MKT EXAM 3 (CH9+12+14)
1. A service-based insurance company using a symbol that conveys security (e.g. The Rock of
Prudential) best exemplifies which promotional strategy for services?
a. Use personal information sources
b. Engage in post-purchase communication
c. Stress tangible clues
d. Add supplementary services
2. A product extension where the company uses the leverage of a well known brand name in one
product category to launch a new product in a different product category is best described as a:
A. Valuation extension
B. Line extension
C. Repositioning extension
D. Brand extension
3. A manufacturer promotes its products to consumers in hopes that retailers demand the product
from the manufacturer because consumers are demanding it from them. This best illustrates
which type of promotion strategy?
a. Pull strategy
b. Push strategy
c. The AID
d. A strategy
e. The exponential innovation strategy
4. A company chooses multiple retailers to sell their products, but not all retailers that carry this
type of product carries this brand. This is an example of :
a. Intensive distribution
b. Selective distribution
c. Franchising distribution
d. Exclusive distribution
5. Some universities have sprung up that are now offering only on–line- degrees. Assume that
these new on–line degree programs have created a new product category of college education.
Therefore, these on-line programs are best described as a(n):
a. Discontinuous innovation
b. Continuous innovation
c. Dynamically continuous innovation
d. Exponential innovation
6. _____________ is a distinguishing characteristic of services that cannot easily be sensed or
assessed even after purchase and experience, such as medical and consulting services.
a. Inseparability
b. Intangibility
c. Perishability
d. Variability
7. A product line is a group of products that are closely related because:
a. The products all function in a similar manner and provide similar benefits
b. The same company developed the original idea for each product
c. They are all sold under the same brand name
d. They are all the same size
8. Geographic location and customer profiles were examples of which type of factors that affect
