Fred is a marketing manager consultant working in tandem with members from other
functional areas that include engineering, production, and administrative staff. While
evaluating a new product proposal, Fred and his team members from other functional
areas work simultaneously toward reaching a conclusion. Which of the following
methods is Fred’s project team following?
A. Rugby approach
B. Out-rotation
C. Skunkworks
D. Brainstorming
Answer:
_____ segmentation and benefit segmentation are the two commonly used approaches
for segmenting markets.
A. Psychographic
B. Situational
C. Profit
D. Mass marketing
Answer:
_____ refers to the combination and types of nonpersonal and personal communication
that an organization puts forth during a specified period.
A. The promotion mix
B. The product mix
C. Segment communication
D. Reintermediation
Answer:
Devon Inc. first marketed Silky Soft as a brand of body lotion to compete with other
similar body lotions in the market. Owing to mixed responses to the product, Devon
promotes its Silky Soft lotion as an insect repellant that is also good for the skin. Into
which of the new product categories does Silky Soft lotion fall?
A. Revisions of existing products
B. New-to-the-firm products
C. Additions to existing product lines
D. Product repositionings
Answer:
Which of the following is true of a high/low pricing strategy?
A. Conditioning customers to buy only on sale is the main characteristic of this strategy.
B. In this strategy, a retailer charges prices that are on level with its competitors’ and
avoids promoting sales.
C. Most fashion, drug, and grocery stores avoid using this pricing strategy.
D. The main disadvantage of this strategy is that it makes it difficult for a retailer to get
rid of slow-selling merchandise.
Answer:
Karen wants a new laptop. She has looked at several brands and done enough research
to finally narrow down her options to two models that have all the specifications she
wants and falls within her budget as well. Karen is currently in which of the following
stages of the consumer decision-making process?
A. Need recognition
B. Alternative evaluation
C. Purchase decision
D. Postpurchase evaluation
Answer:
Beryl Toys makes toys for children of ages three and above, while Lobster-Price makes
toys for infants. In 1999, Beryl Toys acquired Lobster-Price for $1.1 billion. This
acquisition gave Beryl Toys a new product line aimed at the younger siblings of its
current target market. In this scenario, Beryl Toys has most likely implemented a _____
strategy.
A. diversification
B. product differentiation
C. market development
D. market penetration
Answer:
Which of the following statements about product deletion is true?
A. Product deletions are necessary because the number of new products introduced
keeps decreasing each year.
B. The deletion plan should keep consumers supplied with replacement parts and repair
service.
C. The deletion plan is not required to provide for clearing out of stock in question.
D. The deletion plan should allow the retailer or distributor to decide which products
should be deleted.
Answer:
Which of the following refers to a practical issue surrounding product safety?
A. A product that is safe to use will lower production cost and thus lead to higher
profits for the organization.
B. When users get harmed by a product, they may stop buying or tell others about their
experience.
C. When a user is harmed by misusing a product, the company that sold it can be sued.
D. A safe product has a lower internal risk of development and production.
Answer:
In which stage of the general pricing model does a marketer estimate how much of a
particular product the target market will purchase at various price levels?
A. Analysis of profit potential
B. Evaluation of product-price relationships
C. Setting initial price structure
D. Estimation of costs and other price limitations
Answer:
What is a marketable segment?
A. A segment that is large enough to have some sales and growth potential
B. A segment that includes Innovators in high proportion along with a few Survivors
C. A segment that consists of people with varying attitudes and product preferences
D. A segment that can be reached and served by the firm in an efficient manner
Answer:
_____ is an example of a psychological pricing strategy.
A. Cost-plus pricing
B. Odd-even pricing
C. Markup pricing
D. Rate-of-return pricing
Answer:
One of the disadvantages associated with cost-oriented approaches to pricing is that:
A. they give little consideration to supply factors.
B. they are difficult to understand and implement.
C. they fail to adequately reflect competition.
D. they generally do not yield a good price decision.
Answer:
In the context of branding, brand equity:
A. is the set of assets or liabilities linked to a brand that adds or subtracts value.
B. is not determined by the consumer.
C. can only be possessed by consumer goods and not by organizational goods.
D. is independent of the results of the marketplace’s relationship with a brand.
Answer:
A vertical market is a market in which _____.
A. customers are restricted to a few industries
B. goods are purchased by specific firms in different industries
C. goods are purchased by all types of firms in many different industries
D. vendors offer a wide range of goods to a large number of customers
Answer:
One of the basic objectives of the maturity stage of a product’s life cycle is to:
A. establish a market for the product type.
B. persuade early adopters to buy the product.
C. develop a high degree of brand preference among consumers.
D. seek growth by luring customers from competitors.
Answer: