Homework answers / question archive / Chapter 11          CREATING PRODUCTS AND PRICING STRATEGIES TO MEET CUSTOMERS’ NEEDS     TRUE-FALSE QUESTIONS   1)

Chapter 11          CREATING PRODUCTS AND PRICING STRATEGIES TO MEET CUSTOMERS’ NEEDS     TRUE-FALSE QUESTIONS   1)

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Chapter 11          CREATING PRODUCTS AND PRICING STRATEGIES TO MEET CUSTOMERS’ NEEDS

 

 

TRUE-FALSE QUESTIONS

 

1). Marketing is the process of combining the conception, pricing, promotion, and distribution of goods or services to create exchanges that satisfy individual and organizational objectives.

a. True

b. False

 

2. The marketing concept emphasizes a consumer orientation.

a. True

b. False

 

3. Frequent-buyer clubs are common tools in relationship marketing.

a. True

b. False

 

4. The goal in environmental scanning is to gather internal environmental data to identify future market opportunities and threats.

a. True

b. False

 

5. A target market is a specific group of consumers toward whom a firm directs its marketing effort.

a. True

b. False

 

6. The five P's are product, promotion, price, people and possession.

a. True

b. False

 

7. The strategy that is based on the demand for the product and the cost of producing it is called the pricing strategy.

a. True

b. False

 

8. Distribution strategy is another term for place strategy.

a. True

b. False

 

9. Personal selling is an element of the product strategy.

a. True

b. False

 

10. Sales promotion, advertising, and public relations are elements of the promotion strategy.

a. True

b. False

 

11. Market behavior is a term used to describe the actions people take in buying and using goods and services.

a. True

b. False

.

 

12. The first step in the consumer decision-making process for buying sandals would be for the weather to turn hot and me to realize I have no footwear that doesn't make my feet sweat.

a. True

b. False

 

13. There are no significant differences between the consumer market and the business-to-business market.

a. True

b. False

 

14. Selling retirement plans to people over the age of 50 is an example of demographic segmentation.

a. True

b. False

 

15. Buying Canon brand cameras because quarterback Archie Manning promotes that brand is an example of the use of benefit segmentation.

a. True

b. False

 

16. Basing market decisions on what a product will do rather than on consumer characteristics is called benefit segmentation.

a. True

b. False

 

17. When Clorox targets heavy users of bleach, it is using volume segmentation.

a. True

b. False

 

18. Verna Knight is doing observation research when he asks people to describe how to fold sheets, towels, and pillowcases.

a. True

b. False

.

 

19. A product is any good or service, along with its perceived attributes and benefits, that satisfies wants.

a. True

b. False

 

20. Chewing gum, flashlight batteries, sewing needles, and adhesive tape are considered convenience products.

a. True

b. False

 

21. The two types of business products are classified as expense and non-expense items.

a. True

b. False

 

22. Transmissions purchased by the Snapper Inc. to build riding lawn mowers are called component parts.

a. True

b. False

 

23. When the manufacturer of Dove soap introduced Dove moisturizing body wash, it was an example of the use of a line extension strategy.

a. True

b. False

 

24. In the product development process, most companies utilize the concepts of brainstorming, screening, and test marketing.

a. True

b. False

 

25. A good marketing strategy should carry a product through all stages of the product life cycle.

a. True

b. False

 

26. Quality is the perceived value that is exchanged for something else.

a. True

b. False

 

27. Price skimming is a price strategy often used in the maturity stage of the product life cycle.

a. True

b. False

 

28. Price skimming is often used as an inducement to get consumers to switch brands or companies.

a. True

b. False

 

29. Pricing products below the normal markup or even below cost to attract customers is called bait pricing.

a. True

b. False

 

30. The idea behind bundling is to reach a segment of the market that would not be reached as effectively if the product were sold separately.

a. True

b. False

 

31. Prestige pricing is the pricing strategy of selling a new product at a low price in hopes of achieving a large sales volume and prestige for the product.

a. True

b. False

 

32. One-to-one marketing is synonymous with database marketing.

a. True

b. False

 

MULTIPLE CHOICE QUESTIONS

 

1. _____ is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

A. Sales

B. Marketing

C. Exchange

D. Production

E. Advertising

 

2. The _____ is the belief that the firm should dedicate all of its planning, policies, operations, and efforts to the satisfaction of the customer.

A. exchange relationship

B. marketing concept

C. market approach

D. market mission statement

E. total exchange concept

 

3. The marketing concept:

A. achieves long-term organizational goals

B. satisfies customer wants and needs legally and responsibly

C. focuses on customer wants so the company can differentiate its product from its competition

D. integrates all of the company’s activities to satisfy customer wants

E. does all of the above

 

4. The marketing concept:

A. satisfies customer wants and needs legally and responsibly

B. is only concerned with the achievement of short-term goals

C. is not concerned with what the competition is doing

D. only affects an organization’s marketing department

E. does all of the above

 

5. According to the _____, a firm should first identify consumer needs and then produce the goods and services that will satisfy them.

