Which of the following statements is true of the new product development process?
A) The purpose of the idea screening stage is to create a large number of ideas.
B) Under the business analysis stage, if the new product satisfies the company’s
objectives, the product then moves to the product development stage.
C) A product concept is the way consumers perceive an actual or potential product.
D) The concept testing stage is the stage at which the product and its proposed
marketing program are introduced into realistic market settings.
E) Commercialization is the process of inviting broad communities of people such as
customers, employees, and scientists into the new product innovation process.
P&G has sold off a number of lesser or declining brands such as Folgers coffee and
Cover Girl cosmetics. In these examples, management decided to ________ the
products.
A) modify
B) maintain
C) drop
D) harvest
E) franchise
Which of the following states the product’s membership in a category and then shows
its point of difference from other members of the category?
A) a mission statement
B) a vision statement
C) a general need description
D) a positioning statement
E) an order-routine specification
Which of the following is one of the social costs associated with cars?
A) traffic congestion
B) water pollution
C) new highways
D) new automobile models
E) cleaner roads
Changes to the marketing communications model include that consumers are changing
and are better informed, that marketing strategies are changing and are moving from
mass marketing, and that ________.
A) manufacturing processes are becoming more efficient
B) distribution of products worldwide is more feasible and cost-effective
C) segmenting and targeting of consumers are more detailed than ever before
D) digital technologies are changing the ways companies and customers communicate
E) retailing is more competitive with more sources of products available for consumers
Which of the following is an example of a convenience product?
A) fast food
B) diamond ring
C) furniture
D) life insurance
E) refrigerator
Business legislation is enacted to protect ________.
A) consumers from unfair business practices
B) businesses from unfair attacks by consumers
C) consumers from competition by businesses
D) businesses from achieving unfairly high profits
E) society from profitable business activity
Sam has been directed to study the demographic, economic, political, and cultural
forces that affect an organization. In this instance, Sam has been directed to study the
________ of the organization.
A) macroenvironment
B) microenvironment
C) internal environment
D) marketing mix
E) marketing intermediaries
Which of the following is true of value-based pricing?
A) The targeted value and price drive decisions about what costs can be incurred and
the resulting product design.
B) Value-based pricing is mostly product driven.
C) Value-based pricing involves setting prices based on the costs of producing,
distributing, and selling the product plus a fair rate of return for its effort and risk.
D) The marketer usually designs a product and marketing program and then sets the
price.
E) A company using value-based pricing designs what it considers to be a good product,
adds up the costs of making the product, and sets a price that covers costs plus a target
profit.
Refer to the scenario below to answer the following question(s).
The Treble Clef sells music books, musical instruments, and novelty gifts of a musical
nature. In recent years, owner Gary Zahn has served as the local representative of
several musical instrument manufacturers, providing a contact person for three local
schools. He sends a sample of a manufacturer’s products to schools that request a
demonstration or presentation. “If we don’t have it, we can definitely get it for you,”
Gary tells all Treble Clef visitors and customers.
Most walk-ins are particularly interested in a specific piece of sheet music from a
particular era or just browsing among the hundreds of music knick-knacks in the store.
Gary spends most of his time making presentations to beginners at the local schools and
making biweekly visits to the schools to deliver instruments, make minor repairs, or
pick up instruments to ship to the manufacturer for more complicated repairs.
After establishing a loyal customer base, Gary was convinced that a Treble Clef Web
site could benefit a variety of customers. He began with a simple Web site that provided
information about the store and the types of gifts and services available. The site
received so much response that Gary added a question-and-answer option. Questions
poured in, ranging from “Where can I get sheet music for ‘Hello, Dolly’?” to “Do you
carry clarinet reeds?” to “My saxophone needs two new pads. When will you be at
Elmhurst School to repair it?” The Web site is now able to accept credit card orders, and
gifts can even be wrapped and shipped for no extra charge.
“This Web site idea was fantastic!” Gary admitted. “It allows us to be so responsive.
And our novelties sales have doubled!”
In addition to sending samples of sheet music to schools, Gary sends school music
directors messages with links to sample digital clips of the compositions. What kind of
marketing is this?
A) e-mail marketing
B) viral marketing
C) kiosk marketing
D) mobile marketing
E) catalog marketing
Through ________, a service firm orients and motivates its customer-contact
employees and supporting service people to work as a team to provide customer
satisfaction.
A) service inseparability
B) social marketing
C) service variability
D) internal marketing
E) corporate image marketing
Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered
vacuum cleaner. But the concept was practical and the technology used in the vacuum
was the same as that used in many electronic toys. After setting up a demonstration
booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea
would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such
as how much they would pay for the vacuum, what colors they would prefer, and why
they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory
nodes along the edges. After being charged in the sunlight, the vacuum could run for 7
hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into
table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the
objects in various directions. This is the same type of technology used in the
manufacture of children’s racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly
consumers, who may have a more difficult time with vacuuming, and on-the-go
consumers who lead busy lives. The price would be above average but would likely be
reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a
multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and
several other retail stores in Florida. “It’s such a novel idea,” Evelyn added. “People will
notice it, even if they don’t buy it right away.”
Evelyn’s ________ is the practical use of solar power in a vacuum cleaner that is
designed to effortlessly vacuum clean the floors of on-the-go and elderly consumers.
A) product placement
B) product concept
C) product image
D) product idea
E) virtual product
Persuasive advertising becomes ________ advertising when a company directly or
indirectly compares its brand with one or more other brands.
A) informative
B) reminder
C) attack
D) covert
E) institutional
All of the following are problems associated with the poor selection of salespeople
EXCEPT ________.
A) lower sales
B) costly turnover
C) less productivity
D) fewer training expenses
E) disruptive customer relationships
Which of the following is NOT a step in designing an effective marketing channel?
A) evaluating the channel alternatives
B) identifying major channel alternatives
C) analyzing consumer needs
D) determining pricing policy for channel members
E) setting channel objectives
Bosch is a German firm that manufactures home appliances such as dishwashers, ovens,
and ranges. It competes with companies such as GE Elite and LG. Bosch is perceived as
the class of the industry. Bosch pursues a(n) ________ strategy.
A) focus
B) blue ocean
C) overall cost leadership
D) differentiation
E) middle-of-the-road
The term big data refers to the ________ generated by today’s sophisticated
information generation, collection, storage, and analysis technologies.
A) large reports
B) huge and complex data sets
C) information requests
D) social media contacts
E) e-mail messages
A(n) ________ is the set of actual and potential buyers of a product or service.
A) market
B) control group
C) subsidiary
D) focus group
E) audience
The aim of ________ is to make an advertisement so useful or entertaining that people
want to watch it.
A) branded entertainment
B) advertainment
C) viral marketing
D) buzz marketing
E) word-of-mouth advertising
Which of the following is true about customer relationship management (CRM)?
A) Data mining has limited applicability in CRM activities.
B) Sophisticated analytical tools are sparingly used in CRM activities.
C) CRM reduces the number of customer touch points.
D) CRM aims to maximize customer loyalty.
E) CRM enables firms to compare various product and service categories.
In designing the marketing channel, a company must balance customer needs and wants
with ________.
A) the need to make a profit
B) the requirement to find channel members to fill all the steps
C) the firm’s position in the customers’ minds
D) the desire to be “the best” in all service areas
E) the firm’s resources and skills to provide all the desired services
Most shopping centers are ________.
A) strip malls
B) regional shopping malls
C) community shopping centers
D) lifestyle centers
E) power centers
How can public relations have a strong impact at a much lower cost than advertising?
A) The firm can pay for content to be spread.
B) Interested consumers can create the content on their own and spread it.
C) Interesting brand stories, events, videos, or other content can be shared by sources
out of the company’s control, but to its benefit.
D) Advertising agencies can minimize the impact of competitors’ news.
E) Advertising costs have changed dramatically due to changing technologies.
Ways companies have avoided relying on price cuts in the new value-conscious era
include all of the following EXCEPT ________.
A) by adding more affordable product lines for the cost-conscious consumer
B) by redefining the “value” in their value propositions
C) by adding premium product lines for the higher end consumer
D) by offering deep discounts
E) by creating price tiers
Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific
models. Only Multiprint cartridges are compatible with Multiprint printers, and no two
models share the same specifications. What type of pricing does Multiprint use?
A) product line pricing
B) captive product pricing
C) optional product pricing
D) by-product pricing
E) product bundle pricing
The first step in initiating competitive marketing strategies is to ________.
A) balance customer and competitor orientations
B) design broad competitive marketing strategies
C) assess long-term organizational objectives
D) conduct competitor analysis
E) conduct transaction analysis
Which of the following advertising slogans most likely represents a two-sided
argument?
A) Breakfast of champions
B) Good to the last drop
C) A diamond is forever
D) The ultimate driving machine
E) The next big thing is already here
Ferrari sports cars claim superior quality, performance, and style. Ferrari provides
“perfection” at a premium price to keep its brand image intact. Which type of value
proposition does Ferrari most likely position its products with?
A) more for the same
B) more for more
C) less for much less
D) the same for less
E) more for less
La Belle released a cut glass bottle of perfume at $299 per item, even though its major
competitor prices its signature scent at $99 per item. La Belle reasons that customers in
search of luxury goods will prefer its product because they are likelier to believe that
high price indicates superior quality. What price adjustment strategy is evident in its
reasoning?
A) seasonal pricing
B) time-based pricing
C) captive product pricing
D) psychological pricing
E) location-based pricing
Which of the following is a major tool used by PR professionals?
A) standardized global advertising
B) market penetration
C) news
D) bait-and-switch strategy
E) product packaging
Which of the following best explains the growth of telephone and online selling?
A) the use of the Do Not Call Registry
B) the ability to make up to 8 times as many more customer contacts per day than an
outside salesperson
C) the similarity in cost between the inside and outside sales forces
D) the difficulty and expense of reaching some customers
E) the preference of customers for face-to-face contact
Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered
vacuum cleaner. But the concept was practical and the technology used in the vacuum
was the same as that used in many electronic toys. After setting up a demonstration
booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea
would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such
as how much they would pay for the vacuum, what colors they would prefer, and why
they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory
nodes along the edges. After being charged in the sunlight, the vacuum could run for 7
hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into
table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the
objects in various directions. This is the same type of technology used in the
manufacture of children’s racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly
consumers, who may have a more difficult time with vacuuming, and on-the-go
consumers who lead busy lives. The price would be above average but would likely be
reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a
multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and
several other retail stores in Florida. “It’s such a novel idea,” Evelyn added. “People will
notice it, even if they don’t buy it right away.”
Evelyn’s vacuum is at the ________ stage of the product life cycle.
A) product development
B) introduction
C) growth
D) decline
E) maturity
Under ________, the market consists of many buyers and sellers trading in a uniform
commodity.
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) a pure monopoly
E) the dominant firm model