Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
Chapter 16: Developing and Promoting Goods and Services
1. Which of the following is true with regard to the concept of the value package?
a. The physical characteristics of the product are the primary focus for the consumer.
b. The price of the product is the primary focus of the consumer.
c. The value package includes both tangible and intangible attributes of the product.
d. The value package cannot be high if the price of the product is high.
e. The value package concept applies to physical products, but not intangible services.
Difficulty: 2 Page-Reference: 498
Question ID: 16-1-01 Skill: Comprehension
Objective: 16.1
2. Advertisements for the Swatch Chrono watch remind consumers that they don’t get just “real”
features like shock and water resistance when they buy the product. This is an example of
a. the value package.
b. emotional advertising.
c. institutional advertising.
d. product differentiation.
e. focusing on the visible features of a product.
Difficulty: 2 Page-Reference: 498
Question ID: 16-1-02 Skill: Comprehension
Objective: 16.1
3. Relatively inexpensive consumer products that are generally consumed rapidly are known as
a. luxury goods.
b. industrial goods.
c. specialty goods.
d. convenience goods.
e. shopping goods.
Difficulty: 2 Page-Reference: 499
Question ID: 16-1-03 Skill: Knowledge
Objective: 16.1
4. Mr. Tyler is coming home from a business trip. It is late at night, his cab is waiting, and he suddenly
remembers that he forgot to buy his wife a gift. The only shop in the airport that is open sells souvenir T–
shirts. Mr. Tyler quickly buys a shirt for $14.95. For him, the shirt was a(n) ________ good.
a. convenience
b. industrial
c. shopping
d. accessory
e. specialty
Difficulty: 2 Page-Reference: 499
Question ID: 16-1-04 Skill: Comprehension
Objective: 16.1
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
5. For which of the following goods would a consumer purchase frequently and thus spend little time
looking for them or comparing their prices?
a. Shopping goods
b. Capital items
c. Convenience goods
d. Specialty goods
e. Comparison goods
Difficulty: 1 Page-Reference: 499
Question ID: 16-1-05 Skill: Knowledge
Objective: 16.1
6. Milk, newspapers, bread, and batteries are examples of ________ goods.
a. specialty
b. shopping
c. convenience
d. coincidental
e. impulse
Difficulty: 1 Page-Reference: 499
Question ID: 16-1-06 Skill: Comprehension
Objective: 16.1
7. Melissa was visiting San Francisco. When she arrived at Fisherman’s Wharf, she decided to
purchase a souvenir T-shirt for her boyfriend back home. Since there are about 40 T-shirt retailers in that
area, Melissa spent the rest of the day searching for the shirt that would convey just the right meaning to
her boyfriend. For Melissa, the shirt was a(n) ________ good.
a. specialty
b. convenience
c. shopping
d. accessory
e. industrial
Difficulty: 2 Page-Reference: 499
Question ID: 16-1-07 Skill: Comprehension
Objective: 16.1
8. Which of the following does not apply to shopping goods?
a. Customers compare brands
b. Evaluated on performance
c. Frequently purchased
d. Evaluated on style
e. Customers compare different stores
Difficulty: 2 Page-Reference: 499
Question ID: 16-1-08 Skill: Comprehension
Objective: 16.1
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
9. Bread is an example of a(n)_____________, while the catering for a wedding reception is an
example of a(n) _____________.
a. shopping good; shopping service
b. convenience good; specialty good
c. specialty good; specialty service
d. convenience good; specialty service
e. shopping good; shopping good
Difficulty: 2 Page-Reference: 499
Question ID: 16-1-09 Skill: Comprehension
Objective: 16.1
10. Stereos, tires, business suits, and furniture are examples of ________ goods.
a. convenience
b. impulse
c. coincidental
d. shopping
e. specialty
Difficulty: 1 Page-Reference: 499
Question ID: 16-1-10 Skill: Comprehension
Objective: 16.1
11. Goods that are very important, expensive, and rarely purchased are ________ goods.
a. shopping
b. impulse
c. convenience
d. coincidental
e. specialty
Difficulty: 1 Page-Reference: 499
Question ID: 16-1-11 Skill: Knowledge
Objective: 16.1
12. Which of the following does not apply to specialty goods?
a. Customers will accept substitutes.
b. Customers will often go from store to store looking for what they want.
c. They are very expensive.
d. Customers are willing to spend a lot of time to find them.
e. Customers know exactly what they want.