A. market mission statement

B. customer satisfier

C. sales concept

D. total exchange concept

E. marketing concept

 

6. _____ is the ratio of benefits to the sacrifice necessary to obtain those benefits.

A. Customer satisfaction

B. Cognitive dissonance

C. Relationship marketing

D. Customer value

E. Price

 

7. Customer satisfaction:

A. refers to the customer’s feeling that a product has met or exceeded expectations

B. determines what kind of marketing strategy will be used

C. is the same as customer value

D. is only important to companies that have a differential competitive advantage

E. is accurately described by all of the above

 

8. Customer satisfaction:

A. is the same as customer value

B. can occur even if the product does not meet customer expectations

C. is most likely to be achieved by companies that have a production orientation

D. refers to the customer’s feeling that a product has met or exceeded expectations

E. is accurately described by all of the above      

 

9. _____ is a strategy that focuses on forging long-term partnerships with customers.

A. Niche marketing

B. Relationship marketing

C. Transactional marketing

D. Exchange targeting

E. Mass customization

 

10. In 2006, The Home Depot launched its first consumer and business rewards credit cards. The Home Depot Rewards MasterCard and The Home Depot Business Rewards MasterCard allows consumers and business owners earn rewards for everyday purchases.  The Home Depot is engaged in:

A. convenience selling

B. relationship marketing

C. transactional marketing

D. exchange targeting

E. mass customization

 

11. _____ is the process in which a firm continuously collects and evaluates information about its external environment.

A. Marketing research

B. Secondary data collection

C. Environmental scanning

D. External monitoring

E. Relationship marketing

 

12. In general, when a business is engaged in environmental scanning, it looks at all of the following external forces that might affect it EXCEPT:

A. the economy

B. suppliers

C. technology

D. demographic forces

E. political and legal forces

 

13. The _____ is a specific group of consumers toward which a firm directs its marketing efforts.

A. population sample

B. package market

C. demand group

D. target market

E. utility group

 

14. Topik is a product that is sprayed on thinning hair and makes the hair appear thicker.  The manufacturer considers its potential market to be blue-collar workers who earn less than $30,000 per year, are divorced, and who like to think of themselves as weekend athletes.  The manufacturer of Topik considers this group to be its:

A. population sample

B. target market

C. demand group

D. utility market

E. package group

 

15. Finding a place to live in Mumbai, India, has been getting harder these days for people who are not vegetarians.  Vegetarianism is a centuries-old custom among the Indian population, but the requirement is becoming more obvious as non-vegs are being segregated from vegs.  A real estate broker in Mumbai  who will only rent or sell a home to a vegetarian as defined that group as its:

A. population sample

B. target market

C. demand group

D. utility market

E. package group

 

16. Aldi is a no-frills grocery chain.  It sells grocery staples right out of crates and boxes with emphasis on low-priced, private-label brands.  Aldi stores are typically about one-third the size of the traditional supermarket.  By controlling expenses, Aldi customers can expect to save 30 to 50 percent compared to Kroger customers.  The chain targets bargain hunters who are willing to rent a cart and bag their own groceries.  Aldi competitive advantage is based on:

A. low costs

B. its competition

C. promotion

D. stakeholders

E. the production concept

 

17. A firm with a _____ has its ability to provide a unique product or service that offers something of value to buyers besides simply a lower price.

A. promotional emphasis

B. niche strategy

C. relationship building advantage

D. comparative advantage

E. differential competitive advantage

 

18. There are numerous office supplies manufacturers.  U.S.-based Esselte concentrates on selling filing products and desktop products such as staplers and pen sets.  Because the Esselte brand is recognized as an innovative leader in the development of filing products and desktop items, the company can be said to have a(n):

A. promotional emphasis

B. economies-of-scale-based strategy

C. value-based strength

D. comparative advantage

E. differential competitive advantage

 

19. Shenshen Zhongxing Telecom (ZTE) is a Chinese company that is the only telecommunications company in China that produces and markets an inexpensive camera phone to sell to middle class Chinese living in urban areas.  Because ZTE targets a single segment within a limited geographical area, it can be said to have a(n):

A. promotional emphasis

B. niche competitive advantage

C. relationship building advantage

D. comparative advantage

E. differential competitive advantage

 

20. The Accent Modification Center helps upwardly mobile international professionals smooth accents that may be holding them back from getting that next promotion.  The business's target market is from the growing Asian population in Virginia.  The center has developed a(n):

A. promotional emphasis

B. niche competitive advantage

C. relationship building advantage

D. comparative advantage

E. differential competitive advantage

 

21. The _____ is based on the five P's.

A. marketing mix

B. target market

C. production mix

D. advertising mix

E. competitive advantage

 

22. The blend of the marketer's tools is called the five Ps.  Which of the following is NOT one of the five Ps?

A. product strategy

B. pricing strategy

C. place strategy

D. possession strategy

E. promotion strategy

 

23. Vegetarians have the upper hand in Mumbai, India, where not eating meat is a centuries-old tradition.  In a booming Indian economy, the vegetarians are outnumbering the meat-eaters in many metropolitan areas.  In response to this growing vegetarianism (especially among the middle class), franchises like Pizza Hut have created 100 percent vegetarian menus.  By eliminating all meat from pizzas, the Indian Pizza Huts have engaged in a _____ strategy.

