Companies discovering that customers are the best source of new-product ideas is
called the “democratizing” of innovation.
A “marketing-driven” organization can quickly react to changes in the marketplace.
Customers who fall under the hostage group exhibit high switching rates and low
commitment to your products.
In the executive opinion method of forecasting, the marketing manager might simply
rely on his or her own opinion to predict sales.
Sales promotion involves communication activities that provide extra incentives to
customers or the sales force to achieve a short-term objective.
Many companies view their customer information file (CIF) as a key source of
competitive advantage.
Cross-elasticity is the percentage change in one products sales due to a percentage
change in a marketing variable for another product, such as price.
Price is a communication tool.
Concept generation tests are based on small samples and attempt to qualitatively assess
demand for the concept.
The incremental costs involved in obtaining any new customer is known as acquisition
cost.
Low barriers to entry would result in decreased competition.
In the chasm model, the first small crack appears between the early majority and the
late majority.
A merchant middleman who is engaged primarily in selling to ultimate consumers is
referred to as broker.
In the concept development phase, concepts are translated into actual products for
further testing.
According to the needs hierarchy theory, friendship, affection, acceptance by reference
groups are examples of ________ needs.
A) physiological
B) social
C) ego
D) self-actualization
Which of the following is a major disadvantage of using agents and brokers?
A) loss of control over the service delivery
B) lack of information about local markets
C) narrow distribution of products
D) reliable customer communication
Which of the following describes the per-unit cost of making the product or delivering
the service?
A) development costs
B) variable costs
C) direct fixed costs
D) fixed costs
The basic customer satisfaction model is often called ________ because it presumes
that levels of customer satisfaction with a product or service are determined by how
well the product performs relative to what the customer expects.
A) a high confirmation/low confirmation model
B) an expectation confirmation/disconfirmation model
C) a negative confirmation/positive confirmation model
D) a need satisfying/dissatisfying model
Which of the following statements is true regarding the maturity stage of the product
life cycle?
A) During this stage, the market grows rapidly.
B) Usually, competition is most intense in this phase.
C) Many new competitors enter the market.
D) This stage comes after the introduction stage.
Which of the following is an example of a new task purchase?
A) purchasing paper clips for the office
B) upgrading the local intranet with new technologies
C) purchasing a corporate jet aircraft
D) purchasing printer and toner for the office
________ is a currently popular age-related type of segmentation used to develop
profiles of each generation.
A) Factor analysis
B) Cohort analysis
C) SWOT analysis
D) Regression analysis
In these ads, the copy touts how popular the product is among the target audience.
Identify the informational appeal being used.
A) feature/benefit popularity appeal
B) competitive advantage appeal
C) news appeal
D) product or service popularity appeal
________ are new versions of existing products already marketed by the firm.
A) Classically innovative products
B) New category entries
C) Line extensions
D) Repositioned products
Which of the following is the most difficult kind of competition to assess because it
cannot be observed readily and competitors may be numerous?
A) product form and product category
B) product form and generic
C) budget and generic
D) product category and budget
Identify the core product for a car.
A) reliability
B) service from the dealer
C) prestige obtained from driving it
D) gas mileage
Which of the following terms best explains the ability of potential users of a new
product to use it on a limited basis before adoption?
A) reliability
B) trialability
C) observability
D) accountability
Product categories are considered to be the business units that should be customized on
a store-by-store basis to satisfy customer needs. Which of the following best describes
this process?
A) category management
B) market segmentation
C) efficient consumer response
D) continuous replenishment program
The salesperson analyzes what happened during the sales call, talks with his or her
supervisor about the call, and collects feedback about the call. These activities are
carried out to:
A) plan the sales call.
B) fill out the call report.
C) accomplish post-call analysis.
D) communicate with the customer.
Identify the stage in the product life cycle at which fierce battles for market share take
place.
A) introduction stage
B) growth stage
C) maturity stage
D) decline stage