Which of the following is a primary distinction between a line extension and a product
modification?
a. A product modification results in a completely new product, while a line extension is
simply changing an old product.
b. Both line extension and product modification involve alteration of an existing
product, but the alteration is more dramatic with a product modification than it is with a
line extension.
c. A line extension is designed to aptly meet the needs of an existing market segment,
while a product modification targets entirely new market segments.
d. With a product modification, the original product is replaced in the product line,
while with a line extension, the original product remains intact in the product line.
e. A line extension consists of strictly aesthetic changes to an existing product, whereas
a product modification consists of changes in quality and functionality.
The in-home (door-to-door) interview is an example of a focus-group interview.
a. True
b. False
122.Aisresponsibleformarketingaproduct,productline,orseveraldistinctproductsinaninterrelatedgroup
within an organization. a. venture team b. brand manager c. facilities manager d.
product manager e. line manager
Companies that are considered to be good corporate citizens and consider the diverse
perspectives of different groups affected by their operations are said to have a
orientation.
a. marketing
b. sales
c. production
d. stakeholder
e. citizen
Chloe is employed by an advertising agency and is currently working on the advertising
platform for a client. The
most effective method of determining platform issues is to use .
a. opinions of personnel within the firm
b. opinions of advertising experts
c. a survey of customers
d. opinions of expert marketers in the industry
e. a chart that compares the issues addressed by the advertising campaign of a
competing brand with that of the brand to be advertised
Connectivity is the use of digital networks to provide linkages between information
providers and users.
a. True
b. False
An early-bird special offered by a restaurant during off-peak hours is an example of the
secondary-market pricing strategy.
a. True
b. False
Which of the following consumer decision making processes will probably be used in
purchasing toothpaste?
a. Extended decision making
b. Routinized response behavior
c. Enduring involvement
d. Limited decision making
e. Perceptual mapping
Federal laws and regulations specify information that garments must include on the
labels. Garments must be labeled with the country of manufacture, fabric content, and .
a. clothing style
b. size
c. inspection code
d. care instructions
e. universal product code
Scenario 10.3
Use the following to answer the questions.
The Pillsbury division of General Mills has promoted its baking products through its
trade character, the Pillsbury Doughboy, since 1965. He appears in television
commercials touting the quality, benefits, and features of the products Pillsbury sells.
Each product in the Pillsbury line, such as crescent rolls, pizza dough, biscuits, and
cinnamon rolls, includes the Pillsbury name on the package. In addition to the Pillsbury
name, the Pillsbury Doughboy also appears on each package, although in different
poses. On the Pillsbury website, the Pillsbury Doughboy character is animated and can
be seen “dancing”. He can be downloaded to your personal computer or used to create
your own e-card. The Pillsbury branding policy is most likely _____.
a. individual branding
b. family branding
c. brand extensions
d. co-branding
e. brand licensing
Salespeople should know the sales objectives of the firm in order to know what they are
expected to accomplish. a. True
b. False
The forces of the marketing environment primarily affect marketers in three ways: They
influence customers by affecting their lifestyles and preferences for products; they
determine whether or how a marketing manager can perform certain marketing
activities; and they:
a. affect a marketing manager’s decisions and actions by influencing buyers’ reactions to
the firm’s marketing mix.
b. dictate that changes be made to the existing marketing mix despite any negative
reactions from customers.
c. make most new products obsolete very quickly so that research and development
must continually develop
newproducts.
d. cause most advertising to be ineffective at communicating product benefits due to
rapidly changing environmental forces.
e. change a customer’s decisions about the appropriate marketing mix for the company
and its various products.
A new trend in video marketing is the use of amateur filmmakers.
a. True
b. False
Family life cycle is most typically based on:
a. income.
b. geographic location.
c. marital status and age of children.
d. occupation.
e. buying power.
Demand for a product category rather than for a specific brand is called primary
demand.
a. True
b. False
The phase-out approach to product deletion involves a process of continuous price
increases to make as much profit as possible before the product is finally priced out of
existence.
a. True
b. False
Kara is a member of the product development team at a company that manufactures
sports equipment. During a recent meeting, one of the team members asked, “What
level of quality are we building into the camping gear?” In this case, Kara and her team
are most likely in the___________phase of the new-product development process.
a. commercialization
b. concept testing
c. business analysis
d. product development
e. test marketing
Which of the following tactics would typically be employed when a product is in the
growth stage of its life cycle?
a. Intensive segmentation to achieve greater market penetration
b. Raising promotion expenditures as a percentage of total sales
c. Moving from intensive to selective distribution
d. Raising prices to encourage competitors to enter the market
e. Reducing the number of product models in the product line
Scenario3.1 Meyers’ Sporting Goods, a national chain, has been doing business with
Soljur Sports, a manufacturer of skateboards, for several years. Recently, it came to the
attention of Meyers’ financial director that the average cost per Soljur Sports skateboard
had substantially increased over that of the previous year. The financial director asked
the marketing department if they knew what the Soljur skateboards cost at competing
sporting goods stores, to see
if they too were likely hit with a higher cost.
The marketing department found that the Soljur skateboards were priced at $15 less in
the competing store than at Meyers. The financial director found that Soljur Sports was
selling a similar number of skateboards to one of Meyers’ competitors for $10 less per
skateboard. The attorney for Meyers’ Sporting Goods immediately filed a complaint
with the Federal Trade Commission. If the Federal Trade Commission believes that
Soljur Sporting Goods is acting in violation of the law, the first move for the FTC is to:
a. issue a cease-and-desist order.
b. issue a complaint stating that the business is in violation of the law.
c. seek a monetary penalty.
d. issue negative publicity about the company.
e. contact the sporting goods manufacturers association.
Amanda is a masseuse at a massage parlor. The fact that the first massage she gives
each day is better than the last massage, demonstrates the___________of services.
a. heterogeneity
b. customer contact aspect
c. intangibility
d. inseparability
e. perishability