A. product

B. place

C. promotion

D. production

E. pricing

 

24. 3M Consumer Healthcare has introduced a "Home 'n Go Pack" packaging concept that organizes each of its bandage offerings into a separate plastic pouch within the bandage box. The pouch is visible through a window in the external packaging.  The decision to offer this new packaging was made as part of the _____ strategy.

A. place

B. promotion

C. pricing

D. possession

E. product

 

25. Mike and Ike, the fruit-flavored chewy candies, needed a major facelift. The brand had a small but loyal core of "munchers."  A relatively small brand, it needed visibility to take on share leaders like Starburst and Skittles.  The company changed its packaging and developed contests all geared to 12- to 17-year-olds.  The makers of Mike and Ike have modified its _____ strategies.

A. place and price

B. promotion and place

C. product and place

D. product and promotion

E. promotion and price

 

26. Aldi is a no-frills grocery chain.  It sells grocery staples right out of crates and boxes.  By controlling expenses, Aldi customers can expect to save 30 to 50 percent compared to Kroger customers.  The supermarket chain’s emphasis on maintaining its cost competitive advantage means the company’s top management is often concentrating on its _____ strategy.

A. place

B. promotion

C. pricing

D. possession

E. production

 

27. A pharmaceutical company with headquarters in India sells fluconazole, the generic version of Pfizer's anti-fungal drug Diflucan internationally for significantly less money than many U.S. generic drug manufacturers.  The generic drugs industry in this country needs to rethink its _____ strategy to stay competitive.

A. place

B. promotion

C. pricing

D. possession

E. production

 

28. Maria Manow is planning to sell handmade quilts over the Internet.  As she decides what to charge for a full-sized quilt, Manow will calculate her fixed and variable costs.  At this point, Manow will be developing her _____ strategy.

A. possession

B. place

C. pricing

D. promotion

E. product

 

29. When planning _____ strategy, a manufacturer will deal with wholesalers and retailers.

A. promotion

B. pricing

C. place (distribution)

D. product

E. possession

 

30. When the producers of Ocean Spray cranberry products decided to make Craisins (a dried cranberry snack food) available in convenience stores, supermarkets, and vending machines, it was involved with determining _____ strategy.

A. promotion

B. pricing

C. product

D. distribution

E. possession

 

31. The dispensing of controlled substances has divided patients, doctors, pharmacists and law enforcement agencies as they strive to create a balance between treating legitimate chronic pain and keeping powerful pain meds out of the hands of abusers.  A recent convention discussed the development of a viable ______ strategy for pain medications.

A. production

B. promotion

C. possession

D. place

E. production

 

32. Personal selling, advertising, public relations, and sales promotions are decisions made when planning the _____ strategy.

A. place

B. promotion

C. possession

D. pricing

E. product

 

33. One never knows the connections that can be made when singles get together to do the laundry. As such, Whirlpool is taking its laundry appliances to the social scene by hosting Spin Cycle events that will give singles a chance to meet, mingle and have some good clean fun while playing laundry-themed games that can earn them Whirlpool prizes.  Whirlpool is using these events as part of its _____ strategy.

A. place

B. promotion

C. possession

D. pricing

E. product

 

34. Lee Robi has developed an electronic lice comb that tells whether head lice are present by emitting an audible sign.  Robi has mailed promotional flyers on the lice comb to all the school districts in the nation.  He has also run ads in several different women’s magazine.  This describes the _____ strategy that Robi used.

A. marketing mix

B. promotional

C. production

D. customer value

E. functional

 

35. Which of the following organizations would analyze their market environments, find a competitive advantage, and create a marketing mix?

A. a publisher of hunting and fishing magazines

B. a manufacturer of gym equipment

C. the United States Postal Service

D. a Pizza Hut franchise in Mumbai, India

E. all of the above

 

36. What do the United Way, the Sierra Club, the Girl Scouts of America, and the American Red Cross have in common?

A. They all engage in environmental scanning.

B. They all have a target market.

C. They all have created a marketing mix

D. They all engage in not-for-profit marketing.

E. All of the above statements describe ways in which the organizations are similar.

 

 

37. _____ is the action that people take in buying and using goods and services.

A. Target marketing

B. Delegation strategy

C. Consumer responsibility

D. Buyer behavior

E. Market segmentation

 

38. _____ is the set of values, ideas, attitudes, and symbols created to shape human behavior.

A. Consumer expectation

B. Stimulus reaction

C. Culture

D. A market trigger

E. Consumer impulse

 

39. A short story describing how reluctant British citizens are to play party games that might result in them looking foolish is an example of how _____ shapes human behavior.

A. consumer expectation

B. stimulus reaction

C. culture

D. geographic segmentation

E. consumer impulse

 

40. Finding a place to live in Mumbai, India, has been getting harder these days for people who are not vegetarians.  Vegetarianism is a centuries-old custom among the Indian population, but the requirement is becoming more obvious as non-vegs are being segregated from vegs.  This is important consumer information to a McDonald's franchisee and reflects how _____ shapes consumer behavior.

A. consumer expectation

B. stimulus reaction

C. culture

D. geographic segmentation

E. consumer impulse

 

41. Rap star Xzibit has signed an endorsement deal with athletic footwear manufacturer Dada to produce shoes. The line named "Pimp Your Kicks," alluding to Xzibit's role as host of the MTV show Pimp My Ride, became available in late 2005.  Dada hopes Xzibit will act as a(n) _____ and influence consumers to buy the shoes.

A. opinion leader

B. innovator

C. service provider

D. target recipient

E. referential mentor

 

42. Drew Pastrin bought an AZPX brand skateboard because all of the "other guys" were buying them.  Pastrin was influenced by a(n) _____ factor.

A. psychographic

B. individual

C. demographic

D. social

E. conceptual

 

43. Which of the following is an example of a social factor that influences the consumer decision-making process?

A. attitude

B. family

C. values

D. self-concept

E. personality

 

44. Which of the following is an example of an individual factor that influences the consumer decision-making process?

A. family

B. neighborhood

C. personality

D. opinion leaders

E. culture

 

45. Which of the following is an example of an individual factor that influences Bil Naggin's decision to buy a Sharps black powder cartridge rifle?

A. his culture

B. his interest in the Civil War

C. the fact his great-great grandfather died during the Civil War

D. the fact his favorite book is Red Badge of Courage

E. his desire to experience what it was like to be a Civil War soldier

 

46. Miller Nwagi will not ride in elevators because he perceives them to be confining boxes that could fall.  He refused to visit a store, which was selling his favorite brand of pipe tobacco, because the store could only be reached with an elevator.  This would be an example of how _____ influences determine consumer buying decisions

A physiological

B. social

C. cultural

D. individual

E. psychological

 

47. When compared to the consumer market, the business-to-business market:

A. is more geographically dispersed

B. bases buying decision more on emotions than rational thought

C. is lower in volume

D. uses more direct channels of distribution

E. is accurately described by all of the above

 

48. When compared to the consumer market, the business-to-business market, the consumer market is:

A. bases buying decisions more on rational thinking than on emotions

B. is more geographically dispersed

C. has fewer customers

D. uses more direct channels of distribution

E. buys in larger quantities than businesses do

Title: ANSWER: B

REFERENCE: Buyer Behavior

LEARNING OUTCOME: 4

 

49. _____ is the process of separating, identifying, and evaluating the layers of a market to design a marketing mix.

A. Marketing division

B. Marketing strategy

C. Market segmentation

D. Market layering

E. Benefit marketing

 

50. _____ is the division of markets into different groups

A. Market layering

B. Market segmentation

C. Product segmentation

D. Tactical marketing

E. Strategy differentiation

 

51. Which one of the following is NOT a commonly used method for segmenting markets?

A. volume

B. consumer

C. benefit

D. demographic

E. psychographic

 

52. Which one of the following is a commonly used method for market segmentation?

A. benefit

B. volume

C. psychographic

D. geographic

E. all of the above

 

 

53. Topik is a product that is sprayed on thinning hair and makes the hair appear thicker.  The manufacturer has identified its potential market as blue-collar workers who earn less than $30,000 per year, are divorced, and who like to think of themselves as weekend athletes.  Which segmentation variables are being used to identify the Topik target market?

A. demographic and psychographic

B. benefit and geographic

C. psychographic and volume

D. demographic, geographic, and psychographic

E. benefit, volume, and psychographic

 

54. A basic form of market segmentation that uses such variables as age, education, and income is called:

A. benefit

B. demographic

C. psychographic

D. population

E. none of the above

 

55. Demography is the study of:

A. individual’s ages

B. educational levels

C. household size

D. income levels

E. all of the above

 

56. The manufacturer Mike and Ike, the fruit-flavored chewy candies, has changed its packaging and developed contests all geared to 12- to 17-year-olds. What type of market segmentation identifies its market?

A. psychographic

B. benefit

C. demographic

D. geographic

E. behavioral

 

57. What type of market segmentation strategy was Kimberly-Clark, the manufacturer of Huggies diapers, using when it introduced Poise and Depend brands for adults?

A. psychographic

B. physiological

C. demographic

D. geographic

E. behavioral

 

 

58. Selling more rainwear in Seattle than in San Diego due to the annual rainfall is an example of which type of marketing segmentation?

A. psychographic

B. demographic

C. psychological

D. geographic

E. volume

 

59. A marketer that took the city and the climate into consideration as marketing variables would be concerned about _____ segmentation.

A. demographic

B. benefit

C. psychographic

D. volume

E. geographic

 

60. People with common Activities, interests, and opinions are grouped together into a given lifestyle.  A company that segments its market according to these different lifestyles is using _____ segmentation.

A. psychological

B. demographic

C. psychographic

D. benefit

E. geographic

5

 

61. American Handgunner, Shooting Industry and Guns Magazine are all periodicals aimed at people who enjoy hunting and target shooting and want to improve their skills and stay current in the latest technology.  These magazines use _____ segmentation.

A. psychographic

B. volume

C. geographic

D. demographic

E. none of the above

 

62. _____ segmentation is based on what the product will do rather than on consumer characteristics.

A. Benefit

B. Volume

C. Demographic

D. Psychographic

E. Logical

 

 

 

 

63. The 7-member Dover family recently purchased a mini-van because the ads for a Plymouth Horizon showed that it could haul 8 or more people and still have room for books, bags, and sports equipment.  Plymouth Horizon was using what form of segmentation with its advertising?

A. psychographic

B. geographic

C. benefit

D. volume

E. concentrated

 

64. A recent seminar on attracting retail customers addressed the following fact: "Time is on the mind of the consumer.  If you ask anybody you know, 'Would you rather have an extra day off or an extra day's pay?' people in America would take the time off 2-to-1."  This topic indicates that these retailers supported a need for more _____ segmentation to reach the time-poor consumer.

A. psychographic

B. geographic

C. benefit

D. volume

E. concentrated

 

65. An ad for Virgin airlines shows a traveler sleeping comfortably in the airline’s new seats.  This ad is using _____ segmentation to appeal to its market.

A. volume

B. psychological

C. geographic

D. demographic

E. benefit

 

66. Understanding that 22 percent of the population buys 84 percent of the cereal products would be useful if cereal manufacturers wanted to segment its market according to:

A. benefit

B. volume

C. demographic

D. psychological

E. quantitative

Title: ANSWER: B

 

67. The categories of heavy, moderate, and light users have to do with which type of segmentation?

A. benefit

B. volume

C. demographic

D. psychographic

E. quantitative

 

68. _____ is the collection, recording, and analysis of data important in marketing and communicating that information to management.

A. Marketing information

B. Marketing research

C. Data collection

D. Market search

E. Marketing customization

 

69. In selling telephone service, AT&T tries to gather as much information as possible about the consumer's income, buying habits, service preferences, and occupation.  AT&T is utilizing:

A. psychographic data

B. mass customization

C. niche marketing

D. marketing research

E. marketing customization

 

70.  A (n) _____ is any good or service that satisfies wants, along with its perceived attributes and benefits.

A. market

B. product

C. brand

D. exchange

E. transaction

 

71. Which of the following is the BEST example of a consumer product?

A. a case of toothbrushes sold to a dentist

B. peanuts to be sold by a vendor at a football game

C. a car bought by a real estate agency for its salespeople to use

D. magazines sold to a college bookstore

E. a textbook purchased by a student taking this class

.

 

72. Which of the following is a consumer nondurable?

A. dishwasher

B. swimming pool

C. laptop computer

D. breakfast cereal

E. television set

 

 

 

 

 

73. Which of the following is a consumer durable?

A. bedroom dresser

B. shampoo

C. pretzels

D. sinus medication

E. razor blades

 

74. The four major groupings of consumer products are:

A. limited, generic, specialty, and unsought

B. shopping, durable, limited, and nondurable

C. unsought, convenience, shopping, and specialty

D. brand, specialty, shopping, and generic

E. convenience, brand, generic, and manufacturer

 

75. Katherine Cozzine is a talented violinist.  She is also pragmatic.  When she graduated from high school, she chose a college that would provide her a strong business foundation even though she would have preferred to major in music.  Cozzine did not know that there are over 200 music-business programs in the U.S., which would have allowed her to continue her music and prepare for a career in the industry.  To Cozzine the music-business programs were ______ products.

A. generic

B. specialty

C. shopping

D. unsought

E. service

 

76. A relatively inexpensive item that requires very little shopping effort is called a _____ product.

A. shopping

B. generic

C. sought

D. specialty

E. convenience

 

77. An example of a convenience product is a:

A. bridal bouquet

B. vacuum cleaner

C. picnic table

D. bar of soap

E. skateboard

 

78. Which of the following is NOT an example of a convenience product?

A. flashlight batteries

B. milk

C. lawn furniture

D. newspaper

E. chewing gum

 

79. Products that are bought after comparing price, suitability, quality, and style are called _____ products.

A. shopping

B. specialty

C. sought

D. generic

E. comparative

 

80. Roger Wu has decided to buy a new Porsche.  Since there are no Porsche dealers in his community, he must travel almost 200 miles to  a find a Porsche dealer to purchase the car of his dreams.  For Wu, a Porsche is a _____ product.