Difficulty: 2 Page-Reference: 499
Question ID: 16-1-12 Skill: Comprehension
Objective: 16.1
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
13. Wedding gowns, Rolex watches, Godiva chocolates, and Rolls Royces are examples of
________ goods.
a. coincidental
b. shopping
c. convenience
d. impulse
e. specialty
Difficulty: 2 Page-Reference: 499
Question ID: 16-1-13 Skill: Comprehension
Objective: 16.1
14. Pencils, brooms, and gloves are examples of ________, while factories, water towers, and
airplanes are examples of __________.
a. capital items; expense items
b. supplies; installations
c. services; capital items
d. expense items; capital items
e. capital items; supplies
Difficulty: 2 Page-Reference: 499
Question ID: 16-1-14 Skill: Comprehension
Objective: 16.1
15. Items that are expensive, durable, and infrequently purchased by firms producing other goods or
services are called ________.
a. capital items
b. impulse items
c. expense items
d. current expense goods
e. fixed expense goods
Difficulty: 1 Page-Reference: 499
Question ID: 16-1-15 Skill: Knowledge
Objective: 16.1
16. Light bulbs, pencils, pads of paper, and lubricating oils for machines are examples of ________
purchased by companies that make other goods.
a. capital items
b. expense items
c. depreciation goods
d. impulse items
e. none of these
Difficulty: 2 Page-Reference: 499
Question ID: 16-1-16 Skill: Comprehension
Objective: 16.1
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
17. Industrial products are normally divided into two general categories. What are they?
a. Emotional and rational
b. Those costing more than $10 000 and those costing less than $10 000
c. Industrial and consumer
d. Expense items and capital items
e. Domestic and international
Difficulty: 2 Page-Reference: 499
Question ID: 16-1-17 Skill: Knowledge
Objective: 16.1
18. Buildings, manufacturing equipment, computers, and desks are examples of ________ purchased
by companies that make other goods.
a. impulse items
b. capital items
c. current expenses
d. fixed expenses
e. expense items
Difficulty: 1 Page-Reference: 499
Question ID: 16-1-18 Skill: Comprehension
Objective: 16.1
19. Which of the following is correct about the product mix and product line concepts?
a. A product line is broader than a product mix.
b. The product mix refers to the group of products a company has available for sale.
c. The product line concept applies to physical products, while the product mix concept applies only to
services.
d. A product line focuses on convenience goods, while a product mix focuses on shopping goods.
e. A product line is almost always more expensive than a product mix.
Difficulty: 1 Page-Reference: 500
Question ID: 16-1-19 Skill: Comprehension
Objective: 16.1
20. Black & Decker makes toasters, vacuum cleaners, electric drills, and a variety of appliances and
tools. This is Black & Decker’s
a. product blend.
b. product offering.
c. product mix.
d. product line.
e. multiple product lines.
Difficulty: 1 Page-Reference: 500
Question ID: 16-1-20 Skill: Comprehension
Objective: 16.1
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
21. Ford offers four different models of the Escort that run the gamut from the three-door sport model
to the five-door sedan. This represents
a. a product offering.
b. multiple product lines.
c. a product line.
d. a product blend.
e. a product mix.
Difficulty: 1 Page-Reference: 500
Question ID: 16-1-21 Skill: Comprehension
Objective: 16.1
22. Why are business firms interested in the development of new products?
a. The federal government encourages every product manufacturer to spend 1% of revenue on new
product development.
b. New products are necessary to stay in business.
c. New products keep the warranty and service departments busy.
d. New products provide the fun that marketing managers need.
e. Product development provides an opportunity for large tax write-offs.
Difficulty: 1 Page-Reference: 500
Question ID: 16-1-22 Skill: Comprehension
Objective: 16.2
23. Speed to market is very important to a firm’s success. One study has estimated that a product
that is six months late will sacrifice ________ percent of its lifetime profit potential.
a. 18
b. 28
c. 12
d. 33
e. 23
Difficulty: 3 Page-Reference: 502
Question ID: 16-1-23 Skill: Knowledge
Objective: 16.2
24. Suppose that you are asked to come up with a new product. What would your first step be?
a. Idea screening
b. Idea generation
c. Commercialization
d. Business analysis
e. Test marketing
Difficulty: 2 Page-Reference: 502
Question ID: 16-1-24 Skill: Application
Objective: 16.2
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
25. You work for a firm that manufactures and sells pet accessories. As part of your job, you
frequently visit city parks and observe how people interact with their pets. You also talk to the staff
members of veterinary clinics to discover how people relate to their pets. This activity is part of the
________ phase of new product development.
a. idea generation
b. business analysis
c. prototype development
d. screening
e. product testing
Difficulty: 1 Page-Reference: 502-503
Question ID: 16-1-25 Skill: Comprehension
Objective: 16.2
26. In which stage of new product development does market research have a major role?
a. Prototype development
b. Commercialization
c. Business analysis
d. Product testing
e. Concept testing
Difficulty: 2 Page-Reference: 502
Question ID: 16-1-26 Skill: Knowledge
Objective: 16.2
27. Penny has been hired by a manufacturing company to come up with a new remote control.
Penny’s first step would be
a. prototype development.
b. test marketing.
c. screening.
d. business analysis.
e. new product ideas.
Difficulty: 2 Page-Reference: 502
Question ID: 16-1-27 Skill: Application
Objective: 16.2
28. It takes _______ new product ideas to generate just one new product that reaches the market,
and then only _____ out of 10 new products on the market succeeds.
a. 100; 1
b. 200; 3
c. 50; 1
d. 30; 4
e. 20; 6
Difficulty: 2 Page-Reference: 501
Question ID: 16-1-28 Skill: Knowledge
Objective: 16.2
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
29. Baker Company is determining consumer response to a new product under real conditions. Which
phase of the product development process is the company in?
a. Business analysis
b. Concept testing
c. Commercialization
d. Screening
e. Product testing and test marketing
Difficulty: 2 Page-Reference: 503
Question ID: 16-1-29 Skill: Comprehension
Objective: 16.2
30. The marketing staff at Batson Corp. have developed a long list of possible new product ideas. In
terms of the new product development process, what should they do next?
a. Business analysis
b. Screening
c. Product testing
d. Concept testing
e. Prototype development
Difficulty: 2 Page-Reference: 502
Question ID: 16-1-30 Skill: Application
Objective: 16.2
31. Mirror Corp. has just completed the “screening” phase of the new product development process.
What should they do next?
a. Use input from the concept-testing phase to produce a preliminary version of the product.
b. Conduct market research to solicit consumers‘ input about the benefits the proposed product must
provide for consumers.
c. Eliminate all product ideas that do not mesh with the firm’s abilities, expertise, or objectives.
d. Begin limited production of the product.
Difficulty: 2 Page-Reference: 502
Question ID: 16-1-31 Skill: Application
Objective: 16.2
32. Lexington Corp. has been involved in a new product development process for several months.
They have completed several preliminary tasks, the most recent of which was estimating costs and
benefits for a proposed new product that looks promising. What should they do next?
a. Business analysis
b. Test marketing
c. Product testing
d. Concept testing
e. Prototype development
Difficulty: 2 Page-Reference: 503
Question ID: 16-1-32 Skill: Application
Objective: 16.2
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
33. How does the product life cycle mesh with the product development process?
a. Product commercialization is the start of the introduction stage of the life cycle.
b. Commercialization indicates that the product has become a “star.”
c. Prototype development is the start of the introduction stage of a life cycle.
d. Product testing and test marketing take place during the growth stage of the life cycle.
e. The two do not mesh in any way.
Difficulty: 2 Page-Reference: 503
Question ID: 16-1-33 Skill: Comprehension
Objective: 16.2
34. The ________ is a series of stages through which a product passes during its profit-producing
life.
a. new product development model
b. price cycle
c. profit life cycle
d. market segmentation model
e. product life cycle
Difficulty: 1 Page-Reference: 503
Question ID: 16-1-34 Skill: Knowledge
Objective: 16.2
35. Marketers at Wallson Corp. are trying to make potential consumers aware of the company’s new
product and its benefits. Profits are non-existent at this time. This is the ________ stage of the product
life cycle.
a. decline
b. growth
c. maturity
d. development
e. introduction
Difficulty: 2 Page-Reference: 503
Question ID: 16-1-35 Skill: Comprehension
Objective: 16.2
36. Hydrogen fuel cells and solar-powered cars are in the ________ stage of their product life cycles.
a. growth
b. decline
c. introduction
d. maturity
e. development
Difficulty: 1 Page-Reference: 503
Question ID: 16-1-36 Skill: Comprehension
Objective: 16.2
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
37. The new product that Bellson Corp. introduced last year is now experiencing rapidly increasing
sales, and the product has begun to show a profit. But Bellson notices that two competitors have recently
introduced a similar product. This is what happens in the ________ stage of a product’s life cycle.
a. growth
b. maturity
c. decline
d. development
e. introduction
Difficulty: 2 Page-Reference: 503
Question ID: 16-1-37 Skill: Comprehension
Objective: 16.2
38. During this stage of a product’s life cycle, sales and profits fall. New products in the introduction
stage take away sales, and companies typically reduce promotional support. This is the ________ stage.
a. development
b. decline
c. introduction
d. maturity
e. growth
Difficulty: 2 Page-Reference: 504
Question ID: 16-1-38 Skill: Knowledge
Objective: 16.2
39. Automobiles and colour TVs are in the ________ stage of their product life cycle.
a. introduction
b. growth
c. decline
d. maturity
e. development
Difficulty: 1 Page-Reference: 503-504
Question ID: 16-1-39 Skill: Comprehension
Objective: 16.2
40. What is the fundamental idea underlying the product life cycle?
a. Only one in 50 new product ideas becomes commercially viable.
b. Profitability is highest in the growth stage.
c. Competition becomes very strong in the maturity stage.
d. Risk is very high during the introduction stage.
e. Products have a limited profit-producing life.
Difficulty: 2 Page-Reference: 503
Question ID: 16-1-40 Skill: Knowledge
Objective: 16.2
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
41. Marketing tends to focus on reminder advertising in the ______ stage of the product life cycle.
a. introduction
b. growth
c. maturity
d. decline
e. re–introduction
Difficulty: 2 Page-Reference: 504
Question ID: 16-1-41 Skill: Comprehension
Objective: 16.2
42. Coca-Cola, Pepsi-Cola, Kleenex, and Chevrolet are examples of
a. private labels.
b. brand names.
c. product names.
d. product line names.
e. public labels.
Difficulty: 1 Page-Reference: 505
Question ID: 16-1-42 Skill: Comprehension
Objective: 16.3
43. In 2012, ______ companies were at the top of the “brand value” list.
a. oil and gas
b. pharmaceutical
c. technology
d. automobile
e. luxury goods
Difficulty: 1 Page-Reference: 505
Question ID: 16-1-43 Skill: Knowledge
Objective: 16.3
44. In the 2012 BrandZ Top 100 Global Brands Ranking list, which company had the most successful
brand in the world?
a. Apple
b. The NFL
c. Google
d. Coca-Cola
e. IBM
Difficulty: 1 Page-Reference: 505
Question ID: 16-1-44 Skill: Knowledge
Objective: 16.3
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
45. Which brands are often widely recognized by consumers because of campaigns for products
produced and distributed by the manufacturer?
a. Private brands
b. National brands
c. Licensed brands
d. Launched brands
e. Generic brands
Difficulty: 2 Page-Reference: 506
Question ID: 16-1-45 Skill: Knowledge
Objective: 16.3
46. What term refers to regular consumer recognition and preference for a specific brand-name
product?
a. Brand insistence
b. Brand identification
c. Label
d. Brand equity
e. Brand loyalty
Difficulty: 1 Page-Reference: 507
Question ID: 16-1-46 Skill: Knowledge
Objective: 16.3
47. What are the three stages of brand loyalty?
a. Brand awareness, brand preference, and brand insistence
b. National brands, private brands, and generic brands
c. Brand insistence, tamper-resistant packaging, and label requirements
d. Licensed brands, generic products, and trade marks
e. Question marks, stars, dogs
Difficulty: 2 Page-Reference: 507
Question ID: 16-1-47 Skill: Knowledge
Objective: 16.3
48. Shawna prefers Tim Hortons’ coffee, but she will buy other types of coffee if a Tim Hortons is not
conveniently located. She is exhibiting
a. brand awareness.
b. brand indifference.
c. brand preference.
d. brand insistence.
e. licensed brand insistence.
