The iPod is in the
maturity stage of the production lifestlye
Relative advantage, compatibility, complexity, divisibility and communicability are all characteristics of
a products rate of adoption
Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of an
acquisition
In the context of behavioral segmentation, who among the following is a potential user?
Anita, who recently had a baby
These consumers are the most affluent US demographic segment and are expected to have an annual buying power approaching $775 billion by 2015
Asian American
Kia Motors offers a new car model with the same features as other cars in the same segment. However, Kia's model is priced higher than its two main competitors. Kia is following a more-for-less positioning strategy
FALSE
Mass marketing involves identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.
FALSE
Which of the following statements is true of social classes?
People within a social class tend to exhibit similar buying behavior
Why are customers often considered the most important sources of new-product ideas?
The company can analyze customer questions and complaints to find new products that better solve consumer problems
According to a customer, a Harley-Davidson motorcycle can make one feel like the toughest macho guy on the block. Harley-Davidson promotes its motorcycles with images of independence, freedom and power. Harley-Davidson has created a
brand personality
Marketing mix planning begins with ________.
building an offering that brings value to target customers
Which of the following involves costs that most likely occur during the commercialization stage of new-product development
building or renting a manufacturing facility
Many marketers use the self-concept premise that people's possessions contribute to and reflect their identities. According to this premise, consumers
buy products to support their self images
Which of the following is true about behavioral segmentation on the basis of the loyalty variable?
by looking at customers who are shifting away from its brand, a company can learn about its marketing weaknesses and take actions to correct them
Harvey's Bookstore is a popular online bookstore that has differentiated itself through smooth-functioning delivery networks. This is an example of ________.
channel differentiation
P&G introduced Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. General Foods was able to enter the
commercialization stage
Which of the following is true about the concentrated marketing strategy?
companies that rely on a few segments for all of their business will suffer if a segment turns sour
Under a team-based new-product development approach
company departments work closely together in cross-functional teams
Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies?
concentrated marketing
Orion Inc. markets luxury watches and chronographs. It targets the wealthy and global elite segment, regardless of the their geographic location. Orion most likely uses
cross-market segmentation
Due to dropping sales a company that manufactures soaps begins to sell them to restaurants and hotels to extend their products life. The soap manufacturer is in the
decline stage of PLC
Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?
demographic segmentation
Skyrim Corp. lacks the capital and capacity to launch its new helicopter for full national and international distribution. If the test market results look promising, what should be the management next step?
develop a planned market rollout over time
GamaPix makes point-and-shoot cameras and handycams for amateur photographers and hobbyists. It also has a separate line of cameras dedicated to professional photographers. Additionally, it designs separate offers for each segment. Which of the following marketing strategies does GamaPix most likely use in this instance?
differentiated marketing
Rex Steelworks makes steel sheets which the firm markets and sells to companies all over the world. Which of the following marketing strategies is most suitable for Rex Steelworks?
differentiated marketing
P&G has sold off a number of lesser or declining brands such as Oxydol detergent and Jif peanut butter. In these examples, management decided to
drop the prodcuts
All of the following are disadvantages of test marketing EXCEPT that test marketing
encourages dishonesty among participants
Flurrbies, a brand of unique winter accessories that quickly fell in and out of favorability with customers, is an example of
fad
The more formal "business attire" look of corporate dress of the 1980's and 90's gave way to the "business casual" look of the 2000s. This is an example of a
fashion
A segment is less attractive if
it already contains many strong and aggressive competitors
Which of the following is a disadvantage of a team-based approach to a new-product development?
it results in organizational confusion and tension
"Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities and neighborhoods" = example of
geographic segmentation
Pacific Fisheries divides its customers into different regional units, such as Asia, Australia, and the Americas. This is an example of
geographic segmentation
Kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. After the cereal begins to appear in these new markets, the company increases its promotion expenditure to check competition. This is the
growth stage
When Kraft focused on cost-cutting with its older, established brands, leaving them to wither without much investment or modification, Kraft decided to
harvest the older products
John's fascination for has grandmother's sherbet recipes inspired him to come up with a recipe for SherBetter, a gourmet sherbet for the American market. Which of the following stages of the new-product development process does this exemplify?
idea generation
Executives at an automobile manufacturing company conducted a brainstorming session for selected employees. This session resulted in a large number of ideas for developing new cars after extensive R&D. The executives then planned to filter out the best ideas during the
idea screening stage
JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product
image
Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite mark" logo provide strong company or brand recognition and are indicative of ________ differentiation.
image
Which of the following is a consequence of standardizing an international product?
image consistency
Which of the following is a common reason for new product failure?
incorrect estimation of the market size
A public relations firm tailors its advertising and promotional services according to the needs and preferences of specific customers. This exemplifies ________.
individual marketing
Which of the following statements best explains why idea screening may be the most important step of new-product development?
it saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable
Kinger Auto specializes in selling low-quality used vehicles that are priced a good deal lower than other used cars. Which of the following value propositions is evident here?
less for much less
Perry's Mart, a grocery store in New Orleans, Louisiana, offers less merchandise selection and fairly low levels of service. Despite the lackluster service and limited selection of merchandise, customers still flock to Perry's because it charges rock-bottom prices. Perry's Mart most likely uses the ________ positioning.
less for much less
The latest trend in the US involves rediscovering the benefits of home-cooked food and the use of organic ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to cook healthy and nutritious meals. This change in
lifestlye
Andrew Levitt runs a retail store in Norristown. Andrew's store stocks cold weather products as Norristown mostly has sub-zero temperatures. Which of the following is evident here?
local marketing
Which of the following is a drawback of local marketing?
local marketing increases manufacturing costs by reducing the economies of scale
If Herb interacted one-to-one with his customers to design his products and services according to individual needs, he would be practicing ________.
mass customization
When order requests come in, the designers of Titus Furniture often go to a client's location to note their requirements, budget, and expected date of delivery. In this way, Titus Furnitures is successful in tailor-making products for its customers. This is an example of ________.
mass customization
Over the past few years, Binney and Smith's Crayola crayons have been preferred by users in more than 80 countries around the world. Crayola crayons are in the
maturity stage of the PLC
Which of the following is true with regard to the same for less value proposition?
offering the same for less can be a powerful value proposition because everyone likes a good deal
P&G introduced Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. This illustrates
one of the problems associated with test marketing
Rachel loves fashion and is always seen wearing the trendiest fashion outfits. She actively shares her knowledge with a wide group of friends and colleagues about where to shop for the latest fashion at great deals. Most of her friends and colleagues follow her fashion tips. Rachel portrays the image of a
opinion leader
CellTones
patent laws
The Jay Group hires better employees than its competition by conducting effective searches and multi-tiered interviews. The company also provides high quality training to its employees, an aspect often neglected by competitors. The Jay Group is most likely to gain a strong competitive advantage through which type of differentiation?
people differentiation
The information sources that are the most effective at influencing a consumer's purchase decision are
personal
James has decides to buy a new vehicle. His brother John has recently purchased a new truck and recommends the same model to James. James finally decides to buy the same truck. Which of the following sources of information has most likely influenced Jame's purchase decision
personal sources
John has decided to buy a particular smartphone that his friend recommended. Which of the following sources of information has most likely influenced John's purchase decision?
personal sources
Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily office-goer, who takes pride in what he or she wears everyday, Apex makes sure you get noticed." This exemplifies a ________.
positioning statement
When Heinz introduced EZ Squirt packaging and new colors such as Blastin Green and Awesome Orange to revitalize consumer buying, the company was modifying the
product
Chronos Inc. designs and markets different brands of cycling watches. Each brand has a single unique feature: the Chronos Cosmos has a heart rate monitor, the Chronos Acumen is designed for older cyclists who prefer a large display, and the Chronos Aegis has a GPS function. Which of the following is evident here?
product differentiation
Which of the following statements characterizes the intro stage of the PLC?
profits are nonexistent
A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be a way to approach the problem proactively....
prototype
Different soft drinks target different personalities. This is an example of ________ segmentation.
psychographic
An American cola-manufacturing company primarily targets rebellious and adventurous people most likely uses
psychographic segmentation
Marketers who use__________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals
psychographic segmentation
A shoe manufacturing company uses ads featuring the members of a country music band with the hope that the bands fans will see them wearing the company's shoes and hence purchase the same brand of shoes. The show company believes that the band portrays the image of a
reference group
Which of the following exemplifies a service?
retail
While Jenkins Stationeries was selling branded stationery at premium prices, Pembroke Stationeries, a store across the street, was selling the same branded stationery at discount prices. Which of the following value propositions best describes Pembroke's product positioning?
same for less
Which of the following is the goal of the team based new product development approach when it uses cross functional teams that overlap the steps in the process?
save time and and increase effectiveness
Which of the following is true with regard to services?
services are a form of product that consists of activities, benefits, or satisfactions offered for sale
Jean Malone, a market researcher, recently found that most people in Bradburg County purchase automobiles with predominantly functional designs and prefer darker colors. Which of the following marketing strategies should Jean most likely recommend to an automobile dealer interested in opening a dealership in Bradburg County?
undifferentiated
________ marketing is more suited for uniform products, such as grapefruit or steel.
undifferentiated
Which of the following is most likely circumstance for a company to decide to do little or no test marketing?
when the costs of developing and introducing the product are low
A company getting ready to launch a new product must make several decisions. The company must first decide on
when to introduce the product
The major purpose of test marketing is to provide management with information needed to make a final decision about
whether to launch the new product
The innovation management system approach yields two favorable outcomes: it helps create an innovation oriented company culture, and it
yields a larger number o new product ideas