A. generic

B. sought

C. specialty

D. shopping

E. nondurable

 

81. Robert and Maxine Thomason are planning to purchase a new refrigerator-freezer for their new home.  They have compared the quality, style, and price of four models.  For the Thomasons, a refrigerator-freezer is a(n) _____ product.

A. specialty

B. generic

C. industrial

D. convenience

E. shopping

 

82. A _____ product is a product for which consumers may search long and hard and for which they refuse to accept substitutes.

A. shopping

B. specialty

C. convenience

D. generic

E. sought

 

83. A product that is bought by a company for use in making another product is called a(n) _____ product.

A. functional

B. institutional

C. business

D. distribution

E. special-use

 

84. Wultec International Inc., a Canada-based manufacturer, produces end-of-line packaging equipment, such as wrapping machinery, which is used in warehouses to cover pallets and protect their contents.  Wultec end-of-line packaging equipment, when purchased for warehouse use, is an example of which type of business product?

A. accessory

B. component part

C. raw material

D. supplies

E. installation

 

85. Business products are classified into two categories.  Large, expensive items with long life spans are called _____ products, and; smaller, less expensive items with short life spans are called _____ products.

A. amortized; itemized

B. special-use; general-use

C. installation; accessory

D. revenue; expense

E. capital; expense

 

86. Which of the following is considered an expense item for a dentist’s office?

A. a computer system

B. peroxide for whitening teeth

C. dental x-ray equipment

D. office filing cabinet

E. dental examination chair

 

87. Which of the following is an expense item for an independent bookstore?

A. book shelves

B. cash register

C. display cabinet for first editions

D. building in which store is located

E. order forms

 

88. Which of the following is an example of a capital product that would be found in a brewery?

A. bottle labels

B. glass bottles

C. bottling machine

D. hops to make the beer

E. bottle caps

 

89. Which of the following is a capital product for a multinational organization?

A. a corporate jet

B. a fax machine

C. a file folder

D. a mobile phone

E. none of the above

 

90. A large, expensive capital product, such as the Corvette manufacturing plant in Kentucky and Cumberland Mall, is called a(n):

A. structural product

B. installation

C. integral part

D. emplacement

E. component part

 

91. A company in Maine builds portable drilling platforms used to locate new oil fields underwater.  To build a platform, the company had to construct a specially designed dock with a large permanently-placed crane able to lift a twenty ton structure on to its floating base.  This expensive dock and crane are examples of:

A. structural products

B. installations

C. integral parts

D. emplacements

E. component parts

 

92. Which of the following business products would be considered an accessory in the offices of a travel agency?

A. rubber bands and pencils

B. filing cabinet

C. brochures from various tourist destinations

D. billing invoices

E. all of the above

 

 

 

93. Which of the following business products would be considered an accessory in a supermarket?

A. plastic bags

B. Styrofoam trays for meat

C. price stickers

D. cash register and scanning equipment

E. fluorescent lights

 

94. Compressor pumps installed in General Electric refrigerators would be considered:

A. raw material

B. capital items

C. component parts

D. accessories

E. installations

 

95. Radial tires installed on four-wheel drive vehicles are examples of:

A. semi-finished material

B. capital items

C. component parts

D. accessories

E. installations

 

96. Expense items that have undergone little or no processing and are used in the manufacture of end products are called:

A. installations

B. raw materials

C. component parts

D. specialty products

E. accessories

 

97. The unprocessed corn used as the primary ingredient in many brands of dog food is an example of:

A. component material

B. raw material

C. an accessory part

D. a specialty product

E. a supply

 

 

 

 

98. Industrial supplies:

A. are bought routinely

B. are bought in fairly large quantities

C. have little impact on long-run profits

D. are expense items

E. are accurately described by all of the above

 

99. Which of the following is an example of an industrial service?

A. a photocopier

B. a management consulting company

C. baseball jerseys for a company team

D. a device used to sterilize surgical equipment

E. an elevator

 

100. The maker of Centrum multivitamins introduced Centrum Silver, a vitamin designed specifically for older people.  Centrum Silver is an example of a _____, a product that uses an existing brand name in an existing category but with a new formula.

A. flanker brand

B. line extension

C. franchise extension

D. product brand

E. generic brand

 

101. Ocean Spray first introduced cranberry juice drinks.  Then it introduced Cranapple (a cranberry and apple juice mix) also sold under the Ocean Spray brand.  This is an example of a:

A. flanker brand

B. line extension

C. franchise extension

D. product brand

E. generic brand

 

102. The first step in the new products planning process is:

A. brainstorming

B. building a prototype

C. setting a new-product mission

D. setting new-product goals

E. conceptualizing

 

103. To stay a market leader in the confectionary industry, Jelly Belly, the jelly bean manufacturer, must keep coming up with new flavors.  In 2006, it released its Soda Pop Shoppe collection, which was developed after company employees were asked to suggest as many potential new jelly beans tastes as they could without being criticized for any of their ideas, no matter how outlandish.  What method did Jelly Belly use to come up with this new product line?

A. brainstorming

B. building a prototype

C. setting a new-product mission

D. setting new-product goals

E. conceptualizing

 

104. Which of the following is a step in the new-product development process?

A. develop new-product ideas

B. screen ideas

C. create a marketing mix

D. test the new product

E. all of the above

 

105. _____ has a group think of as many ways as possible to generate new-product ideas, vary a product, or solve a problem.

A. Screening

B. Conceptualizing

C. Brainstorming

D. Idealizing

E. Prospecting

 

106. In new-product development, _____ is the stage at which products that do not meet new-product goals are rejected.

A. weeding out

B. scrubbing

C. de-activating

D. screening

E. prospecting

 

107. Life Savers Gummies Fruit Splosions, liquid-filled gummies combined with a burst of real fruit juice, are a new product for The Wrigley Co..  Before marketing the product nationwide, Wrigley gave out samples of the candy at several rock concerts and then recorded consumers' feelings about the candy, its taste, and its name. In which stage of the new-product development process would this have happened?

A. prospecting

B. brainstorming

C. focus group management

D. test marketing

E. screening

 

108. A product that passes test-marketing is ready for market introduction, which is called _____, a step that requires extensive logistical coordination.

A. product submission

B. rollout

C. market targeting

D. rollover

E. presentation

 

109. The _____ is the person who develops and implements a complete strategy and marketing program for a specific product or brand.

A. product manager

B. category manager

C. product gatekeeper

D. brand captain

E. product champion

 

110. Which of the following is NOT one of the stages in the product life cycle?

A. maturity

B. introduction

C. decline

D. development

E. growth

 

111. Diapers is a product category in the maturity stage of its product life cycle.  This means that the manufacturers of diapers:

A. are most interested in building product awareness

B. want to create primary demand for the product

C. are enjoying a drastic decline in sales and profits

D. are creating product line extensions

E. have increased trade allowances

 

112. The process that products go through as they pass through their introduction, growth, maturity, and decline stages is called the:

A. marketing mix

B. product life cycle

C. product mix cycle

D. stages of product development

E. stages of product

 

113. During the growth stage of the product life cycle,:

A. sales grow at an increasing rate, and profits are healthy

B. the product is frequently modified

C. manufacturers adopt a line extension strategy for their product

D. primary demand promotion is the norm

E. production and marketing costs are high, and sales are low

 

114. In which stage of the product life cycle are you most likely to find the manufacturer using a line extension strategy?

A. introduction

B. development

C. maturity

D. growth

E. decline

 

115. Which of the following products would be correctly described as being in the decline stage of their product life cycle?

A. candles

B. exercise equipment

C. golfing magazines

D. manual typewriters

E. fire extinguishers

 

116. Chewy candy manufacturers are coming out with more true-to-fruit flavors, with some companies even fortifying their confections with vitamin C to make them more fruit-like.  From this information, you can surmise that the chewy candy industry is in the _____ stage of the product life cycle.

A. introduction

B. development

C. maturity

D. growth

E. decline

 

117. Price is:

A. always expressed in the United States in dollars and cents

B. based on the expected value you will receive from your purchase

C. based on the actual perception you will receive from your product

D. also called revenue

E. accurately described by none of the above

 

118. _____ occurs when no money is involved in the exchange of goods or services.

A. Image pricing

B. Negotiated pricing

C. Gray marketing

D. Bartering

E. Black marketing

 

119. The two new-product pricing strategies most often used by marketers are:

A. value pricing and cost-plus pricing

B. targeted return pricing and profit maximization pricing

C. psychological pricing and physiological pricing

D. price skimming and penetration pricing

E. price shaving and price grooming

 

120. A strategy of charging a high introductory price for a new product that invites eventual competition is called price:

A. escalation

B. kiting

C. skimming

D. penetration

E. enhancement

 

121. When Top-Flite introduced its Strata golf balls with a new design for better flight with hit by metal clubs, it charged three times the price of golf balls currently on the market.  This high introductory pricing is an example of:

A. price skimming

B. penetration pricing

C. market share pricing

D. limited value pricing

E. low-ball pricing

 

122. With a _____ policy, a company offers new products at a low price in the hope of achieving a large sales volume.

A. price skimming

B. penetration pricing

C. market share pricing

D. limited value pricing

E. low-ball pricing

 

123. The Library is a new bar in town.  Unlike the other bars in town, it charges no cover charge.  The new bar has also priced its beer at $3 less per pitcher than its competition.  Given what you know about pricing strategies, which pricing strategy is the owner of the new bar using?

A. price skimming

B. penetration pricing

C. market share pricing

D. limited value pricing

E. low-ball pricing

 

124. The pricing strategy of marking products below normal markup or even below cost to attract customers to a store where they would not otherwise shop is called _____ pricing.

A. economy

B. rebate

C. leader

D. skimming

E. psychological

 

125. The craft store marked skeins of embroidery thread down to a quarter apiece to attract more customers into the store.  This was below the store's cost.  The skeins of thread was intended to be a _____ to increase store traffic:

A. markdown

B. loss leader

C. differentiated product

D. bargain leader

E. customer-targeted product

 

126. The Springwood Inn offers a package of room, breakfast, and parking for $225.00.  This strategy is called:

A. combining

B. grouping

C. bundling

D. aggregated pricing

E. psychological pricing

 

127. When Gene O'Hare went online to plan his vacation to Australia, he learned that he could buy plane tickets, rent a car, and pay for a hotel in a reduced-price tourist package, which made it very convenient for him to book his trip.  The Web site O'Hare visited used _____ to make trip planning easier and more economical.

A. price structuring

B. price grouping

C. bundling

D. aggregated pricing

E. psychological pricing

 

128. Pricing a product at $399.99 instead of $400 to make the customer view the price as in the $300 range instead of the $400 range is an example of:

A. price lining

B. deception pricing

C. minimized pricing

D. red-line pricing

E. psychological pricing

 

129. There are a lot of talented people.  Many singers who have not been discovered are as talented or more so than some of the best-known musical artists.  For instance, pricing a musical act at $20,000 when a small community arts center can get just as great an entertainment experience for its audience for $5,000 is an example of:

A. price lining

B. snob pricing

C. prestige pricing

D. over-value pricing

E. demand-based pricing

 

130. _____ pricing is the strategy of increasing the price of a product so that consumers will perceive it being of higher value.

A. Psychological

B. Leader

C. Bait

D. Prestige

E. Specialty

 

131. _____ involves creating a unique marketing mix for every consumer.

A. Niche marketing

B. One-to-one marketing

C. Aggregated marketing

D. Macromarketing

E. Flexible marketing

 

132. Jay Pontiac, an auto dealer, wanted to develop a service reminder program in the form of brochures that could be sent to individual customers.  On the cover of each individualized brochure was an image of the customer’s vehicle, the customer’s name, and vehicle model name.  Inside was the vehicle’s estimated current mileage at the time of the mailing. Recommended services for that vehicle based on the estimated mileage were also included. Detailed service information was provided in the service history section of the brochure.  On the back of the brochure were four coupons directly related to the service recommendations.  Jay Pontiac used:

A. macromarketing

B. mass production

C. one-to-one marketing

D. aggregated marketing

E. a decision support management system

 

 

FILL-IN-THE-BLANK QUESTIONS

 

1. ______ is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges.

 

 

2. An _____ takes place when the consumer trades money for desired goods and services.

 

3. The _____ is oriented toward identifying consumer needs and producing goods and services that satisfy those needs.

 

4. The goal of Budget Rent A Car System is to attract budget minded consumers with an entertaining and informative game.  These budget-minded consumers would be classified as Budget's _____ market.

 

5. Choosing the brand name, package size and color, and the length of warranty are components of the _____ strategy.

 

6. A company has developed a keyboard that is virtually indestructible.  It is trying to decide how to get its product into the hands of people like to use their computers while they eat lunch.  The company is concerned with the _____ strategy.

 

7. The _____ strategy would be concerned with refunds, rebates, fixed costs, variable costs and anything else that directly affects what is charged for a product.

 

8. Marketing to attract customers and funding for museums, symphonies, and zoos is an example of ______ marketing.

 

9. ______ segmentation is market segmentation by personality or lifestyle.

 

10. Chewing gun, candy bars, milk, and bread are all examples of _____ products.

 

11. Andi and Baja Lundt are in the market for a new gas grill.  When they compare brand-to-brand and store-to-store for a grill, they are treating grills as _____ products.

 

12. _____ are large, expensive capital items that determine the nature, scope, and efficiency of a company, such as an assembly plant.

 

13. ______ are inputs to the final product, like cotton, wheat, iron ore, and soybeans that have undergone little or no processing.

 

14. During the _____ stage of the product life cycle, competition is light, production and marketing costs are high, and profits are either small or negative.

 

SHORT ANSWER QUESTIONS

 

1. What is the marketing concept?

 

2. Reality television shows are often designed to appeal to people who would themselves like to appear on television.  What is the collective term for this group of viewers?

 

3. What is another name for a competitive advantage?

 

4. Why are cost competitive advantages not as long lasting as other kinds of competitive advantage?

 

5. List the components of the marketing mix.

 

6. What is the primary focus of not-for-profit marketers?

 

7. What are the first two steps in the consumer decision-making process?

 

8. What is the key difference between consumer products and business-to-business products?

 

9. What kind of segmentation is the publisher of Seventeen magazine using?

 

10. What kind of segmentation is the publisher of Golf Digest magazine using?

 

11. List the three basic marketing research techniques.

 

12. What is a product?

 

13. List the four major categories of consumer products.

LEARNING OUTCOME: 6

 

14. What are the two classifications of business products?