Difficulty: 2 Page-Reference: 507
Question ID: 16-1-48 Skill: Comprehension
Objective: 16.3
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
49. Maxwell House, Kleenex, and Lysol are all examples of
a. brand names.
b. private brands.
c. industrial products.
d. brand equity.
e. licensed brands.
Difficulty: 2 Page-Reference: 506
Question ID: 16-1-49 Skill: Comprehension
Objective: 16.3
50. Harley-Davidson’s famous logo is emblazoned on products such as boots, eyewear, gloves,
purses, lighters, and watches, and the motorcycle maker receives more than $210 million annually from
fees it receives. This is an example of a _________ brand.
a. national
b. licensed
c. generic
d. private
e. value-added
Difficulty: 2 Page-Reference: 506
Question ID: 16-1-50 Skill: Comprehension
Objective: 16.3
51. Craftsman tools (Sears), Life products (Shoppers Drug Mart), and President’s Choice (Loblaws)
are all examples of ______ brands.
a. national
b. licensed
c. generic
d. private
e. value-added
Difficulty: 2 Page-Reference: 506
Question ID: 16-1-51 Skill: Comprehension
Objective: 16.3
52. What is a trademark?
a. A universal product code
b. An operating license from the Canadian government
c. The exclusive legal right to use a brand name
d. Protection for an invention
e. A licensed brand
Difficulty: 1 Page-Reference: 507
Question ID: 16-1-52 Skill: Knowledge
Objective: 16.3
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
Copyright © 2014 Pearson Canada Inc. 14
53. What can a firm do to protect its products and brand names from being used by a competitor?
a. Obtain a trademark
b. Use tamper-resistant packaging
c. Use a private brand name
d. Use a generic brand name
e. Obtain a Universal Product Code
Difficulty: 2 Page-Reference: 507
Question ID: 16-1-53 Skill: Application
Objective: 16.3
54. A ___________ gives exclusive legal right to use a brand name, while a _________ protects an
invention or idea.
a. patent; trademark
b. copyright; trademark
c. trademark; copyright
d. copyright; patent
e. trademark; patent
Difficulty: 2 Page-Reference: 507-508
Question ID: 16-1-54 Skill: Knowledge
Objective: 16.3
55. What is the difference between a patent and a trademark?
a. A patent gives a company more protection than a trademark.
b. A trademark is more valuable than a patent.
c. Trademark protection lasts longer than patent protection.
d. A trademark protects a specific brand name, while a patent protects a basic product idea.
e. None of these is correct.
Difficulty: 2 Page-Reference: 507-508
Question ID: 16-1-55 Skill: Comprehension
Objective: 16.3
56. Which of the following is correct with regard to copyrights?
a. Copyrights apply only to a basic idea, not to the tangible expressions of the idea.
b. Copyrights are more valuable than either patents or trademarks.
c. Copyrights extend to creators for their entire lives.
d. Copyrights cannot be extended to the estates of the person who originally received the copyright.
e. All of these statements are correct.
Difficulty: 3 Page-Reference: 509
Question ID: 16-1-56 Skill: Comprehension
Objective: 16.3
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
57. Which of the following is correct with regard to packaging?
a. Fresh fruit and structural steel do not really need much packaging.
b. The function of packaging is limited to product protection.
c. Packaging does not provide advertising or promotion for products.
d. Packaging costs can be as high as 50 percent of the total cost to make a product.
e. All of these.
Difficulty: 2 Page-Reference: 509
Question ID: 16-1-57 Skill: Comprehension
Objective: 16.3
58. The Consumer Packaging and Labelling Act has two main purposes:
a. To restrict what cigarette and alcohol manufacturers can say on the labels of their products, and
to provide a set of rules for packaging and labelling of consumer products
b. To state packaging requirements for consumer goods, and to state packaging requirements for
industrial goods
c. To state packaging and labelling requirements for goods, and to state packaging requirements for
services
d. To provide a set of rules for packaging and labelling of consumer products, and to ensure that the
manufacturer provides full and factual information on labels
e. To make sure that product quantities are stated in English and French and to ensure that the
manufacturer provides full and factual information on labels
Difficulty: 2 Page-Reference: 509
Question ID: 16-1-58 Skill: Comprehension
Objective: 16.3
59. Which of the following is not a reason for packaging products?
a. Serves as an in-store advertisement
b. Serves as an attractive display
c. Provides reassurance of safety for consumption of the product
d. Packaging is harmful to the environment
e. Reduces the risk of damage, breakage, or spoilage
Difficulty: 2 Page-Reference: 509
Question ID: 16-1-59 Skill: Comprehension
Objective: 16.3
60. When Burger King tells you about a new restaurant that it is opening near you, it is attempting to
fulfill which promotional objective?
a. Remind you about the product
b. Communicate information
c. Position products
d. Control sales volume
e. Eliminate competition
Difficulty: 2 Page-Reference: 510
Question ID: 16-1-60 Skill: Comprehension
Objective: 16.4
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
61. When Lava soap advertises that it is a great product for dirty, grimy, manly hands, it is attempting
to fulfill which promotional objective?
a. Communicate information
b. Remind you about the product
c. Control sales volume
d. Eliminate competition
e. Product positioning
Difficulty: 2 Page-Reference: 511
Question ID: 16-1-61 Skill: Comprehension
Objective: 16.4
62. What is a difficulty faced by the marketing manager who wishes to use product positioning as a
promotional objective?
a. The company must determine when to increase promotional activities during slow periods.
b. The company must determine how to provide information to consumers.
c. The company must determine how much to spend on communicating the information about their
products to consumers.
d. The company must first identify the market segment that it wants to reach.
e. The company must limit the high-cost promotional methods to high-priced goods.
Difficulty: 2 Page-Reference: 511
Question ID: 16-1-62 Skill: Application
Objective: 16.4
63. Mega Computers is using direct mail to send 10-percent-off coupons to its list of potential
customers. This is an example of a ________ strategy.
a. pull
b. product
c. position
d. push
e. place
Difficulty: 2 Page-Reference: 512
Question ID: 16-1-63 Skill: Comprehension
Objective: 16.4
64. Mega Computers has decided to promote its new line of computers by offering its wholesalers
and retailers an additional 5 percent off list prices. This is an example of a ________ strategy.
a. product
b. pull
c. push
d. place
e. position
Difficulty: 2 Page-Reference: 512
Question ID: 16-1-64 Skill: Comprehension
Objective: 16.4
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
65. Why would a business firm want to have controlling sales volume as a promotional objective?
a. A company will aggressively push its products through wholesalers and retailers who persuade
customers to buy it.
b. The production and distribution systems will run more smoothly when the firm achieves a more
stable sales volume during the year.
c. The company is trying to appeal to a specific segment of the market.
d. Consumers are more likely to purchase a product when they have been informed about it.
e. The company wants to be able to communicate information to consumers when it is more
economical to do so.
Difficulty: 2 Page-Reference: 512
Question ID: 16-1-65 Skill: Comprehension
Objective: 16.4
66. The most important factor to consider in designing the best promotional mix is
a. promotion and the buyer decision process.
b. the product.
c. promotional mix budget.
d. the target audience.
e. costs of the product.
Difficulty: 2 Page-Reference: 512
Question ID: 16-1-66 Skill: Knowledge
Objective: 16.4
67. All of the following are basic types of promotional tools except
a. advertising.
b. personal selling.
c. sales promotions.
d. publicity and public relations.
e. branding.
Difficulty: 2 Page-Reference: 512
Question ID: 16-1-67 Skill: Comprehension
Objective: 16.4
68. What type of advertising strategy should be used during the growth and maturity stages of a
product’s life cycle?
a. Informative
b. Residual
c. Reminder
d. Comparative
e. Persuasive
Difficulty: 1 Page-Reference: 513
Question ID: 16-1-68 Skill: Knowledge
Objective: 16.5
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
69. The part of the promotional mix that is paid, non-personal communication used by an identified
sponsor to inform an audience about a product is
a. publicity.
b. sales promotion.
c. personal selling.
d. advertising.
e. pricing.
Difficulty: 1 Page-Reference: 513
Question ID: 16-1-69 Skill: Knowledge
Objective: 16.5
70. What is the strategy behind the use of reminder advertising?
a. To develop an awareness of the differences between the company’s product and a competitor’s
product
b. To keep the product’s name in the mind of the consumer, especially during the maturity and decline
stages of the product life cycle
c. To use a direct comparison of products in the hope of convincing consumers to switch products
d. To develop an awareness of the company and the product
e. To influence consumers to buy the company’s products instead of a competitor’s products
Difficulty: 2 Page-Reference: 513
Question ID: 16-1-70 Skill: Comprehension
Objective: 16.5
71. The communications vehicle that is flexible, has rapid coverage, but lasts briefly and cannot target
audiences very well is
a. direct mail.
b. newspapers.
c. magazines.
d. radio.
e. television.
Difficulty: 2 Page-Reference: 514
Question ID: 16-1-71 Skill: Knowledge
Objective: 16.5
72. The communications vehicle that is very selective about its audience, allows a more personalized
message, and whose response rate is very predictable is
a. direct mail.
b. television.
c. magazines.
d. radio.
e. newspaper.
Difficulty: 2 Page-Reference: 516
Question ID: 16-1-72 Skill: Knowledge
Objective: 16.5
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
73. The communications vehicle that is inexpensive, that effectively segments the customers, but is
not very long lasting is
a. radio.
b. direct mail.
c. newspaper.
d. television.
e. magazines.
Difficulty: 2 Page-Reference: 516
Question ID: 16-1-73 Skill: Knowledge
Objective: 16.5
74. In terms of advertising revenues, which medium is the most important?
a. Newspapers
b. Television
c. Radio
d. The internet
e. Magazines
Difficulty: 2 Page-Reference: 515
Question ID: 16-1-74 Skill: Knowledge
Objective: 16.5
75. This communications vehicle is highly segmented, allows for excellent visual communication, and
is long-lived, but requires a long lead-time.
a. Direct mail
b. Television
c. Magazines
d. Newspaper
e. Outdoor
Difficulty: 2 Page-Reference: 516
Question ID: 16-1-75 Skill: Knowledge
Objective: 16.5
76. Internet marketing has several weaknesses, including ________.
a. information overload
b. security-related issues
c. limited markets
d. profitability problems
e. all of these are weaknesses
Difficulty: 2 Page-Reference: 517
Question ID: 16-1-76 Skill: Knowledge
Objective: 16.5
Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang
Chapter 16—Developing and Promoting Goods and Services
77. Digitally adding a Reitman’s shopping bag on a kitchen table in a movie scene is an example of
a. television advertising.
b. virtual advertising.
c. retail advertising.
d. word-of-mouth advertising.
e. deceptive advertising.
Difficulty: 1 Page-Reference: 518
Question ID: 16-1-77 Skill: Comprehension
Objective: 16.5
78. Samantha wanted to use a flexible communication vehicle that would give her rapid coverage.
She should select ________ advertising.
a. television
b. newspaper
c. magazine
d. radio
e. direct mail
Difficulty: 2 Page-Reference: 514
Question ID: 16-1-78 Skill: Comprehension
Objective: 16.5
79. Adrianna developed a new perfume. She wanted to market the perfume via a communication
vehicle that appeals to many consumer senses, targets a specific audience, and reaches as many people
as possible. Adrianna would select ________ advertising.
a. television
b. magazine
c. radio
d. direct mail
e. newspaper
Difficulty: 2 Page-Reference: 515
Question ID: 16-1-79 Skill: Comprehension
Objective: 16.5
80. In Canada, advertising expenditures are smallest in which medium?
a. Internet
b. Television
c. Magazines
d. Radio
e. Outdoor
Difficulty: 2 Page-Reference: 517
Question ID: 16-1-80 Skill: Knowledge
Objective: 16.5