BUSI 330 quiz 3 solutions complete answers

BUSI 330 quiz 3 solutions complete answers 

 

Installations are support products such as

 

Tony Hsieh’s most important contribution at Zappos was to

 

In the segmentation process, pairing side sleepers with firm pillows, back sleepers with medium pillows, and stomach sleepers with soft pillows would be done with a

 

Based on ________, the Campbell Soup Co. changed the labels of most of its soup cans to add steam rising from the product and remove the “unemotional spoons.”

 

Each survey method, from focus groups to personal interviews, results in valuable ________, which are facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.

 

The annual Street & Smith’s Baseball magazine had exactly the same stories but with 15 different covers to appeal to baseball fans in 15 of the U.S. regions. What is the basis of its market segmentation strategy?

 

Figure 7-2 shows that secondary data may be divided into two related parts. If B represents data collected from the U.S. Census Bureau, trade association studies, business periodicals, etc., which type of data is B?

 

Figure 7-7 depicts what type of statistical forecasting (line A)?

 

Question 1

Semantic differential and Likert are question types that uses a(n)

Question 2

A direct forecast involves estimating the value to be forecast and

Question 3

Primary data refer to

Question 4

A general rule of thumb among marketing researchers is to use __________ first and then collect __________.

Question 5

Before opening six Torrid plussizeonly retail stores that cater to women aged 1530, a great deal of information was gathered from a sample of women to determine what types of items should be carried, the image of the store, its advertising, etc. Which of the following is an example of a closedend question that might have been asked?

Question 6

Research and media firm Youth Culture publishes Watch magazine, a teen publication given out free to high school students. Unfortunately, the publication was unable to gauge whether or not it was meeting the needs of its audience. Youth Culture handed out surveys to learn how students felt about the publication. Feedback indicated teen boys and girls were demanding very different things from the publication. This feedback was gleaned from __________ data.

Question 7

A specialized observational approach, in which trained observers seek to discover subtle behavioral and emotional reactions as consumers encounter products in their natural use environment, is referred to as __________ research.

Question 8

The type of question you are answering right now is an example of a(n) __________ question. 

Question 9

GI Design is a small studio that designs and builds items such as fountains and tabletops made from copper. To increase sales, Greg, the owner, developed a research plan to determine what landscape architects and interior designers wanted in copper furnishings and appropriate pricing. He had begun to interview representative designers. Greg was engaged in __________, the third step of the fivestep marketing research approach.

Question 10

Million Dollar Baby is an example of a successful movie that could have failed because

Question 11

The William Morris Agency represents country singer Trace Adkins in negotiations with various venues in which he could perform. Imagine that the agency decided the singer would not perform at venues located in small town communities that have less than 100,000 people. Thus, the agency is using __________ segmentation.

Question 12

In the athletic shoe market, Reebok and Nike practice __________ positioning since both manufacturers vie for the same customers with technologically advanced products.

Question 13

Marketing synergies often come at the expense of product synergies because

Question 14

Figure 86 above shows the marketproduct grid for a Wendy's restaurant next to a large urban university campus. Assume a large market (shown by a 3) is three times the size of a small market (shown by a 1) and a medium market (shown by a 2) is twice the size of a small market. The meal occasion (product grouping) that comprises the largest product grouping is 

Question 15

The 80/20 rule suggests that

Question 16

In Figure 81 above, C represents which stage of the market segmentation process?

Question 17

A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a __________.

Question 18

Product features and usage rate are both variables used to employ __________ segmentation.

Question 19

The market segmentation strategy known as frequency marketing focuses on

Question 20

The Walt Disney Company carefully markets two distinct WinniethePoohs; one is the original linedrawn figure on fine china sold at Nordstrom and the other is a cartoonlike Pooh on polyester bed sheets sold at Target. This is an example of

Question 21

The addition of Clorox II bleach to Tide laundry detergents is an example of a

Question 22

A 3M researcher worked with university students to develop the Postit→ Flag Highlighter. His team evaluated the technical feasibility of the proposed design and determined whether the idea met the firm's newproduct objectives. At which stage of the newproduct process was this product?

Question 23

With respect to price, which of the following type of consumer product would usually be very expensive?

Question 24

The stage of the newproduct process that develops a pool of concepts to serve as candidates for new products is referred to as __________.

Question 25

A product that is new in some way but requires no new behaviors to be learned by consumers is a

Question 26

The emergency room staff in Houston's largest hospital is pleasantly surprised when a fourday Fourth of July weekend brings in few accident victims for treatment. They know from experience that such public holidays usually have high rates of accidents. For the hospital's business office, the lower demand for the emergency room services means

Question 27

In marketing, an idea is

Question 28

With respect to distribution, shopping products are available

Question 29

Speed or __________ is often vital in introducing a new product.

Question 30

The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given as gifts for almost every occasion imaginable. The Love Bandit Bear is designed for people to give to each other on Valentine's Day. The unique identification number that the Vermont Teddy Bear Company uses to distinguish this Teddy bear from the others in order to track it in the warehouse is called a(n)

 

Question 1

 

Figure 7‑1

According to Figure 7‑1 above, specifying constraints occurs during which step of the five‑step marketing research approach?

Question 2

DirectProtect is an insurance provider that uses telemarketers rather than insurance agents to sell its insurance and to deal with claims. It wants to introduce its product into new markets, but before it does so, it wants to predict how successful its sales efforts will be. The marketing research firm hired to conduct the research study has six months to gather, analyze, and present its data to DirectProtect. The required time frame is an example of a(n)

Question 3

Fisher‑Price watches young children play with its toys to determine if and how various products should be changed or improved. Fisher Price is collecting __________ data.

Question 4

The type of question you are answering right now is an example of a(n) __________ question.

Question 5

Primary data refer to

Question 6

One test of whether marketing research should be done is if

Question 7

The Minnesota Twins, a professional baseball team, wanted to develop creative ways to boost sagging attendance at its ball games. The Twins hired a moderator who, after every home game during the month of July, led informal discussions with groups of 6 to 10 fans to find out what they did and did not like about the baseball team and their experience at the stadium. Discussions were videotaped for later review. These informal research sessions are called

Question 8

Secondary data are the

Question 9

What marketing metric determines whether a TV program like American Idol remains on the Fox broadcast TV network?

Question 10

Obtaining primary and secondary data would take place during which stage of the five‑step marketing research approach?

Question 11

All of the following are market segmentation strategies EXCEPT:

Question 12

Product differentiation refers to

Question 13

Tony Hsieh, CEO of Zappos, offers one month's salary to anyone who

Question 14

The company name Zappos was chosen because it

Question 15

Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it serves customers' needs better, doesn't reduce quality or increase price, and

Question 16

A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products is referred to as __________.

Question 17

Variables such as location, the North American Industry Classification System (NAICS) code, and number of employees are all examples of ways to

Question 18

Variables that are based on some objective physical (gender, ethnicity), measurable (age, income), or other classification attribute (occupation) of prospective customers are used in which segmentation base?

Question 19

During its market segmentation process for the Nike LeBron X basketball shoe, which sells for $200+ a pair, Nike decided to concentrate on affluent teens rather than members of high school basketball teams. This is an example of

Question 20

Todd Harris and Associates, a New York sales promotion agency, discovered from an analysis of its files that one‑quarter (or 25 percent) of its clients generated more than three‑quarters (or 75 percent) of its fees and commissions. This is an example of what classic concept?

Question 21

LG Electronics Inc. has entered into an agreement with Google to offer selected smartphone models that use a multitouch interface rather than buttons to make calls with Google's Android operating system. When the multitouch interface was first introduced, it was an example of which type of innovation?

Question 22

Which of the products listed below would be the best candidate for full‑scale market testing?

Question 23

 

UMD9: Marketing Dashboard Map

In the UMD9: Marketing Dashboard Map above, the annual growth rate in each state is shown, with green (which looks gray on printed paper) meaning good and red (which looks black on printed paper) meaning very bad. If an organization's 2013 sales for the entire U.S. were $50 million and its 2012 U.S. sales were $30 million, what is the annual % sales change?

Question 24

 

Figure 9‑1

As shown in Figure 9‑1 above, which of the following statements is most accurate?

Question 25

In terms of promotion, which of the following type of consumer product stresses product differentiation from competitors?
Question 26

Consumer products refer to

Question 27

The type of business products known as support products includes installations, supplies, accessory equipment, and __________.

Question 28

Breyer's introduced a new line of ice cream flavors for sale in elegant black containers. This was done on a limited scale to determine consumer reactions before national distribution of the product. Breyer's new product was in the __________ stage of the new‑product process.

Question 29

Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) __________; (2) specific customers' needs, wants, and preferences; and (3) what the product or service will be and do to satisfy consumers.

Question 30

The emphasis of a marketing strategy for a dynamically continuous innovation would include

 

 Field of Dreams and Million Dollar Baby are examples of successful movies that could have failed because

a.   too little money was spent on promotion.

b.   they were targeting the wrong target market segments.

c.   there was too little similarity between the original book and the screenplay.

d.   their original titles did not convey the correct message to their prospective audiences.

e.   too much time lapsed between their promotions and their releases.

 Filmmakers want movie titles that use the same factors that make a good brand name.  Ideally, they should __________.

a.   have no legal restrictions

b.   create a sense of mystery

c.   use devices such as alliteration or  rhyme

d.   create a sense of familiarity

e.   be creative

 Filmmakers want movie titles that use the same factors that make a good brand name.  They must be __________.

a.   creative

b.   familiar

c.   concise

d.   alliterative

e.   easy to remember

 Filmmakers want movie titles that use the same factors that make a good brand name.  They must __________.

a.   be creative

b.   seem familiar

c.   use alliterative techniques

d.   be easy to remember

e.   capture the essence of the film

 Movie studios use market research to reduce their risk of losses by hiring firms like the National Research Group to conduct test screenings and tracking studies.  Often, 300 to 400 prospective moviegoers are recruited to attend a “sneak preview” of a film before its release.  After viewing the movie, the audience fills out an exhaustive survey to

a.   evaluate the quality of directing and producing.

b.   critique the title, plot, and characters.

c.   rate the performances of the individual actors and actresses.

d.   recall specific details of the plot and dialogue.

e.   compare the final film with the original script.

 The primary purpose of a “sneak preview” of a film prior to its release is to

a.   rate the performances of the individual actors and actresses for possible Oscar nominations.

b.   rate the work of the director and producer for possible Oscar nominations.

c.   evaluate the effectiveness of product placements within the film.

d.   compare the final film to the original screenplay.

e.   identify necessary changes prior to final editing and release to increase the film’s likelihood of success.

 Marketing researchers use tracking studies immediately before an upcoming film’s release to

a.   identify any factual errors or inconsistencies in the storyline.

b.   nominate specific actors or actresses for industry awards.

c.   forecast a movie’s opening weekend box office revenues.

d.   select the best geographical location for the movie’s premiere.

e.   make changes to the movie’s release based upon professional critics’ reviews.

 After qualifying by having seen at least six movies in the last year, members of tracking studies are asked three key questions, one of which is __________.

a.   How much would you be willing to pay for a ticket?

b.   Will you be seeing the movie with someone else?  If so, with whom?

c.   In your own words, what is the premise of the movie?

d.   Will you see the film this weekend?

e.   If you like the movie, what is the probability that you will purchase it when it is released on a DVD?

 Movie studios use tracking studies in which prospective moviegoers are asked questions about an upcoming film release to help them forecast sales.  This is an example of

a.   movie advertising.

b.   marketing research.

c.   tactical support.

d.   cross-movie research.

e.   movie audits.

 Surveys, testing of marketing campaigns, sneak previews, and tracking studies are all examples of market research techniques.  Collectively, they are used in the movie industry to

a.   estimate a production company’s potential market share.

b.   identify prospective nominees for industry awards such as the Oscars.

c.   create an advance market for the movie’s DVD release regardless of whether it is successful in its theater release or not.

d.   identify possible story lines and/or plots for future movie ventures.

e.   reduce uncertainty and  improve marketing decisions.

 

Figure 8-A

 According to Figure 8-A above, when conducting marketing research, why would you ask the question, “How old are you?” before the test screening of a movie?

a.   to identify people who fit the profile of the target audience for the movie

b.   to identify people who frequently attend movies

c.   to make sure the respondent meets recommended age requirements for being admitted to the movie (G, PG, R, etc.)

d.   to determine if the respondent is old enough to relate to the characters

e.   to determine if the respondent is mature enough to provide valuable input when critiquing the elements of the movie

When conducting marketing research, why would you ask the questions, “Did you like the ending?” and “If not, how would you change it?” after the test screening of a movie?

a.   to screen out people who simply want a free movie ticket

b.   to change or clarify the ending of the movie

c.   to determine the relationship between ticket prices and happy endings of movies

d.   to identify people who frequently attend movies

e.   to separate those aware of the movie ending from those who are not aware

 The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions is referred to as __________.

a.   marketing enquiry

b.   strategic intelligence

c.   data mining

d.   marketing tactics

e.   marketing research

 Marketing research refers to

a.   the process of systematically collecting and analyzing information in order to define a marketing problem.

b.   the use of information technology to find objective solutions to a marketing problem.

c.   the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.

d.   the use of subjective data such as interviews and observation to complement empirical data obtained through the use of information technology.

e.   the science of using observable human behavior in order to identify and solve marketing problems.

 Which of the following statements concerning marketing research is most accurate?

a.   The primary purpose of marketing research is to collect data, not to take actions on it.

b.   When collecting marketing research, people may or may not be willing to tell you what you want to know if it is potentially embarrassing.

c.   Marketing research, if done properly, will always result in a positive marketing result.

d.   People are just as able to give accurate information about products they have only heard about as those they have actually used.

e.   Among those people who participate in market research studies, there is an almost perfect correlation between a respondent’s stated intentions and his/her actual buying behavior.

Grape-Nuts was one of the first cereals Post Cereal Company ever marketed.  It scores well in brand awareness studies, but recently its sales have been steadily declining.  Rather than assume the product was a “dog,” the Grape-Nuts marketing manager decided Post should first

a.   update the flavor of the cereal by making it slightly sweeter.

b.   increase the amounts spent on advertising and promotion.

c.   do marketing research to identify what needs were not being satisfied.

d.   hire additional salespeople who were younger and more assertive to contact grocery stores.

e.   realign Grape-Nuts as a “star” and increase production.

Members of the Book Promoters Association of Canada recently questioned what could be done to rejuvenate the Canadian book publishing industry.  Some members claimed the problem was Canadian bookstores had been replaced by Walmarts.  Others said the problem was with stodgy promotions.  Still others said the problem was caused by too little money being budgeted to fund marketing programs.  The best way to identify the problem would be to use __________.

a.   market analysis

b.   marketing management

c.   marketing audit

d.   marketing research

e.   data mining

A decision refers to

a.   a premeditated selection resulting in a personal action.

b.   a conscious choice among a set of alternatives that creates the least amount of risk.

c.   a conscious choice from among two or more alternatives.

d.   a subconscious selection of the alternative most consistent with one’s personal beliefs.

e.   an unconscious choice selected from a subset of positive alternatives.

In marketing, a conscious choice made from among two or more alternatives is referred to as

a.   a preference.

b.   a paradigm.

c.   a conclusion.

d.   a paradox.

e.   a decision.

Decision making is the act of

a.   consciously choosing from among alternatives.

b.   consciously choosing an action that doesn’t involve risk.

c.   a subjective selection from a subset of positive alternatives.

d.   subconsciously selecting the alternative that is most consistent with one’s personal beliefs.

e.   objectively selecting the most financially sound decision among two or more alternatives.

The first step of the marketing research approach is to __________.

a.   develop findings

b.   define the problem

c.   take marketing actions

d.   collect relevant information

e.   develop the research plan

The second step of the marketing research approach is to __________.

a.   develop findings

b.   define the problem

c.   take marketing actions

d.   develop the research plan

e.   collect relevant information

The third step of the marketing research approach is to __________.

a.   develop findings

b.   define the problem

c.   take marketing actions

d.   develop the research plan

e.   collect relevant information

The fourth step of the marketing research approach is to __________.

a.   develop findings

b.   define the problem

c.   take marketing actions

d.   develop the research plan

e.   collect relevant information

The fifth step of the marketing research approach is to __________.

a.   develop findings

b.   define the problem

c.   collect relevant information

d.   develop the research plan

e.   take marketing actions

Setting research objectives and identifying possible marketing actions would take place during which stage of the five-step marketing research approach?

a.   collect relevant information

b.   develop the research plan

c.   develop findings

d.   take marketing actions

e.   define the problem

Specifying constraints, identifying data needed for marketing actions, and determining how to collect data would take place during which stage of the five-step marketing research approach?

a.   collect relevant information

b.   develop the research plan

c.   develop findings

d.   take marketing actions

e.   define the problem

Obtaining primary and secondary data would take place during which stage of the five-step marketing research approach?

a.   collect relevant information

b.   develop the research plan

c.   develop findings

d.   take marketing actions

e.   define the problem

Analyzing data and presenting the results of this analysis would take place during which stage of the five-step marketing research approach?

a.   collect relevant information

b.   develop the research plan

c.   develop findings

d.   take marketing actions

e.   define the problem

Making recommendations, implementing those recommendations, and evaluating the results would take place during which stage of the five-step marketing research approach?

a.   collect relevant information

b.   develop the research plan

c.   develop findings

d.   take marketing actions

e.   define the problem

 

Figure 8-1

According to Figure 8-1 above, “specify constraints” occurs during which step of the five-step marketing research approach?

a.   “A”

b.   “B”

c.   “C”

d.   “D”

e.   “E”

According to Figure 8-1 above, “implement marketing actions” occurs during which step of the five-step marketing research approach?

a.   “A”

b.   “B”

c.   “C”

d.   “D”

e.   “E”

According to Figure 8-1 above, “analyze the data” occurs during which step of the five-step marketing research approach?

a.   “A”

b.   “B”

c.   “C”

d.   “D”

e.   “E”

According to Figure 8-1 above, “set research objectives” occurs during which step of the five-step marketing research approach?

a.   “A”

b.   “B”

c.   “C”

d.   “D”

e.   “E”

According to Figure 8-1 above, “obtain primary data” occurs during which step of the five-step marketing research approach?

a.   “A”

b.   “B”

c.   “C”

d.   “D”

e.   “E”

Obtaining primary and secondary data would take place during which stage of the five-step marketing research approach?

a.   define the problem

b.   develop the research plan

c.   collect relevant information

d.   develop findings

e.   take marketing actions

Watch was a teen publication given out free to high school students, but the publication was unable to deliver the response rates to coupons or sample offers that its advertisers expected.  After defining the problem, its publisher developed a research plan, gathered information from teen focus groups, analyzed the findings, and replaced Watch magazine with Fuel for boys and Verve for girls.  How would a marketer judge the publisher’s actions?

a.   Why fix something that is not broken?  The magazine was still attracting some advertisers.

b.   It made a big deal out of a small decline—a few copy changes would have been enough.

c.   The approach it took was too complicated and costly to provide an effective solution to the problem.

d.   It took a systematic approach to analyzing the problem and responded to its advertisers’ concerns.

e.   This publisher used an approach that works for corporations but will just waste time for a small publisher.

Several years ago, SwissAir made some unwise investments to pay for a planned expansion.  As a result, the company had to make some cost-cutting moves that alienated its customers.  Eventually, the company declared bankruptcy, regrouped, and found itself able to resume business.  Its board of directors recently announced that the company would resume flying if it could prove that the airline could regain at least 75 percent of its lost customers.  It decided to allocate $50,000 to determine the likelihood that its former customers would fly on the airline again and find methods requiring little or no money that could be used to increase that probability.  This description represents which stage in the marketing research approach?

a.   define the problem

b.   develop the research plan

c.   collect relevant information

d.   develop findings

e.   take marketing actions

Research objectives are __________.

a.   goals conjectures regarding outcomes

b.   general research guidelines

c.   solutions to be evaluated

d.   specific and measurable

e.   research dashboards

During the marketing research process, __________ are the specific, measurable goals the decision maker seeks to achieve in conducting the marketing research.

a.   measures of success

b.   research constraints

c.   marketing research plans

d.   hypothetical scenarios

e.   research objectives

What is the marketing research term for the specific, measurable goals the decision-maker seeks to achieve in conducting the marketing research?

a.   research constraints

b.   research objectives

c.   research decisions

d.   measures of success

e.   marketing conjectures

In setting research objectives, marketers have to be clear on the purpose of research they are about to do that leads to marketing actions.  The three main types of marketing research include exploratory research, causal research, and __________ research.

a.   virtual

b.   descriptive

c.   financial

d.   interdisciplinary

e.   interactive

In setting research objectives, marketers have to be clear on the purpose of the research that leads to marketing actions.  The three main types of marketing research include descriptive research, causal research, and __________ research.

a.   virtual

b.   interactive

c.   financial

d.   interdisciplinary

e.   exploratory

In setting research objectives, marketers have to be clear on the purpose of the research that leads to marketing actions.  The three main types of marketing research include descriptive research, exploratory research, and __________ research.

a.   causal

b.   virtual

c.   interactive

d.   effect

e.   interdisciplinary

Research that provides ideas about a relatively vague problem is referred to as

a.   virtual research

b.   interactive research

c.   causal research

d.   descriptive research

e.   exploratory research

Research that involves trying to find the frequency that something occurs or the extent of a relationship between two factors is referred to as

a.   virtual research.

b.   interactive research.

c.   causal research.

d.   descriptive research.

e.   exploratory research.

A firm trying to obtain data on the number of households that buy a particular product would most likely use which type of marketing research?

a.   descriptive

b.   explanatory

c.   exploratory

d.   causal

e.   concrete

Research that involves trying to determine the extent to which the change in one factor changes another one is referred to as

a.   virtual research.

b.   interactive research.

c.   exploratory research.

d.   descriptive research.

e.   causal research.

A test market is an example of which type of marketing research?

a.   descriptive

b.   explanatory

c.   exploratory

d.   causal

e.   concrete

A test market in which a new breakfast cereal is offered at different prices to determine the different levels of sales is an example of which type of marketing research?

a.   descriptive

b.   explanatory

c.   exploratory

d.   causal

e.   concrete

Measures of success refer to

a.   the goals the decision maker seeks to achieve in solving a problem.

b.   criteria or standards used in evaluating proposed solutions to a problem.

c.   identification of acceptable alternatives for collecting data to solve a problem.

d.   objective data used to identify the most profitable solution to a marketing problem.

e.   subjective data used to identify the most profitable solution to a marketing problem.

Effective decision makers rely on criteria or standards used in evaluating proposed solutions to a problem, which are known as

a.   marketing dashboards.

b.   measures of success.

c.   descriptive research.

d.   constraints.

e.   problem definitions.

Criteria or standards used in evaluating proposed solutions to a problem are referred to as

a.   solution factors.

b.   constraints.

c.   determinant factors.

d.   measures of success.

e.   resolution parameters.

Effective decision makers develop specific __________, which are criteria or standards used in evaluating proposed solutions to the problem.

a.   standards of accuracy

b.   measures of success

c.   measures of variability

d.   limits of consideration

e.   limits of probability

One test of whether marketing research should be done is

a.    if different outcomes will lead to different marketing actions.

b.    if different outcomes will lead to the same marketing actions.

c.   using a jury of executive opinion to interpret the data.

d.   agreeing to take action only if the decision is unanimous.

e.    if the action is agreed on, regardless of the outcome of the research.

Based on the Fisher-Price Chatter Telephone example in the textbook, if a measure of success is “playtime” for a particular telephone design, what would be an example of a possible marketing action if the results of observation were  “Children spent more time playing with new design?”

a.   continue with the old design; don’t introduce the new design

b.   introduce the new design; drop the old design

c.   introduce the new design; but add some new features

d.   mine the data further for children reactions; take no action

e.   add digital dashboards to analyze reactions to the new design; add some new features

Which of the following statements represents a possible measure of success in Step 1—define the problem of the five-step marketing research approach?

a.   You have three weeks and $10,000 to determine if it is going to be profitable to serve breakfast on weekdays or not.

b.   If three year olds like this product, then it stands to reason that four-year olds will like it even more.

c.   Use mail questionnaires, not focus groups.

d.   Let’s identify the most cost effective method of advertising.

e.   If observations show that children like Toy A more than Toy B in terms of hours spent playing with it, then we will move ahead with making Toy A.

When Home Depot entered the Quebec market, two percent of the population were aware of the retail chain.  To determine how effective its advertising was in the first 18 months of its presence in Quebec, the firm conducted awareness research for a second time.  Prior to conducting the research, it was decided that if at least 50 percent of the population were aware of the Home Depot brand, it would continue its present advertising program.  This is an example of a(n)

a.   objective.

b.   constraint.

c.   assumption.

d.   measure of success.

e.   barrier to entry.

After defining the problem, the next step in the five-step marketing research approach is to

a.   develop the research plan.

b.   evaluate the results.

c.   examine the alternatives.

d.   enumerate the uncertainties.

e.   experiment.

Specifying constraints, identifying data needed for marketing actions, and determining how to collect data, would take place during which stage in the five-step marketing research approach?

a.   define the problem

b.   develop the research plan

c.   collect relevant information

d.   develop findings

e.   take marketing actions

The retail mall owner told the marketing researcher, “We have the option of staying open late twice a week or opening up an hour early every day.  We need to know which will be most profitable since we cannot do both.  The decision must be made in 11 weeks and we only have $10,000 budgeted for this research project.”  In which stage of the marketing research process would this statement have been made?

a.   define the problem

b.   develop the research plan

c.   collect relevant information

d.   develop findings and recommendations

e.   take marketing actions

In a decision, the restrictions placed on potential solutions to a problem are referred to as

a.   objectives.

b.   inhibitors.

c.   dependent variables.

d.   obstructions.

e.   constraints.

In a marketing decision, constraints refer to

a.   the external factors affecting the number of people who can work on a solution to a problem.

b.   the number of possible alternatives in a company’s solution set.

c.   the restrictions placed on potential solutions to a problem.

d.   the internal factors affecting whether to select one alternative over another.

e.   the internal factors that determine who in the organization ultimate selects the best solution to the problem.

The __________ in a decision are the restrictions placed on potential solutions to a problem.

a.   dependent variables

b.   obstructions

c.   objectives

d.   constraints

e.   inhibitors

What are the two most common constraints in marketing problem solving?

a.   limitations of personnel and office space

b.   limitations on the time and money available

c.   government regulations and rights to privacy

d.   limitations on access to upper and middle management

e.   limitations of the thinking and creativity of the firm’s advertising agency

DirectProtect is an insurance provider that uses telemarketers rather than insurance agents to sell its insurance and to deal with claims.  It wants to introduce its product into new markets, but before it does so, it wants to predict how successful its sales efforts will be.  The marketing research firm hired to conduct the research study has six months to gather, analyze, and present its data to DirectProtect.  The required time frame is an example of a(n)

a.   dependent variable.

b.   obstruction.

c.   objective.

d.   constraint.

e.   independent variable.

Penningtons Superstore specializes in plus-size fashions for women. It was considering adding a line of teen plus sizes to its stores. Before doing so, it contracted with a marketing research firm to make sure that the teen plus-size market was a viable one. Decision makers needed the results of its study by September 15 so Penningtons could introduce the line the following March, if the market was viable. The major constraint for research here is

a.   collecting secondary data

b.   finding primary research candidates to interview

c.   meeting the time deadline

d.   establishing measures of success

e.   locating age-appropriate styles in plus sizes

Two key elements in deciding how to collect marketing data are __________ and __________.

a.   concepts; notions

b.   concepts; methods

c.   notions; hypotheses

d.   perceptions; impressions

e.   methods; theories

In the world of marketing, __________ are ideas about products or services.

a.   theories

b.   notions

c.   perceptions

d.   impressions

e.   concepts

A picture or verbal description of a product or service a firm might offer for sale is referred to as a(n)

a.   constraint.

b.   proposition.

c.   new-product concept.

d.   alternative.

e.   protocol.

Prior to its production, Fisher-Price managers developed a(n) __________ for the Chatter Telephone that involved adding a noisemaker, wheels, and eyes to the basic telephone.

a.   virtual concept

b.   product substitute

c.   product hypothesis

d.   new-product concept

e.   new-feature matrix

The approaches that can be used to collect data to solve all or part of a marketing research problem are referred to as

a.   proposals.

b.   strategies.

c.   tactics.

d.   analyses.

e.   methods.

The Journal of Marketing Research and the Journal of Marketing provide

a.   up-to-date tables for the latest data on consumer sales, listed by industry.

b.   summaries of research methods and techniques valuable in addressing marketing problems.

c.   the latest data on marketing expenditures based on consumer demographics.

d.   postings of professional marketing opportunities at universities and colleges.

e.   an in-depth list of marketing positions and opportunities at major corporations.

Sampling and statistical inference are known as special __________, which are vital in marketing research to solve all or part of a problem.

a.   systems

b.   styles

c.   methods

d.   manners

e.   modes

In marketing, the term sampling refers to

a.   testing the effectiveness of a marketing alternative in a supervised setting.

b.   the collection of various secondary data through electronic or mechanical means.

c.   allowing a subject to experience first-hand a new or updated product or service.

d.   the process of selecting representative elements from a population and treating their answers as typical of all those in whom they are interested.

e.   testing members from all ages, both genders, and different levels of income and education to guarantee reliable information.

The process of selecting representative elements from a population is referred to as

a.   hypothesis generation.

b.   sampling.

c.   information gathering.

d.   statistical inference.

e.   probability extrapolation.

The method of __________ involves generalizing the results from the sample to much larger groups of distributors, customers, or prospects to help decide on marketing actions.

a.   nonprobability sampling

b.   probability sampling

c.   extrapolation

d.   statistical inference

e.   criteria sampling

Drawing conclusions about a population from a sample taken from that population is referred to as

a.   nonprobability sampling

b.   statistical inference

c.   probability sampling

d.   extrapolation

e.   criteria sampling

Drawing conclusions about every woman who wears a size 14 or larger in a particular zip code from a representative sample of 250 women in that zip code who wear a size 14 or larger would be

a.   probability sampling.

b.   nonprobability sampling.

c.   random sampling.

d.   statistical inference.

e.   interpolation.

The National Health Interview Survey is conducted annually by the Centers for Disease Control and Prevention.  By examining information gathered from a national sample of 600 respondents throughout the U.S., it was able to announce that 14.1 percent of all Americans lacked healthcare insurance.  To make this statement, the Centers for Disease Control and Prevention had to use

a.   focus groups.

b.   no constraints.

c.   internal secondary data.

d.   statistical inference.

e.   interpolation.

After defining the problem and developing the research plan, the next step in the five-step marketing research approach is to

a.   collect relevant information.

b.   develop findings and recommendations.

c.   take marketing actions.

d.   plan the research budget.

e.   identify the constraints on the process.

GI Design is a small studio that designs and builds items such as fountains and tabletops made from copper.  Greg, the owner, had a problem of how to increase sales and profits, so he developed a research plan to determine what landscape architects and interior designers wanted in copper furnishings and décor and the appropriate price for these items.  He decided to interview representative designers as part of his approach.  Greg was engaged in __________, the third step of the five-step marketing research approach.

a.   collecting relevant information

b.   developing the research plan

c.   solving the problem

d.   developing findings and recommendations

e.   taking marketing actions

Penningtons Superstore, which specializes in plus-size fashions for women, wanted to determine if it should add a line of plus-size junior wear.  The following statement reflects which step in the five-step marketing research approach?: “To compare the effectiveness of offering products for the teenage market in our current stores versus opening separate stores targeted directly to this market, let’s distribute questionnaires to current shoppers and solicit their opinions, set up some focus groups with plus-size teens, and locate any relevant secondary research.”

a.   define the problem

b.   develop the research plan

c.   collect relevant information

d.   develop findings and recommendations

e.   take marketing actions

The facts and figures related to the problem are referred to as__________.

a.   data

b.   statistics

c.   variables

d.   concepts

e.   constraints

Data refers to

a.   subjective psychographic feelings collected by an organization upon which it bases subsequent actions.

b.   objective demographic characteristics collected by an organization upon which it bases subsequent actions.

c.   the facts and figures related to the problem that are divided into two main parts: secondary data and primary data.

d.   information collected by a source other than the company itself used to determine the best possible solution to a problem.

e.   opinions collected from within a company to determine which alternative within a solution set offers the greatest opportunity for success of a marketing program.

The two main types of data are

a.   independent and dependent.

b.   primary and secondary.

c.   comprehension and case specific.

d.   extraneous and experimental.

e.   measurable and non-measurable.

 

Figure 8-2a

Figure 8-2a above shows the two main types of data.  If “A” represents the facts and figures that are newly collected for the project, which type of data is “A?”

a.   internal primary data

b.   secondary data

c.   external primary data

d.   primary data

e.   internal secondary data

Figure 8-2a above shows the two main types of data.  If “B” represents the facts and figures that have already been recorded before the project at hand, which type of data is “B?”

a.   primary data

b.   secondary data

c.   scrubbed data

d.   sensitivity data

e.   nonprobability data

 

Figure 8-2b above shows that secondary data may be divided into two related parts.  If “A” represents marketing input and outcome data (budgets, call reports, customer communications, etc.), which type of data is “A?”

a.   questionnaire data

b.   mined data

c.   internal secondary data

d.   external secondary data

e.   observational data

Figure 8-2b above shows that secondary data may be divided into two related parts.  If “B” represents data collected from the U.S. Census Bureau, trade association studies, business periodicals, etc., which type of data is “B?”

a.   questionnaire data

b.   mined data

c.   internal secondary data

d.   external secondary data

e.   observational data

Figure 8-2b above shows that primary data may be divided into three related parts.  If “C” represents data collected from mechanical, personal, or neuromarketing methods, which type of data is “C?”

a.   questionnaire data

b.   mined data

c.   internal secondary data

d.   external secondary data

e.   observational data

Figure 8-2b above shows that primary data may be divided into three related parts.  If “C” represents data collected from individual interviews, focus groups, trend hunting, etc., which type of data is “C?”

a.   questionnaire data

b.   mined data

c.   internal secondary data

d.   external secondary data

e.   observational data

All of the following are sources of primary data EXCEPT:

a.   American Marketing Association’s Marketing News.

b.   mined data.

c.   experiments.

d.   social media.

e.   panels.

Secondary data are the

a.   facts and figures that have already been recorded before the project at hand.

b.   facts and figures that are newly collected for the project at hand.

c.   facts and figures obtained by watching people mechanically rather than in person.

d.   facts and figures obtained by asking people questions through the use of information technology.

e.   conclusions developed from information obtained from a representative sample of a population.

Facts and figures that have already been recorded before the project at hand are referred to as

a.   primary data.

b.   empirical data.

c.   secondary data.

d.   demographic data.

e.   observational data.

Secondary data can be divided into two parts:

a.   primary data; empirical data

b.   empirical data; secondary data

c.   secondary data; demographic data

d.   demographic data; observational data

e.   internal secondary data; external secondary data

Red Carpet Baby! a children’s accessory and toy store, uses U.S. Census Bureau information to determine the number of families with children under age 5 in its market area.  Data obtained from this source are called __________.

a.   proprietary data

b.   primary data

c.   secondary data

d.   observational data

e.   experimental data

Facts and figures that are newly collected for a project at hand are referred to as

a.   statistical data.

b.   empirical data.

c.   secondary data.

d.   primary data.

e.   inferential data.

Primary data refer to

a.   facts and figures that are newly collected for a project at hand.

b.   facts and figures that have already been recorded prior to the project at hand.

c.   facts and figures obtained by watching people mechanically rather than in person.

d.  facts and figures obtained by either by asking people questions through the use of information technology.

e.   conclusions developed from information obtained from a representative sample of a population..

Observing people and asking them questions are the two principal ways to obtain

a.   external secondary data.

b.   internal secondary data.

c.   primary data.

d.   experimental independent variables.

e.   nonprobability data.

When a marketing researcher uses a collection of reports, customer letters, financial statements, and surveys from different departments within her firm, she is using

a.   internal secondary data.

b.   primary data.

c.   external secondary data.

d.   sensitivity analysis.

e.   probability data.

All of the following are examples of marketing input data EXCEPT:

a.   advertising budgets.

b.   call reports.

c.   billing records.

d.   sales budgets.

e.   advertising expenses.

All of the following are examples of marketing outcome data EXCEPT:

a.   customer phone calls.

b.   repeat sales reports.

c.   billing records.

d.   salespeople’s call reports.

e.   sales reports by geographic region.

Published data from outside the organization are referred to as __________ data.

a.   proprietary

b.   external primary

c.   internal secondary

d.   internal primary

e.   external secondary

The U.S. Census Bureau publishes the __________, which is conducted every five years and contains detailed information on the number and sales of U.S. establishments that produce goods or resources.  These reports are vital to business firms selling products and services to organizations.

a.   North American Industry Classification System

b.   Economic Census

c.   Annual Survey of Manufacturers

d.   Annual Wholesale Trade Survey

e.   Survey of Business Owners

The 2007 __________ contains data on the number and sales of establishments in the United States that produce a good or service based on its geography, industry sector, and North American Industry Classification code.

a.   Annual Retail Trade Survey

b.   Annual Survey of Manufacturers

c.   Economic Census

d.   Annual Wholesale Trade Survey

e.   Service Annual Survey

When customers have their groceries scanned at the supermarket checkout counter, the data are collected and processed by services such as SymphonyIRIGroup’s (IRI) InfoScan.  Consumer product firms like Proctor & Gamble use data collected by IRI to allocate scarce marketing resources.  Which of the following data are not collected at retail checkout counters?

a.   coupon redemptions

b.   product bar codes 

c.   product sales

d.   free sample redemptions

e.   household demographics

When Karsh & Hagan Advertising Agency uses information found in Nielsen Television Index Ranking Report published by the Nielsen Company to plan television advertising schedules for its clients, it is relying on __________ data.

a.   neuromarketing

b.   external primary

c.   internal secondary

d.   observational

e.   external secondary

According to research conducted by Canadian cultural anthropologists, Canadians place a high importance on personal relationships.  This leads them to be extremely reluctant to buy through an impersonal medium like a telephone.  For an insurance company that was hoping to sell insurance through telemarketers, this research would be an example of

a.   internal secondary data.

b.   a constraint.

c.   an assumption.

d.   a dependent variable.

e.   external secondary data.

A survey by the Economic Research Service of the U.S. Department of Agriculture, government statistics from the Department of Commerce, and stock market information from The Wall Street Journal would all be examples of

a.   internal primary data.

b.   nonprobability sampling methods.

c.   internal secondary data.

d.   external secondary data.

e.   external primary data.

The Economic Research Service of the U.S. Department of Agriculture provides information on topics from how many dairies there are in the U.S. to how much broccoli was eaten per person in 2011.  This service provides

a.   internal primary data.

b.   nonprobability sampling tools.

c.   internal secondary data.

d.   external secondary data.

e.   external primary data.

The J. D. Power & Associates and other market research firms recruit large groups of consumers, who are paid to record all of their purchases on a regular basis.  Known as __________, they economically collect data using a paper or electronic diary.  Businesses pay firms like J. D. Power for their reports that answer the question “How many times did our customers buy our products this year compared to last year?”

a.   focus groups

b.   experiments

c.   syndicated panels

d.   syndicated data mining

e.   professional respondents

Several market research companies pay households and businesses to record all their purchases using a paper or electronic diary, which allows for an economical way to collect consistent data over time.  These data are referred to as __________.

a.   sponsored data

b.   data reciprocity

c.   syndicated sampling

d.   syndicated panel data

e.   data journaling

Several marketing data services provide information on household demographics and lifestyle, purchases, TV viewing behavior, etc.  The principle advantage of these services is that

a.   one service can collect, analyze, interrelate, and present this information.

b.   all data collection and analysis is computerized, so the results are almost instantaneous.

c.   members of the firm can be included in the analysis of data, making the results more reliable.

d.   the service gets paid on a percentage basis; the better the information, the higher the fee.

e.   firms using these services get discounts if they share their customer data with competitors.

Information in online databases consist of two categories: (1) indexes to articles in periodicals, and (2) statistical or financial data on markets, products, and organizations.  These can be accessed either directly, via Internet search engines, or using

a.   portals through keyword searches.

b.   internal statistical data.

c.   probability sampling data.

d.   personal chat rooms.

e.   social media like Facebook.

The Wall Street Journal, CNBC, and Fox Business News

a.   provide information on U.S. business, economic and trade activity collected by the federal government.

b.   are portals to all government websites that can be found by topic or keyword.

c.   provide information in online databases and an index of blogs by primary topic.

d.   are the most popular Internet portals to enter key words or topics for specific searches.

e.   provide up-to-the-minute business news and video clips about companies, industries, and trends.

STAT-USA and the U.S. Census Bureau

a.   are depositories of information on U.S. business, economic and trade activity collected by the federal government.

b.   are portals to all government websites that can be found by topic or keyword.

c.  provide up-to-the-minute business news and security prices plus research reports of companies, industries, and countries.

d.   are the most popular Internet portals to enter key words or topics for specific searches.

e.   access information in online databases and blogs by primary topic.

USA.gov

a.   is a depository of information on U.S. business, economic and trade activity collected by the federal government.

b.   is a portal to all government websites that can be found by topic or keyword.

c.   provides up-to-the-minute business news and security prices plus research reports of companies, industries, and countries.

d.   is the most popular Internet portal to enter key words or topics for specific searches.

e.   accesses information in online databases and an index of blogs by primary topic.

Google

a.   is a depository of information on U.S. business, economic and trade activity collected by the federal government.

b.   is a portal to all government websites that can be found by topic or keyword.

c.   provides up-to-the-minute business news and security prices plus research reports of companies, industries, and countries.

d.   is the most popular Internet portal where users can enter key words or topics for specific searches.

e.   accesses information in online databases and an index of blogs by primary topic.

A general rule of thumb among marketing researchers is to use __________ first and then collect _________.

a.   external secondary data; internal secondary data

b.   internal primary data; external primary data

c.   primary data; secondary data

d.   secondary data; primary data

e.   observational data; questionnaire data

Two important advantages of secondary data are that it is __________ and __________.

a.   inexpensive; up-to-date.

b.   up-to-date; supplies all relevant categories of information.

c.   usually inexpensive; saves time.

d.   tailor-made to specifications; relatively inexpensive.

e.   none of the above.

Two important disadvantages of secondary data are that it is __________ and __________.

a.   inexpensive; up-to-date.

b.   not up-to-date; not specific enough for the project.

c.   low cost; saves time.

d.   tailor-made to specifications; out of date.

e.   none of the above.

Facts and figures that are newly collected for a project at hand are referred to as

a.   statistical data.

b.   empirical data.

c.   secondary data.

d.   primary data.

e.   inferential data.

Primary data refer to

a.   facts and figures that are newly collected for a project at hand.

b.   facts and figures that have already been recorded prior to the project at hand.

c.   facts and figures obtained by watching people mechanically rather than in person.

d.  facts and figures obtained by either by asking people questions through the use of information technology.

e.   conclusions developed from information obtained from a representative sample of a population..

Observing people and asking them questions are the two principal ways to obtain

a.   external secondary data.

b.   internal secondary data.

c.   primary data.

d.   experimental independent variables.

e.   nonprobability data.

Facts and figures obtained by watching, either mechanically or in person, how people actually behave are referred to as __________ data.

a.   virtual

b.   observational

c.   hypothetical

d.   primary source

e.   statistical

Observational data refer to

a.   facts and figures newly collected for the project at hand.

b.   facts and figures obtained by watching, either mechanically or in person, how people actually behave.

c.   facts and figures obtained by asking people questions either through personal interviews, panel discussions, or questionnaires.

d.   facts and figures that have already been recorded from multiple sources prior to the  project.

e.   conclusions developed from information obtained from a representative sample of a population.

Mechanical, personal, or neuromarketing methods are ways that __________ data can be collected.

a.   virtual

b.   primary source

c.   hypothetical

d.   observational

e.   statistical

Fisher Price watches young children play with their toys to determine if and how various toys should be changed or improved.  Fisher Price is collecting __________ data.

a.   observational

b.   questionnaire

c.   interview

d.   on-site

e.   focus group

 

In the Fisher-Price photo above, a researcher watches a young child play with his toys.  This is an example of

a.   the use neuromarketing data to alter or improve a consumer’s behavior.

b.   the use of secondary data to alter or improve a consumer’s behavior.

c.   a researcher collecting observational data to use in future marketing actions.

d.   a researcher collecting psychographic information to use in future marketing actions.

e.   the use of personal interviews to collect subjective but essential information necessary to make informed marketing decisions.

Nielsen Media Research collects national TV ratings by using a “people meter.”  This is a box that is attached to TV sets, VCRs, cable boxes, and satellite dishes in over 9,000 households across the country.  A viewer uses the remote to signal the people meter that he/she is watching a TV program.  The box then transmits the viewing information to the Nielsen Company.  The information Nielsen is collecting is referred to as __________.

a.   internal secondary data

b.   interactive industry data

c.   sensitivity data

d.   external secondary data

e.   observational data

The Nielsen Company recently introduced a new measurement program dubbed the __________ (A2/M2) Initiative to “follow the video” of 21st century viewers.

a.   Anytime Anywhere Media Measurement

b.   Anytime Anyone Media Measurement

c.   Anyplace Anyone Media Measurement

d.   Anytime Anywhere Micro Measurement

e.   Anytime Anyone Metropolitan Measurement

The purpose of Nielsen’s A2/M2 Initiative is to

a.   expand its scope to include the effectiveness of online college courses.

b.   expand its scope to include satellite radio programming.

c.   measure all types of TV viewing behavior from a variety of video sources.

d.   expand its business to a global market.

e.   gain access to every American home that owns a television, mobile phone, or computer.

What marketing metric determines whether a TV program like American Idol remains on the Fox broadcast TV network?

a.   appeal 

b.   cost per ad

c.   rating

d.   poll

e.   frequency

National TV ratings, published by the Nielsen Company, are an example of __________ data.

a.   internal secondary data

b.   interactive industry data

c.   external secondary data

d.   mechanical observational data

e.   sensitivity data

 

Consider Figure 8-3 above, which is based on data collected from mechanical observations through the use of a _________ to prepare the Nielsen Television Index Ranking Report.

a.   a people meter

b.   neuromarketing

c.   a bot

d.   a DVR

e.   a VOD

Figure 8-3 above shows the top five prime-time broadcast TV shows during a recent May sweeps week.  Advertisers like Sears use the Nielsen Television Ranking Index Report from the Nielsen Company to identify the ratings of the top TV programs so they can make informed advertising media purchase decisions.  Which TV program would you expect Sears to pay the most for, presuming its demographics meet those of its target audience?

a.   American Idol—Thursday

b.   American Idol—Wednesday

c.   NCIS

d.   Dancing with the Stars—Results

e.   The Mentalist

Figure 8-3 above shows the top five prime-time broadcast TV shows during a recent May sweeps week.  If an advertiser such as Apple wanted to buy time on one of these TV shows, which of the following statements would be most accurate?

a.   People who like reality TV are more likely to watch ABC than Fox.

b.   Apple should advertise on NCIS since the rate CBS would charge is the same as the rate Fox would charge for American Idol.

c.   Apple would advertise on Dancing with the Stars—Results and NOT Dancing with the Stars because the proportion of the TV households actually tuned into the former is greater than the latter.

d.   The cost of an advertisement shown on American Idol would cost more than one aired during Dancing with the Stars.

e.   Of all households with TVs in the U.S., fewer households watched American Idol—Wednesday than American Idol—Thursday.

People posing as customers, who are paid to check on the quality of a company’s products and services and write a detailed report on the experience, are referred to as __________.

a.   mystery shoppers

b.   customer ombudsmen

c.   secret customers

d.   Facebook “likers”

e.   repeat customers

Mystery shoppers are people

a.   hired by a firm to get legal, though not necessarily ethical, information about competitive firms.

b.   hired by a firm’s employees to prove to the courts that competitors are using unfair pricing practices.

c.   hired by a customer to report on illegal or unethical practices that are regularly taking place at a particular establishment.

d.   who pose as customers to check on a firm’s products or services and are paid to write a detailed report on their experiences.

e.   hired by law firms to check on the safety of their clients’ products.

Shelly, the manager of a large grocery store, was concerned.  She had received complaints from several customers who said clerks at the store had treated them rudely.  In order to determine whether or not her clerks were indeed rude, Shelly hired a team of marketing researchers.  The researchers posed as customers shopping in the store, but were actually taking notes and recording the actions of the store clerks.  Later, Shelly reviewed those notes.  The research notes Shelly reviewed were a form of __________ data.

a.   secondary

b.   developmental

c.   observational

d.   national

e.   questionnaire

A specialized observational approach in which trained observers seek to discover subtle behavioral and emotional reactions as consumers encounter products in their “natural use environment,” is referred to as __________research.

a.   ethnographic

b.   cultural

c.   genealogical

d.   sociological

e.   physiological

Which of the following statements concerning ethnographic research is most accurate?

a.   Ethnographic research was specifically designed to use in global markets to help marketers understand cultural diversity.

b.   Ethnographic research employs the use of genealogical data to track purchase behaviors through family lines.

c.   Ethnographic research relies on physiological responses such as heart rate, breathing rate, and stress levels to obtain objective data.

d.   Ethnographic research uses anthropologists and other trained researchers to observe consumers in their “natural use environment.”

e.   Ethnographic researchers use videotapes to eliminate miscues of subtle emotional reactions that can skew market research results.

Best Western International, Inc., a national hotel chain, paid couples to videotape themselves as they spent three to seven days on a cross-country trip.  From this, Best Western found that women usually decide when to pull off the road, where to stay over night, and what amenities the hotel or motel should have to make their stay more enjoyable.  These couples were determining their lodging in a “natural use environment,” and so providing __________ research to Best Western.

a.   secondary

b.   developmental

c.   alternative

d.   ethnographic

e.   focus group

Which of the following statements concerning personal observation is most accurate?

a.   Personal observation is more accurate than ethnopsychic research because the observer/analyst is able to pick up subtleties in the respondent’s body language, speech patterns, and facial movements that are often missed by other data collection methods.

b.   Personal observation is especially suited for small businesses that need the research data but cannot afford more expensive data collection methods.

c.   Personal observation is very effective since it can reveal not only what people do, it can effectively determine why they do it.

d.   Personal observation is both useful and flexible, but has reliability issues when different observers watching the same event report different results.

e.   With personal observation, different observers will reliably report the same conclusions when watching the same event, such as people brushing their teeth.

A new field of marketing that studies the brain and its response to marketing stimuli is referred to as

a.   extrapolation.

b.   hypothesizing.

c.   neuromarketing.

d.   deduction.

e.   conjecture.

Martin Lindstrom merged __________ and marketing and presented his controversial findings in his breakthrough book Buy•ology.

a.   genealogy

b.   neuroscience

c.   astrology

d.   biochemistry

e.   numerology

Outdoor sign makers are trying hard to stay relevant as the era of targeted mobile advertising approaches, and their latest move is to add scent.  In Morresville, NC, a billboard has been erected that, for parts of the day, emits the smell of grilling steak.  The scent component of the sign operates during prime commute times.  It was designed by ScentAir, whose spokesperson described the aroma as, “a blend of black pepper and kind of a charcoal grilling that smells like grilled meat with a nice pepper run on it.”  This is an example of

a.   extrapolation.

b.   supposition.

c.   implication.

d.   neuromarketing.

e.   conjecture.

Brand guru Martin Lindstrom believes that __________of consumers’ thoughts, feelings, or preferences toward products, brands, and advertisements resides deep within the subconscious part of the brain and can’t be understood using traditional techniques.

a.   33 percent

b.   40 percent

c.   50 percent

d.   75 percent

e.   85 percent

What type of marketing uses high-tech brain scanning instruments to record the brain’s responses to various marketing stimuli (package designs, brand logos, fragrances, TV ads, and so on) via the five senses (sight, sound, smell, touch, and taste)?

a.   subliminal marketing

b.   permission marketing

c.   tenet marketing

d.   optimization marketing

e.   neuromarketing

 

Consider the Marketing Research Method Photo A above.  What type of primary research method is MOST LIKELY being used?

a.   extrapolation

b.   hypothesizing

c.   neuromarketing

d.   deduction

e.   conjecture

The facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors are referred to as

a.   primary data.

b.   secondary data.

c.   statistical inference.

d.   observational data.

e.   questionnaire data.

Questionnaire data refer to

a.   the facts and figures obtained by observing people about their attitudes, awareness, intentions, and behaviors.

b.   the facts and figures obtained by analyzing people’s brain waves as consumers complete surveys about their geodemographics, ethnographics, and behaviors.

c.   psychographic data obtained by asking people non-biased questions about their age, occupation, and income.

d.  the facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.

e.   any type of information about a consumer obtained through non-technological methods.

Research and media firm Youth Culture publishes Watch magazine, a teen publication given out free to high school students.  Unfortunately, the publication was unable to gauge whether or not it was meeting the needs of its audience.  Youth Culture handed out surveys to learn how students felt about the publication.  Feedback indicated teen boys and girls were demanding very different things from the publication.  This feedback was gleaned from __________ data.

a.   questionnaire

b.   internal secondary

c.   external secondary

d.   observational

e.   promotional sales

When Marine Midland Bank sent market researchers with surveys door-to-door in the neighborhoods surrounding its branch banks to ask people with savings accounts why they did not also have checking accounts and credit cards with Marine Midland, they were gathering __________ data.

a.   intercept

b.   secondary

c.   questionnaire

d.   observational

e.   nonprobability

The Belsen interview is a means of pretesting media surveys.  It gathers facts and figures by asking people about their attitudes, beliefs, and awareness of various media.  With this technique, a respondent is interviewed twice—first by an interviewer using the proposed survey and then by a different interviewer, who asks questions about the survey itself.  The Belsen interview uses __________ data.

a.   questionnaire

b.   secondary

c.   intercept

d.   observational

e.   synergistic

DirectProtect is an insurance provider that uses telemarketers rather than insurance agents to sell its insurance and deal with claims.  It wants to introduce its product into new markets, but before it does so, it wants to predict how successful its sales efforts will be. The first things researchers did was invite a group of eight insured people to its headquarters to talk about home and auto insurance with a moderator. The purpose of this exploratory research was to gather information about the group members’ attitudes toward insurance and their awareness of DirectProtect.  This was done by recording respondents’ answers as well as having them answer questions using paper and pencil.  While additional research still needs to be done, the marketing researchers were able to gather __________ data.

a.   hypothetical

b.   generative

c.   evaluative

d.   questionnaire

e.   experiential

All of the following are idea generation methods EXCEPT:

a.   a mail survey

b.   trend hunting

c.   a focus group

d.   a depth interview

e.   an individual interview

The most common way of collecting questionnaire data to generate ideas, which involves a single researcher asking questions of one respondent is referred to as a(n)

a.   panel.

b.   focus group.

c.   individual interview.

d.   face-to-face exchange.

e.   interactional interview.

 

Consider the Marketing Research Method Photo B above.  What type of primary research method is MOST LIKELY being used by the researcher?

a.   individual interview

b.   ethnographic research

c.   a focus group

d.   observation

e.   data mining

Surveys that enable the interviewer to be flexible in asking probing questions or getting reactions to visual materials would be best conducted using

a.   individual interviews.

b.   mail surveys.

c.   telephone interviews.

d.   fax surveys.

e.   on-line surveys.

Individual interviews involve

a.   a single researcher asking questions of one respondent.

b.   several people asking the same person the same questions over a period of time to check for answer reliability.

c.   asking respondents in a shopping mall to fill out a brief survey.

d.   having the interviewee talk about specific aspects of a product or service using a video camera in his/her natural use environment.

e.   a panel of respondents participating in a guided discussion lead by an experienced moderator.

Marine Midland Bank sent market researchers door-to-door in the neighborhoods surrounding its branch banks.  Each researcher wanted to spend 15 minutes talking with a head of the household about his/her savings accounts to discuss why he/she did not also have checking accounts and credit cards with the bank.  Marine Midland researchers were using __________ to collect these data.

a.   individual interviews

b.   secondary interviews

c.   intercept interviews

d.   observational data collection

e.   ethnographic research

A special kind of individual interview in which researchers ask lengthy, free-flowing kinds of questions to probe for underlying ideas and feelings is called a(n)

a.   focus group.

b.   discovery interview.

c.   probing interview.

d.   guided interview.

e.   depth interview.

A marketing research approach that uses a discussion leader to interview 6 to 10 past, present, or prospective customers is referred to as

a.   a depth (or individual) interview.

b.   data mining.

c.   a research team.

d.   a focused interview.

e.   a focus group.

 

Consider the Marketing Research Method Photo C above.  What type of marketing research method is MOST LIKELY being represented with observers behind a one-way mirror watching a discussion among people about topics of interest to marketers?

a.   individual interview

b.   questionnaire data

c.   social network

d.   information panel

e.   focus group

The Minnesota Twins, a professional baseball team, wanted to develop creative ways to boost sagging attendance at its ball games.  The Twins hired a moderator who, after every home game during the month of July, led informal discussions with groups of 6 to 10 fans to find out what they did and did not like about the baseball team and their experience at the stadium.  The discussions were videotaped so that researchers could review the data at a later date and in more detail.  What are such informal research discussions called?

a.   experiments

b.   secondary data

c.   focus groups

d.   panels

e.   depth interviews

DirectProtect is an insurance provider that uses telemarketers rather than insurance agents to sell its insurance and deal with claims.  It wants to introduce its product into new markets, but before it does so, it wants to have a prediction of how successful its sales efforts will be.  The first thing researchers did was invite in a group of eight insured people to talk about home and auto insurance.  Their conversation was recorded and later analyzed to determine if there were any differences between customers from different markets. This was an example of a(n)

a.   experiment.

b.   focus group.

c.   panel.

d.   evaluative interview.

e.   depth interview.

A publishing company sponsors an informal one-time-only session with seven college instructors who use a given principles of management textbook.  The instructors meet with a moderator who asks their opinions about the textbook, its study guide, and its PowerPoint slides.  This is an example of a(n)

a.   jury of executive opinion.

b.   consumer panel.

c.   information forum.

d.   focus group.

e.   depth interview.

The practice of identifying “emerging shifts in social behavior,” which are driven by changes in pop culture that can lead to new products is called __________ hunting.

a.   trend

b.   fad

c.   inclination

d.   craze

e.   tendency

Trend hunting is the practice of identifying “emerging shifts in social behavior,” which are driven by changes in pop culture that can lead to new products.  Trend Hunter has identified over 120,000 “__________” through its global network of 71,000 members.

a.   mega trends

b.   micro-trends

c.   macro trends

d.   environmental forces

e.   psychographic trends

In __________, the marketing researcher tries to test ideas discovered earlier to help the marketing manager recommend marketing actions.

a.   idea generation

b.   new-product concept testing

c.   data mining

d.   data analysis

e.   idea evaluation

All of the following are idea evaluation methods EXCEPT:

a.   a mail survey

b.   an online survey

c.   a focus group

d.   a telephone survey

e.   an e-mail survey

__________ surveys are the best choice if a marketing researcher wants flexibility in asking probing questions or getting reactions to visual materials.

a.   Personal interview

b.   Mail

c.   Telephone

d.   Fax

e.   Online

Surveys that enable the interviewer to be flexible in asking probing questions or getting reactions to visual materials would be best conducted using

a.   personal interview surveys.

b.   mail surveys.

c.   telephone interview surveys.

d.   fax surveys.

e.   online surveys.

__________ surveys are usually biased because those most likely to respond are those who have had especially positive or negative experiences with the product or brand.

a.   Personal interview

b.   Online

c.   Telephone

d.   Fax

e.   Mail

Marketers are increasingly using online surveys to collect primary data.  The reason is that

a.   response rates are higher because consumers do not feel intimidated.

b.   the quality of responses is better with online surveys than they are with paper-pencil questionnaires.

c.   most consumers have an Internet connection and an e-mail account.

d.   consumers rarely view e-mail surveys as junk mail.

e.   consumers want to be helpful so they complete the survey multiple times.

The __________ method has two advantages over other traditional methods of data collection: the cost is relatively minimal and the turnaround time for data collection to report presentation is much quicker.

a.   personal interview

b.   telephone interview

c.   online survey

d.   mail survey

e.   fax survey

Which of the following is NOT a disadvantage of online surveys?

a.   e-mail surveys may be viewed as “junk”

b.   the cost

c.   some potential respondents have a “pop-up blocker” that prohibits a browser from opening a separate window that contains the survey

d.   respondents can complete the survey multiple times, creating a significant bias in the results

e.   some potential respondents may employ spam blockers.

A(n) __________ question allows respondents to express opinions, ideas, or behaviors in their own words without being forced to choose among alternatives that have been predetermined by a marketing researcher.

a.   dichotomous

b.   open-ended

c.   closed-end

d.   fixed-alternative

e.   semantic differential

 “Why do you smoke?” is an example of which type of question?

a.   Likert scale

b.   fixed alternative

c.   dichotomous

d.   open-ended

e.   semantic differential

Before opening six Torrid plus-size-only retail stores that cater to women aged 15-30, a great deal of information was gathered from a sample of women to determine what types of items should be carried, the image of the store, its advertising, etc.  Which of the following is an example of an open-ended question that might have been asked in the survey?

a.   “Do you wear a dress larger than size 12?”

b.   “How old are you?”

c.   “Would you shop at a store that only sold plus-size clothing?”

d.   “Why do you wear that particular fashion style?”

e.   “Do you think the stores should use bright- or subtle-colored fixtures?”

 

Consider Figure 8-4: Question 1 above, which is part of a Wendy’s survey that assessed fast-food restaurant preferences among present and prospective consumers.  Question 1 illustrates which type of question format?

a.   dichotomous

b.   open-ended

c.   close-ended

d.   attitudinal

e.   semantic differential

A(n) __________ question requires respondents to select one or more response options from a set of predetermined choices.

a.   depth interview

b.   open-ended

c.   fixed-alternative

d.   attitudinal

e.   semantic differential

A fixed alternative question requires respondents to select one or more response option from the set of predetermined choices.  Another name for this kind of question is a(n)

a.   dichotomous question.

b.   open-ended question.

c.   attitudinal question.

d.   closed-end question.

e.   semantic differential question.

Before opening six Torrid plus-size-only retail stores that cater to women aged 15-30, a great deal of information was gathered from a sample of women to determine what types of items should be carried, the image of the store, its advertising, etc.  Which of the following is an example of a closed-end question that might have been asked?

a.   Why would you want to shop at a store that carries plus-size clothing?

b.   In what ways might you be uncomfortable shopping at a plus-size-only retailer?

c.   Would you be interested in buying the Torrid merchandise on the Internet?  ___ Yes  ___ No

d.   What type of person would shop at Torrid?

e.   None of the above questions is an example of a closed-ended question.

A(n) __________ question is the simplest form of a fixed alternative question that allows only a “yes” or “no” response.

a.   dichotomous

b.   open-ended

c.   closed-end

d.   attitudinal

e.   semantic differential

 “Have you been to a dentist within the past 6 months?  ___ Yes  ___ No?” is an example of which type of question?

a.   Likert scale

b.   semantic differential

c.   dichotomous

d.   open-ended

e.   evaluative

 

Consider Figure 8-4: Question 2 above, which is part of a Wendy’s survey that assessed fast-food restaurant preferences among present and prospective consumers.  Question 2 illustrates which type of question format?

a.   dichotomous

b.   open-ended

c.   Likert scale

d.   attitudinal

e.   semantic differential

A survey asked consumers of dental products the following question “Have you used toothpaste in the past week?  ___ Yes  ___ No”  The results of this question show that 92.6 percent of the people in New York City have used toothpaste in the past week and 87.2 percent of people in Los Angeles have used toothpaste during the same period.  This information was gathered by using which type of question?

a.   open-ended

b.   dichotomous

c.   holistic

d.   evaluative

e.   Likert scale

Another name of a closed-end question is a(n) __________ question.

a.   Likert scale

b.   fixed-alternative

c.   dichotomous

d.   leading

e.   semantic differential

The type of question you are answering right now is an example of a(n) __________ question.

a.   Likert scale

b.   dichotomous

c.   open-ended

d.   fixed alternative

e.   semantic differential

 

Consider Figure 8-4: Question 3 above, which is part of a Wendy’s survey that assessed fast-food restaurant preferences among present and prospective consumers.  Question 3 illustrates which type of question format?

a.   dichotomous

b.   open-ended

c.   closed-end

d.   attitudinal

e.   semantic differential

A fixed alternative question with three or more choices uses a(n) __________.

a.   scale

b.   frequency distribution

c.   measure of success

d.   open-ended question

e.   constraint

A(n) __________ scale is a five-point scale in which the opposite ends have one- or two-word adjectives that have opposite meanings.

a.   dichotomous

b.   open-ended

c.   Likert

d.   attitudinal

e.   semantic differential

What kind of question is the following?  “Place an ‘X’ in the space that describes your feelings about this test.”

Easy __ __ __ __ __ Difficult

Fair __ __ __ __ __ Unfair

a.   Likert scale

b.   semantic differential scale

c.   dichotomous question

d.   open-ended question

e.   sensitivity analysis question

 

Consider Figure 8-4: Question 5 above, which is part of a Wendy’s survey that assessed fast-food restaurant preferences among present and prospective consumers.  Question 5 illustrates which type of question format?

a.   dichotomous

b.   open-ended

c.   Likert scale

d.   semantic differential scale

e.   attitudinal

A(n) __________ scale is one in which the respondent indicates the extent to which he or she agrees or disagrees with a statement.

a.   Likert

b.   attitudinal

c.   dichotomous

d.   open-ended

e.   semantic differential

What type of scale is the following?  “Indicate your degree of agreement with the following statement: Marketing is an interesting subject” by checking one of the responses below.

( ) Strongly Agree  ( ) Agree  ( ) Disagree  ( ) Strongly Disagree

a.   Likert scale

b.   semantic differential scale

c.   dichotomous question

d.   open-ended question

e.   attitudinal question

 

Consider Figure 8-4: Question 6 above, which is part of a Wendy’s survey that assessed fast-food restaurant preferences among present and prospective consumers.  Question 6 illustrates which type of question format?

a.   dichotomous

b.   open-ended

c.   Likert

d.   attitudinal

e.   semantic differential

 

Consider Figure 8-4: Question 7 above, which is part of a Wendy’s survey that assessed fast-food restaurant preferences among present and prospective consumers.  Which of the following statements MOST LIKELY explains why Question 7 was included in the questionnaire?

a.   Wendy’s wanted to know how many people eat at home while watching TV.

b.   Wendy’s wanted to know if billboards and other media types were important sources of information to consumers when they decide where to eat.

c.   Wendy’s wanted to understand how often consumers see flyers.

d.   Wendy’s wanted to check newspaper circulation in the cities in which it does business.

e.   Wendy’s wanted to find information about the education level of its customers according to the relative importance of their information sources.

 

Consider Figure 8-4: Question 8 above, which is part of a Wendy’s survey that assessed fast-food restaurant preferences among present and prospective consumers.  Which of the following statements MOST LIKELY explains why Question 8 was included in the questionnaire?

a.   Wendy’s wanted to know how often people eat at Wendy’s and its competitors.

b.   Wendy’s wanted to know why people were eating at its competitors.

c.   Wendy’s wanted to know who eats at In ‘N Out Burger.

d.   Wendy’s wanted to estimate  how many customers they could woo away from McDonald’s.

e.   Wendy’s wanted to find out if there was a relationship between coupons and customer loyalty.

 

Consider Figure 8-4: Question 9 above, which is part of a Wendy’s survey that assessed fast-food restaurant preferences among present and prospective consumers.  Which of the following statements MOST LIKELY explains why Question 9 was included in the questionnaire?

a.   Wendy’s wanted to know if children eat at its restaurants.

b.   Wendy’s wanted to know why people have children under age 18 living at home.

c.   Wendy’s can use these personal and household demographic characteristics to segment the fast-food market.

d.   Wendy’s wants to know how much people earn so it knows whether it should take credit cards for purchases.

e.   Wendy’s wanted to send these respondents coupons for the products that would appeal to them most.

Mall intercept interviews refer to

a.   impersonal data collection methods in strip shopping malls.

b.   telephone interviews with consumers about their shopping center habits.

c.   scientifically-selected individuals from the local community who agree to participate in a research study and are directed to go to a specific shopping center where the interviews will be conducted.

d.   focus groups located in major shopping centers.

e.   personal interviews of consumers visiting shopping centers.

A disadvantage of the mall intercept interview method is

a.   the difficulty in finding qualified interviewers to work at relatively low salaries.

b.   the lack of reliability due to changes in customer traffic during holidays.

c.   the ill will it creates with shoppers who are in a hurry or looking for a relaxing mall experience.

d.   the people selected may not be representative of the targeted consumers.

e.   the people only participate if they think they will receive something in return, so their answers are often biased.

Facebook and Twitter are examples of __________.

a.   Internet portals

b.   social media

c.   wikis

d.   virtual focus groups

e.   e-journals

Carma Laboratories, Inc., the maker of Carmex lip balm, used __________ to conduct marketing research to understand the nature of online conversations.

a.   ethnographic research

b.   social media

c.   depth interviews

d.   focus groups

e.   telephone surveys

In evaluating whether its Facebook and Twitter social media programs are working well, Carmex  considered using various marketing metrics. One metric it considered was the percentage of Internet Carmex share of voice mentions that are positive, neutral, or negative.  This metric is called

a.   Carmex sentiment.

b.   Carmex Twitter followers.

c.   Carmex conversation velocity.

d.   Carmex Facebook likers (or Fans or likes).

e.   Carmex share of voice.

In evaluating whether its Facebook and Twitter social media programs are working well, Carmex  considered using various marketing metrics . One metric it considered was Carmex mentions on the Internet as a percentage of all mentions of major lip balm brands.  This metric is called

a.   Carmex sentiment.

b.   Carmex Twitter followers.

c.   Carmex conversation velocity.

d.   Carmex Facebook likers (or Fans or likes).

e.   Carmex share of voice.

A sample of consumers or stores from which researchers take a series of measurements is referred to as a(n)

a.   panel.

b.   experiment.

c.   focus group.

d.   jury of executive opinion.

e.   survey of experts.

A __________ is a sample of consumers or stores from which researchers take a series of measurements.

a.   representative group

b.   jury of executive opinion

c.   panel

d.   survey of experts

e.   focus group

An advantage of using a panel of consumers for marketing research is

a.   the discussion leader can help change negative panel responses into positive ones.

b.   the company can find out if consumers change their purchasing behavior over time.

c.   panel members often help each other by bringing up ideas for discussion that others didn’t initially think of but that were important to them.

d.   there will usually be one panel member who dominates the discussion and helps keep the conversation focused.

e.   panel members are highly defined demographically, so it is relatively simple to replace an individual member without losing continuity.

A disadvantage of a __________ is that the marketing research firm needs to recruit new members continually to replace those who drop out.

a.   representative group

b.   jury of executive opinion

c.   focus group

d.   survey of experts

e.   panel

Data obtained by manipulating factors under tightly controlled conditions to test cause and effect is an example of

a.   questionnaire data.

b.   virtual modeling.

c.   an experiment.

d.   a panel.

e.   nonprobability sampling.

As marketing vice president of Health Care Services, Inc., you are in charge of developing an experiment to test the hypothesis that increasing the number of salespeople assigned to a territory will increase sales of health care services in the territory.  Which experiment will do this best?

a.   Create an incentive program for our sales force based upon individual performance.  Use increases in customer satisfaction as your dependent variable and increases in sales performance as your independent variable.

b.   Select three degrees of service health care (poor, good, average) as your independent variable and measure customer responses for each grade using the same number of sales representatives in each territory as your dependent variable.

c.   Create an incentive program for your salesforce based upon individual performance.  Use increases in customer satisfaction as your independent variable and increases in sales performance as your dependent variable.

d.   Use a different number of salespeople in three different sales territories as your independent variable and changes in sales of health care services as the dependent variable.

e.   Create an incentive program for your salesforce based upon team performance.  Use increases in customer satisfaction as your independent variable and increases in sales performance for the team as your dependent variable.

In marketing experiments, the independent variable is the __________ and the dependent variable is the __________.

a.   element that never changes; the element that always changes

b.   result; factor beyond the experimenter’s control

c.   result of an action; cause of an action

d.   cause of an action; result of an action

e.   element that always changes; element that never changes

GI Designs, a copper furniture manufacturer, increased the price on its copper tabletops by 20 percent for three months to see what the effect would be on its sales. The price increase is the ________ in this three-month experiment.

a.   “what-if”

b.   dependent variable

c.   independent variable

d.   constraint

e.   hypothesis

When Procter & Gamble Co. acquired the Old Spice brand, it decided to reposition the brand by using a different advertising message to see whether sales would then increase.  The new advertising message is the __________ in this marketing experiment.

a.   dependent variable

b.   extraneous variable

c.   constraint

d.   independent variable

e.   error variable

When conducting marketing experiments, the independent variable often involves marketing mix elements such as product features or coupons, while dependent variables often include

a.   elements of environmental forces that cannot be controlled.

b.   changes in channels of distribution or pricing rather than product features or price.

c.   elements of the marketing mix that cannot be manipulated.

d.   the primary experimental hypothesis.

e.   changes in purchases such as dollar or unit sales of individuals or organizations.

GI Designs, a copper furniture manufacturer, increased the price on its copper tabletops by 20 percent for three months to see what the effect would be on its sales.  The change in sales is the __________ in this three-month experiment.

a.   constraint

b.   dependent variable

c.   independent variable

d.   decision task

e.   extraneous variable

A market researcher showed a new brand of blue jeans to several groups of college students and asked the students to rate the quality of the jeans.  Two weeks later, the researcher showed the same college students a television advertisement featuring movie star Scarlett Johansson wearing the new brand of jeans.  The marketer asked the students again to rate the quality of the jeans.  The marketer predicted that after viewing the advertisement, the students’ ratings of the new jeans would be more positive than their original ratings.  In this experiment, students’ ratings of the new blue jeans served as the

a.   dependent variable.

b.   independent variable.

c.   social environmental force.

d.   secondary data.

e.   constraint.

When Procter & Gamble Co. acquired the Old Spice brand it decided to reposition the brand by using different advertising to see whether sales would increase.  The possible sales increase is the __________ in this experiment.

a.   dependent variable

b.   independent variable

c.   hypothesis

d.   extraneous variable

e.   error variable

Eppie's Used Cars wanted to test whether straight price discounting worked better than a free gift. It ran two different commercials on alternate Wednesdays. The first offered 10 percent off the Kelley Blue Book price for any four-wheel-drive vehicle on the lot while the second offered a free tent with the purchase of any four-wheel-drive vehicle at the Kelley Blue Book price. The type of offer was the ________ variable. The number of people that responded to each type was the ________ variable, which would suggest the best strategy for increasing traffic.

 

a.   marketing; dependent variable

b.   dependent ; independent variable

c.   control data; independent variable

d.   independent; dependent variable

e.   dependent; control data

In marketing experiments, the independent variables of interest, sometimes called the marketing __________, are often one or more of the marketing mix elements.

a.   factors

b.   drivers

c.   forces

d.   actions

e.   causalities

Marketing drivers are used with which of the four Ps?

a.   product, price, place only

b.   product, promotion, people only

c.   product features only

d.   product and price features only

e.   product, promotion, price, and place inclusively

 

All the following in Figure 8-A above represent __________ that serve as independent variables in marketing experiments.

a.   sales drivers

b.   environmental forces

c.   the market mix

d.   marketing drivers

e.   “what if” factors

Offering a product for sale in a small geographic area to help evaluate potential market actions is called a(n) __________.

a.   micro market

b.   test market

c.   experimental market

d.   simulated market

e.   trial market

What type of market is a food company using when it offers a product for sale in a small geographic area to help it evaluate potential marketing actions?

a.   micro market

b.   trail market

c.   experimental market

d.   simulated market

e.   test market

A potential difficulty with a test market is that outside factors, such as actions of competitors, can distort the results by affecting __________, such as sales.

a.   independent variables

b.   marketing drivers

c.   dependent variables

d.   causality variables

e.   probability variables

A test market for a new Kellogg’s cereal is an example of

a.   hypothesis generation.

b.   an experiment.

c.   modular research.

d.   virtual modeling.

e.   probability sampling.

__________ involves operating computer networks that can store and process data to extract hidden information from large databases such as households’ product purchases, TV viewing behavior, and responses to coupon or free-sample promotions.

a.   Data mining

b.   Environmental scanning

c.   Computerization

d.   E-marketing

e.   Information technology

Information technology refers to

a.   any information derived from a nonpersonal source.

b.   operating computer networks that can store and process data.

c.   any hardware used in collecting information to be used in market research such as scanners, telephones, voting machines, etc.

d.   any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of goods and services.

e.   the inventions or innovations from applied science or engineering research.

 

 

The company name Zappos was chosen because it

a.   was the founder’s family name.

b.   conveyed in Spanish the type of product sold.

c.   inferred how quickly you could access the product.

d.   contained letters from the names of the three founders.

e.   reflected the brand name of the first line of shoes they sold.

The primary focus of Zappos’ market segmentation strategy is to sell

a.   a wide selection of shoes, clothes, accessories, and housewares to people who will buy them online.

b.   a wide selection of leather shoes and boots to retailers.

c.   all types of shoes, accessories, and clothing to department stores.

d.   Spanish novelties and accessories to organizations.

e.   shoes in its own retailer stores.

According to Toney Hsieh, CEO of Zappos, the greatest amount of time is spent

a.   seeking out new and unusual styles of shoes from all over the world.

b.   improving the website to make it faster, more interesting, and fun.

c.   seeking out new markets that will go beyond the Internet.

d.   finding the fastest and least expensive modes of delivery for its products.

e.   finding ways to improve customer-service levels.

Tony Hsieh, CEO of Zappos, offers $2,000 to anyone who

a.   identifies a completely new market segment with a product to match it.

b.   finds a way of improving service to online customers.

c.   takes the customer loyalty training class and decides to quit anyway.

d.   finds a shoe-related product that Zappos does not already carry.

e.   creates a theme for “Weirdo Wednesday” when company meetings are held.

Building open and honest relationships with communication is an example of Zappos’ __________.

a.   profile of its target market

b.   core values with its new owner—Amazon.com

c.   ten core values for Zappos’ employees

d.   qualities required of Zappos’ suppliers

e.   qualities required of Zappos’ retailers

Which of the following statements about Zappos is most accurate?

a.   Zappos limits its inventory to an extensive selection of high-end fashion footwear.

b.   Zappos carries more than 1,000 different brands.

c.   Zappos can guarantee overnight shipping to all its customers because they know ahead of time what they will be charged for express service.

d.   Zappos is so successful because it has chosen a single mission to “sell shoes and nothing else.”

e.   Zappos offers a 30/60/90 return policy whereby refunds are based on how long you’ve had the shoes.

The Zappos segmentation strategy is based on

a.   offering the absolute best selection of shoes and the absolute best service.

b.   designing shoes for every type of occasion.

c.   dividing all their customers into two distinct segments: people shopping for low price and people shopping for style.

d.   offering the best selection of shoes through multiple channels of distribution.

e.   maintaining the simplest method of price points to make the purchase process as simple as possible for its customers.

Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as

a.   consumer differentiation.

b.   psychographics.

c.   market segmentation.

d.   market delineation.

e.   aggregation marketing.

Market segmentation refers to

a.   the philosophy that to do a truly excellent job of marketing, a company should concentrate only one customer segment at a time.

b.   aggregating prospective buyers into groups that have common needs but who respond differently to a marketing action.

c.   aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.

d.   disaggregating prospective buyers from groups into segments of one (individuals) and creating or designing specific products that will satisfy each individual’s unique needs.

e.   the belief that it is possible to satisfy every customer’s needs if you can identify the correct segment within which they belong.

Which of the following statements regarding market segmentation is most accurate?

a.   Even if a firm finds only one potential market segment, it should take advantage of the opportunity, no matter what.

b.   Market segmentation only works for large corporations because small businesses don’t have the resources to engage in the process or implement the resulting marketing actions.

c.   Governments should not attempt market segmentation because there is no need for them to do so.

d.   If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment.

e.   Market segmentation strategies work less than 25 percent of the time.  However, for the instances that it does work, the benefits more than compensate for previous failures.

Market segmentation involves aggregating prospective buyers into groups that have common needs and will

a.   pay attention to marketing messages.

b.   respond similarly to a marketing action.

c.   be responsive to marketing research.

d.   use the same payment methods.

e.   comply with the organization’s core values.

Market segmentation involves aggregating prospective buyers into groups that (1) will respond similarly to a marketing action and (2)

a.   respond similarly to marketing messages.

b.   have common needs.

c.   have similar shopping styles.

d.   will become loyal customers.

e.   will become stakeholders of the organization.

The aggregation of prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action is referred to as __________.

a.   market diversification

b.   market differentiation

c.   market segmentation

d.   market augmentation

e.   market repositioning

To be identified as a market segment, its members must

a.   represent a large share of the entire market and have buying power.

b.   have common needs and respond similarly to a marketing action.

c.   have different needs and have potential for future growth.

d.   have different needs and respond similarly to market actions.

e.   have the potential for future growth and increased profit or ROI.

Market segmentation stresses __________ and relating them to specific marketing actions.

a.   grouping people randomly within a market

b.   grouping people according to similar needs

c.   splitting people randomly within a market

d.   dividing people into the smallest groups possible

e.   identifying potential new buyers who are not yet familiar with a new product

Market segments refer to

a.   the relatively heterogeneous groups of prospective buyers that result from the market segmentation process.

b.  the relatively homogenous groups of prospective buyers that result from the market segmentation process.

c.   the smallest number of buyers that have similar needs but do not react similarly in a buying situation.

d.   all buyers of a product or service who have previously purchased a particular firm’s products or services and who intend to repeat that purchase sometime in the future.

e.   all potential buyers of a product or service who intend to purchase a firm’s products or services but who have not yet done so.

The relatively homogenous group of prospective buyers that results from the market segmentation process is referred to as a(n) __________.

a.   market segment

b.   target market

c.   customer base

d.   ultimate consumer

e.   preferred customer

The phrase “relatively homogeneous collections of prospective buyers” is most descriptive of

a.   demographic clusters.

b.   organizational buyers.

c.   ultimate consumers.

d.   market segments.

e.   qualified prospects.

In marketing, each __________ consists of people who are relatively similar to each other in terms of their consumption behavior.

a.   market segment

b.   demographic cluster

c.   organizational buyer group

d.   ultimate consumer group

e.   qualified prospect group

A marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products is referred to as __________.

a.   product repositioning

b.   points of difference

c.   market differentiation

d.   product positioning

e.   product differentiation

Product differentiation refers to

a.   a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs.

b.   the unique combination of product benefits received by targeted buyers.

c.   those characteristics of a product that make it superior to competitive substitutes.

d.   the legal requirement that requires a specified degree of distinction between products to ensure an organization’s intellectual property rights.

e.   a marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products.

Which strategy involves a firm’s using different marketing mix activities to help consumers perceive the product as being different and better than competing products?

a.   points of difference

b.   market differentiation

c.   product differentiation

d.   market penetration

e.   product positioning

When Procter & Gamble introduced Crest toothpaste, the first fluoride toothpaste, it was intended for use by children and was therefore given a child-appealing bubblegum flavor.  Sometime later, the same basic formula was given a fresh, minty flavor to appeal to adults.  What marketing strategy did P&G use in this example?

a.   product segmentation

b.   market expansion

c.   product differentiation

d.   usage segmentation

e.   psychographic segmentation

Alka-Seltzer was made originally as a hangover remedy that cured the headache and settled the stomach.  Today you can buy Original Alka-Seltzer, Extra Strength Alka-Seltzer, Alka-Seltzer Morning Relief (for morning headaches and fatigue), and Alka-Seltzer Heartburn Relief.  Each Alka-Seltzer product has a different formulation to relieve a specific malady for a specific targeted market segment.  The maker of Alka-Seltzer is using

a.   product segmentation.

b.   market sectioning.

c.   product differentiation.

d.   product segmentation.

e.   product base development.

The process of segmenting a market and selecting specific segments as targets is the link between __________ and the organization’s marketing program.

a.   self-regulatory industry standards

b.   government regulations

c.   top-level management

d.   buyers’ needs

e.   controllable environmental factors

The process of segmenting a market and selecting specific segments as targets is the link between the various buyers’ needs and

a.   industry standards.

b.   government regulations.

c.   top-level management.

d.   controllable environmental factors.

e.   the organization’s marketing program.

Zappos’ original target market customers consisted of people who wanted all of the following EXCEPT:

a.   to receive quick delivery of their merchandise.

b.   to buy sustainable shoes, accessories, and clothing.

c.   to shop online in the convenience of their own homes.

d.   to allow for free returns of goods if dissatisfied.

e.   to have a wide selection of shoes.

 

In Figure 9-1 above, “A” represents which stage of the market segmentation process?

a.   link needs to actions

b.   identify market needs

c.   establish a marketing protocol

d.   execute marketing program actions

e.   segment and select the target markets

In Figure 9-1 above, “B” represents which stage of the market segmentation process?

a.   link needs to actions

b.   identify market needs

c.   establish a marketing protocol

d.   execute marketing program actions

e.   segment and select the target markets

In Figure 9-1 above, “C” represents which stage of the market segmentation process?

a.   link needs to actions

b.   identify market needs

c.   establish a marketing protocol

d.   execute marketing program actions

e.   segment and select the target markets

Small athletic shoe manufacturers such as Vans have targeted niche markets and make shoes designed to satisfy the needs of different specific groups of customers.  This strategy is an example of

a.   market segmentation.

b.   mass customization.

c.   customized manufacturing.

d.   single chain marketing.

e.   market specific selection.

Reebok makes shoes with DMX Shear and Foam cushioning.  The Premier Control shoe is made for runners whose feet tend to turn out.  The Premier Road is made with extra cushioning for pavement runners.  This strategy is an example of

a.   mass customization.

b.   customized manufacturing.

c.   market segmentation.

d.   single chain marketing.

e.   market specific selection.

A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a __________.

a.   payoff table

b.   cross-tabulation

c.   market-product grid

d.   growth-share matrix

e.   product differentiation table

A market-product grid refers to

a.   a visual representation of all products offered within a specific product class.

b.   a framework used to compare the relative market share of one firm’s product offerings to those of its competitors.

c.   a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D–manufacturing efficiencies.

d.   a framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.

e.   a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.

A market-product grid relates the market segments to the products offered or potential marketing actions.  With respect to pillows, what would be the most effective way to segment the pillow market?  One should segment this market by

a.   the age of the sleeper: less than 18 years of age, 18 to 44 years of age, or 45 years and older.

b.   the sleeper’s annual income: less than $25,000, $25,000 to $49,999, or $50,000 and over.

c.   the sleeper’s gender: male or female.

d.   whether the sleeper has sleeping problems: yes or no.

e.   how the sleeper sleeps: side, back,or stomach.

An analysis of the pillow market using a market-product grid suggests that the most important segment to target is

a.   side sleepers.

b.   sleepers with sleep disorders, such as sleep apnea.

c.   sleepers with annual incomes of $50,000 and over.

d.   back sleepers.

e.   stomach sleepers.

A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can

a.   increase sales and profitability.

b.   stand up to legal scrutiny.

c.   be socially responsible.

d.   create sustainable demand.

e.   create innovation.

A business firm goes to the trouble and expense of segmenting its markets when

a.   it changes its advertising campaign.

b.   competitors enter the marketplace.

c.   the environment becomes uncertain.

d.   it expects that this will increase its sales, profit, and return on investment.

e.   there is a recessionary economic environment.

A business firm segments its markets when this strategy increases its sales revenue, profit, and ROI.  When expenses are greater than the potential increased sales from segmentation, the firm should

a.   not consider market segmentation at this time.

b.   combine departments within the company to make the process more streamlined.

c.   reduce production costs or increase prices to facilitate the segmentation process.

d.   seek alternate channels of distribution, including Internet sales.

e.   discontinue manufacturing any products that are not in the mature stage of their product life cycle.

The purpose of market segmentation is to respond more effectively to the wants of groups of potential buyers in order to

a.   maintain market share.

b.   increase sales and profits.

c.   assume social responsibility.

d.   use the firm’s resources most efficiently.

e.   provide the best quality products on the market.

All of the following are market segmentation strategies EXCEPT:

a.   build-to-order

b.   multiple products, multiple market segments

c.   one product, multiple market segments

d.   multiple products, one segment

e.   mass customization

One marketing action that can be taken to sell a single product or service to multiple market segments is to

a.   develop and produce another version of the product.

b.   manufacture products that appeal to different markets.

c.   develop separate promotional campaigns.

d.   purchase another firm that has additional products that would appeal to multiple markets.

e.   issue stock to fund additional research and development for new products.

When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids __________, which often results in extremely high research, engineering, and manufacturing expenses.

a.   the extra cost of developing and producing additional versions of the product

b.   creating a customer service gap

c.   indirect distribution and logistics problems

d.   restructuring the firm’s strategic planning

e.   amortization costs of product enhancements

When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy

a.   is a much more effective means of meeting consumers’ individual needs.

b.   creates greater cost savings in manufacturing costs.

c.   is a more effective way of meeting organizational objectives.

d.   has significantly higher distribution costs.

e.   is more profitable since a firm can charge the new segment higher prices without changing the product.

The greatest benefit to consumers when a firm chooses a one product, multiple market segment strategy is __________.

a.   improved service

b.   increased number of choices

c.   higher product quality and consumer value

d.   lower retail prices because of lower marketing costs

e.   lower retail prices because of lower production costs

 

The Sporting News Baseball Yearbook uses 16 different covers featuring a baseball star from each of its regions in the United States.  Four covers are shown above.  This is an example of a(n)

a.   sporting interest–based segmentation.

b.   segmenting organizational markets.

c.   one product and multiple market segments.

d.   multiple products and multiple market segments.

e.   segments of one or mass customization.

Street & Smith publishes its Sporting News Baseball Yearbook with exactly the same stories but with 16 different covers to appeal to baseball fans in 16 different regions of the U.S.  What is its market segmentation strategy?

a.   psychographic segmentation

b.   retail outlet segmentation

c.   demographic segmentation

d.   behavioral segmentation

e.   geographic segmentation

Which marketing strategy does a firm use to sell a single product or service to multiple market segments?

a.   developing and producing another version of the product

b.   manufacturing different products that appeal to different markets

c.   developing separate promotional campaigns for each market

d.   acquiring another firm that has additional products that would appeal to multiple markets

e.   issuing stock to fund additional research and development for new products

Time magazine publishes over 100 different U.S. editions with common editorial content.  However, each edition is targeted at unique geographic segments with its own set of advertisements.  Time is using which of the following segmentation strategies?

a.   one product with multiple market segments

b.   multiple products with multiple market segments

c.   one product with multiple channels of distribution

d.   one product with changes based on customer behavior

e.   multiple products with one segment

In the United States, the Harry Potter series of books were often at the top of The New York Times fiction bestseller list.  These books have been marketed to preteen, teen, and adult readers around the world.  Scholastic Press, the publisher of the Harry Potter books in the U.S., is using which of the following segmentation strategies?

a.   multiple products with one segment

b.   one product with one channel of distribution

c.   one product with multiple market segments

d.   one product with changes based on customer behavior

e.   multiple products with multiple segments

Which of the following is a disadvantage of employing a multiple products, multiple market segments strategy if NOT implemented well?

a.   higher sales but lower profits

b.   reduced quality and higher prices

c.   meeting customer needs but at the expense of higher prices

d.   lower prices but with higher production costs

e.   higher quality but lower prices

Which of the following is an example of a multiple products and multiple market segments strategy?

a.   College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the U.S.

b.   A new movie used several different movie trailers.  One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience.

c.   Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo.

d.   Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.

e.   Johnson’s Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Which of the following is an example of a multiple products and multiple markets strategy?

a.   College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the U.S.

b.   A new movie used several different movie trailers.  One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience.

c.   Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens.

d.   Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.

e.   Johnson’s Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Kellogg’s different cereals are each targeted at a different type of user.  This is an example of multiple products aimed at multiple markets.  Manufacturing these different cereals is clearly more expensive than producing one but seems worthwhile if it adds to the manufacturer’s sales revenues and profits, doesn’t reduce quality or increase price, and

a.   conforms to all FDA guidelines.

b.   uses the same promotion and packaging for all segments.

c.   decreases the cost of the physical plant.

d.   stabilizes the sales revenues and profits.

e.   better serves customers’ needs.

Kellogg’s different types of cereals are each targeted at a different type of user.  This is an example of multiple products aimed at multiple markets.  Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it adds to the manufacturer’s sales revenues and profits, serves customers’ needs better, and

a.   conforms to all FDA guidelines.

b.   creates economy of scale.

c.   doesn’t reduce quality or increase price.

d.   decreases the cost of the physical plant.

e.   stabilizes the sales revenues and profits.

Kellogg’s different types of cereals are each targeted at a different type of user.  This is an example of multiple products aimed at multiple markets.  Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it serves customers’ needs better, doesn’t reduce quality or increase price, and

a.   conforms to all FDA guidelines.

b.   adds to the manufacturer’s sales revenues and profits.

c.   creates economy of scale.

d.   decreases the cost of the physical plant.

e.   stabilizes the sales revenues and profits.

Tailoring goods or services to the tastes of individual customers on a high-volume scale is referred to as

a.   family branding.

b.   mass customization.

c.   “Tiffany/Walmart” marketing.

d.   economies of scale marketing.

e.   build-to-order.

Custom Foot runs six retail locations.  At first glance, none looks any different from your basic old-fashioned shoe store, but the only boots on hand are display models.  There’s no inventory for sale and customers go home empty-handed—at least initially.  Customers browse the store, mixing and matching design components such as style, color, and leather type.  About 100 display boots provide style guidelines.  Once you choose a boot style, you select materials, colors, and textures.  Custom Foot guarantees your boots will be ready within three weeks.  This is an example of

a.   mass customization.

b.   specialty customization.

c.   virtual merchandising.

d.   one product and multiple market segments.

e.   multiple products and multiple market segments.

ChoiceShirts is an online company that makes made-to-order T-shirts.  Its online customers can order their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch.  This is an example of

a.   family branding.

b.   mass customization.

c.   multiple products and multiple market segments.

d.   one product and multiple market segments.

e.   specialty customization.

MyTwinn makes dolls that look like young girls.  For $119, the firm will make a doll that looks just like a photograph.  So, if you send in the money and a photo of your young niece, she could have a doll that is her twin!  This is an example of

a.   family branding.

b.   “Tiffany” marketing.

c.   multiple products and multiple market segments.

d.   mass customization.

e.   specialty customization.

Lands’ End will custom fit a Marinac jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com.  This is an example of

a.   family branding.

b.   mass customization.

c.   “Tiffany/Walmart” marketing.

d.   market melding.

e.   specialty customization.

To implement a __________ strategy, nikeid.com allows customers to visit its website and design a sneaker to their own personal specifications.

a.   product sampling

b.   product clustering

c.   mass customization

d.   usage segmentation

e.   psychographic segmentation

Chip-N-Dough Cookie Company will let you select cookies and put a photo of yourself on the tin.  This is an example of

a.   mass customization.

b.   multiple marketing.

c.   target marketing.

d.   product clustering.

e.   repositioning.

Name Maker is an online company that sells high-end gift wrapping that can have custom slogans or names printed on it, such as the name of a person celebrating a birthday or a couple who is getting married.  This made-to-order gift wrapping is priced from $24.95 to $32.95 per 12-foot roll.  This is an example of

a.   family branding.

b.   mass customization.

c.   synergistic marketing.

d.   “Tiffany/Walmart” marketing.

e.   specialty customization.

Manufacturing a product only when there is an order from a customer is referred to as

a.   order customization.

b.   a one product one market segment strategy.

c.   synergistic marketing.

d.   build-to-order.

e.   specialty customization.

Model E is a new type of car manufacturer that relies on the Internet to build new car designs from prototypes to marketable vehicles much faster than ever before.  “Think of Model E as the Dell of the auto industry.  We design just a few products that consumers truly want, leveraging best-in-class components and micro-factory approaches for rapid design, launch, and direct delivery,” said William Santana Li, president and CEO of Model E.  Model E manufactures a car only when there is an order from a customer.  Model E relies on

a.   order customization.

b.   a one product one market segment strategy.

c.   build-to-order.

d.   mass customization.

e.   specialty customization.

Organizational synergy is the increased customer value achieved through

a.   performing organizational functions more efficiently.

b.   more discounts or larger rebates at the point of sale.

c.   involvement of the ultimate consumer in product design.

d.   an increase in the knowledge of competitors.

e.   shared ownership of the organization through publicly traded stock.

The increased customer value achieved through performing organizational functions like marketing or manufacturing more efficiently is referred to as __________.

a.   aggregation

b.   organizational synergy

c.   segmentation

d.   amalgamation

e.   valuation

The ultimate criterion for an organization’s marketing success is that __________ as a result of increased synergies.

a.   costs decrease

b.   market share increases

c.   product deficiencies decrease

d.   customers should be better off

e.   production benefits from economies of efficiency

When a new product or a new chain steals customers and sales from older existing ones, it is referred to as

a.   cannibalization.

b.   amortization.

c.   product appropriation.

d.   product pilfering.

e.   marketing Darwinism.

When Ann Taylor, a well-known retailer of sophisticated women’s clothing, started losing sales to its own LOFT outlets that feature moderately priced casual clothes, Ann Taylor was dealing with the marketing phenomenon of __________.

a.   amortization

b.   product appropriation

c.   profit pilferage

d.   marketing Darwinism

e.   cannibalization

A key question to ask before using the product differentiation and market segmentation strategies is

a.   “Will our new products steal customers or sales from our older ones?”

b.   “Will the products compete head-to-head with those of a competitor?”

c.   “Can this action successfully draw customers away from competitors?”

d.   “Are there enough similarities within the market segment to warrant such high costs?”

e.   “Will this action eliminate the need for individualized advertising and promotion?”

Cannibalization would most likely occur if

a.   Dell adds high-end speaker systems to its line.

b.   General Mills launches Chocolate Cheerios.

c.   General Motors markets a sport coupe similar to the BMW Z4.

d.   Pillsbury adds boxed sugar to its product line.

e.   Procter & Gamble adds a new line of baby clothing to its product mix.

Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to offer

a.   a low-priced product to a high-income or high net worth segment.

b.   a high-priced product to a low-income or low net worth segment.

c.   different variations of the same basic offering to high-end and low-end segments.

d.   a high-priced and a low-priced offering to a single market segment.

e.   different offerings to high-end and low-end segments.

Which of the following is an example of a “Tiffany/Walmart” strategy?

a.   College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the U.S.

b.   A new movie used several different movie trailers.  One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience.

c.   Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.

d.   Gap’s Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22.

e.   Johnson’s Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

The Walt Disney Company carefully markets two distinct Winnie-the-Poohs—such as the original line-drawn figures on fine china sold at Nordstrom and a cartoon-like Pooh on polyester bed sheets sold at Walmart.  This is an example of

a.   mass customization.

b.   one product and multiple market segments.

c.   price discrimination.

d.   a “Tiffany/Walmart” strategy.

e.   psychographic market segmentation.

You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50.  Or, you can buy a Hallmark card from its new $0.99 line of greeting cards that is not quite as nice in terms of quality materials, but just as sentimental, that are sold at Barnes and Noble bookstores.  This is an example of

a.   mass customization.

b.   organizational synergy.

c.   one product and multiple market segments.

d.   price discrimination.

e.   a “Tiffany/Walmart” strategy.

The purpose of the five key steps in segmenting and targeting markets that link customer needs to marketing actions is to

a.   identify competitors that provide similar products that satisfy a firm’s customers’ needs.

b.   provide guidance to reposition products.

c.   generate new products ideas for firms that are not growing in market share.

d.   link market needs of customers to the organization’s marketing program.

e.   correspond directly to each of the five environmental forces.

The first step in segmenting and targeting markets that link customer needs to marketing actions is to

a.   group potential buyers into segments.

b.   group products to be sold into categories.

c.   develop a market-product grid and estimate size of the overall market.

d.   select target markets.

e.   take marketing actions to reach target markets.

The second step in segmenting and targeting markets that link customer needs to marketing actions is to

a.   group potential buyers into segments.

b.   develop a market-product grid and estimate size of the overall market.

c.   select target markets.

d.   take marketing actions to reach target markets.

e.   group products to be sold into categories.

The third step in segmenting and targeting markets that link customer needs to marketing actions is to __________.

a.   group potential buyers into segments

b.   group products to be sold into categories

c.   select target markets

d.   develop a market-product grid and estimate size of markets

e.   take marketing actions to reach target markets

The fourth step in segmenting and targeting markets that link customer needs to marketing actions is to __________.

a.   group potential buyers into segments

b.   select target markets

c.   group products to be sold into categories

d.   develop a market-product grid and estimate size of the overall market

e.   take marketing actions to reach target markets

The fifth step in segmenting and targeting markets that link customer needs to marketing actions is to __________.

a.   take marketing actions to reach target markets

b.   group potential buyers into segments

c.   select target markets

d.   group products to be sold into categories

e.   develop a market-product grid and estimate size of the overall market

There are five steps involved in segmenting and targeting markets.  What should a marketer do after he or she has grouped products to be sold into categories?

a.   create product groupings

b.   develop a market-product grid and estimate size of markets

c.   identify market needs

d.   take marketing actions to reach target markets

e.   form prospective buyers into market segments

A marketing manager must be able to put a market segmentation plan into effect.  This means being able to recognize the characteristics of potential buyers and __________ without encountering excessive costs.

a.   eliminating potential non-buyers

b.   identifying segmentation variables

c.   assigning them to a segment

d.   redirecting their purchase behaviors

e.   ignoring any and all similarities

All of the following are criteria used for forming market segments EXCEPT:

a.   difference of needs of buyers among segments.

b.   potential for increased profit.

c.   cost of reaching the segment.

d.   potential of a marketing action to reach a segment.

e.   simplicity and cost of assigning potential buyers to segments.

Which of the following is a criterion used in forming market segments?

a.   your competitors have similar segments

b.   differences between potential suppliers or distributors

c.   differences of needs of buyers within segments

d.   no marketing action to reach a segment

e.   simplicity and cost of assigning potential buyers to segments

The best segmentation approach is the one that

a.   makes it easiest to reach the segment.

b.   maximizes the opportunity for future profit and ROI.

c.   recognizes different needs of buyers among different segments.

d.   recognizes similarities of needs of potential buyers within a segment.

e.   is simplest and least costly in assigning potential buyers to segments.

Which of the following is NOT a reason to segment a market?

a.   The ability to assign buyers to a segment is simple and cost-effective.

b.   All the buyers in the entire market have similar wants and needs.

c.   It would cause an increase in market share or profit.

d.   There is a potential marketing action to reach it.

e.   There are different wants and needs of buyers in the entire market.

Which of the following in NOT a criterion to use in forming market segments?

a.   The ability to assign buyers to a segment is cost-effective and simple.

b.   The result of segmenting will cause an increase in market share or profit.

c.   There are significant similarities among buyers in the market segment.

d.   There is a potential marketing action to reach the segment.

e.   Buyers throughout the entire market have very similar wants and needs.

Selling a product to a different market segment usually requires a different marketing action that in turn means greater costs.  If increased revenues don’t offset extra costs of this action, a marketer should __________.

a.   increase the advertising budget

b.   prune the product offerings

c.   family brand their products

d.   combine segments

e.   group products into categories

Criteria for forming segments involve both similarities and differences.  The similarities must be ____________ a segment, and the differences must be __________ segments.

a.   between; among

b.   throughout; absent in

c.   within; among

d.   absent in; throughout

e.   among; across

Criteria for forming segments involve both similarities and differences.  Which of the following statements is most accurate?

a.   Within a segment, the needs of potential buyers should be different; among segments, the needs of buyers should be similar.

b.   Within a segment, the needs of potential buyers should be similar; among segments, the needs of buyers should be different.

c.   The needs of buyers should be different, both between segments and within segments.

d.   The needs of buyers should be the same, both between segments and within segments.

e.   If there are any differences at all, you should segment your market.

Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer the question

a.   “Is this product useful on a global scale?”

b.   “Would segmentation be worth doing and is it possible?”

c.   “Is it possible to reposition this product?”

d.   “Is there too much competition for this product?”

e.   “Is the market loyal to the product?”

Between 2 and 3 percent of the population have some degree of allergic reaction, usually mild, to preservatives used in salad bars.  Restaurants might consider people with these “allergies” as a separate segment.  To implement this segmentation strategy, restaurants would have to have a regular salad bar and a special salad bar for the allergies segment.  This multiple product and multiple market segment strategy would have the greatest difficulty meeting which of the following criteria used to form market segments?

a.   different needs of buyers among different segments

b.   similarity of needs of potential buyers within a segment

c.   simplicity and cost of assigning potential buyers to segments

d.   potential for increased profit and ROI

e.   potential of a marketing action to reach a segment

Four general categories used to segment consumer markets are geographic segmentation, demographic segmentation, __________, and behavioral segmentation.

a.   supplier segmentation

b.   demand segmentation

c.   regional segmentation

d.   psychographic segmentation

e.   product segmentation

Segmentation based on where prospective customers live or work is referred to as

a.   zip code segmentation.

b.   geographic segmentation.

c.   regional segmentation.

d.   MSA segmentation.

e.   NAICS code segmentation.

All of the following are geographic segmentation variables EXCEPT:

a.   density

b.   city size

c.   region

d.   VALS

e.   statistical area

Campbell’s found that its canned nacho cheese sauce, which could be heated and poured directly onto nacho chips, was too hot for Americans in the East and not hot enough for those in the West and Southwest.  Today, Campbell’s plants in Texas and California produce a hotter nacho cheese sauce than what is produced in the other plants.  Campbell’s is using __________ segmentation.

a.   demographic

b.   behavioral

c.   economic

d.   geographic

e.   psychographic

Which of the following statements best illustrates geographic segmentation?

a.   GE built a downsized microwave oven to hang under kitchen cabinets.

b.   Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.

c.   In China, KFC sells a spicier chicken the farther away its restaurants are from the coastal areas.

d.   A fast food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays.

e.   A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area.

Universal Concerts wants to bring a series of country music concerts to Canada next year.  In general, Western Canadians much prefer country music while Eastern Canadians prefer rock.  Thus, a country music event in eastern Canada is very likely to have lots of empty seats even though it is more populous than the western part of the country.  If it can book only one venue, Universal Concerts should segment its Canadian market according to __________ if it hopes to have a sold out concert.

a.   geographic characteristics

b.   demographic characteristics

c.   music format characteristics

d.   behavioral characteristics

e.   psychographic characteristics

Segmentation that is based on some objective physical (gender, ethnicity), measurable (age, income), or other classification attribute (occupation) of prospective customers is referred to as

a.   personality segmentation.

b.   demographic segmentation.

c.   usage segmentation.

d.   needs segmentation.

e.   behavioral segmentation.

Which of the following is a consumer demographic segmentation variable?

a.   personality

b.   gender

c.   usage rate

d.   needs

e.   metropolitan statistical area

More than half of all U.S. households are composed of only one or two persons, so Aunt Jemima offers one serving meals, such as its Ham & Egg Scramble and Oatmeal Pancakes. Aunt Jemima is using __________ as the basis to segment its market.

a.   usage rates

b.   usage patterns

c.   behavior characteristics

d.   demographic characteristics

e.   psychographic characteristics

Procter & Gamble (P&G) decided to skip a generation of consumers when it began to market Old Spice deodorant.  The target market consists of men aged 18 to 34 years old (Generation Y) who don’t remember the Old Spice brand sold to their grandfathers (pre baby boomer) many years ago.  P&G is using which type of segmentation variable?

a.   behavioral

b.   demographic

c.   lifestyle

d.   geographic

e.   psychographic

When a telemarketer calls to sell a consumer life insurance, the last questions asked is what category does the person’s household income fall into (less than $50,000; $50,000 to $99,999; and $100,000 and over).  When the telemarketer asks about household income, this indicates the use of which type of consumer segmentation variable?

a.   usage

b.   behavior

c.   demographic

d.   buying situation

e.   psychographic

The State of Alabama Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state.  Since the apparent target of these ads is the traditional family, it appears that the State of Alabama Board of Tourism has segmented the market using __________ variables.

a.   regional

b.   demographic

c.   socioeconomic

d.   geographic

e.   psychographic

Which of the following statements demonstrate the formation of a segment based on household size?

a.   Campbell’s makes a spicier nacho cheese sauce for its distributors in Texas than it does in Maine.

b.   GE built a downsized microwave oven to hang under kitchen cabinets.

c.   Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.

d.   A fast food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays.

e.   A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area.

At a Hallmark store you can find several different product lines of greeting cards, likely including Fresh Ink, Nature’s Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards—all made by Hallmark for sale in its stores and intended to appeal to different target markets.  The Mahogany line is designed to appeal to African-Americans.  This is an example of __________ segmentation.

a.   regional

b.   demographic

c.   lifestyle

d.   geographic

e.   psychographic

Which of the following statements regarding segmentation bases is most accurate?

a.   The identification of demographic variables is more objective than the identification of psychographic variables, which is more subjective.

b.   The identification of psychographic variables is more objective than the identification of demographic variables, which is more subjective.

c.   Marketers should use segmentation bases in this order to reduce potential costs: behavioral, demographic, psychographic, and geographic.

d.   Behavioral segmentation is based primarily on personality.

e.   Psychographic segmentation is based primarily on product features.

Segmentation based on some subjective mental or emotional attributes, aspirations, or needs of prospective customers is referred to as

a.   behavioral segmentation.

b.   affective segmentation.

c.   socioeconomic segmentation.

d.   psychographic segmentation.

e.   psychosocial segmentation.

All of the following are psychographic segmentation variables EXCEPT:

a.   lifestyle

b.   needs

c.   birth era

d.   VALS

e.   personality

Magazines like Fitness, Field & Stream, Golf Digest, and Health all use a __________ segmentation strategy.

a.   psychographic

b.   behavioral

c.   situational

d.   socioeconomic

e.   geographic

The Nielsen PRIZM (part of Nielsen Claritas) lifestyle segmentation is based on the belief that “birds of a feather flock together.”  This type of consumer segmentation is referred to as

a.   psychographic segmentation.

b.   behavioral segmentation.

c.   situational segmentation.

d.   socioeconomic segmentation.

e.   geographic segmentation.

Nielsen PRIZM (part of Nielsen Claritas) segmentation classifies every household into one of 66 demographically and __________ distinct neighborhood segments to identify lifestyles and purchase behavior within a defined geographic market area, such as zip code.

a.   psychographically

b.   behaviorally

c.   situationally

d.   socioeconomically

e.   ethnographically

Segmentation based on some observable actions or attitudes by prospective customers, such as what benefits they seek, as well as where, how frequently, and why they buy, is referred to as

a.   demographic segmentation.

b.   psychographic segmentation.

c.   geographic segmentation.

d.   behavioral segmentation.

e.   socioeconomic segmentation.

Segmentation based on what product features are important to different customers is known as

a.   demographic segmentation.

b.   psychographic segmentation.

c.   geographic segmentation.

d.   behavioral segmentation.

e.   socioeconomic segmentation.

All of the following are behavioral segmentation variables EXCEPT:

a.   needs

b.   usage rate

c.   product features

d.   intentions

e.   user status

Behavioral segmentation encompasses

a.   lifestyles and demographics.

b.   retailer and wholesaler behaviors.

c.   geographic and demographic criteria.

d.   product features and user status.

e.   demand and supply.

A national car rental firm targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. Its market is likely segmented by

a.   usage.

b.   benefits offered.

c.   demographics.

d.   geography.

e.   lifestyle.

College dorm residents frequently want to keep and prepare their own food and snacks to save money or have a late night snack.  However, their dorm rooms are often woefully short of space.  MicroFridge understands this and markets a combination microwave, refrigerator, and freezer targeted to these students.  MicroFridge is using which basis of segmentation?

a.   demographic segmentation

b.   psychographic segmentation

c.   geographic segmentation

d.   behavioral segmentation

e.   socioeconomic segmentation

Samsung sells its target markets many different types of TVs.  The larger TVs can be outfitted with surround sound at a higher price than the smaller ones.  Samsung is using which type of segmentation variable in this example?

a.   demographic segmentation

b.   psychographic segmentation

c.   behavioral segmentation

d.   geographic segmentation

e.   socioeconomic segmentation

Many families today hold potluck meals during holidays or special events.  Participants bring casseroles, vegetables, breads, and desserts to share.  It is easy to forget to take the bowl that you brought to the dinner home with you.  Reynolds responded to this problem by creating PotLux cookware, attractive and inexpensive disposable dishes for transporting food.  Reynolds has recognized how to use _________ variables to segment its market.

a.   psychographic

b.   behavioral

c.   demographic

d.   social

e.   geographic

Many companies have cut travel budgets so that very few business people are authorized to fly first class.  Despite the shrinking pool of business-class travelers, British Airways has grown market share for its transatlantic business class by offering greater comfort.  Promotions to frequent fliers stress that passengers can sleep in fully reclining seats and arrive refreshed to carry out a full day’s schedule.  The segmentation strategy of British Airways is an example of

a.   life stage segmentation.

b.   lifestyle segmentation.

c.   social class segmentation.

d.   behavioral segmentation.

e.   psychographic segmentation.

Post Grape-Nuts cereal has been marketed since the early 20th century.  Its market share has been steadily declining as consumers began associating it with something their grandfathers ate.  Post recently launched a campaign to increase consumption of the cereal by inviting consumers to sprinkle the crunchy cereal on yogurt, salad, or soup as a delicious addition.  Post wanted to convince people either who had never tried the cereal or who were familiar with the product to use it in a variety of different ways.  In this example, Post is using which segmentation variable?

a.   needs

b.   lifestyle

c.   behavioral

d.   psychographic

e.   demographic

The quantity consumed or patronage (store visits) during a specific period is referred to as

a.   usage rate.

b.   purchase metric.

c.   consumption index.

d.   consumption rate.

e.   demand amount.

Usage rate refers to

a.   the percentage of total possible users divided by the total number of consumers who actually use a product or service.

b.   the average number of times a customer uses a product or service.

c.   quantity consumed or patronage (store visits) during a specific period.

d.   the maximum number of times a customer uses a product or service.

e.   the profits a firm earns from customers who consume a particular product or service.

Alamo, a car rental firm, targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year.  Alamo likely segments its market by

a.   usage rate.

b.   benefits offered.

c.   demographics.

d.   geography.

e.   lifestyle.

Airlines have developed frequent-flier programs to encourage passengers to use the same airline repeatedly.  This technique is based on

a.   geographic segmentation.

b.   behavioral segmentation.

c.   psychographic segmentation.

d.   demographic segmentation.

e.   buying condition segmentation.

Frequency marketing is a strategy that focuses on usage rate.  In market segmentation studies,

a.   usage should be the last factor that is considered as a criterion for segmentation, since the entire point of segmentation is to attract consumers who are not yet using your product.

b.   some measure of usage by, or sales obtained from, various segments is central to the analysis.

c.   usage rate should always be considered in tandem with geographic segmentation factors to understand the “why” consumers behave as they do.

d.   usage rate has far more value in consumer market segmentation than in organizational market segmentation.

e.   usage rate has far more value in organizational market segmentation than in consumer market segmentation.

Frequency marketing is a market segmentation strategy that focuses on

a.   trial.

b.   the average number of times a person in the target audience is exposed to an advertisement.

c.   usage rate.

d.   consumption incidence.

e.   turnover.

Airline programs that encourage passengers to repeatedly use the same airline focus on usage rate and employ a __________ strategy.

a.   rate of recurrence

b.   product utilization

c.   incidence

d.   frequency marketing

e.   consumption index

A recent study by the Aberdeen Group analyzed which segmentation bases were used by the top 20 percent of 220 organizations surveyed.  Which segmentation base did these organizations use most?

a.   behavioral

b.   psychographic

c.   geographic

d.   demographic

e.   product

 

According to Figure 9-5 above, people who most likely will never use a firm’s product or service are referred to as

a.   nonqualified prospects.

b.   dead leads.

c.   potential prospects.

d.   nonprospects.

e.   laggards.

According to Figure 9-5 above, people who currently do not use a firm’s product or service but who might become users in the future are referred to as

a.   leads.

b.   prospects.

c.   potential users.

d.   ultimate consumers.

e.   undefined prospects.

According to Figure 9-5 above, people who ate at fast-food restaurants about twice a week would most likely be considered a

a.   light user.

b.   medium user.

c.   heavy user.

d.   uncommitted user.

e.   potential prospect.

According to Figure 9-5 above, what percentage of nonusers could still be considered potential customers?

a.   1.5 percent

b.   8.9 percent

c.   14.1 percent

d.   15.6 percent

e.   45.4 percent

According Figure 9-5 above, heavy users are the most important segment to a fast-food restaurant because

a.   there are fewer numbers of them than any other segment.

b.   they represent the largest percentage of nonprospects.

c.   the usage index per person is highest for that segment.

d.   from a cost basis, they are the most easily identified user segment.

e.   they have the smallest consumption percentage.

The 80/20 rule suggests that

a.   80 percent of a firm’s inventory should be readily available and 20 percent should be reserved for emergency demand.

b.   80 percent of a firm’s first-time users will become brand loyal and 20 percent will use the product only once and then abandon it.

c.   80 percent of a firm’s sales are obtained from 20 percent of its customers.

d.   80 percent of a firm’s marketing program expenses are tax deductible and 20 percent are not.

e.   80 percent of a firm’s products will be sold to ultimate consumers and 20 percent to organizational buyers.

The 80/20 rule is most closely related to which consumer segmentation variable?

a.   geographic

b.   psychographic

c.   benefits sought

d.   geographic

e.   usage rate

Todd Harris and Associates, a New York sales promotion agency, discovered from an analysis of its files that one-quarter (or 25 percent) of its clients generated more than three-quarters (or 75 percent) of its fees and commissions.  This is an example of what classic concept?

a.   the 10/90 gap

b.   the 80/20 rule

c.   the 20/80 rule

d.   the 75/25 rule

e.   Parkinson’s Law

 

As an owner of a Wendy’s fast food restaurant, the information in Figure 9-6 above suggests that Wendy’s prospects are __________ of the total compared to __________ for McDonald’s.

a.   48.8 percent, 57.6 percent

b.   16.7 percent, 45.6 percent

c.   57.6 percent, 48.8 percent

d.   16.7 percent, 22.2 percent

e.   57.6 percent, 26.2 percent

As an owner of a Wendy’s fast-food restaurant, the information in Figure 9-6 above suggests

a.   you have an advantage over both McDonald’s and Burger King as being the most preferred “second choice” restaurant.

b.   most of the respondents think of Wendy’s as their primary fast food restaurant.

c.   McDonald’s has fewer “exclusively loyal” customers than does Wendy’s.

d.   Burger King is closing in on your market share.

e.   a need to devise a marketing program to win customers from McDonald’s and Burger King.

As an owner of a Wendy’s fast-food restaurant, the information in Figure 9-6 above suggests

a.   new menu items or promotional strategies may succeed in converting the prospects into users.

b.   most of the respondents think of Wendy’s as their primary fast food restaurant.

c.   McDonald’s has fewer “exclusively loyal” customers than does Wendy’s.

d.   Burger King is closing in on your market share.

e.   a need to devise a marketing program to change the minds of nonprospects.

As an owner of a Wendy’s fast-food restaurant located near a large urban university, you need to analyze your customers and determine which segmentation base and its associated variable(s) you will use to segment your target market.  Which segmentation base and associated variable (s) should you use?

a.   psychographic: VALS and personality

b.   demographic: gender and age

c.   behavioral: students and nonstudents

d.   geographic: city and zip code

e.   transportation mode: car, bus, bike, tram/subway/light rail, and none (walking)

Which of the following is a basis used to segment U.S. organizational markets?

a.   geographic

b.   psychographic

c.   income

d.   needs

e.   education

Variables such as location, the North American Industry Classification System (NAICS) code, and type of buy are all examples of ways to

a.   differentiate products.

b.   forecast sales to a consumer market.

c.   segment an organizational market.

d.   segment a consumer market.

e.   promote NAFTA.

Which of the following statements about market segmentation for organizational markets is most accurate?

a.   Criteria for segmenting markets are the same whether the market is composed of consumers or organizations.

b.   Both consumer markets and organizational markets use demographic, geographic, and behavioral bases to segment markets.

c.   Psychographic criteria are just as important in segmenting organizational markets as they are in segmenting consumer markets.

d.   Organizational markets use exactly the same selection criteria as consumer markets.

e.   The greatest difference in market segmentation strategies between consumer and organizational markets is the number of employees employed in the segmentation process.

Evergreen Air Center in Marana, Arizona, is the world’s biggest parking lot for unwanted commercial aircraft.  Airlines pay from $750 to $5,000 a month for its storage service.  The warm, dry air where the operation is located serves as a cheap and effective airplane preservative.  Which organizational segmentation variable might Evergreen use to segment the market?

a.   NAICS sector, such as manufacturers, or retailers, or lawyers

b.   number of locations

c.   “who buys,” such as individual buyer  or buying groups

d.   metropolitan statistical area

e.   number of employees

The William Morris Agency represents country singer Trace Adkins in negotiations with various venues in which he could perform.  Imagine that the agency decided the singer would not perform at venues located in small town communities that have less than 100,000 people.  Thus, venues segmentation is a form of __________ segmentation.

a.   entertainment

b.   psychographic

c.   geographic

d.   usage rate

e.   buying condition

Australia-based Renewable Energy Ltd. sells a $10 million device that converts manure into energy.  One of these devices is capable of generating energy equal to $2 million of natural gas per year.  The company believes its target market consists of businesses that use a lot of energy like its first customer, a fertilizer manufacturer that was located in a rural area.  If the firm decides to expand to the U.S., it most likely will use which of the following strategies to segment its market?

a.   behavioral and geographic

b.   number of employees and behavioral

c.   purchase location and purchase type

d.   NAICS code and geographic

e.   behavioral and NAICS code

If Wendy’s customers are buying an eating experience, which of the following rationales would make the most sense if you were to group the products Wendy’s sells?

a.   grouping by product type such as types of drinks

b.   grouping by price

c.   grouping by meal occasion

d.   grouping by usage rate

e.   grouping by individual item (hamburgers, fries, etc.)

All of the following would be a logical way to group the products Wendy’s sells at its restaurants EXCEPT:

a.   dinner

b.   burgers

c.   breakfast

d.   between-meal snacks

e.   lunch

Safeway displays the thousands of items it sells in aisles containing related items or product groupings.  Examples would be the pet food aisle or the soft drink aisle.  Why would Safeway display product groupings in this manner?

a.   The groupings increase the number of market-product combinations on the market-product grid, which makes it a more manageable framework for subsequent analysis.

b.   This form of product groupings makes it easier for customers to get in and out of the store more quickly, creating time utility.

c.   The products are grouped so people can relate to them in a more meaningful way when they shop.

d.   Product groupings can be generated quantitatively to show which adhere to the 80/20 rule.

e.   Individual suppliers get preferential treatment based upon the number of different UPCs they provide in a given store.

Hallmark placed its scrapbook supplies, photo albums, and related supplies into one product group because

a.   it was easier to forecast future sales since there were fewer market-product combinations.

b.   customers could buy in quantity and take advantage of quantity discounts.

c.   their suppliers provided free displays and shelving to highlight Hallmark’s products.

d.   it helped buyers relate to the products and make decisions in a more meaningful way.

e.   it allowed customers to compare price and quality with competitors who displayed their products in a similar manner.

A market-product grid is a framework to relate

a.   total estimated expenses for each product sold to each market segment.

b.   total anticipated revenue for each product-market segment combination.

c.   total anticipated profit for each product sold to each market segment.

d.   the market segments of potential buyers to relative market share compared to the closest competitor.

e.   the market segments of potential buyers to products offered or potential marketing actions by an organization.

A market-product grid is a framework to relate the __________ to products offered or potential marketing actions by an organization.

a.   market segments of potential buyers

b.   marketing objectives of potential products

c.   total anticipated revenue

d.   total anticipated profit

e.   market share of the closest competitor

A market-product grid is a framework to relate the market segments of potential buyers to

a.   estimated expenses for products sold.

b.   products offered or potential marketing actions by an organization.

c.   total anticipated revenue.

d.   total anticipated profit.

e.   market share of the closest competitor.

Each cell of the market-product grid shows the __________.

a.   relative market share

b.   estimated market size

c.   investment required to reach the market

d.   market growth rate

e.   estimated profit

After establishing the market segments and product groupings on a market-product grid, the next step is to

a.   fill in the appropriate cells with precise statistical data from primary and/or secondary sources.

b.   make intelligent “guesstimates” of the market size for each cell using a simple scale from zero to three (“0” = no market; “1” = a small market; “2” =  a medium market; and “3” = a large market).

c.   total the vertical columns to identify the greatest marketing synergies and efficiencies.

d.   total the horizontal rows to identify greatest operations/production synergies and efficiencies.

e.   identify a marketing action for every product-market combination in the grid.

One advantage of a market-product grid is that it can be used to

a.   make cost-cutting decisions under conditions of uncertainty.

b.   screen many new product ideas in order to select the one with the best long-run market potential.

c.   determine which target market segments to select and which product groupings to offer.

d.   select representative samples of consumers for marketing research studies.

e.   relate the product life cycle to consumer demand.

Determining the size of specific markets using a market-product grid is helpful in determining which target market segments to select and

a.   how to implement the 80-20 rule.

b.   which products to group into meaningful categories.

c.   how to implement a harvesting strategy.

d.   which product groupings to offer.

e.   which products to reposition.

 

Figure 9-9 above shows the market-product grid for a Wendy’s restaurant next to a large urban university campus.  The best way to describe how the student market is segmented is

a.   whether the student is a faculty or staff member.

b.   whether the student lives near the campus or far away.

c.   whether the student has the disposable income to eat at Wendy’s.

d.   combining the factors of where the student lives and when (s)he is on campus.

e.   the meals eaten at the Wendy’s restaurant.

Figure 9-9 above shows the market-product grid for a Wendy’s restaurant next to a large urban university campus.  Assume a large market (shown by a “3”) is three times the size of a small market (shown by a “1”).  Similarly, assume a medium market (shown by a “2”) is twice the size of a small market.  The meal occasion (product grouping) that comprises the largest market is

a.   breakfast.

b.   lunch.

c.   between-meal snack.

d.   dinner.

e.   after-dinner snack.

Figure 9-9 above shows the market-product grid for a Wendy’s restaurant next to a large urban university campus.  Assume a large market (shown by a “3”) is three times the size of a small market (shown by a “1”).  Similarly, assume a medium market (shown by a “2”) is twice the size of a small market.  The largest potential market segment consists of

a.   students that live in a dormitory.

b.   students that live in an apartment.

c.   students that are day commuters.

d.   students that are night commuters.

e.   faculty or staff members.

Figure 9-9 above shows the market-product grid for a Wendy’s restaurant next to a large urban university campus.  Marketing synergies and efficiencies run __________ because a single kind of marketing action can reach customers that buy different product groupings.

a.   horizontally across the rows

b.   vertically down the column

c.   between full meals and snacks

d.   diagonally from top-left to bottom-right of a market-product grid

e.   both horizontally and vertically depending upon the marketing action developed

Figure 9-9 above shows the market-product grid for a Wendy’s restaurant next to a large urban university campus.  The strategy most likely to exploit marketing synergies and efficiencies would be to target

a.   lunch customers.

b.   between-meal snack customers.

c.   dinner customers.

d.   after-dinner snack customers.

e.   dormitory customers.

Figure 9-9 above shows the market-product grid for a Wendy’s restaurant next to a large urban university campus.  Marketing synergies and efficiencies run horizontally because

a.   the first potential growth opportunity would be the breakfast market.

b.   there are multiple markets and actions that can be simultaneously addressed.

c.   a single kind of marketing action can reach customers that buy different product groupings.

d.   the product offerings are virtually the same and the marketing action can be as simple as offering current customers coupons.

e.   the columns correspond to sales synergies and efficiencies.

Figure 9-9 above shows the market-product grid for a Wendy’s restaurant next to a large urban university campus.  Operations and production synergies and efficiencies run __________.

a.   horizontally across the rows

b.   vertically from top to bottom

c.   between full meals and snacks

d.   diagonally from top-left to bottom-right of a market-product grid

e.   both horizontally and vertically depending upon the marketing action

All of the following are criterion used for selecting target market segments EXCEPT:

a.   compatibility with the organization’s objectives and resources.

b.   market size.

c.   simplicity and cost of assigning potential buyers to segments.

d.   competitive position.

e.   cost of reaching the segment.

Which of the following is a criterion used for selecting a target segment?

a.   potential for increased profit

b.   similarity of needs of potential buyers within a segment

c.   difference of needs of buyers among segments

d.   competitive position

e.   potential of a marketing action to reach a segment

Five general criteria are often used to select target segments.  They include: (1) the size of the market; (2) expected growth of the market; (3) competitive position of the firm with respect to the market; (4) cost of reaching the segment; and __________.

a.   compatibility with the organization’s objectives and resources

b.   potential of a marketing action to reach a segment

c.   similarity of needs of potential buyers within a segment

d.   difference of needs of buyers among segments

e.   potential for increased profit

Which of the following is a criterion used for selecting a target segment?

a.   potential for increased profit

b.   similarity of needs of potential buyers within a segment

c.   cost of reaching the segment

d.   difference of needs of buyers among segments

e.   potential of a marketing action to reach a segment

Which of the following is a criterion used for selecting a target segment?

a.   potential for increased profit

b.   similarity of needs of potential buyers within a segment

c.   difference of needs of buyers among segments

d.   potential of a marketing action to reach a segment

e.   compatibility with the organization’s objectives and resources

Which of the following is a criterion used for selecting a target market?

a.   similarity of needs of potential buyers within a segment

b.   difference of needs of sellers between segments

c.   feasibility of a marketing action to reach a segment

d.   competitive position

e.   simplicity and cost of assigning potential buyers to segments

Which of the following is a criterion used for selecting a target market?

a.   similarity of needs of potential buyers within a segment

b.   difference of needs of buyers between segments

c.   expected growth of a segment

d.   feasibility of a marketing action to reach a segment

e.   simplicity and cost of assigning potential buyers to segments

It is not recommended that a firm select a target segment that

a.   is incompatible with its company’s goals or objectives.

b.   requires more than one marketing action.

c.   has few competitors that target this same segment.

d.   would require entry in a global marketplace.

e.   has a growth potential that would require increasing the current workforce.

Best Foods Company is considering expanding beyond the regional market segments now served by its Hellmann’s mayonnaise.  One criterion management wants to use to evaluate potential new geographic market segments is whether new equipment must be bought to serve each new segment.  This is an example of which criterion used to select target market segments?

a.   Best Foods’ competitive position in the segment

b.   Best Foods’ created product groupings

c.   expected growth of the market segment

d.   size of the market segment

e.   cost of reaching the segment

A rehabilitation center wants to target women in their 20s who have received some permanent disability as the result of a skiing accident.  In terms of the criteria used for selecting a target segment, this market would

a.   have no expected growth.

b.   not be compatible with the company’s current resources.

c.   not be worth doing since its market size is very small.

d.   not be readily accessible to the firm’s marketing programs.

e.   be relatively difficult to access.

During its market segmentation process for the Nike Air Jordan XVII, Nike decided to concentrate on affluent teens rather than members of high school basketball teams.  This is an example of

a.   selecting target market segments to reach.

b.   forming products to be sold into groups.

c.   developing a market-product grid and estimating size of markets.

d.   taking marketing actions to reach target markets.

e.   forming prospective buyers into segments.

Doris Lewis owns Lewis Edibles, Inc., a company that makes Tongue Tinglin’ B.B.Q. Sauce.  She wants to target local people who like the special blend of flavors found only in North Carolina barbecue sauce.  In developing a marketing strategy to sell the sauce, Lewis decided to join Goodness Grows in North Carolina, a specialty food association that advertises local products and distributes them to local supermarkets and gourmet shops.  Lewis has just

a.   formed a market segment using critical product features.

b.   formed products to be sold into groups.

c.   developed a market-product grid and estimating size of markets.

d.   taken marketing actions to reach a target market segment.

e.   formed prospective buyers into segments.

When developing a new breakfast menu, Wendy’s had to consider not only the offerings of Burger King and McDonald’s but also the

a.   monthly breakfast specials from IHOP and Perkins.

b.   dormitory breakfast meal plans at surrounding colleges and universities.

c.   quick-serve breakfast items from gas stations and convenience stores.

d.   local farmer’s market that serves a hot breakfast buffet.

e.   breakfast cereals sold at local grocery stores.

 

Figure 9-10 above shows the market-product grid for a Wendy’s restaurant next to a large urban university campus after you’ve chosen the market segments to target and the product groupings to offer based on the market size estimates.  The next step is to develop a simple marketing action to reach a target market.  Assume students who live in dormitories or apartments on or near the campus cannot use student parking lots.  Placing flyers under windshield wipers of cars parked in student parking lots on weekdays between 7:00 AM and 4:00 PM that offer a $2 off coupon on any meal during the fall quarter would be especially targeted at potential

a.   faculty customers.

b.   staff customers.

c.   day commuter customers.

d.   night commuter customers.

e.   nonstudent customers.

Figure 9-10 above shows the market-product grid for a Wendy’s restaurant next to a large urban university campus after you’ve chosen the market segments to target and the product groupings to offer based on the market size estimates.  The next step is to develop a simple marketing action to reach a target market.  Sending out coupons for “10 percent off all purchases between 2:00 PM and 4:30 PM” during the winter quarter would target potential

a.   dormitory customers.

b.   night commuter customers.

c.   between-meal snack customers.

d.   after-dinner snack customers.

e.   apartment customers.

In the early 1980s, Apple, Inc. was often called “Camp Runamok” because

a.   every employee was encouraged to do his or her “own thing.”

b.   it was concentrating on laptops while everyone else was concentrating on personal computers.

c.   all the employees were so young, they occasionally played more than they worked.

d.   there were no coherent product lines targeted at identifiable market segments.

e.   its personal computers were “running amok” with viruses, spyware, and other problems.

 

In the Apple market-product grid shown above for its computer line, the “iMac” is popular among all the segments Apple can target.  This allows Apple to enjoy __________.

a.   segmentation synergies

b.   marketing synergies

c.   product synergies

d.   80/20 rule

e.   usage rates

In the Apple market-product grid shown above for its computer line, the “individuals” consumer segment seems willing to purchase each item in Apple’s product line.  This allows Apple to enjoy __________.

a.   segmentation synergies

b.   marketing synergies

c.   product synergies

d.   80/20 rule

e.   usage rates

According to the Apple market-product grid above, Apple would most likely get the LEAST product synergies from the

a.   Mac Pro and MacBook Pro.

b.   Mac Pro and iMac.

c.   Mac Pro and MacBook Air.

d.   Mac Pro and Mac Mini.

e.   iMac and Mac Mini.

According to the Apple market-product grid above, Apple would most likely get the LEAST market synergies from

a.   college staff.

b.   individuals and small home office users.

c.   medium/large businesses and college faculty.

d.   students, teachers, and college faculty.

e.   creative professionals.

Two key types of synergies are __________.

a.   supplier and distributor synergies

b.   market and product synergies

c.   industry-dominated and consumer-dominated

d.   product and production synergies

e.   consumer and market synergies

Marketing synergies often come at the expense of product synergies because

a.   product synergies are more effective for penetrating a market rather than creating one.

b.   multiple market segments usually require multiple products.

c.   it is easier to change a product than to completely develop a new marketing plan.

d.   a single customer segment will likely require a variety of products.

e.   no company can afford to do both at the same time.

_________ often come at the expense of _________ because a single customer segment will likely require a variety of products, each of which will have to designed and manufactured.

a.   product synergies; marketing synergies

b.   marketing synergies; product synergies

c.   supplier synergies; consumer synergies

d.   distributor synergies; supplier synergies

e.   marketing synergies; finance synergies

The place a product occupies in consumers’ minds on important attributes relative to competitive products is referred to as

a.   product repositioning.

b.   relative positioning.

c.   competitive positioning.

d.   product positioning.

e.   selective perception.

 

Product positioning refers to

a.   an outdated concept that assigns product value by association with social class.

b.   the place a product offering occupies in consumers’ minds on important attributes.

c.   the competitive advantage of one product over another.

d.   changing the place a product occupies in a consumer’s mind relative to competitive products.

e.   using a market-product grid to place products in their appropriate places on that grid to identify potential untapped markets.

Changing the place an offering occupies in consumers’ minds relative to competitive products is referred to as

a.   product placement.

b.   perceptual mapping.

c.   product positioning.

d.   product repositioning.

e.   product differentiation.

Product repositioning refers to

a.   the place a product offering occupies in consumers’ minds on important attributes.

b.   using a market-product grid to place products in their appropriate places on that grid to identify potential untapped markets.

c.   changing the place an offering occupies in consumers’ minds relative to competitive products.

d.   the practice of selling off a firm’s least successful product line and redirecting that revenue into a totally new product.

e.   the competitive advantage of one product over another.

Recently, U.S. dairies, struggling to increase milk sales, tried to change the way adults thought about milk.  The dairies wanted to __________ chocolate milk in the minds of adult consumers.

a.   segment

b.   differentiate

c.   reposition

d.   explain

e.   promote

Mott’s used an advertising campaign to change the way consumers thought about its applesauce from a dinnertime side dish to a replacement for cooking oil in baking.  The advertising message was that using applesauce in baking cuts calories and also makes the resulting baked good healthier.  Mott’s used a __________ strategy.

a.   perceptual mapping

b.   product positioning

c.   product differentiation

d.   product repositioning

e.   psychographics

Positioning that involves competing directly with competitors on similar product attributes in the same target market is referred to as __________.

a.   competitive repositioning

b.   position downsizing

c.   differentiation positioning

d.   head-to-head positioning

e.   product distinction positioning

In the sneaker business, Heelys initially was practicing __________ positioning with sneakers that were similar in consumers’ minds, so it introduced a line of Heelys sneakers that came with an imbedded, detachable wheel in the shoe’s heel.

a.   head-to-head

b.   parallel market

c.   lateral

d.   repositioning

e.   differentiation

One approach to positioning a new product in a market is __________ positioning, which involves competing directly with competitors on similar product attributes in the same target market.

a.   perceptual

b.   psychological

c.   differentiation

d.   head-to-head

e.   market

Head-to-head positioning requires a product to

a.   compete with competitors using completely different attributes.

b.   compete with competitors on similar product attributes in the same market.

c.   compete with competitors on similar product attributes but in a different market.

d.   seek out its own market niche.

e.   compete against other products from the same company.

In the sneaker market, Reebok and Nike practice __________ positioning since both manufacturers compete in the same target market with similar product attributes.

a.   psychological

b.   perceptual

c.   differentiation

d.   head-to-head

e.   market

A positioning approach that involves seeking a less competitive, smaller market niche in which to locate a brand is referred to as __________.

a.   competitive repositioning

b.   head-to-head positioning

c.   differentiation positioning

d.   downsize positioning

e.   product repositioning

Differentiation positioning requires a product to

a.   emphasize unique product attributes to compete directly with competitors.

b.   compete directly with competitors on similar product attributes in the same target market.

c.   compete with competitors on similar product attributes but in a different market.

d.   seek a less-competitive, smaller market niche in which to locate a brand.

e.   develop marketing actions to move a product or brand to an ideal position.

To minimize the cannibalization of a brand’s sales within its product line, firms often use

a.   head-to-head positioning.

b.   lateral positioning.

c.   differentiation positioning.

d.   market repositioning.

e.   the 80/20 rule.

Some Timex wristwatches can be purchased for less than $30 while some Rolex wristwatches carry a price tag of several thousand dollars.  In general, consumers view Timex watches as being dependable, relatively accurate, and inexpensive.  The Rolex brand tends to be perceived as an expensive status symbol.  Timex watches can be purchased in drug stores, discount stores, and department stores in all sizes of communities.  Rolex watches are distributed more selectively, and are often available only in fine jewelry stores or specialty shops in major cities.  By using distinctly different pricing and distribution strategies, the marketers of Rolex watches

a.   compete for the same segment through different channels of distribution.

b.   develop similar products as Timex but under different names.

c.   use a differentiation positioning strategy.

d.   compete for the same customers through similar retail outlets.

e.   create cognitive dissonance in consumers who purchased Timex wristwatches.

A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand, is referred to as a

a.   perception matrix.

b.   growth-share matrix.

c.   market-product grid.

d.   perceptual map.

e.   product differentiation chart.

A perceptual map refers to

a.   a framework used to compare one firm’s product offerings with another firm’s offerings in relationship to their relative market share.

b.   a framework used to demonstrate the growth or decline of specific market segments within an industry.

c.   a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand.

d.   a framework to relate the market segments of potential buyers to the products offered or potential marketing actions by an organization.

e.   the place a product occupies in a single consumer’s mind on unimportant attributes relative to competitive products.

A graph displaying consumers’ perceptions of product attributes in two dimensions is referred to as a

a.   perception matrix.

b.   growth-share matrix.

c.   perceptual map.

d.   market-product grid.

e.   product differentiation chart.

Marketers use perceptual maps as a means to display or graph in two dimensions the location of products or brands

a.   against large market segments in a market-product grid.

b.   against small market segments in a market-product grid.

c.   in the minds of consumers.

d.   in the mind of a single consumer.

e.   against the revenues generated by other products or brands within the company.

A perceptual map can be used to identify a firm’s product in terms of how closely it fits the “ideal” perceptions of __________ and where it fits in relationship to competitors’ products.

a.   stakeholders

b.   competitors

c.   consumers

d.   the CEO of the firm

e.   independent rating organizations such as Consumer Reports

The axes on a perceptual map are

a.   two product attributes, each listed in terms of their opposites.

b.   market share and market growth rate.

c.   sales and profitability.

d.   customer perceptions of the firm’s product versus the average of all brands in the industry.

e.   customer perceptions of the firm’s product versus the brand of the firm’s principal competitor.

Which of the following data are collected from consumers to develop a perceptual map for a particular product?

a.   a listing of all prospective brands and products

b.   the important attributes for a product or brand class

c.   managerial judgments about how consumers perceive products

d.   rank order of the ratings of an existing brand’s preference relative to its competitors

e.   detailed explanations of why consumers make the choices they do

A key to effectively positioning a product or brand is discovering its perception in the minds of potential customers.  To do this, companies take four steps: (1) __________; (2) discover how target customers rate competing products or brands with respect to these attributes; (3) discover where the company’s product or brand is on these attributes in the minds of potential customers; and (4) reposition the company’s product or brand in the minds of potential customers.

a.   decide whether to keep or delete the market segment that your product offering targets

b.   identify the competitors’ brands that make up the consideration set

c.   identify the important attributes for the product or brand class

d.   create a marketing plan based on customers’ perceptions

e.   identify market niches that were not previously selected during the market segmentation process

A key to positioning a product or brand effectively is discovering the perceptions of its potential customers.  In determining its positioning in the minds of customers, companies take four steps: (1) identify the important attributes for the product or brand class; (2)__________; (3) discover where the company’s product or brand is on these attributes in the minds of potential customers; and (4) reposition the company’s product or brand in the minds of potential customers.

a.   decide whether to keep or delete the market segment that your product offering targets

b.   identify the competitors’ brands that make up the consideration set

c.   discover how target customers rate competing products or brands with respect to these attributes

d.   create a marketing plan based on customers’ perceptions

e.   identify market niches that were not previously selected during the market segmentation process

A key to positioning a product or brand effectively is discovering the perceptions of its potential customers.  In determining its positioning in the minds of customers, companies take four steps: (1) identify the important attributes for the product or brand class; (2) discover how target customers rate competing products or brands with respect to these attributes; (3) ___________; and (4) reposition the company’s product or brand in the minds of potential customers.

a.   decide whether to keep or delete the market segment that your product offering targets

b.   identify the competitors’ brands that make up the consideration set

c.   create a marketing plan based on customers’ perceptions

d.   identify market niches that were not previously selected during the market segmentation process

e.   discover where the company’s product or brand is on these attributes in the minds of potential customers

 

Figure 9-11 above is a depiction of a _________ for beverages in the minds of adults.

a.   hierarchy of needs

b.   perceptual map

c.   marketing matrix

d.   growth-share matrix

e.   perception matrix

The perceptual map in Figure 9-11 above shows how various drinks are seen in the minds of adult consumers.  Suppose a coffee producer wants to increase sales.  As the account executive for the coffee producer’s advertising agency, you want to create comparative ads showing that coffee presently is healthier (has higher nutrition) than which beverage?

a.   skinny lattes.

b.   fruit-flavored drinks.

c.   sugared soft drinks.

d.   sports drinks.

e.   milk shakes.

The perceptual map in Figure 9-11 above shows how various drinks are seen in the minds of adult consumers.  Suppose this map describes accurately how adults see the drinks shown.  As one of these adults, you are a heavy consumer of mineral water.  Moreover, you are very concerned about nutrition and tend not to consume children’s drinks.  From this perceptual map, you conclude that mineral water is

a.   more nutritious than tea.

b.   a more adult-oriented beverage than sports drinks.

c.   more nutritious and a more adult-oriented beverage than milk shakes.

d.   a more adult-oriented beverage than nutritionally designed diet drinks.

e.   less nutritious and a more adult-oriented beverage than fruit-flavored drinks.

By dividing its tennis racquet market into three categories, which it labels Performance, Recreational, and Junior tennis players, Prince Sports is using a marketing strategy called

a.   product differentiation.

b.   product innovation.

c.   market delineation.

d.   market segmentation.

e.   product groupings.

The O3 technology refers to an innovative tennis racquet Prince Sports developed that simultaneously delivers faster racquet speed and a bigger “sweet spot” in the middle of the frame.  Prince Sports has implemented a __________ strategy with its O3 innovative tennis racquet technology.

a.   competitive segmentation

b.   head-to-head

c.   product differentiation

d.   usage segmentation

e.   market segmentation

The segmentation strategy used by Prince Sports today is

a.   geographic.

b.   behavioral.

c.   psychographic.

d.   socioeconomic.

e.   resource-based.

 

This company was rated by Fortune as the world’s most admired company in 2011 and Bloomberg Businessweek perennially rates it as the most innovative company in the world.

a.   IBM

b.   Microsoft

c.   3M

d.   Kodak

e.   Apple

The Apple II, Macintosh, iPod, iPhone, MacBook Air, and iPad are all examples of a company’s commitment to __________.

a.   outselling their competitors

b.   social responsibility

c.   new product development

d.   using renewable resources

e.   respecting their workforce

The late Steve Jobs oversaw or invented innovations that revolutionized six industries.  Which industry below is NOT one of these six?

a.   music

b.   smartphones

c.   personal computers

d.   television

e.   tablet computing

The Apple innovation that stores all your digital content and then pushes it to where it can then be sent to your other digital devices is referred to as

a.   iPod

b.   iCloud

c.   iPad

d.   iPhone

e.   MacBook Air

A product refers to

a.   a tangible good received in exchange for a person’s time and effort.

b.   intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value.

c.   a good that has in some way been altered, combined, or improved and sold to organizational buyers consumers.

d.   is a thought that leads to an action such as a concept for a new invention.

e.   a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value.

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value is referred to as __________.

a.   a widget

b.   a product

c.   a service

d.   an idea

e.   merchandise

A __________ is the marketing term for a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers’ needs and is received in exchange for money or something else of value.

a.   idea

b.   service

c.   widget

d.   utility bundle

e.   product

In marketing, a(n) __________ generally includes not only physical goods, but services and ideas as well.

a.   action

b.   invention

c.   merchandise

d.   product

e.   concept

A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers’ needs and is received in exchange

a.   only for legal tender (money).

b.   for providing value.

c.   only for barter.

d.   for a person’s time and effort.

e.   for money or something else of value.

A product is a good, service, or idea consisting of a __________ that satisfy consumers’ needs and is received in exchange for money or something else of value.

a.   promise or commitment exchanged between a seller and a buyer

b.   bundle of tangible and intangible attributes

c.   bundle of tangible attributes

d.   bundle of intangible attributes

e.   bundle of tangible and intangible experiences

A good has tangible attributes that a consumer’s __________ can perceive.

a.   cognitive intelligence

b.   knowledge of past experiences

c.   five senses

d.   sixth sense

e.   emotional intelligence

A product that has tangible attributes that a consumer’s five senses can perceive is referred to as a(n)

a.   service.

b.   product concept.

c.   good.

d.   new idea.

e.   artifact.

Goods can be divided into __________ goods and __________ goods.

a.   functional; aesthetic

b.   required; desired

c.   tactile; conceptual

d.   durable; nondurable

e.   product; service

Which of the following statements regarding goods is MOST accurate?

a.   In order to be classified as a good, an item must appeal to all five senses.

b.   Music is not considered a good because it only involves a single sense—hearing.

c.   In addition to appealing to the senses, some goods also have intangible attributes.

d.   To market a good that contains visual attributes, you cannot use an auditory medium.

e.   The aroma of chocolate chip cookies is considered an idea because it affects one’s senses.

The division of products into durable and nondurable goods is to __________.

a.   comply with NAICS guidelines

b.   address issues of environmental concern

c.   comply with ISO 9000 requirements

d.   classify products for tax purposes

e.   provide direction for marketing actions

Which of the following statements regarding “goods” is MOST accurate?

a.   Nondurable goods would rely more on advertising than durable goods.

b.   Durable goods would benefit more on advertising than nondurable goods.

c.   There is little if any difference between marketing actions between durable and nondurable goods.

d.   Nondurable goods would rely more on personal selling than durable goods.

e.   The durable and nondurable classification applies to services as well as to products.

A _________ is defined as an item consumed in one or a few uses.

a.   durable good

b.   convenience good

c.   specialty good

d.   shopping good

e.   nondurable good

A nondurable good is defined as a(n)

a.   item consumed in one or a few uses.

b.   item that usually lasts over an extended number of uses.

c.   item that lasts at least one year without becoming obsolete.

d.   product purchased only for the use of ultimate consumers.

e.   product used in the production of other products.

Items consumed in one or a few uses, such as food and fuel, are referred to as ________.

a.   services

b.   perishable goods

c.   durable goods

d.   disposable goods

e.   nondurable goods

Among consumer products, advertising and wide distribution are especially important for

a.   durable goods.

b.   specialty products.

c.   nondurable goods.

d.   production goods.

e.   semidurable goods.

Which of the following is the best example of a nondurable good?

a.   laundry detergent

b.   shoes

c.   insurance

d.   iPod

e.   laser surgery

Which of the following is the best example of a nondurable good?

a.   automobile

b.   iPod

c.   baseball

d.   gasoline

e.   shoes

Advertising is important for products, such as Butterfinger candy bars and Dasani bottled water, that are purchased frequently and at a relatively low cost.  Also, wide distribution in retail outlets is essential.  Why?

a.   They are highly sought-after goods that are purchased from wholesalers.

b.   They are unsought products, so advertising promotes consumers’ impulse purchases.

c.   They are nondurable goods and easily substitutable, so consumers need to be reminded of their existence.

d.   They are shopping products and can easily go out of stock.

e.   They are semi-durable goods, so advertising helps to maintain steady demand.

A durable good is defined as a(n)

a.   item consumed in one or a few uses.

b.   item that usually lasts over an extended number of uses.

c.   item that lasts at least one year without becoming obsolete.

d.   product purchased only for the use of ultimate consumers.

e.   product used in the production of other products.

Products that usually last over many uses, such as cars and appliances, are referred to as

a.   endurable goods.

b.   nondisposable goods.

c.   imperishable goods.

d.   reliable products.

e.   durable goods.

Which of the following is considered a durable good?

a.   silverware

b.   caviar

c.   marketing research

d.   chewing gum

e.   voting

Intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value are referred to as __________.

a.   services

b.   goods

c.   products

d.   marketing mix

e.   ideas

Services refer to

a.   the tangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value.

b.   the intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value.

c.   the activities provided to complement a tangible good, such as technical support for a computer.

d.   any activity required for the production of a good that cannot be completed “in-house” and must be outsourced to another firm.

e.   the human (nonmechanical) component that is part of the manufacturing process.

Services are a significant part of the U.S. economy, exceeding __________ percent of its gross domestic product.

a.   20

b.   25

c.   30

d.   40

e.   50

Which of the following is considered a service?

a.   silverware

b.   washing machine

c.   chewing gum

d.   a marketing class

e.   freedom

In marketing, an idea is

a.   a thought that leads to a product or action.

b.   an inspiration that evolved from market research.

c.   an observation about a series of events.

d.   a concept explaining the behavior of an individual or group.

e.   an observation about an individual or group and how they use a service or product.

In marketing, a(n) __________ is a thought that leads to a product or action.

a.   observation

b.   inspiration

c.   innovation

d.   idea

e.   perception

Which of the following is considered an idea?

a.   silverware

b.   washing machine

c.   chewing gum

d.   a marketing class

e.   freedom

Consumer products refer to

a.   products purchased by the ultimate consumer.

b.   products used in the production of other items.

c.   products a consumer will make an effort to seek out and buy.

d.   items purchased frequently and with a minimum of shopping effort.

e.   products that assist directly or indirectly in providing products for resale.

Products that are purchased by the ultimate consumer are referred to as __________.

a.   generic goods

b.   end user goods

c.   personal items

d.   merchandise

e.   consumer products

Which of the following would most likely be considered a consumer product?

a.   ball bearings

b.   back hoe

c.   printing press

d.   suitcase

e.   mainframe computer

Products organizations buy that assist in providing other products for resale are referred to as __________.

a.   reseller goods

b.   wholesale goods

c.   ancillary products

d.   retail products

e.   business products

Business products refer to

a.   products organizations buy that assist in providing other products for resale.

b.   supplies necessary for the day-to-day operations of a business.

c.   ancillary services necessary for the operation of a business.

d.   products that are sold exclusively to businesses.

e.   prototypes that won’t actually be constructed until a sale has been made.

Business products are also referred to as __________ products.

a.   B2B products

b.   B2C products

c.   B4B products

d.   C3PO products

e.   B4C products

Business products are also referred to as __________.

a.   commodities

b.   industrial products

c.   wares

d.   resale products

e.   merchandise

Industrial products are also referred to as __________ products.

a.   manufacturing

b.   merchandise

c.   organizational

d.   resale

e.   business

An iMac personal computer from Apple can be classified according to all of the following categories EXCEPT:

a.   business product.

b.   nondurable good.

c.   B2B product.

d.   durable good.

e.   consumer product.

Consumer product classifications differ in terms of the: (1) effort the consumer spends on the decision; (2) frequency of purchase; and (3)

a.   amount of money the customer is willing and able to spend.

b.   number of competing or substitute products.

c.   demographics of the consumer.

d.   attributes used in making the purchase decision.

e.   consumer segmentation characteristics.

Convenience products refer to

a.   items that consumers will make special efforts to seek out and buy.

b.   items for which consumers compare several alternatives on criteria such as price, quality, or style.

c.   products consumers purchase frequently, conveniently, and with a minimum of shopping effort.

d.   ancillary products used to make other products work more efficiently.

e.   low-cost items for which there are numerous substitutes and generic equivalents.

In terms of price, which of the following type of consumer product would most likely be relatively inexpensive?

a.   shopping product

b.   convenience product

c.   specialty product

d.   unsought product

e.   supplies

With respect to distribution, convenience products are available

a.   at relatively few outlets.

b.   at a large number of specialty outlets.

c.   by special order from the manufacturer.

d.   at a very limited number of convenience stores.

e.   on a widespread basis at many outlets.

In terms of promotion, which of the following types of products would stress price, availability, and awareness?

a.   shopping

b.   convenience

c.   specialty

d.   unsought

e.   supplies

In terms of brand loyalty, consumers are aware of a brand but will readily accept substitutes for which type of product?

a.   convenience products

b.   specialty products

c.   unsought products

d.   shopping products

e.   supplies

Which of the following is the best example of a convenience product?

a.   Apple iPod

b.   Lexus LS 460 luxury automobile

c.   flight on American Airlines

d.   Roget’s Thesaurus

e.   toothpaste

Items for which the consumer compares several alternatives on several criteria such as price, quality, or style are referred to as __________.

a.   specialty products

b.   selective products

c.   shopping products

d.   prestige products

e.   convenience products

Shopping products refer to items that the consumer

a.   purchases frequently, conveniently, and with a minimum of effort.

b.   compares several alternatives on several criteria such as price, quality, or style.

c.   makes a special effort to search out and buy.

d.   does not know about or knows about but does not initially buy.

e.   buys as a result of buying others’ consumer products, such as impulse purchases.

The type of good for which the consumer compares several alternatives on such criteria as price, quality, or style is a(n)

a.   shopping product.

b.   convenience product.

c.   specialty product.

d.   unsought product.

e.   B2B product.

Which type of consumer product is purchased relatively infrequently and takes some time to make the purchase decision because the consumer needs much comparison shopping time?

a.   convenience product

b.   shopping product

c.   specialty product

d.   unsought product

e.   discretionary product

With respect to distribution, shopping products are available

a.   by special order from the manufacturer.

b.   at an extremely small number of outlets.

c.   at relatively few outlets.

d.   at a large number of selective outlets.

e.   on a widespread basis at many outlets.

With respect to price and availability, shopping products are likely to be

a.   relatively inexpensive and widely available.

b.   relatively inexpensive but very limited availability.

c.   very expensive and available at a large number of selective outlets.

d.   very expensive with very limited availability.

e.   fairly expensive and available at a large number of selective outlets.

In terms of promotion, which of the following type of consumer product stresses product differentiation from competitors?

a.   shopping product

b.   convenience product

c.   specialty product

d.   unsought product

e.   discretionary product

In terms of brand loyalty, consumers prefer specific brands but will accept substitutes after considering which type of consumer product?

a.   shopping product

b.   convenience product

c.   specialty product

d.   unsought product

e.   discretionary product

You decide to buy a new car.  You talk to friends about it, research mechanical specifications in Consumer Reports, test drive different makes and models, and compare prices at several dealerships.  Into which classification of consumer products would your new car purchase fall?

a.   shopping product

b.   specialty product

c.   unsought product

d.   discretionary product

e.   convenience product

Specialty products refer to

a.   products for which there are no close substitutes.

b.   products purchased for their prestige or high perceived value.

c.   products a consumer will make a special effort to search out and buy.

d.   items for which the consumer compares several alternatives on several criteria such as price, quality, or style.

e.   items that the consumer does not know about or knows about but does not initially buy.

Which type of consumer product is purchased infrequently and takes an extensive amount of time to make the purchase decision?

a.   convenience product

b.   shopping product

c.   specialty product

d.   unsought product

e.   discretionary product

With respect to price, which of the following type of consumer product would most likely be very expensive?

a.   convenience product

b.   shopping product

c.   unsought product

d.   specialty product

e.   discretionary product

Distribution is very limited with which of the following type of consumer product?

a.   shopping product

b.   convenience product

c.   discretionary product

d.   unsought product

e.   specialty product

In terms of promotion, which of the following type of consumer product stresses status and uniqueness of brand?

a.   specialty product

b.   convenience product

c.   shopping product

d.   unsought product

e.   discretionary product

In terms of brand loyalty, consumers who are very brand loyal and will not accept substitutes for which type of consumer product?

a.   shopping product

b.   convenience product

c.   specialty product

d.   unsought product

e.   discretionary product

You greatly admire a set of Waterford crystal serving bowls you see at a dinner party and decide to buy two despite their cost of $250 each.  They are only available in your area in a Waterford shop 40 miles from campus.  Into which classification of consumer products would the Waterford crystal serving bowls fall?

a.   convenience products

b.   shopping products

c.   specialty products

d.   unsought products

e.   discretionary products

Burberry makes fine raincoats, clothing, and other items, some that feature the company’s distinctive plaids.  Originally found only in Great Britain, Burberry has opened a limited number of exclusive shops in leading cities around the world to reach customers who value its name and quality.  Burberry is selling which classification of consumer product?

a.   convenience product

b.   shopping product

c.   discretionary product

d.   unsought product

e.   specialty product

Unsought products are

a.   any products associated with impulse buys at the supermarket checkout counter.

b.   products that were once very popular but that have become obsolete because they are in the decline stage of their product life cycle.

c.   items within a company’s product line that do not perform as well as others in the line.

d.   products that the consumer does not know about or knows about but does not initially want.

e.   products that people choose to ignore because they find them offensive from a moral or ethical perspective.

Which of the following is MOST likely to be an example of an unsought product?

a.   snow shovel

b.   cell phone

c.   gym membership

d.   calculator

e.   burial insurance

Very infrequent purchases with some comparison shopping are characteristic of the purchasing behavior for a type of consumer service (such as burial insurance) that a prospective buyer may not initially want.  This type of consumer service is referred to as a(n)

a.   shopping product.

b.   convenience product.

c.   specialty product.

d.   support product.

e.   unsought product.

With respect to promotion, which of the following strategies would most likely be used for unsought products?

a.   offering consumer and trade sales promotions

b.   establishing the uniqueness and status of the brand

c.   generating awareness

d.   differentiating the brand from competitive brands

e.   stressing price and availability in advertising

Which of the following is MOST likely to be an example of an unsought product?

a.   iPod MP3 player

b.   Lexus LS 460 luxury automobile

c.   flight on American Airlines to Phoenix

d.   Roget’s Thesaurus

e.   Ivory soap

Leona hates carrying a camera with her on vacations.  If she only knew of the existence of the ½” thick Logitech pocket digital camera that easily fits in any pocket!  For Leona, the Logitech camera is a(n)

a.   shopping product.

b.   convenience product.

c.   specialty product.

d.   unsought product.

e.   discretionary product.

Fifty percent or more of American adults have not had their teeth checked by a dentist within the last five years.  For these people, dental services would be classified as a(n)

a.   shopping product.

b.   convenience product.

c.   specialty product.

d.   unsought product.

e.   business product.

 

According to Figure 10-1 above, column “A” would represent what type of product?

a.   shopping

b.   convenience

c.   specialty

d.   prestige

e.   unsought

According to Figure 10-1 above, column “B” would represent what type of product?

a.   shopping

b.   convenience

c.   specialty

d.   prestige

e.   unsought

According to Figure 10-1 above, column “C” would represent what type of product?

a.   shopping

b.   convenience

c.   specialty

d.   prestige

e.   unsought

According to Figure 10-1 above, column “D” would represent what type of product?

a.   shopping

b.   convenience

c.   specialty

d.   prestige

e.   unsought

Considering the classification of consumer products, which of the following products will have the most limited distribution?

a.   Duncan Hines cake mixes

b.   Polaroid cameras

c.   Quaker State motor oil

d.   Rolex watches

e.   Sony stereos

Marissa, a college student, and her father, a wealthy businessman, were each considering the purchase of a new automobile.  As a college student with limited financial resources, Marissa went from car dealer to car dealer in several different cities searching for the lowest price on a new economy car.  She devoted a great deal of time and energy to getting the best value for her money.  For Marissa, an automobile was a __________.

a.   specialty product

b.   unsought product

c.   discretionary product

d.   shopping product

e.   convenience product

The demand for a business product that results from the demand for a consumer product is referred to as

a.   sequential demand.

b.   selective demand.

c.   primary demand.

d.   secondary demand.

e.   derived demand.

Which of the following best illustrates the concept of derived demand?

a.   The number of retail stores in a downtown area decreases as demand for retail goods increases.

b.   An increase in the number of new, single-family homes results from a spurt in the gross national product.

c.   The heat wave results in an increased demand for air conditioners.

d.   Container manufacturers experience an increase in sales because more HDTVs from Japan and South Korea are being sold in the U.S. and must be transported by ship in containers.

e.   Honda reducing its car prices causes GM to do the same.

Heavy-duty Rayovac flashlights are sold throughout the United States.  However, Philips manufactures the bulbs used in Rayovac flashlights.  The quantity of bulbs Philips makes is related to how many flashlights Rayovac sells.  This is an example of

a.   a tying arrangement.

b.   reciprocity.

c.   strategic alliance demand.

d.   relationship marketing.

e.   derived demand.

The two main classifications of business products are

a.   durable and nondurable.

b.   components and support.

c.   tangible and intangible.

d.   consumer and industrial.

e.   derived and support.

__________ are items that become part of the final business product.

a.   Components

b.   Accessories

c.   Support products

d.   Production goods

e.   Raw assemblies

Raw materials, such as grain or lumber as well as assemblies or parts, are referred to as

a.   production goods

b.   components

c.   accessories

d.   support products

e.   raw assemblies

Installations, accessory equipment, supplies, and industrial services used to assist in producing other goods and services are referred to as __________.

a.   components

b.   parts

c.   production goods

d.   raw materials

e.   support products

Products (such as tools and repair services) that are used to assist in producing other goods and services are referred to as __________.

a.   components

b.   complementary products

c.   support products

d.   derived products

e.   materials

Support products are items used to assist in producing other goods and services.  These include installations, accessory equipment, supplies, and __________.

a.   industrial services

b.   components

c.   materials

d.   derived products

e.   complementary products

Support products are items used to assist in producing other goods and services.  These include installations, industrial services, supplies, and __________.

a.   accessory equipment

b.   components

c.   derived products

d.   complementary products

e.   materials

Support products are items used to assist in producing other goods and services.  These include installations, industrial services, accessory equipment, and __________.

a.   components

b.   supplies

c.   materials

d.   derived products

e.   complementary products

Support products are items used to assist in producing other goods and services.  These include installations, supplies, accessory equipment, and __________.

a.   complementary products

b.   materials

c.   industrial services

d.   derived products

e.   components

Installations are support products that include items such as

a.   stationery, paper clips, and brooms.

b   tools and office equipment.

c    buildings and fixed equipment.

d.   raw materials and component parts.

e.   maintenance, repair, and legal services.

Among business products, support products are items used to assist in producing other goods and services.  These include installations such as

a.   convenience products.

b.   buildings and fixed equipment.

c.   tools and office equipment.

d.   raw materials and component parts.

e.   maintenance, repair, and legal services.

Among business products, which of the following would most likely be considered an installation?

a.   a factory

b.   sheet rock

c.   a cleaning service

d.   a photocopier

e.   a drill press

An extremely large machine for producing sheet metal from steel ingots would be classified as which kind of business products?

a.   installations

b.   finished goods

c.   supplies

d.   industrial services

e.   raw materials

Accessories are support products that include items such as

a.   stationery, paper clips, and brooms.

b   tools and office equipment.

c    buildings and fixed equipment.

d.   raw materials and component parts.

e.   maintenance, repair, and legal services.

Among business products, support products that include tools and office equipment are referred to as

a.   installations.

b.   supplies.

c.   raw materials.

d.   accessory equipment.

e.   components.

Among business products, which of the following would most likely be considered accessory equipment?

a.   a factory

b.   sheet rock

c.   a cleaning service

d.   a drill press

e.   pencils

Among business products, drafting tables would best be considered which type of support products?

a.   installations

b.   accessory equipment

c.   supplies

d.   industrial services

e.   raw materials

Supplies are support products that include items such as

a.   stationery, paper clips, and brooms.

b   tools and office equipment.

c    buildings and fixed equipment.

d.   raw materials and component parts.

e.   maintenance, repair, and legal services.

Among business products, supplies usually consist of

a.   items as pens, batteries, and light bulbs.

b.   buildings and fixed equipment.

c.   items used in the manufacturing process and become part of the final product.

d.   tools and office equipment.

e.   raw materials and component parts.

Among business products, which of the following would MOST likely be considered supplies?

a.   photocopier

b.   sheet rock

c.   cleaning service

d.   Dallas Cowboys Stadium

e.   ink cartridges

Among business products, printer paper would be classified as which type of support product?

a.   installations

b.   accessory equipment

c.   supplies

d.   industrial services

e.   raw materials

Industrial services are support products that include items such as

a.   stationery, paper clips, and brooms.

b   tools and office equipment.

c    buildings and fixed equipment.

d.   raw materials and component parts.

e.   maintenance, repair, and legal services.

Among business products, which of the following would most likely be considered an industrial service?

a.   photocopier

b.   sheet rock

c.   photocopier maintenance[MSOffice1] 

d.   Cowboys Stadium

e.   ink cartridges

When a small retail chain hires an accountant to do its income taxes, the retail chain would have purchased a(n) __________ kind of business product.

a.   ancillary service

b.   industrial service

c.   specialty service

d.   accessory service

e.   contractual service

Among business products, legal counsel for patent information for a firm’s R&D department would most likely be classified as which type of support product?

a.   ancillary services

b.   contractual services

c.   specialty services

d.   accessory services

e.   industrial services

A retail chain hires a company to design and install a computer network that would allow each store in the chain to check the inventory of others in the chain for customer-requested items.  The retail chain would have purchased which kind of business products?

a.   accessory equipment

b.   industrial services

c.   supply materials

d.   component parts

e.   installations

A product item refers to

a.   the variations within a product class.

b.   the entire product category or industry.

c.   a group of SKUs that are closely related.

d.   a specific product that has a unique brand, size, or price.

e.   the services offered by an organization.

The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given as gifts for almost every occasion imaginable.  The Love Bandit Bear is one bear it designed for people to give to each other on Valentine’s Day.  The Love Bandit Bear is an example of a

a.   product item.

b.   product mix.

c.   product class.

d.   product form.

e.   product line.

The __________ is the unique identification number that defines an item for ordering or inventory purposes.

a.   unique stock mark

b.   QR code

c.   stock keeping unit

d.   order quantity code

e.   NAICS stock code

The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given as gifts for almost every occasion imaginable.  The Love Bandit Bear is designed for people to give to each other on Valentine's Day.  The unique identification number that the Vermont Teddy Bear Company uses to distinguish this Teddy bear from the others in its product line for ordering and inventory purposes is called a(n)

a.   stock ID code.

b.   QR code.

c.   NAICS stock code.

d.   order quantity code.

e.   stock keeping unit.

A group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same types of outlets, or fall within a given price range is referred to as a __________.

a.   product class

b.   product mix

c.   product category

d.   marketing category

e.   product line

A product line refers to

a.   a product and all its ancillary services (warranties, financing, etc.).

b.   the variations within a product class.

c.   a specific product SKU that has a unique brand, size, or price.

d.   a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same types of outlets, or fall within a given price range.

e.   the entire product category or industry.

A product line is a group of product or service items that are closely related because they satisfy a class of needs, __________, are sold to the same customer group, are distributed through the same type of outlets, or fall within a given price range.

a.   are made of similar components

b.   are used together

c.   have one SKU number

d.   require high levels of R&D

e.   made from the same formulations

A product line is a group of product or service items that are closely related because they satisfy a class of needs, are used together, __________, are distributed through the same type of outlets, or fall within a given price range.

a.   are made of similar components

b.   require high levels of R&D

c.   are sold to the same customer group

d.   made from the same formulations

e.   have one SKU number

A product line is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, __________, or fall within a given price range.

a.   are made of similar components

b.   made from the same formulations

c.   require high levels of R&D

d.   have one SKU number

e.   are distributed through the same type of outlets

A product line is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, and are distributed through the same type of outlets, or __________.

a.   are made of similar components

b.   made from the same formulations

c.   require high levels of R&D

d.   require high levels of R&D

e.   fall within a given price range

 

The Little Remedies products shown above best describe which of the following?

a.   product item

b.   product line

c.   product mix

d.   product category

e.   brand line

Which of the following is an example of a product line?

a.   Little Remedies’ gas relief drops

b.   Zephyrhills natural spring water in 8 oz. bottles

c.   The Yellow Pages for Gainesville, Florida

d.   Hallmark Mother’s and Father’s Day cards

e.   Apple iPhone

Which of the following statements about product lines is MOST accurate?

a.   An advantage of a narrow product line is the ability to have a greater gap between price points.

b.   Product lines refer to consumer products; product mixes refer to industrial products.

c.   An advantage of broad product lines is increased likelihood of access to large retail chain distribution.

d.   A benefit of having a narrow product line is that it enables both consumers and retailers to simplify their buying decisions.

e.   A broad product line reduces R&D costs.

The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given as gifts for almost every occasion imaginable.  For the Vermont Teddy Bear Company, Teddy bears are an example of a

a.   product class.

b.   product mix.

c.   SKU.

d.   marketing category.

e.   product line.

During a recent shopping trip to a local Target store, Pat noticed several things.  First, she noticed that the store offered a tremendous variety of products, including toys; pet food; clothing for men, women, and children; health and beauty aids; small household appliances; automotive products; and more.  Each product grouping at Target is an example of a(n) __________.

a.   product item

b.   product mix

c.   industry

d.   product class

e.   product line

All of the different product lines offered by an organization are collectively referred to as a

a.   product class.

b.   product mix.

c.   product SKUs.

d.   marketing mix.

e.   target mix.

A product mix refers to

a.   all of the different product lines offered by an organization.

b.   the variations within a product class.

c.   a specific product SKU that has a unique brand, size, or price.

d.   a group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same types of outlets, or fall within a given price range.

e.   the entire product category or industry.

A company’s product mix is equal to the sum of its

a.   marketing mix.

b.   product class.

c.   product items.

d.   product lines.

e.   SKUs.

Newman’s Own is a company that gives all of its profits to charities.  The company produces popcorn, salsa, pasta sauce, and salad dressings under the Newman’s Own brand name.  These product lines comprise the company’s

a.   product mix.

b.   stock keeping units.

c.   product category.

d.   product class.

e.   marketing category.

 

The various 3M products in the photo above can be classified as a

a.   market grouping.

b.   product mix.

c.   product class.

d.   marketing mix.

e.   SKU line.

The relationship between a product line and product mix is

a.   product mixes include product lines.

b.   product lines include product mixes.

c.   product lines refer to consumer products; product mixes refer to industrial products.

d.   product mixes refer to consumer products; product lines refer to industrial products.

e.   there is no significant difference other than minor product variations of color, size, or form.

Marketing dashboards are useful in measuring actual market performance versus the goals set in new-product planning, such as sales.  Once shortfalls are identified, the first step market research would take would be to determine _____________.

a.   how to change the promotional strategy

b.   whether the problem is internal or external to the organization

c.   whether to drop or keep the failing product or market

d.   whether to change the goal, and therefore, the marketing metric used to measure it

e.   if the numbers used for evaluation in the marketing dashboard are accurate

If you are using a marketing dashboard to discover which cities in Florida have the weakest sales of sunscreen, what marketing metric should be used to measure sales performance?

a.   every metric possible

b.   shelf facings for this year and last year by city

c.   production costs

d.   customer psychographics

e.   unit sales for this year and last year by city

 

In the marketing dashboard map shown above, “green” indicates an annual growth rate that is greater than 10%; “orange” signifies an annual growth rate of between 0%-10%; and “red” represents a decline or negative annual growth rate.  If an organization’s 2011 sales for the entire U.S. were $50 million and its 2010 U.S. sales were $30 million, what is the annual % sales change?

a.   33%

b.   67%

c.   100%

d.   125%

e.   133%

A product can be classified as “new” from all of the following perspectives EXCEPT:

a.   the organization’s.

b.   existing offerings.

c.   legal.

d.   an organization’s competitors.

e.   the consumers.

A product can be classified as “new” if it __________ from existing products.

a.   is functionally different

b.   is different in color

c.   is different in its packaging

d.   is different in price

e.   requires a different distribution channel

Feature bloat is

a.   an exaggeration of a product’s performance capabilities.

b.   the overcharging in price for a minor or cost-free product enhancement.

c.   the requirement of having consumers learn new behaviors with a continuous innovation.

d.   an excessive number of product attributes that overwhelms consumers with unnecessary complexity.

e.   the increase in package size when adding more content or making it larger (the “mega” phenomenon).

The proliferation of extra features that overwhelms many consumers with mind-boggling complexity is referred to as

a.   sensory overload.

b.   product line extension.

c.   feature bloat.

d.   feature overkill.

e.   product differentiation.

According to Robert Stephens of the Geek Squad, the biggest complaint about technical support people is

a.   their inability to communicate in laymen’s terms.

b.   they are difficult to understand.

c.   they take too long to answer the telephone.

d.   they lack product knowledge.

e.   they are rude and egotistical.

An important way of viewing new products from the perspective of consumers is by:

a.   the price.

b.   the extent of media promotion.

c.   the degree of potential product cannibalization.

d.   the presence of “feature bloat.”

e.   the degree of learning involved.

A product that requires no new behaviors be learned by consumers is a

a.   continuous innovation.

b.   discontinuous innovation.

c.   dynamically continuous innovation.

d.   product transformation.

e.   concurrent innovation.

The emphasis of a marketing strategy for a continuous innovation concentrates on

a.   obtaining widespread distribution.

b.   setting a low price.

c.   using advertising to generate awareness.

d.   using reminder advertising.

e.   using personal selling.

At the time of its introduction, which of the following products was the BEST example of a continuous innovation?

a.   home security system

b.   disposable lighter

c.   microwave oven

d.   electric toothbrush

e.   video camera

New chewing gum flavors like lemon-lime, crystal mint, and mint mojito helped Wrigley’s add to its sales.  These new flavors are which type of innovation?

a.   continuous innovation

b.   dynamically continuous innovation

c.   discontinuous innovation

d.   insignificant innovation

e.   disruptive innovation

At the time of its introduction, which of the following products was the best example of a continuous innovation?

a.   the Palm Pilot personal digital assistant (PDA)

b.   the first video game system (Atari)

c.   Breathe Right nasal strips, a sticky strip that is worn across the nose at night to help people with a stuffy nose to breathe better

d.   Via Voice Gold voice-recognition software

e.   Naturalpoint Trakir, which replaces the computer mouse by tracking head movements and then translating those head movements into cursor commands

The addition of Clorox II bleach to Tide laundry detergents is an example of

a.   discontinuous innovation.

b.   bundled innovation.

c.   dynamically continuous innovation.

d.   disruptive innovation.

e.   continuous innovation.

The first flat-panel HD (high definition) TV is an example of which type of innovation?

a.   continuous innovation

b.   dynamically continuous innovation

c.   discontinuous innovation

d.   insignificant innovation

e.   interruptive innovation

A product that disrupts consumers’ normal routines but does not require totally new learning is a

a.   continuous innovation.

b.   discontinuous innovation.

c.   dynamically continuous innovation.

d.   partial innovation.

e.   disruptive innovation.

The emphasis of a marketing strategy for a dynamically continuous innovation would include

a.   advertising to generate awareness.

b.   obtaining widespread distribution.

c.   advertising to explain points of difference and benefits.

d.   setting a low price.

e.   using personal selling.

LG Electronics Inc. has entered into an agreement with Google to offer selected models of its mobile phones that use a multi-touch interface installed on them rather than buttons to make calls with Google’s Android operating system software.  This is an example of which type of innovation?

a.   continuous innovation.

b.   discontinuous innovation.

c.   dynamically continuous innovation.

d.   disruptive innovation.

e.   evolutionary innovation.

There have been pasta sauces on the market for years.  These sauces have always required the pasta be precooked before it is mixed with the sauces and other ingredients.  The development of Prego Pasta Bake Sauce that does not require the use of pre-cooked pasta would be an example of a(n)

a.   continuous innovation.

b.   discontinuous innovation.

c.   evolutionary innovation.

d.   disruptive innovation.

e.   dynamically continuous innovation.

Philips Sonicare recently introduced the FlexCare+ rechargeable toothbrush.  A key innovation is a new “gum care” mode that prompts consumers to brush for a full 3-minute cycle for improved gum health.  This is an example of which type of innovation?

a.   disruptive innovation

b.   continuous innovation

c.   discontinuous innovation

d.   dynamically continuous innovation

e.   evolutionary innovation

LG Electronics recently introduced the Fridge-TV.  This is an example of which type of innovation?

a.   inventive innovation

b.   continuous innovation

c.   discontinuous innovation

d.   dynamically continuous innovation

e.   continuous invention

 

When Heinz introduced its new EZ Squirt Ketchup bottle (see the photo above), what degree of learning was required by the consumer in terms of its effect on consumption?

a.   continuous innovation

b.   discontinuous innovation

c.   dynamically continuous innovation

d.   spontaneous innovation

e.   continuous invention

A product that establishes new consumption patterns among consumers is a

a.   continuous innovation.

b.   discontinuous innovation.

c.   dynamically continuous innovation.

d.   evolutionary innovation.

e.   disruptive innovation.

A discontinuous innovation is a product that

a.   disrupts consumer’s normal routine but does not require totally new learning.

b.   requires no new learning by consumers.

c.   is not purchased by innovators and early adopters.

d.   initiates obsolescence of a product class.

e.   requires consumers to learn entirely new patterns of behavior and product usage.

The emphasis of a marketing strategy for a discontinuous innovation would most likely be to

a.   generate awareness among consumers.

b.   advertise benefits to consumers, stressing points of differentiation.

c.   educate consumers about entirely new consumption patterns through product trial and personal selling.

d.   obtain widespread distribution in multiple channels.

e.   stress price differentials from competitors’ products.

Which of the following products at the time of its introduction was the best example of a discontinuous innovation?

a.   DVD player

b.   disposable lighters

c.   instant light charcoal

d.   liquid laundry detergent

e.   automatic dishwashers

In the early 1900s, your great-great-grandfather probably purchased his first automobile.  After years of driving a horse and buggy, he got in his new car and drove it into his new garage.  The new automobile was an example of a

a.   continuous innovation.

b.   dynamically continuous innovation.

c.   disruptive improvement.

d.   discontinuous innovation.

e.   evolutionary innovation.

Napster was the first software that allowed an individual to easily search for and exchange MP3 music files with other individuals (in some cases illegally).  When it was introduced, Napster would have been an example of a

a.   continuous innovation.

b.   dynamically continuous innovation.

c.   regulatory innovation.

d.   discontinuous innovation.

e.   disruptive improvement.

Dragon, a speech recognition software program that allows you to use your voice instead of a keyboard to input text into a word processing program, is an example of a(n)

a.   continuous innovation.

b.   discontinuous innovation.

c.   dynamically continuous innovation.

d.   disruptive improvement.

e.   evolutionary innovation.

 

According to Figure 10-2 above, column “A” represents a

a.   spontaneous innovation.

b.   continuous innovation.

c.   discontinuous innovation.

d.   dynamically continuous innovation.

e.   evolutionary innovation.

According to Figure 10-2 above, column “B” represents a

a.   continuous innovation.

b.   discontinuous innovation.

c.   dynamically continuous innovation.

d.   disruptive innovation.

e.   evolutionary innovation.

According to Figure10-2 above, column “C” represents a

a.   continuous innovation.

b.   discontinuous innovation.

c.   dynamically continuous innovation.

d.   spontaneous innovation.

e.   simultaneous innovation.

The Federal Trade Commission (FTC) considers a product “new” only

a.   for a period of one year after it enters regular distribution.

b.   if it is functionally different from a competitor’s product.

c.   until a new and improved version of the same product is produced.

d.   for a period of six months after it enters regular distribution.

e.   for a period of seventeen years at which time patent rights are returned to the public domain.

Prego recently introduced a Pasta Bake Sauce, which was made so that it was not necessary to precook the pasta before blending pasta, sauce, meat, and cheese in a casserole.  Legally, this product would only be considered new

a.   for the first six months that it was regularly available.

b.   until a competitor like Ragu had issued a similar product targeted to the same market.

c.   as long it retained these exact product characteristics.

d.   if it was functionally the same as its salsa sauce.

e.   until its advertising had been seen by every member of its target audience.

From an organization’s perspective regarding its new products and innovations, which of the following new-product strategies has the lowest level of risk?

a.   a radical invention

b.   a brand extension

c.   a product line extension

d.   a jump in innovation

e.   a product deletion

From an organization’s perspective regarding its new products and innovations, which of the following new-product strategies has the highest level of risk?

a.   a radical invention

b.   a brand extension

c.   a product line extension

d.   a jump in innovation

e.   a product deletion

Mr. Clean is an antibacterial cleaning liquid for home use.  If Proctor and Gamble (P&G), the manufacturer of Mr. Clean, added Mr. Clean Magic Eraser Bath Scrubber to the Mr. Clean product line, it would be seen by P&G

a.   as a discontinuous innovation.

b.   as new product from the company’s perspective because it is a product line extension.

c.   as a high-risk product mix extension because it is new to the market.

d.   as new by the Federal Trade Commission for the usual one-year period.

e.   as not a new-product because it does not represent a different SKU.

Which of the following new products is the best example of the lowest level of risk from the company’s point of view?

a.   adding Chocolate Cheerios in addition to traditional Cheerios

b.   moving from land-line telephones to cell phones

c.   marketing the first Apple computer

d.   changing the formula from Coca-Cola to new Coke and then back to Coca Cola Classic

e.   offering online marketing classes

Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea.  This is what Cosmopolitan magazine did when it introduced __________, and it failed quickly.

a.   aspirin

b.   yogurt

c.   disposable underwear

d.   soda (soft drink)

e.   perfume

Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea.  This is what Harley-Davidson magazine did when it introduced __________, and it failed quickly.

a.   aspirin

b.   yogurt

c.   disposable underwear

d.   soda (soft drink)

e.   perfume

Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea.  This is what Bic did when it introduced __________, and it failed quickly.

a.   aspirin

b.   yogurt

c.   disposable underwear

d.   soda (soft drink)

e.   lemonade

All of the following were brand extension disasters EXCEPT:

a.   Cosmopolitan yogurt.

b.   Frito Lay lemonade.

c.   Life Savers soda.

d.   Bic disposable underwear.

e.   Windows Vista.

A new product protocol refers to

a.   the standardized procedures a firm follows for the inception, design, manufacturing, promotion, and distribution of a new product.

b.   a formalized statement of intent regarding what will be sold, to whom it will be sold, and by whom it will be sold.

c.   maintaining compliance with all licensing, manufacturing, and distribution standards established by the U.S. Federal Trade Commission (FTC).

d.   a statement that identifies: (1) a well-defined target market; (2) specific customers’ needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers.

e.   the raw unwritten ideas to produce a single commercially successful new product.

A statement that identifies: (1) a well-defined target market; (2) specific customers’ needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers is referred to as a new product’s

a.   protocol.

b.   proposition.

c.   modus operandi.

d.   formula.

e.   methodology.

Ideally, before a new product is developed, a firm should have a precise __________, which is a statement that identifies: (1) a well-defined target market; (2) specific customers’ needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers.

a.   formula

b.   contract

c.   modus operandi

d.   protocol

e.   methodology

A new product protocol should be created

a.   before the product is even developed.

b.   as soon as the new-product concept is developed.

c.   when the product becomes a prototype.

d.   when the product is first released in a regional rollout.

e.   when the product hits national distribution.

New product failures may be reduced or avoided if the company developing the new product has

a.   support from marketer-dominated sources of information.

b.   a clear product definition.

c.   a statement of competitive intent.

d.   stakeholder approval in the development process.

e.   a precise protocol.

Ideally, before a new product is developed, a firm should have a precise protocol, which is a statement that identifies: (1) __________; (2) specific customers’ needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers.

a.   a clear plan for product distribution

b.   an analysis of potential competitors’ products

c.   a precise budget of how much can be spent for the marketing program

d.   a well-defined target market

e.   clear financial goals and expectations

Ideally, before a new product is developed, a firm should have a precise protocol, which is a statement that identifies: (1) a well-defined target market; (2) __________; and (3) what the product will be and do to satisfy consumers.

a.   a clear plan for product distribution

b.   specific customers’ needs, wants, and preferences

c.   an analysis of potential competitors’ products

d.   a precise budget of how much can be spent for the marketing program

e.   clear financial goals and expectations

Ideally, before a new product is developed, a firm should have a precise protocol, which is a statement that identifies: (1) a well-defined target market; (2) specific customers’ needs, wants, and preferences; and (3) __________.

a.   what the product will be and do to satisfy consumers

b.   a clear plan for product distribution

c.   clear financial goals and expectations

d.   an analysis of potential competitors’ products

e.   a precise budget of how much can be spent for the marketing program

One of the eight primary MARKETING-RELATED reasons for new-product failure is __________.

a.   skipping steps in the new-product process

b.   pushing a product too early into the market

c.   no economical access to buyers

d.   not learning from past new-product failures

e.   not understanding the legal definition of newness.

 One of the eight primary MARKETING-RELATED reasons for new-product failure is __________.

a.   not listening to the voice of the consumer

b.   incomplete market and product protocol

c.   pushing a product too early into the market

d.   the “NIH” problem

e.   encountering groupthink in meetings

One of the eight primary MARKETING-RELATED reasons for new-product failure is __________.

a.   the product is too innovative

b.   a competitor with a similar product withdrew from the market

c.   too socially controversial

d.   poor product quality

e.   product was marketed as a “new” product but did not meet the legal definition of “new”

When General Mills introduced Fingos, a corn chip-sized sweetened cereal flake, it assumed that its customers would normally snack on them dry like a potato chip.  Unfortunately, consumers did not switch from munching on popcorn and potato chips.  The primary reason for the failure of Fingos was __________.

a.   an insignificant point of difference relative to competing snacks—consumers wouldn’t switch from eating snacks from Frito-Lay and others

b.   too little market attractiveness—the growth in the snacks market is declining

c.   poor execution of the marketing mix—General Mills did not offer free samples at grocery stores

d.   poor product quality—the chips were not the same size

e.   incomplete market and product protocol—the brand name “Fingos” did not get consumers excited

Kimberly-Clark developed its Avert Virucidal tissues that contained vitamin C derivatives, which were scientifically designed to kill cold and flu germs when users sneezed, coughed, or blew their noses into them.  Unfortunately, people didn’t believe the claim and were frightened by the “cidal” in the brand name.  The reason for this product failure was

a.   an insignificant point of difference.

b.   too little market attractiveness.

c.   poor execution of the marketing mix.

d.   poor product quality.

e.   incomplete market and product protocol.

Until 1996, U.S. carmakers sent very few right-hand-drive cars to Japan while German car makers exported several models with the steering wheel on the right to accommodate the way the Japanese drive their cars on the left side of the road.  American car manufacturers could blame their failure to a great degree on

a.   an insignificant point of difference.

b.   too little market attractiveness.

c.   not satisfying customer needs on critical factors.

d.   poor product quality.

e.   incomplete market and product protocol.

Microsoft introduced its Zune player a few years after Apple launched its iPod and other competitors offered their new MP3 players.  Sales were very disappointing.  According to the textbook, the primary reason for the Zune’s failure was due in large part to

a.   bad timing.

b.   not satisfying customer needs on critical factors.

c.   poor product quality.

d.   an insignificant point of difference.

e.   incomplete market and product protocol.

OUT! International’s Hey! There’s A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid’s bedroom.  Although a clever idea, it failed because it

a.   did not satisfy customer needs on critical factors.

b.   had poor product quality.

c.   had bad timing.

d.   had an incomplete market and product protocol.

e.   had too little market attractiveness.

After Microsoft launched its Xbox 360 video-game console, millions began to experience the “red ring of death.”  The problem: The consoles’ microprocessors ran too hot, causing them to “pop off” their motherboards.  This cost the company not only in money to extend its product warranty, but a huge portion of future sales and market share to competitors Sony and Nintendo.  This failure was due to

a.   not satisfying customer needs on critical factors.

b.   poor product quality.

c.   an insignificant point of difference.

d.   incomplete market and product protocol.

e.   too little market attractiveness.

Who wouldn’t want to eat Garlic Cake?  Garlic Cake was supposed to be served as an

hors d’oeuvre with sweet breads, spreads, and meats, but somehow the company forgot to tell and explain this to potential consumers.  This product failure demonstrates

a.   not satisfying customer needs on critical factors.

b.   poor product quality.

c.   an insignificant point of difference.

d.   bad timing

e.   poor execution of the marketing mix.

Thirsty Dog! is a zesty beef-flavored, vitamin-enriched, mineral-loaded, lightly carbonated bottled water for your dog.  It might have been a great product, but competition over shelf space was fierce and the product could not generate enough sales per square foot for retailers.  The makers of this product had

a.   poor product quality.

b.   no economical access to buyers.

c.   an insignificant point of difference.

d.   incomplete market and product protocol.

e.   poor execution of the marketing mix.

One of the six ORGANIZATION-RELATED problems that can cause new-product failures is __________.

a.   poor product quality

b.   encountering groupthink in task force and committee meetings

c.   poor execution of the marketing mix

d.   bad timing

e.   incomplete market and product protocol

Which of the following is an example of an organizational problem that can cause a new product failure?

a.   a competitor with a similar product beat the firm to market

b.   too much input from different stakeholders outside the firm

c.   not learning critical takeaway lessons from past failures

d.   it is a personal favorite of the CEO

e.   the board of directors insisted on it

“Groupthink” occurs in a meeting when

a.   everyone has an opinion but no one is willing to take charge.

b.   everyone has the same idea after using the “brainstorming” idea generation technique.

c.   there is too much competition among marketing managers, so no one is willing to share his/her ideas.

d.   someone suspects that there is a problem with the new product concept but is afraid to speak up because everyone else is so enthusiastic about it.

e.   top management wants the new product to go forward regardless of what anyone else thinks.

George Santayana, Spanish philosopher once said, “Those who cannot remember the past are condemned to repeat it.”  Applied to the organizational problems in new-product failure, this is really an example of

a.   not listening to the “voice of the consumer.”

b.   encountering “groupthink” in meetings.

c.   skipping stages in the new-product process.

d.   not learning critical takeaway lessons from past failures.

e.   avoiding the “NIH problem.”

The seven stages an organization goes through to identify business opportunities and convert them into salable products or services is referred to as the __________.

a.   commercialization process

b.   SWOT process

c.   new-product process

d.   new-product business development

e.   new-product stage gate sequence

The new-product process refers to

a.   the informal process of “brain storming” to generate new-product concepts at a marketing staff meeting.

b.   the process of presenting cross-functional teams with a written new-product concept statement and asking them to respond to it in writing.

c.   the seven stages an organization goes through to identify business opportunities and convert them into salable products or services.

d.   the two stages an organization goes through from idea generation to commercialization.

e.   a formalized protocol for new-product development that begins at the corporate level and ends at the functional level.

The new-product process an organization goes through to identify business opportunities and convert them into salable products or services contains

a.   three main steps: research, production, and distribution.

b.   four distinct steps: research, evaluation, production, and distribution.

c.   five key phases ranging from idea generation to creating the first prototype.

d.   seven stages from new product strategy development to commercialization.

e.   three phases: planning, implementation, and evaluation.

 

Figure 10-3 above represents the seven stages of the new-product development process.  Stage 1 is the __________ stage.

a.   idea generation

b.   screening and evaluation

c.   screening and analysis

d.   new-product strategy development

e.   product assessment

Figure 10-3 above represents the seven stages of the new-product development process.  Stage 2 is the __________ stage.

a.   idea generation

b.   screening and evaluation

c.   screening and analysis

d.   new-product strategy development

e.   product assessment

Figure 10-3 above represents the seven stages of the new-product development process.  Stage 3 is the __________ stage.

a.   idea generation

b.   screening and evaluation

c.   screening and analysis

d.   new-product strategy development

e.   product assessment

Figure 10-3 above represents the seven stages of the new-product development process.  Stage 4 is the __________ stage.

a.   idea generation

b.   screening and evaluation

c.   business analysis

d.   new-product strategy development

e.   market testing

Figure 10-3 above represents the seven stages of the new-product development process.  Stage 5 is the __________ stage.

a.   business analysis

b.   screening and evaluation

c.   market testing

d.   commercialization

e.   development

Figure 10-3 above represents the seven stages of the new-product development process.  Stage 6 is the __________ stage.

a.   business analysis

b.   screening and evaluation

c.   market testing

d.   commercialization

e.   development

Figure 10-3 above represents the seven stages of the new-product development process.  Stage 7 is the __________ stage.

a.   business analysis

b.   screening and evaluation

c.   market testing

d.   commercialization

e.   development

One reason new products fail is that although most major corporations use a formal decision making process, occasionally they will “skip” a stage of the new-product process, often with disastrous results.  This is why many firms have a __________ to ensure that problems are corrected before proceeding to the next stage.

a.   protocol

b.   gate

c.   task force

d.   barrier

e.   turnstile

The stage of the new-product process that defines the strategic role for a new product in terms of the firm’s overall objectives is referred to as __________.

a.   distinctive competency determination

b.   new-product strategy development

c.   strategic marketing process

d.   strategic management process

e.   product protocol definition

New-product strategy development refers to

a.   the stage of the new-product process where specific product features and benefits are selected prior creating a new-product prototype.

b.   the stage of the new-product process that defines the strategic role for a new product in terms of the firm’s overall  objectives.

c.   a formalized protocol for new product development determined by director of marketing.

d.   the process of presenting cross-functional teams with a written new-product concept statement and asking them to respond to it in writing.

e.   the stage of the new-product process that turns the idea on paper into a prototype, which results in a demonstrable, producible product corresponding to its protocol.

The first stage of the new-product process is

a.   idea generation.

b.   screening and evaluation.

c.   business analysis.

d.   new-product strategy development.

e.   concept testing.

Which stage in the new-product process has as its purpose to identify the strategic role the new product might serve in the firm’s overall objectives?

a.   new-product strategy development

b.   idea generation

c.   screening and evaluation

d.   business analysis

e.   development

During the first stage of the new-product process, two important activities take place.  They are

a.   SWOT analysis and environmental scanning.

b.   open innovation and business analysis.

c.   concept testing and product forecasting.

d.   R&D and operations set-up.

e.   environmental scanning and open innovation.

In which stage in the new-product process would a firm use both a SWOT analysis and environmental scanning to assess its strengths and weaknesses relative to the trends it identifies as opportunities or threats?

a.   idea generation

b.   screening and evaluation

c.   new-product strategy development

d.   business analysis

e.   development

The stage of the new-product process that develops a pool of concepts as candidates for new-products is referred to as __________.

a.   idea generation

b.   product development

c.   open innovation assessment

d.   screening and evaluation

e.   new-product strategy development

Idea generation refers to

a.   the stage of the new-product process when concepts are converted to prototypes.

b.   the stage of the new-product process that develops a pool of concepts as candidates for new-products.

c.   the stage of the new-product process where possible promotional campaigns and advertising themes are created.

d.   the techniques used to screen and reject those ideas that have no merit.

e.   the discussion and decision of which as target market segments will be selected.

Developing a pool of concepts as candidates for new products is the __________ stage of the new-product process.

a.   open innovation

b.   screening and evaluation

c.   product development

d.   new-product strategy development

e.   idea generation

Idea generation is the stage in the new-product process that

a.   develops a pool of concepts as candidates for new products.

b.   selects a single concept and scrutinizes it for all potential benefits and flaws.

c.   separates ideas into two categories: consumer-oriented and organization-oriented.

d.   requires the organization to perform a SWOT analysis and an environmental scan.

e.   consists of the techniques used to screen and reject those ideas that have no merit.

All of the following are sources for new product ideas EXCEPT:

a.   competitors

b.   universities.

c.   regulators

d.   suppliers

e.   employees

Many forward-looking companies have discovered that their own organization does not generate enough useful new-product ideas.  This has caused them to find new product ideas by developing strategic relationships with outside individuals and organizations.  This practice is referred to as __________.

a.   innovation alliances

b.   open innovation

c.   open collaboration

d.   “piggy-back thinking”

e.   stakeholder cooperation

Volvo’s YCC opens its doors with a press of a button on the car key, will parallel park the car with a self-steering system, and has customized seat covers that can be removed and washed.  Many of these new product features were added because Volvo sought ideas from

a.   seasoned mechanics.

b.   women employees.

c.   stunt and professional race car drivers.

d.   loyal Volvo customers.

e.   drivers of other luxury automobiles.

Business researchers emphasize that firms must actively involve customers and suppliers in the new-product development process.  This means that the focus should be on what the new product will __________ rather than simply what they want.

a.   look like

b.   cost them

c.   do for them

d.   feel like

e.   consist of in terms of new features

Generating insights leading to actions based on massive numbers of peoples’ ideas is called __________.

a.   brainstorming

b.   groupthink

c.   crowdsourcing

d.   outsourcing

e.   NIH syndrome

Dell used __________ to develop an online site to generate 13,464 ideas for new products and website and marketing improvements.

a.   brainstorming

b.   crowdsourcing

c.   group think

d.   outsourcing

e.   data mining

IDEO is a company that

a.   creates innovative promotional programs for its clients’ new products.

b.   is a highly formalized firm that commercializes new products for its clients.

c.   rates new products like Consumer Reports.

d.   develops and designs new products for other organizations.

e.   runs patent searches for companies that don’t have and internal legal department.

Brainstorming sessions at IDEO can generate as many as __________ ideas in an hour.

a.   10

b.   25

c.   50

d.   75

e.   100

Imagine you work for a TV production company that has been approached by one of the broadcast TV networks to develop a concept for a new reality show.  Where are you most likely to look first for ideas?

a.   conducting a survey among the 25,000 households belonging to the Nielsen Media Research TV ratings panel

b.   observing similar reality programs that are on competing television networks like CBS or MTV

c.   telephoning contestants from other reality shows like Survivor

d.   obtaining brainstorming ideas from the TV production company’s employees

e.   reading about the stars of reality TV programs in gossip magazines

The Marriott Corporation sent a six-person intelligence team to travel and stay at economy hotels around the country for a six-month period.  The purpose of these visits was to

a.   allow the team to reap the benefits of the new product, Fairfield Inns.

b.   obtain ideas by observing consumers in their “natural use environments” to discover their behavioral and emotional reactions to these economy hotels that could be used in the new-product development process that resulted in the launch of Fairfield Inns.

c.   complete customer satisfaction surveys to assess the strengths and weaknesses of competing economy hotels.

d.   obtain the demographics and media behavior of consumers who stay at these facilities in order to develop a target market profile.

e.   refute the assumption that open innovation can benefit the Marriott Corporation.

Assume that as marketing director for Mazda, you see your sales decreasing in the years since the Honda Pilot with four-wheel drive was introduced.  If you hope to regain sales in this market quickly through a new-product action, the fastest, most specific sources of ideas would likely be

a.   consumer suggestions.

b.   employee suggestions.

c.   research and development breakthroughs.

d.   competitive products.

e.   outside consultants.

In addition to seeking ideas from more well-known sources, organizations also get ideas from universities, inventors, and small nontraditional firms.  For example, inventor Gary Schwartzberg sold his idea for __________ to Kraft Foods, Inc.

a.   scones with coffee-flavored cream filling

b.   an Omega-3 enriched SKU for the Philadelphia cream cheese line

c.   tube-shaped bagels filled with Philadelphia cream cheese

d.   deep fried chicken skins for people who cannot eat pork

e.   a crispy baked macaroni and cheese snack that can be eaten out of a bag like Cheetos

The stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort is referred to as __________.

a.   development

b.   stage-gate

c.   idea generation

d.   business analysis

e.   screening and evaluation

Screening and evaluation refers to the stage of the new-product process

a.   where prospective customers are exposed to new product prototypes for the first time.

b.   where new product concepts that have been found viable are converted into actual prototypes.

c.   that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort.

d.   that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections.

e.   where consumers evaluate a new product’s performance in an actual-use situation.

The screening and evaluation stage of the new-product process involves

a.   internal and external evaluations of new-product ideas.

b.   product selection and budgeting projections.

c.   business and cost analyses.

d.   patent searches and environmental scanning.

e.   idea selection and prototype development.

An important aspect of the screening and evaluation stage of the new-product process is an examination of the technical feasibility for the product.  For example, 3M was able to use the firm’s micro-replication (the tiny gripping “fingers”) technology to

a.   improve the gripping power of golf or work gloves.

b.   keep baseball caps from sliding off the heads of  bald men.

c.   make Formula One race cars more aerodynamic.

d.   as a replacement for Velcro’s hook-and-loop fasteners.

e.   hold pictures in a photo album without damaging them.

A 3M researcher worked with university students to develop the Post-it® Flag Highlighter.  His team evaluated the technical feasibility of the proposed design and determined whether the idea met the firm’s new-product objectives.  At which stage of the new-product process was this product?

a.   idea generation

b.   screening and evaluation

c.   business analysis

d.   new-product strategy development

e.   concept testing

Concept tests are part of which stage in the new-product process?

a.   development

b.   screening and evaluation

c.   idea generation

d.   new-product strategy development

e.   business analysis

An external evaluation with consumers that consists of preliminary testing of a new-product idea rather than the actual product is referred to as

a.   new-product strategy development.

b.   idea generation.

c.   alternative evaluation.

d.   market testing.

e.   a concept test.

A concept test is an

a.   internal evaluation among members of the entire cross-functional new-product development team that consists of preliminary testing of a new-product idea rather than the actual product.

b.   external evaluation with consumers that consists of preliminary testing of a new-product idea rather than the actual product.

c.   internal evaluation that consists of preliminary testing of a new-product idea using a mock-up or prototype of the new item.

d.   in-house computer simulation of the new product that closely resembles the actual product to forecast sales.

e.   in-depth questionnaire filled out both by internal marketing personnel and external customers  to ensure that the final product meets all the needs expressed in the original product plan.

The stage of the new product process that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections is referred to as

a.   idea generation.

b.   business analysis.

c.   marketing analysis.

d.   product development.

e.   commercialization.

Business analysis refers to the stage of the new product process

a.   where the target markets are selected and resources are allocated to reach them.

b.   where the target market segments that show potential are selected and those that do not are eliminated.

c.   that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections.

d.   where there is a formal accounting of all monies spent on R&D to determine the return on investment (ROI) that the new product will give back to the firm.

e.   that internally and externally evaluates new-product ideas to eliminate those warranting no further effort.

A general review of the marketing strategy, product assessment, economic analysis, and legal examination would all take place during which stage of the new-product process?

a.   business analysis

b.   screening and evaluation

c.   new-product strategy development

d.   development

e.   These activities are addressed at every stage with the exception of new-product strategy development.

Factors such as specifying product features, marketing strategy, and financial projections are a part of which stage of the new-product process?

a.   idea generation

b.   market testing

c.   business analysis

d.   development

e.   commercialization

A full-scale operating model of the product under development is referred to as a

a.   sample.

b.   framework.

c.   template.

d.   prototype.

e.   blueprint.

A prototype is a(n)

a.   miniature version of an actual new product used in concept testing to identify any changes that need to be made prior to full commercialization.

b.   full-scale operating model of the product under development.

c.   sample of a new product given to prospective customers and opinion leaders used to generate awareness prior to the product’s commercial release.

d.   simulated operating model of the product given to consumers to use in full-scale field testing.

e.   a digital version of a product produced in multiple shapes, colors, and sizes to determine which version of the product customers like best.

All of the following actions occur during the business analysis stage of the new-product process EXCEPT:

a.   using capacity management to find ways to match the availability of the service offering to when it is needed.

b.   assessing the marketing and product synergies related to the company’s existing operations.

c.   turning the idea on paper into a prototype.

d.   determining whether the new product can be protected with a patent or copyright.

e.   assessing whether the the proposed new product fits with the company’s mission and objectives

For services, business analysis must consider __________, which finds ways to match the availability of the service to when it is needed.

a.   capacity management

b.   customer experience management

c.   derived demand

d.   internal marketing

e.   the seven I’s of services

To maximize profits, service providers use tools such as __________ to charge different prices for different times of the day or week to reflect the variations in demand for their services.

a.   off-peak pricing

b.   dynamic pricing

c.   capacity pricing

d.   down-time pricing

e.   yield management pricing

One tool available for services when dealing with capacity management is to use __________ to charge different prices during different times of the day or the week to balance supply and demand.

a.   off-peak pricing

b.   variable hours of operation—opening or closing a store at different times

c.   sales promotion incentives such as coupons

d.   build-to-order service delivery systems

e.   rationing

The stage of the new-product process that turns an idea on paper into a prototype is referred to as __________.

a.   idea generation

b.   screening and evaluation

c.   business analysis

d.   commercialization

e.   development

Development refers to the stage of the new-product process

a.   where initial ideas are generated and discussed.

b.   that turns an idea on paper into a prototype.

c.   where product characteristics and product benefits are selected.

d.   where cross-functional team members and leaders are selected and initial tasks are assigned.

e.   where the first version of a product enters the marketplace.

In the new-product process, product ideas that survive the business analysis stage proceed to the __________ stage.

a.   market testing

b.   screening and evaluation

c.   business analysis

d.   development

e.   commercialization

Which of the following activities are accomplished during the development stage for services?

a.   developing off-peak pricing strategies

b.   using fast prototyping to improve the initial design

c.   ensuring that employees have the commitment and skills to meet customers’ expectations and sustain their loyalty

d.   using capacity management models to match service availability with consumers’ needs

e.   analyzing the sequence of service encounters

At Mattel, Barbie is child-tested to be sure the doll cannot be broken apart and accidentally choke a child.  This type of safety test occurs during the __________ stage of the new-product process.

a.   new-product strategy development

b.   development

c.   business analysis

d.   screening and evaluation

e.   market testing

New-product strategy development calls for INGenius Co. to develop a battery recycler for the business market.  Which is the most likely stage of the new-product process in which manufacturing issues regarding the new product become an especially important element?

a.   development

b.   market testing

c.   idea generation

d.   screening and evaluation

e.   business analysis

If you watch much television, you have seen the ads that show a controlled crash of a car containing crash test dummies and the resultant vehicular damage.  In the new-product process, this safety test would occur during the __________ stage.

a.   development

b.   market testing

c.   idea generation

d.   screening and evaluation

e.   business analysis

The New York Times calls Marissa Mayer the “__________” of Google’s home page, the one person who “controls the look, feel, and functionality of the Internet’s most heavily trafficked search engine.”

a.   Einstein

b.   Hillary Clinton

c.   gatekeeper

d.   Picasso

e.   CEO

Marissa Mayer oversees virtually every new design or feature on Google’s home page, from the color of the Google tool bar to the exact words on a Google page.  Her job title is

a.   Chief Marketing Officer.

b.   Chief Technology Officer.

c.   Vice President—Website Aesthetics.

d.   Vice President—Search Products and User Experience.

e.   Chief Executive Officer.

The stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy is referred to as

a.   development.

b.   market testing.

c.   business analysis.

d.   commercialization.

e.   screening and evaluation.

Market testing refers to

a.   exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.

b.   making sales and profit projections on prototype products to make go–no-go decisions.

c.   conducting marketing research among a sample of consumers in the target market to determine which version of a new-product concept is deemed the best.

d.   independently run comparison tests with similar products currently in the marketplace to determine which one performs best.

e.   conducting safety tests to determine whether the new product meets the established requirements when it isn’t used as planned.

All of the following are examples of test markets EXCEPT:

a.   controlled test market

b.   concept test market

c.   simulated test market

d.   laboratory test market

e.   standard test market

Sara Burns is the owner of a company called TropicalSpice and was looking for a new product to go with her company’s line of food condiments when a friend suggested combining spices from India with tea.  In the __________ stage of the new-product process, the spices and tea mixtures were exposed to prospective consumers under realistic purchase conditions.

a.   idea generation

b.   screening and evaluation

c.   business analysis

d.   market testing

e.   commercialization

When audiences are allowed to preview actual movies (a “sneak preview”) such as Harry Potter and the Deathly Hallows—Part 2 and Star Trek so that changes might be made before they are released to the general public, during which stage of the new-product process does this occur?

a.   market testing

b.   business analysis

c.   commercialization

d.   screening and evaluation

e.   concept testing

Breyer’s introduced a new line of ice cream flavors for sale in elegant black containers.  This was done on a limited scale to determine consumer reactions before national distribution of the product.  Breyer’s new product was in the __________ stage of the new-product process.

a.   commercialization

b.   screening and evaluation

c.   business analysis

d.   development

e.   market testing

Which of the products listed below would be the best candidate for full-scale market testing?

a.   totally free checking account from Bank One

b.   household frequent flyer program from Delta Airlines

c.   mid-priced luxury sedan made in America by Mazda

d.   new iced coffee beverage from Starbucks

e.   low-cost iMac computer

Test marketing involves offering a product for sale

a.   to random sample of people in the top ten major cities of the U.S.

b.   in as broad a geographic region as possible.

c.   to consumers that are representative of the target market.

d.   on a limited basis in a defined area.

e.   only on certain days of the week and hours of the day.

Which of the following statements is MOST accurate?

a.   Test marketing is especially important for new services.

b.   Expensive consumer products must be test marketed in extremely upscale shopping malls to guarantee accurate results.

c.   Test marketing is better suited to relatively inexpensive new consumer products than for new services.

d.   Test marketing is especially important for new, expensive industrial products.

e.   Test market results are often less helpful than expected.

If a firm hired SymphonyIRIGroup’s BehaviorScan service to track sales made to a panel of consumers and assess the effectiveness of advertising and other promotion tactics, what type of test market is this?

a.   laboratory test market

b.   concept test market

c.   simulated test market

d.   controlled test market

e.   standard test market

Because of the time, cost, and confidentiality problems of test markets, consumer packaged goods firms often turn to __________, a technique that replicates a full-scale test market to a limited degree.

a.   partial rollouts

b.   screening and evaluation

c.   virtual reality testing

d.   time to market

e.   simulated test markets

Simulated test markets (STMs) are often run in shopping malls where consumers are

a.   asked how much a person is willing to pay for an unfamiliar item.

b.   asked whether they saw the firm’s advertising campaign.

c.   questioned about how often they are likely to shop in that particular location.

d.   asked to identify differences between the consumer’s behavioral intention and actual behavior regarding a firm’s new product.

e.   questioned to identify who uses the product class being tested.

The stage of the new-product process that positions and launches a new product in full-scale production and sales refers to __________.

a.   marketing program execution

b.   disbursement

c.   launch

d.   commercialization

e.   final distribution

Commercialization refers to

a.   the point at which a new product has diffused throughout the marketplace.

b.   the introduction of an offering to sequential geographic areas of the U.S.

c.   exposing actual products to prospective consumers under realistic purchase conditions.

d.   the stage of the new-product process that positions and launches a new product in full-scale production and sales.

e.   the point where new-product concepts are transformed into prototypes.

Commercialization is the stage in the new-product process

a.   at which the product is positioned and launched in full-scale production and sales.

b.   during which the firm performs its final evaluations of the new-product.

c.   when second-year sales forecasts are compared to actual first-year sales figures using a marketing dashboard.

d.   when advertising campaigns are evaluated using Starch scores to identify brand awareness.

e.   at which the product generates the greatest sales and profits.

The most expensive stage in the new-product process for most products and services is

a.   commercialization.

b.   screening and evaluation.

c.   business analysis.

d.   development.

e.   market testing.

Introducing new-products sequentially into geographic areas of the U.S. to allow production levels and marketing activities to build up gradually to minimize the risk of new-product failure is referred to as

a.   limited rollouts.

b.   phased rollouts.

c.   market-product expansion.

d.   regional rollouts.

e.   phased commercialization.

A new beverage by Snapple is currently being sold only in the western United States.  Over the next year, Snapple plans to introduce the beverage sequentially into areas in the eastern U.S.  This is referred to as a

a.   limited rollout.

b.   phased rollout.

c.   regional rollout.

d.   market-product expansion.

e.   phased commercialization.

A slotting fee is a payment a

a.   wholesaler makes to place a new product on a retailer’s shelf.

b.   manufacturer makes to have a wholesaler distribute a new product to retailers.

c.   manufacturer makes to place a new product on a retailer’s shelf.

d.   manufacturer makes to a wholesaler as compensation for warehousing inventory.

e.   manufacturer makes to a retailer as compensation for sales not made while the product was on the shelf.

Marketers pay slotting fees to grocers in payment for space—or slots—on their retail shelves.  Such slotting fees significantly increase the cost of which stage of the new-product process?

a.   business analysis

b.   market testing

c.   screening and evaluation

d.   commercialization

e.   business analysis

Kroger required that Birds Eye pay $15,000 to get its new Vegetable Quinoa Pilaf placed in the frozen vegetable freezer section of its supermarkets.  This payment is an example of a

a.   product placement fee.

b.   bribe.

c.   product support fee.

d.   slotting fee.

e.   shelf space allowance.

A failure fee is a penalty payment

a.   a retailer assesses a manufacturer to handle defective new products that customers returned.

b.   a wholesaler makes to a retailer as compensation for sales not made while the product was on the shelf.

c.   a retailer makes to a manufacturer for stockouts—not keeping point-of-purchase displays continuously stocked with the new product.

d.   a manufacturer makes to a wholesaler as compensation for case-lot sales not made to retailers.

e.   a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that fails to sell.

If a new grocery product does not achieve a predetermined sales target, some retailers require a penalty payment by the manufacturer to compensate them for sales that its valuable shelf space failed to make.  What is this type of payment called?

a.   an opportunity cost charge

b.   lost sales fee

c.   shelf space allowance

d.   product displacement fee

e.   a failure fee

Speed or __________ is often vital in introducing a new product.

a.   perpendicular development

b.   red tape cutting

c.   time to market

d.   fast concepting

e.   delivery expediting

Parallel development is the simultaneous development of both

a.   product and promotion strategies.

b.   production and financing tactics.

c.   product and production process.

d.   production and selling processes.

e.   R&D and financial processes.

Parallel development, involving the simultaneous development of both the product and the production process, is the responsibility of __________.

a.   cross-functional teams

b.   the marketing department

c.   research and development engineers

d.   product managers

e.   top management

 Which of the following methods is commonly used in software development to speed up the development process?

a.   expedited time to market

b.   fast prototyping

c.   parallel development

d.   a “design it, fix it, try it, and do it” approach

e.   concept testing

__________ often speeds up software development by using a “do it, try it, fix it” approach that encourages continuous improvement even after the initial design.

a.   Time to market

b.   Parallel development

c.   Test marketing

d.   Groupthink

e.   Fast prototyping

R&D Magazine named the technology used in the development of Activeion’s Ionator as one of the most __________ developments in 2008.

a.   sophisticated

b.   sustainable

c.   technologically significant

d.   stylish

e.   complicated

According to Amber Arnseth, the “Ionator’s” key benefits using Activeion technology are

a.   safety, simplicity, speed, savings, and entertainment.

b.   safety, security, sustainability, savings, and knowledge.

c.   simplicity, sustainability, speed, savings, and opportunity.

d.   simplicity, selectivity, sustainability, savings, and growth.

e.   safety, simplicity, sustainability, savings, and fun.

A dramatic benefit of Activeion’s Ionator is its __________.

a.   low cost

b.   ease of application

c.   compliance with ISO 9000 quality standards

d.   environmental impact on users’ health and safety

e.   cause marketing potential

Which of the following is NOT a benefit of using the Activeion Ionator?

a.   safety

b.   sustainability

c.   fun

d.   simplicity of use

e.   cost of the Ionator unit itself

Despite the quality and benefits of Activeion’s Ionator, the company was faced with several challenges.  Which of the following is an example of one of Activeion’s obstacles when marketing this new product?

a.   The brand name didn’t really reflect the purpose of the product.

b.   It was too difficult to reach Activeion’s primary target market since many cleaning professionals are independent contractors.

c.   There was not enough money in the budget for consumer advertising on TV.

d.   It was difficult to define “clean” to customers relative to the competitive household products market.

e.   It was dangerous taking on large corporate competitors, which stood to lose millions of dollars if the Ionator caught on with the general public.

 

1.
The company name Zappos was chosen because it 

A. 
was the founder's family name.
 

B. 
conveyed in Spanish the type of product sold.
 

C. 
inferred how quickly you could purchase the product.
 

D. 
contained letters from the names of the three founders.
 

E. 
reflected the brand name of the first line of shoes they sold.
 
 2.
The primary focus of Zappos' market segmentation strategy is to sell 

A. 
a wide selection of shoes, clothes, accessories, and housewares to people who will buy them online.
 

B. 
a wide selection of leather shoes and boots to retailers.
 

C. 
all types of shoes, accessories, and clothing to department stores.
 

D. 
Spanish novelties and accessories to organizations.
 

E. 
shoes in its own retail stores.
 
 3.
The Zappos segmentation strategy is based on 

A. 
offering the best selection of shoes and the best service to online shoppers.
 

B. 
designing shoes for every type of occasion.
 

C. 
dividing all their customers into two distinct segments: people shopping for low price and people shopping for style.
 

D. 
offering the best selection of shoes through multiple channels of distribution.
 

E. 
maintaining the simplest method of price points to make the purchase process easy.
 
 4.
Which of the following statements about Zappos is most accurate? 

A. 
Zappos limits its inventory to a selection of high-end fashion footwear.
 

B. 
Zappos carries more than 1,000 different brands.
 

C. 
Zappos can guarantee overnight shipping to all its customers because they know ahead of time what they will be charged for express service.
 

D. 
Zappos is so successful because it has chosen a single mission to "sell shoes and nothing else."
 

E. 
Zappos offers a 30/60/90 return policy whereby refunds are based on how long you have had the shoes.
 
 5.
According to Tony Hsieh, CEO of Zappos, the company devotes the greatest amount of time to 

A. 
seeking out new and unusual styles of shoes from all over the world.
 

B. 
improving the website to make it faster, more interesting, and fun.
 

C. 
seeking out new markets that will go beyond the Internet.
 

D. 
finding the fastest and least expensive modes of delivery for its products.
 

E. 
finding ways to improve customer-service levels.
 
 6.
Tony Hsieh, CEO of Zappos, offers one month's salary to anyone who 

A. 
identifies a completely new market segment with a product to match it.
 

B. 
finds a way of improving service to online customers.
 

C. 
takes the customer loyalty training class and decides to quit anyway.
 

D. 
finds a shoe-related product that Zappos does not already carry.
 

E. 
creates a humorous theme for one of the monthly company meetings.
 
 7.
Building open and honest relationships with communication is an example of Zappos' __________. 

A. 
profile for its target market
 

B. 
best practices being adapted from its new owner, Amazon.com
 

C. 
ten core values for Zappos' culture
 

D. 
qualities required of Zappos' suppliers
 

E. 
qualities required of Zappos' retailers
 
 8.
Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as 

A. 
consumer differentiation.
 

B. 
psychographics.
 

C. 
market segmentation.
 

D. 
market delineation.
 

E. 
aggregation marketing.
 
 9.
Market segmentation refers to 

A. 
the philosophy that to do a truly excellent job of marketing, a company should concentrate on only one customer segment at a time.
 

B. 
sorting prospective buyers into groups that are willing to pay more than the cost of production for a good or service.
 

C. 
disaggregating prospective buyers from groups into segments of one (individuals) and then creating specific products that will satisfy this person's unique needs.
 

D. 
aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.
 

E. 
the belief that it is possible to satisfy every customer's needs if you can identify the correct segment within which they belong.
 
 10.
A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can 

A. 
increase sales and profitability.
 

B. 
stand up to legal scrutiny.
 

C. 
be socially responsible.
 

D. 
create sustainable demand.
 

E. 
produce product differentiation.
 
 11.
Market segmentation involves aggregating prospective buyers into groups that __________ and will respond similarly to a marketing action. 

A. 
respond similarly to marketing messages
 

B. 
have similar shopping styles
 

C. 
will become loyal customers
 

D. 
have common needs
 

E. 
will become stakeholders of the organization
 
 12.
Market segmentation involves aggregating prospective buyers into groups that have common needs and will 

A. 
pay attention to marketing messages.
 

B. 
respond similarly to a marketing action.
 

C. 
be responsive to marketing research.
 

D. 
use the same payment methods.
 

E. 
comply with the organization's core values.
 
 13.
Market segmentation stresses __________ and relating them to specific marketing actions. 

A. 
aligning tasks to match competitor tactics
 

B. 
grouping people according to similar needs
 

C. 
dividing people within a market randomly into equally sized groups
 

D. 
dividing people into the smallest groups possible
 

E. 
identifying potential new buyers who are not yet familiar with a new product
 
 14.
Small athletic shoe manufacturers such as Vans have targeted niche markets and make shoes designed to satisfy the needs of different specific groups of customers. This strategy is an example of 

A. 
market segmentation.
 

B. 
mass customization.
 

C. 
customized manufacturing.
 

D. 
single chain marketing.
 

E. 
market specific selection.
 
 15.
New Balance makes the Minimus line of shoes with a Vibram outsole and REVlite cushioning for those who want to "feel the trail." Its 1260v2 shoe incorporates Stabilicore technology to "deliver a plush, smooth, and stable ride." And its Made in America, top of the line, 990v3 traditional running/walking shoe uses a "premium pigskin upper with mesh inserts for breathability, a stability-enhancing ABZORB→ idsole, and ENCAP to promote a healthy gait." The strategy of appealing to different types of customers in this way is an example of 

A. 
mass customization.
 

B. 
product definition.
 

C. 
market segmentation.
 

D. 
single chain marketing.
 

E. 
market specific selection.
 
 16.
Market segments refer to 

A. 
the relatively heterogeneous groups of prospective buyers that result from the market segmentation process.
 

B. 
all buyers of a product or service who have previously purchased a particular firm's products or services and who intend to repeat that purchase sometime in the future.
 

C. 
the smallest number of buyers that have similar needs but do not react similarly in a buying situation.
 

D. 
the relatively homogenous groups of prospective buyers that result from the market segmentation process.
 

E. 
all potential buyers of a product or service who intend to purchase a firm's products or services but who have not yet done so.
 
 17.
A relatively homogenous group of prospective buyers that results from the market segmentation process is referred to as a(n) __________. 

A. 
market segment
 

B. 
target market
 

C. 
customer base
 

D. 
ultimate consumer
 

E. 
preferred customer
 
 18.
To be identified as a market segment, members of the group must 

A. 
be similar in terms of their consumption behavior.
 

B. 
represent a large share of the entire market and have buying power.
 

C. 
have diverse needs and have potential for future growth.
 

D. 
have diverse needs and be willing and able to purchase the product.
 

E. 
have the potential for future growth and increased profit or ROI.
 
 19.
The phrase "relatively homogeneous collections of prospective buyers" is most descriptive of 

A. 
demographic clusters.
 

B. 
organizational buyers.
 

C. 
ultimate consumers.
 

D. 
market segments.
 

E. 
qualified prospects.
 
 20.
In marketing, each __________ consists of people who are relatively similar to each other in terms of their consumption behavior. 

A. 
demographic cluster
 

B. 
organizational buyer group
 

C. 
market segment
 

D. 
ultimate consumer group
 

E. 
qualified prospect group
 
 21.
A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products is referred to as __________. 

A. 
market penetration
 

B. 
points of difference
 

C. 
market differentiation
 

D. 
product positioning
 

E. 
product differentiation
 
 22.
Product differentiation refers to 

A. 
a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs.
 

B. 
the unique combination of product benefits received by targeted buyers.
 

C. 
those characteristics of a product that make it superior to competitive substitutes.
 

D. 
a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products.
 

E. 
the legal requirement that requires a specified degree of distinction between products to ensure an organization's intellectual property rights.
 
 23.
Apple's iPhone has a feature known as Apple Pay that lets you use your phone to pay for credit purchases, meaning you could leave your wallet at home. This feature sets the smartphone apart from its competitors and is part of Apple's strategy for 

A. 
product segmentation.
 

B. 
market expansion.
 

C. 
product differentiation.
 

D. 
usage segmentation.
 

E. 
psychographic segmentation.
 
 24.
Recently Colgate-Palmolive introduced Colgate Enamel Health toothpaste, one that claims to replenish and polish tooth enamel, the hard outer layer of the tooth that provides a protective barrier to inner layers. This new formula helps to separate the Colgate product from its top competitors, such as Crest. What marketing strategy did Colgate-Palmolive use here? 

A. 
product differentiation
 

B. 
product segmentation
 

C. 
market expansion
 

D. 
usage segmentation
 

E. 
psychographic segmentation
 
 25.
Alka-Seltzer was made originally as a hangover remedy that cured the headache and settled the stomach. Today, you can buy Original Alka-Seltzer, Extra Strength Alka-Seltzer, Alka-Seltzer Morning Relief (for morning headaches and fatigue), and Alka-Seltzer Heartburn Relief. Each Alka-Seltzer product has a unique formulation to relieve a specific malady that makes them more specialized than competing products. The maker of Alka-Seltzer is using 

A. 
product variation.
 

B. 
product differentiation.
 

C. 
market sectioning.
 

D. 
product segmentation.
 

E. 
product base development.
 
 26.
The process of segmenting a market and selecting specific segments as targets is the link between __________ and the organization's marketing program. 

A. 
self-regulatory industry standards
 

B. 
government regulations
 

C. 
top-level management
 

D. 
buyers' or market needs
 

E. 
controllable environmental factors
 
 27.
The process of segmenting a market and selecting specific segments as targets is the link between the various buyers' or market needs and 

A. 
industry standards.
 

B. 
government regulations.
 

C. 
top-level management.
 

D. 
controllable environmental factors.
 

E. 
the organization's marketing program.
 
 
   
Figure 8-1
 28.
In Figure 8-1 above, Box A represents which stage of the market segmentation process? 

A. 
link needs to actions
 

B. 
identify market needs
 

C. 
establish a marketing protocol
 

D. 
execute marketing program actions
 

E. 
segment and select the target markets
 
 29.
In Figure 8-1 above, B represents which stage of the market segmentation process? 

A. 
link needs to actions
 

B. 
identify market needs
 

C. 
establish a marketing protocol
 

D. 
execute marketing program actions
 

E. 
segment and select the target markets
 
 30.
In Figure 8-1 above, C represents which stage of the market segmentation process? 

A. 
link needs to actions
 

B. 
identify market needs
 

C. 
establish a marketing protocol
 

D. 
execute marketing program actions
 

E. 
segment and select the target markets
 
 31.
Zappos' original target market customers consisted of people who wanted all of the following EXCEPT: 

A. 
to receive quick delivery of their merchandise.
 

B. 
to buy sustainable shoes, accessories, and clothing.
 

C. 
to shop online in the convenience of their own homes.
 

D. 
to allow for free returns of goods if dissatisfied.
 

E. 
to have a wide selection of shoes.
 
 32.
A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a __________. 

A. 
payoff table
 

B. 
cross-tabulation
 

C. 
market-product grid
 

D. 
growth-share matrix
 

E. 
product differentiation table
 
 33.
A market-product grid refers to 

A. 
a visual representation of all products offered within a specific product class.
 

B. 
a framework used to compare the relative market share of one firm's product offerings to those of its competitors.
 

C. 
a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
 

D. 
a framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.
 

E. 
a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.
 
 34.
A market-product grid is a framework to relate 

A. 
total estimated expenses for each product sold to each market segment.
 

B. 
total anticipated revenue for each product-market segment combination.
 

C. 
total anticipated profit for each product sold to each market segment.
 

D. 
the market segments of potential buyers to relative market share compared to the largest competitor.
 

E. 
the market segments of potential buyers to products offered or potential marketing actions by an organization.
 
 35.
A market-product grid is a framework to relate the __________ to products offered or potential marketing actions by an organization. 

A. 
market segments of potential buyers
 

B. 
marketing objectives of potential products
 

C. 
total anticipated revenue
 

D. 
total anticipated profit
 

E. 
market share of the closest competitor
 
 36.
A market-product grid is a framework to relate the market segments of potential buyers to 

A. 
estimated expenses for products sold.
 

B. 
products offered or potential marketing actions by an organization.
 

C. 
total anticipated revenue.
 

D. 
total anticipated profit.
 

E. 
market share of the closest competitor.
 
 37.
To create a market-product grid for bed pillows, the most effective way to segment the market would be using 

A. 
the age of the sleeper: less than 18 years of age, 18 to 44 years of age, or 45 years and older.
 

B. 
the sleeper's annual income: less than $25,000, $25,000 to $49,999, or $50,000 and over.
 

C. 
the sleeper's gender: male or female.
 

D. 
the time of sleep: day or night.
 

E. 
how the sleeper sleeps: side, back, or stomach.
 
 38.
An analysis of the pillow market using a market-product grid suggests that the most important segment to target is 

A. 
side sleepers.
 

B. 
sleepers with sleep disorders, such as sleep apnea.
 

C. 
sleepers with annual incomes of $50,000 and over.
 

D. 
back sleepers.
 

E. 
stomach sleepers.
 
 
   
Figure 8-2
 39.
Consider Figure 8-2 above. My Pillow uses infomercials and product demonstrations at events such as state fairs to market its line of pillows that are guaranteed to be "the most comfortable pillow you'll ever own!" Based on the market research above, which market-product combination should My Pillow target? 

A. 
stomach sleeper-firm pillow
 

B. 
back sleeper-medium pillow
 

C. 
side sleeper-firm pillow
 

D. 
stomach sleeper-soft pillow
 

E. 
side sleeper-soft pillow
 
 40.
The purpose of market segmentation is to respond more effectively to the wants of groups of potential buyers in order to 

A. 
maintain market share.
 

B. 
increase sales and profits.
 

C. 
assume social responsibility.
 

D. 
use the firm's resources most efficiently.
 

E. 
provide the best quality products on the market.
 
 41.
Which of the following statements regarding when and how to segment markets is most accurate? 

A. 
Even if a firm finds only one potential market segment, it should take advantage of the method to appear cutting-edge to its competitors and customers.
 

B. 
Market segmentation only works for large corporations; small businesses don't have the resources to engage in the process.
 

C. 
Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets.
 

D. 
If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment.
 

E. 
Market segmentation strategies work less than 10 percent of the time.
 
42.
When expenses are greater than the potential increased sales from market segmentation, a firm should 

A. 
not consider market segmentation at this time.
 

B. 
combine departments within the company to make the process more streamlined.
 

C. 
reduce production costs or increase prices to facilitate the segmentation process.
 

D. 
seek alternate channels of distribution, including Internet sales.
 

E. 
discontinue manufacturing any products that are not in the mature stage of their product life cycle.
 
 43.
All of the following are market segmentation strategies EXCEPT: 

A. 
build-to-order.
 

B. 
multiple products, multiple market segments.
 

C. 
one product, multiple market segments.
 

D. 
multiple products, one segment.
 

E. 
mass customization.
 
44.
When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids __________. 

A. 
the extra cost of developing and producing additional versions of the product
 

B. 
creating a customer service gap
 

C. 
indirect distribution and logistics problems
 

D. 
restructuring the firm's strategic planning
 

E. 
amortization costs of product enhancements
 
 45.
When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy 

A. 
is a much more effective means of meeting consumers' individual needs.
 

B. 
creates greater savings in production costs.
 

C. 
is a more effective way of meeting organizational objectives.
 

D. 
has significantly higher distribution costs.
 

E. 
is more profitable since a firm can charge the new segments higher prices without changing the product.
 
 46.
One marketing action that can be taken to sell a single product or service to multiple market segments is to 

A. 
develop and produce another version of the product.
 

B. 
manufacture products that appeal to different markets.
 

C. 
develop separate promotional campaigns.
 

D. 
purchase another firm that has additional products that would appeal to multiple markets.
 

E. 
issue stock to fund additional research and development for new products.
 
 47.
The annual Sporting News Baseball Yearbook had exactly the same stories but with 17 different covers to appeal to baseball fans in 17 different regions of the U.S. What is the basis of its market segmentation strategy? 

A. 
psychographic segmentation
 

B. 
retail outlet segmentation
 

C. 
demographic segmentation
 

D. 
behavioral segmentation
 

E. 
geographic segmentation
 
 
   
Harry Potter books Photo
 48.
In the United States, the Harry Potter series of books were often at the top of The New York Times fiction bestseller list. These books have been marketed by turns to preteen, teen, and adult readers around the world with creative marketing, including different book covers. Scholastic Press, the publisher of the Harry Potter books in the U.S., is using which of the following segmentation strategies? 

A. 
multiple products with one segment
 

B. 
one product with one channel of distribution
 

C. 
one product with multiple market segments
 

D. 
one product with changes based on customer behavior
 

E. 
multiple products with multiple segments
 
 49.
Which of the following is a disadvantage of employing a multiple products, multiple market segments strategy if NOT implemented well? 

A. 
higher sales but lower profits
 

B. 
reduced quality and higher prices
 

C. 
meeting customer needs but at the expense of higher prices
 

D. 
lower prices but with higher production costs
 

E. 
higher quality but lower prices
 
 50.
Which of the following is an example of a multiple products and multiple market segments strategy? 

A. 
College Football magazine selects different covers for essentially the same written content in order to appeal to different geographic markets in the U.S.
 

B. 
A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience.
 

C. 
Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo.
 

D. 
Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and cat litter boxes.
 

E. 
Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.
 
 51.
Which of the following is an example of a multiple products and multiple market segments strategy? 

A. 
College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the U.S.
 

B. 
A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience.
 

C. 
Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.
 

D. 
Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens.
 

E. 
Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.
 
 52.
Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing only one but seems worthwhile if it adds to the manufacturer's sales revenues and profits, doesn't reduce quality or increase price, and 

A. 
conforms to all FDA guidelines.
 

B. 
uses the same promotion and packaging for all segments.
 

C. 
decreases the cost of the physical plant.
 

D. 
stabilizes competition.
 

E. 
better serves customers' needs.
 
 53.
Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it adds to the manufacturer's sales revenues and profits, serves customers' needs better, and 

A. 
conforms to all FDA guidelines.
 

B. 
creates economy of scale.
 

C. 
doesn't reduce quality or increase price.
 

D. 
decreases the cost of the physical plant.
 

E. 
stabilizes the sales revenues and profits.
 
 54.
Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it serves customers' needs better, doesn't reduce quality or increase price, and 

A. 
conforms to all FDA guidelines.
 

B. 
adds to the manufacturer's sales revenues and profits.
 

C. 
creates economy of scale.
 

D. 
decreases the cost of the physical plant.
 

E. 
stabilizes the sales revenues and profits.
 
 55.
Tailoring products or services to the tastes of individual customers on a high-volume scale is referred to as 

A. 
family branding.
 

B. 
mass customization.
 

C. 
product differentiation.
 

D. 
economies of scale marketing.
 

E. 
build-to-order.
 
 56.
Custom Foot operates six retail locations. At first glance, none looks different from a typical boot store. But here the only boots on hand are display models, there is no inventory for sale and customers go home empty-handed, awaiting their orders. Customers browse the store, choosing style, color, and leather type, with about 100 displays to provide style guidelines. Custom Foot guarantees your boots will be ready within three weeks. This is an example of 

A. 
mass customization.
 

B. 
specialty customization.
 

C. 
virtual merchandising.
 

D. 
one product and multiple market segments.
 

E. 
multiple products and multiple market segments.
 
 57.
ChoiceShirts is an online company that makes made-to-order T-shirts. Its online customers can order their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch. This is an example of 

A. 
family branding.
 

B. 
mass customization.
 

C. 
multiple products and multiple market segments.
 

D. 
one product and multiple market segments.
 

E. 
specialty customization.
 
 

58.
MyTwinn makes dolls that look like young girls. For $119, the firm will make a doll that looks just like a photograph. So, if you send in the money and a photo of your young niece, she could have a doll that is her twin! This is an example of 

A. 
family branding.
 

B. 
production marketing.
 

C. 
multiple products and multiple market segments.
 

D. 
mass customization.
 

E. 
specialty customization.
 
 59.
Lands' End will custom fit a Marinac jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com. This is an example of 

A. 
family branding.
 

B. 
mass customization.
 

C. 
"Tiffany/Walmart" marketing.
 

D. 
market melding.
 

E. 
specialty customization.
 
 60.
Nike employs a __________ strategy at its website, nikeid.com, which allows customers to design a sneaker to their own personal specifications.

A. 
product sampling
 

B. 
product clustering
 

C. 
mass customization
 

D. 
usage segmentation
 

E. 
psychographic segmentation
 
 61.
Chip-N-Dough Cookie Company will let you select cookies and put a photo of yourself on the tin. This is an example of 

A. 
mass customization.
 

B. 
multiple marketing.
 

C. 
target marketing.
 

D. 
product clustering.
 

E. 
repositioning.
 
 62.
Name Maker is an online company that sells high-end gift wrapping that can have custom slogans or names printed on it, such as the name of a person celebrating a birthday or a couple who is getting married. This made-to-order gift-wrapping is priced from $24.95 to $32.95 per 12-foot roll. This is an example of 

A. 
family branding.
 

B. 
mass customization.
 

C. 
synergistic marketing.
 

D. 
"Tiffany/Walmart" marketing.
 

E. 
specialty customization.
 
 63.
Manufacturing a product only when there is an order from a customer is referred to as 

A. 
order customization.
 

B. 
a one product one market segment strategy.
 

C. 
synergistic marketing.
 

D. 
build-to-order.
 

E. 
specialty customization.
 
 64.
Model E is a new type of car manufacturer that relies on the Internet ordering. "Think of Model E as the Dell of the auto industry. We design just a few products that consumers truly want, leveraging best-in-class components and micro-factory approaches for rapid design, launch, and direct delivery," said William Santana Li, president and CEO of Model E. Model E manufactures each car when a customer chooses from a limited number of options and orders. Model E relies on 

A. 
order customization.
 

B. 
a one product one market segment strategy.
 

C. 
build-to-order.
 

D. 
specialty customization.
 

E. 
mass customization.
 
 65.
Organizational synergy is the increased customer value achieved through 

A. 
performing organizational functions more efficiently.
 

B. 
more discounts or larger rebates at the point of sale.
 

C. 
involvement of the ultimate consumer in product design.
 

D. 
an increase in the knowledge of competitors.
 

E. 
shared ownership of the organization through publicly traded stock.
 
 66.
The increased customer value achieved through performing organizational functions like marketing or manufacturing more efficiently is referred to as __________. 

A. 
aggregation
 

B. 
organizational synergy
 

C. 
segmentation
 

D. 
amalgamation
 

E. 
valuation
 
 67.
The ultimate criterion for an organization's marketing success is that __________ as a result of increased synergies. 

A. 
costs decrease
 

B. 
market share increases
 

C. 
product deficiencies decrease
 

D. 
customers should be better off
 

E. 
new products flourish
 
 68.
All of the following are examples of increased customer value from organizational synergy EXCEPT: 

A. 
lower prices
 

B. 
increased brand awareness
 

C. 
more products
 

D. 
improved distribution
 

E. 
improved quality of existing products
 
 69.
When a new product or a new retail chain steals customers and sales from older existing ones of an organization, it is referred to as 

A. 
cannibalization.
 

B. 
amortization.
 

C. 
product appropriation.
 

D. 
product pilfering.
 

E. 
marketing Darwinism.
 
 70.
When Ann Taylor, a well-known retailer of sophisticated women's clothing, started losing sales to its own LOFT outlets that feature moderately priced casual clothes, Ann Taylor was dealing with the marketing phenomenon known as __________. 

A. 
amortization
 

B. 
guerrilla marketing
 

C. 
shrinkage
 

D. 
marketing Darwinism
 

E. 
cannibalization
 
 71.
Suppose marketers want to use product differentiation and market segmentation strategies. What question should they ask when considering the potential for cannibalization with these strategies? 

A. 
"Will our new products steal customers or sales from our older ones?"
 

B. 
"Will the products compete head-to-head with those of a competitor?"
 

C. 
"Can this action successfully draw customers away from competitors?"
 

D. 
"Are there enough similarities within the market segment to warrant such high costs?"
 

E. 
"Will this action eliminate the need for individualized advertising and promotion?"
 
 72.
Cannibalization would mostly likely occur if 

A. 
Dell adds high-end speaker systems to its line.
 

B. 
General Mills launches Caramel Crunch Cheerios.
 

C. 
General Motors markets a motorcycle similar to the Can-Am Spyder Roadster 3-wheel bike.
 

D. 
Pillsbury adds boxed sugar to its product mix.
 

E. 
Procter & Gamble adds a new line of baby clothing to its Pamper's stable of products.
 
 73.
Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to offer 

A. 
a low-priced product to a high-income or high net worth segment.
 

B. 
a high-priced product to a low-income or low net worth segment.
 

C. 
different variations of the same basic offering to high-end and low-end segments.
 

D. 
a high-priced and a low-priced offering to a single market segment.
 

E. 
different offerings to high-end and low-end segments.
 
 74.
Which of the following is an example of a Tiffany/Walmart strategy? 

A. 
College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the U.S.
 

B. 
A new movie used several different movie trailers; one showed the action scenes in order to attract one audience and the other showed romantic scenes to attract another audience.
 

C. 
Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.
 

D. 
Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22.
 

E. 
Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.
 
 75.
The Walt Disney Company carefully markets two distinct Winnie-the-Poohs; one is the original line-drawn figure on fine china sold at Nordstrom and the other is a cartoon-like Pooh on polyester bed sheets sold at Target. This is an example of 

A. 
mass customization.
 

B. 
a Tiffany/Walmart strategy.
 

C. 
one product and multiple market segments.
 

D. 
price discrimination.
 

E. 
psychographic market segmentation.
 
 76.
You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50. Or, you can buy a Hallmark card from its new $0.99 line of greeting cards, made with lesser-quality materials but just as sentimental, that are sold at Barnes and Noble bookstores. This is an example of 

A. 
mass customization.
 

B. 
organizational synergy.
 

C. 
one product and multiple market segments.
 

D. 
price discrimination.
 

E. 
a Tiffany/Walmart strategy.
 
 77.
The purpose of the five key steps in segmenting and targeting markets is to 

A. 
identify competitors that provide similar products that satisfy a firm's customers' needs.
 

B. 
provide guidance to reposition a firm's products.
 

C. 
generate new products ideas for firms that are not growing in market share.
 

D. 
link market needs of customers to the organization's marketing program.
 

E. 
correlate directly to each of the five environmental forces.
 
 78.
The first step in segmenting and targeting markets that links customer needs to marketing actions is to 

A. 
group potential buyers into segments.
 

B. 
group products to be sold into categories.
 

C. 
develop a market-product grid and estimate size of the overall market.
 

D. 
select target markets.
 

E. 
take marketing actions to reach target markets.
 
 79.
The second step in segmenting and targeting markets that link customer needs to marketing actions is to 

A. 
group potential buyers into segments.
 

B. 
develop a market-product grid and estimate size of the overall market.
 

C. 
select target markets.
 

D. 
take marketing actions to reach target markets.
 

E. 
group products to be sold into categories.
 
 80.
The third step in segmenting and targeting markets that link customer needs to marketing actions is to __________. 

A. 
group potential buyers into segments
 

B. 
group products to be sold into categories
 

C. 
select target markets
 

D. 
develop a market-product grid and estimate size of markets
 

E. 
take marketing actions to reach target markets
 
 81.
The fourth step in segmenting and targeting markets that link customer needs to marketing actions is to __________. 

A. 
group potential buyers into segments
 

B. 
select target markets
 

C. 
group products to be sold into categories
 

D. 
develop a market-product grid and estimate size of the overall market
 

E. 
take marketing actions to reach target markets
 
 82.
The fifth step in segmenting and targeting markets that link customer needs to marketing actions is to __________. 

A. 
take marketing actions to reach target markets
 

B. 
group potential buyers into segments
 

C. 
select target markets
 

D. 
group products to be sold into categories
 

E. 
develop a market-product grid and estimate size of the overall market
 
 83.
There are five steps involved in segmenting and targeting markets. What should a marketer do after he or she has grouped products to be sold into categories? 

A. 
create product groupings
 

B. 
identify market needs
 

C. 
take marketing actions to reach target markets
 

D. 
develop a market-product grid and estimate size of markets
 

E. 
form prospective buyers into market segments
 
 84.
A marketing manager goes through several steps to put a market segmentation plan into effect. This includes being able to form market segments and then __________ without encountering excessive costs. 

A. 
eliminate potential non-buyers
 

B. 
identify segmentation variables
 

C. 
select the market segment(s) to target
 

D. 
redirect their purchase behaviors
 

E. 
ignore any and all similarities
 
 85.
All of the following are criteria used for forming market segments EXCEPT: 

A. 
difference of needs of buyers among segments.
 

B. 
potential for increased profit.
 

C. 
cost of reaching the segment.
 

D. 
potential of a marketing action to reach a segment.
 

E. 
simplicity and cost-effectiveness of assigning potential buyers to segments.
 
 86.
Which of the following is a criterion used in forming market segments? 

A. 
similarity of segments to competitors' segments
 

B. 
differences between potential suppliers or distributors
 

C. 
differences of needs of buyers within a segment
 

D. 
market size of the segment
 

E. 
simplicity and cost-effectiveness of assigning potential buyers to segments
 
 87.
The best segmentation approach is the one that 

A. 
makes it easiest to reach the segment.
 

B. 
maximizes the opportunity for future profit and ROI.
 

C. 
recognizes different needs of buyers among different segments.
 

D. 
recognizes similarities of needs of potential buyers within a segment.
 

E. 
is simplest and least costly in assigning potential buyers to segments.
 
 88.
Which of the following is NOT a reason to segment a market? 

A. 
The ability to assign buyers to a segment is simple and cost-effective.
 

B. 
It would cause an increase in market share or profit.
 

C. 
All the buyers in the entire market have similar wants and needs.
 

D. 
There is a potential marketing action to reach it.
 

E. 
There are different wants and needs of buyers in the entire market.
 
 89.
Which of the following is NOT a criterion to use in forming market segments? 

A. 
The ability to assign buyers to a segment is cost-effective and simple.
 

B. 
The result of segmenting will cause an increase in market share or profit.
 

C. 
There are significant similarities among buyers in the market segment.
 

D. 
There is a potential marketing action to reach the segment.
 

E. 
The cost to reach the segment exceeds its profitability.
 
90.
Selling a product to a different market segment usually requires a different marketing action that in turn means greater costs. If increased revenues don't offset extra costs of this action, a marketer should __________. 

A. 
increase the advertising budget
 

B. 
prune the product offerings
 

C. 
family brand their products
 

D. 
combine segments
 

E. 
group products into categories
 
 91.
Criteria for forming segments involve both similarities and differences. In terms of the needs of buyers, the similarities must be __________ a segment, and the differences must be __________ segments. 

A. 
between; among
 

B. 
throughout; absent in
 

C. 
within; among
 

D. 
absent in; throughout
 

E. 
among; across
 
 92.
Criteria for forming segments involve both similarities and differences. Which of the following statements is most accurate? 

A. 
Within a segment, the needs of potential buyers should be different; among segments, the needs of buyers should be similar.
 

B. 
Within a segment, the needs of potential buyers should be similar; among segments, the needs of buyers should be different.
 

C. 
The needs of buyers should be different, both between segments and within segments.
 

D. 
The needs of buyers should be the same, both between segments and within segments.
 

E. 
If there are any differences at all, you should forgo any segmentation.
 
 93.
Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer the following question: 

A. 
"Is this product useful on a global scale?"
 

B. 
"Is it possible to reposition this product?"
 

C. 
"Is there too much competition for this product?"
 

D. 
"Is the market loyal to the product?"
 

E. 
"Would segmentation be worth doing and is it possible?"
 
 94.
About 3 percent of the population has some degree of allergic reaction, usually mild, to preservatives used in salad bars. Restaurants might consider people with these allergies as a separate segment. To implement this segmentation strategy, restaurants would have to prepare a regular salad bar and a special salad bar for the allergies segment. This multiple product and multiple market segment strategy would have the greatest difficulty meeting which of the following criteria used to form market segments? 

A. 
different needs of buyers among different segments
 

B. 
similarity of needs of potential buyers within a segment
 

C. 
simplicity and cost-effectiveness of assigning potential buyers to segments
 

D. 
potential for increased profit and ROI
 

E. 
potential of a marketing action to reach a segment
 
 95.
Four general categories used to segment consumer markets are geographic segmentation, demographic segmentation, __________, and behavioral segmentation. 

A. 
supplier segmentation
 

B. 
demand segmentation
 

C. 
regional segmentation
 

D. 
psychographic segmentation
 

E. 
product segmentation
 
 96.
Segmentation based on where prospective customers live or work is referred to as 

A. 
zip code segmentation.
 

B. 
geographic segmentation.
 

C. 
regional segmentation.
 

D. 
MSA segmentation.
 

E. 
NAICS code segmentation.
 
 97.
Region and city size are both variables used to employ __________ segmentation. 

A. 
geographic
 

B. 
behavioral
 

C. 
district
 

D. 
psychographic
 

E. 
demographic
 
 98.
Campbell's Soup Company found that its canned nacho cheese sauce, which could be heated and poured directly onto nacho chips, was too spicy for Americans in the East and not spicy enough for those in the West and Southwest. Today, Campbell's plants in Texas and California produce a spicier nacho cheese sauce than what is produced in the other plants. Campbell's is using __________ segmentation. 

A. 
demographic
 

B. 
behavioral
 

C. 
economic
 

D. 
geographic
 

E. 
psychographic
 
 99.
Which of the following statements best illustrates geographic segmentation? 

A. 
GE builds a downsized microwave oven to hang under kitchen cabinets.
 

B. 
Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.
 

C. 
In China, KFC sells a spicier chicken the farther away its restaurants are from the coastal areas.
 

D. 
A fast food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays.
 

E. 
A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area.
 
 100.
Universal Concerts wants to bring a series of music concerts to Canada next year. In general, Western Canadians prefer country music while Eastern Canadians prefer rock. In fact, a country music event in eastern Canada is very likely to have lots of empty seats. To maximize revenue, Universal Concerts should segment its Canadian market according to __________. 

A. 
geographic characteristics
 

B. 
demographic characteristics
 

C. 
music format characteristics
 

D. 
behavioral characteristics
 

E. 
psychographic characteristics
 
 101.
Variables that are based on some objective physical (gender, ethnicity), measurable (age, income), or other classification attribute (occupation) of prospective customers are used in which segmentation base? 

A. 
personality
 

B. 
usage
 

C. 
needs
 

D. 
demographic
 

E. 
behavioral
 
 102.
Which of the following is a consumer demographic segmentation variable? 

A. 
personality
 

B. 
gender
 

C. 
usage rate
 

D. 
needs
 

E. 
region
 
 103.
More than half of all U.S. households are composed of only one or two persons, so Aunt Jemima offers one serving meals - such as its Ham & Egg Scramble and Oatmeal Pancakes. Aunt Jemima is using __________ as the basis to segment its market. 

A. 
usage rates
 

B. 
usage patterns
 

C. 
demographic characteristics
 

D. 
behavior characteristics
 

E. 
psychographic characteristics
 
 104.
Procter & Gamble (P&G) decided to skip a generation of consumers when it began to market Old Spice deodorant. The target market consists of men aged 18 to 34 years old (Generation Y) who don't remember the Old Spice brand sold to their grandfathers (pre baby boomer) many years ago. P&G is using which type of segmentation variable? 

A. 
behavioral
 

B. 
demographic
 

C. 
lifestyle
 

D. 
geographic
 

E. 
psychographic
 
 105.
When a telemarketer calls to sell a consumer life insurance, the last questions asked is what category does the person's household income falls into (less than $50,000; $50,000 to $99,999; and $100,000 and over). When the telemarketer asks about household income, this indicates the use of which type of consumer variable the firm is using to segment its market? 

A. 
usage
 

B. 
behavior
 

C. 
demographic
 

D. 
buying situation
 

E. 
psychographic
 
 106.
The State of Alabama Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state. Since the apparent target of these ads is the traditional family, it appears that the State of Alabama Board of Tourism has segmented the market using __________ variables. 

A. 
demographic
 

B. 
regional
 

C. 
socioeconomic
 

D. 
geographic
 

E. 
psychographic
 
 107.
Which of the following statements demonstrate the formation of a segment based on household size? 

A. 
Campbell's makes a spicier nacho cheese sauce for its distributors in Texas than it does in Maine.
 

B. 
GE built a downsized microwave oven to hang under kitchen cabinets.
 

C. 
Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.
 

D. 
A fast-food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays.
 

E. 
A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area.
 
 108.
At a Hallmark store you can find several lines of greeting cards, including Fresh Ink, Nature's Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards - all made by Hallmark for sale in its stores and intended to appeal to different target markets. The Mahogany line is designed to appeal to African-Americans. This is an example of __________ segmentation. 

A. 
regional
 

B. 
lifestyle
 

C. 
demographic
 

D. 
geographic
 

E. 
psychographic
 
 109.
Which of the following statements regarding segmentation bases is most accurate? 

A. 
The identification of demographic variables is more objective than the identification of psychographic variables, which is more subjective.
 

B. 
Marketers should use segmentation bases in this order to reduce potential costs: behavioral, demographic, psychographic, and geographic.
 

C. 
The identification of psychographic variables is more objective than the identification of demographic variables, which is more subjective.
 

D. 
Behavioral segmentation is based primarily on personality.
 

E. 
Psychographic segmentation is based primarily on product features.
 
 110.
Segmentation based on some subjective mental or emotional attributes, aspirations, or needs of prospective customers is referred to as 

A. 
behavioral segmentation.
 

B. 
affective segmentation.
 

C. 
socioeconomic segmentation.
 

D. 
psychographic segmentation.
 

E. 
psychosocial segmentation.
 
 111.
All of the following are psychographic segmentation variables EXCEPT: 

A. 
lifestyle
 

B. 
needs
 

C. 
birth era
 

D. 
PRIZM
 

E. 
personality
 
 112.
Personality and lifestyle are both variables used to employ __________ segmentation. 

A. 
geographic
 

B. 
behavioral
 

C. 
attitudinal
 

D. 
psychographic
 

E. 
demographic
 
 113.
Magazines like Fitness, Field & Stream, Golf Digest, and Health focus on how people live their lives, and thus all use a __________ segmentation strategy. 

A. 
psychographic
 

B. 
behavioral
 

C. 
situational
 

D. 
socioeconomic
 

E. 
geographic
 
 114.
The Nielsen PRIZM lifestyle segmentation is based on the belief that "birds of a feather flock together." This type of consumer segmentation is referred to as 

A. 
situational segmentation.
 

B. 
socioeconomic segmentation.
 

C. 
geographic segmentation.
 

D. 
psychographic segmentation.
 

E. 
behavioral segmentation.
 
 115.
Nielsen PRIZM segmentation classifies every household into one of 66 demographically and __________ distinct neighborhood segments to identify lifestyles and purchase behavior within a defined geographic market area, such as zip code. 

A. 
financially
 

B. 
behaviorally
 

C. 
ethnically
 

D. 
socially
 

E. 
ethnographically
 
 116.
Segmentation based on some observable actions or attitudes by prospective customers, such as what benefits they seek, as well as where, how frequently, and why they buy, is referred to as 

A. 
demographic segmentation.
 

B. 
psychographic segmentation.
 

C. 
geographic segmentation.
 

D. 
behavioral segmentation.
 

E. 
socioeconomic segmentation.
 
 117.
Segmentation based on what product features are important to different customers is known as 

A. 
demographic segmentation.
 

B. 
behavioral segmentation.
 

C. 
psychographic segmentation.
 

D. 
geographic segmentation.
 

E. 
socioeconomic segmentation.
 
 118.
Product features and usage rate are both variables used to employ __________ segmentation. 

A. 
geographic
 

B. 
demographic
 

C. 
loyalty
 

D. 
psychographic
 

E. 
behavioral
 
 119.
Behavioral segmentation may be based on 

A. 
lifestyles and demographics.
 

B. 
retailer and wholesaler behaviors.
 

C. 
geographic and demographic criteria.
 

D. 
product features and retail store type.
 

E. 
demand and supply.
 
 120.
A national car rental firm targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. The company is using __________ segmentation. 

A. 
geographic
 

B. 
demographic
 

C. 
loyalty
 

D. 
psychographic
 

E. 
behavioral
 
 121.
College dorm residents frequently want to keep and prepare their own food and snacks to save money or have a late night snack. However, their dorm rooms are often woefully short of space. MicroFridge marketers understand this and offer a combination microwave, refrigerator, and freezer targeted to these students. MicroFridge is most likely using which basis of segmentation? 

A. 
sociocultural segmentation
 

B. 
psychographic segmentation
 

C. 
geographic segmentation
 

D. 
behavioral segmentation
 

E. 
socioeconomic segmentation
 
 122.
Samsung sells a variety of TVs, from simple and small ones to large smart TVs with Internet connectivity and 3D technology. Customers prefer different features, so Samsung uses which type of segmentation variable based on their viewing preferences? 

A. 
demographic segmentation
 

B. 
psychographic segmentation
 

C. 
behavioral segmentation
 

D. 
geographic segmentation
 

E. 
socioeconomic segmentation
 
 123.
Potluck participants bring a variety of dishes to share with family, friends, or coworkers at these events, but it is easy to forget to take the bowl that you brought home with you. Reynolds responded to this problem by creating PotLux cookware, attractive and inexpensive disposable dishes for transporting food. Reynolds is using __________ segmentation here. 

A. 
psychographic
 

B. 
behavioral
 

C. 
demographic
 

D. 
social
 

E. 
geographic
 
 124.
Many companies have cut travel budgets so that very few business people are authorized to fly first class. Despite the shrinking pool of business-class travelers, British Airways has grown market share for its transatlantic business class by offering greater comfort. Promotions to frequent fliers stress that passengers can sleep in fully reclining seats and arrive refreshed to carry out a full day's schedule. The segmentation strategy of British Airways is an example of 

A. 
life stage segmentation.
 

B. 
lifestyle segmentation.
 

C. 
social class segmentation.
 

D. 
behavioral segmentation.
 

E. 
psychographic segmentation.
 
 125.
ExxonMobil targets consumers that fill up their gas tanks more than once a week with its Chase Visa fuel card. In this example, ExxonMobil is using which segmentation variable? 

A. 
needs
 

B. 
lifestyle
 

C. 
behavioral
 

D. 
psychographic
 

E. 
demographic
 
 126.
The quantity consumed or patronage (store visits) during a specific period is referred to as 

A. 
usage rate.
 

B. 
purchase metric.
 

C. 
consumption index.
 

D. 
consumption rate.
 

E. 
demand amount.
 
 127.
Usage rate refers to 

A. 
the percentage of total possible users divided by the total number of consumers who actually use a product or service.
 

B. 
the number of times a customer uses or recommends a product or service annually.
 

C. 
quantity consumed or patronage (store visits) during a specific period.
 

D. 
the maximum number of times a customer has used a product or service historically.
 

E. 
the profits a firm earns from customers who consume a particular product or service.
 
 128.
Alamo, a car rental firm, targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. Alamo likely segments its market by 

A. 
usage rate.
 

B. 
benefits offered.
 

C. 
demographics.
 

D. 
geography.
 

E. 
lifestyle.
 
 129.
Frequency marketing is a strategy that focuses on 

A. 
demographics.
 

B. 
benefits offered.
 

C. 
usage rate.
 

D. 
geography.
 

E. 
lifestyle.
 
 130.
The market segmentation strategy known as frequency marketing focuses on 

A. 
trial.
 

B. 
the average number of times a person in the target audience is exposed to an advertisement.
 

C. 
consumption preferences.
 

D. 
turnover.
 

E. 
usage rate.
 
 131.
Airlines have developed frequent-flier programs to encourage passengers to use the same airline repeatedly. This marketing strategy is based on 

A. 
geographic segmentation.
 

B. 
behavioral segmentation.
 

C. 
psychographic segmentation.
 

D. 
demographic segmentation.
 

E. 
buying condition segmentation.
 
 132.
Airline programs that encourage passengers to repeatedly use the same airline focus on usage rate and employ a __________ strategy. 

A. 
rate of recurrence
 

B. 
product utilization
 

C. 
incidence
 

D. 
frequency marketing
 

E. 
consumption index
 
 133.
A recent study by the Aberdeen Group analyzed which segmentation bases were used by the 20 percent most profitable organizations of the 220 surveyed. Which segmentation base did these organizations use the most? 

A. 
behavioral
 

B. 
psychographic
 

C. 
geographic
 

D. 
demographic
 

E. 
product
 
 134.
The 80/20 rule suggests that 

A. 
80 percent of a firm's inventory should be readily available while 20 percent should be reserved for emergency demand.
 

B. 
80 percent of a firm's first-time users will become brand loyal while 20 percent will use the product only once and then abandon it.
 

C. 
80 percent of a firm's sales are obtained from 20 percent of its customers.
 

D. 
80 percent of a firm's marketing program expenses are tax deductible while 20 percent are not.
 

E. 
80 percent of a firm's products will be sold to ultimate consumers while 20 percent to organizational buyers.
 
 135.
The 80/20 rule is most closely related to which basis of segmentation? 

A. 
geographic
 

B. 
psychographic
 

C. 
opportunistic
 

D. 
demographic
 

E. 
behavioral
 
 136.
Todd Harris and Associates, a New York sales promotion agency, discovered from an analysis of its files that one-quarter (or 25 percent) of its clients generated more than three-quarters (or 75 percent) of its fees and commissions. This is an example of what classic concept? 

A. 
the two quarter gap
 

B. 
the 80/20 rule
 

C. 
the law of usage
 

D. 
the 75/25 exchange
 

E. 
Paul's Law
 
 
   
Figure 8-4
 137.
To the owner of a Wendy's fast food restaurant, the information in Figure 8-4 above suggests that Wendy's prospects are __________ of the total compared to __________ for McDonald's. 

A. 
57.0 percent, 51.0 percent
 

B. 
15.2 percent, 40.5 percent
 

C. 
14.6 percent, 14.6 percent
 

D. 
15.2 percent, 19.0 percent
 

E. 
57.0 percent, 26.0 percent
 
 138.
For an owner of a Wendy's fast-food restaurant, the information in Figure 8-4 above suggests 

A. 
Wendy's has an advantage over both McDonald's and Burger King as being the most preferred "second choice" restaurant.
 

B. 
most of the respondents think of Wendy's as their primary fast food restaurant.
 

C. 
a need to devise a marketing program to win customers from McDonald's and Burger King.
 

D. 
McDonald's has fewer "exclusively loyal" customers than does Wendy's.
 

E. 
Burger King is closing in on your market share.
 
 139.
To the owner of a Wendy's fast-food restaurant, the information in Figure 8-4 above suggests 

A. 
new menu items or promotional strategies may be needed to convert prospects into users.
 

B. 
most of the respondents think of Wendy's as their primary fast food restaurant.
 

C. 
McDonald's has fewer "exclusively loyal" customers than does Wendy's.
 

D. 
Burger King is closing in on your market share.
 

E. 
a need to devise a marketing program to change the minds of nonprospects.
 
 140.
As an owner of a Wendy's fast-food restaurant located near a large urban university, you need to analyze your customers and determine which segmentation base and its associated variable(s) you will use to segment your target market. Which segmentation base and associated variable (s) should you use? 

A. 
psychographic: VALS and personality
 

B. 
demographic: gender and age
 

C. 
behavioral: students and nonstudents
 

D. 
geographic: city size and zip code
 

E. 
transportation mode: car, bike, public transportation, and none (walking)
 
 141.
Which of the following is a basis used to segment U.S. organizational markets? 

A. 
geographic
 

B. 
psychographic
 

C. 
income
 

D. 
prospects
 

E. 
education
 
 142.
Variables such as location, the North American Industry Classification System (NAICS) code, and number of employees are all examples of ways to 

A. 
differentiate products.
 

B. 
forecast sales to a consumer market.
 

C. 
segment an organizational market.
 

D. 
promote NAFTA.
 

E. 
segment a consumer market.
 
 143.
Which of the following statements about market segmentation for organizational markets is most accurate? 

A. 
Criteria for segmenting markets are the same whether the market is composed of consumers or organizations.
 

B. 
Both consumer markets and organizational markets use demographic, geographic, and behavioral bases to segment markets.
 

C. 
Psychographic criteria are just as important in segmenting organizational markets as they are in segmenting consumer markets.
 

D. 
Consumer markets use market segmentation criteria while organizational markets do not.
 

E. 
The greatest difference in market segmentation strategies between consumer and organizational markets is the number of employees employed in the segmentation process.
 
 144.
Evergreen Air Center in Marana, Arizona, is the world's biggest parking lot for unwanted commercial aircraft. Airlines pay from $750 to $5,000 a month for its storage service. The warm, dry air where the operation is located serves as a cheap and effective airplane preservative. Which segmentation variable might Evergreen use to segment the market? 

A. 
NAICS sector, such as manufacturers, or retailers, or lawyers
 

B. 
number of locations
 

C. 
who buys, such as individual buyer or buying groups
 

D. 
metropolitan statistical area
 

E. 
number of employees
 
 145.
The William Morris Agency represents country singer Trace Adkins in negotiations with various venues in which he could perform. Imagine that the agency decided the singer would not perform at venues located in small town communities that have less than 100,000 people. Thus, the agency is using __________ segmentation. 

A. 
entertainment
 

B. 
psychographic
 

C. 
geographic
 

D. 
usage rate
 

E. 
behavioral
 
 146.
Australia-based Renewable Energy Ltd. sells a $10 million device that converts manure into energy. One of these devices is capable of generating energy equal to $2 million of natural gas per year. The company believes its target market consists of businesses similar to its first customer, a fertilizer manufacturer that was located in a rural area. If the firm expands to the United States, it most likely will use which of the following strategies to segment its market? 

A. 
behavioral and geographic
 

B. 
number of employees and behavioral
 

C. 
purchase location and purchase type
 

D. 
NAICS code and geographic
 

E. 
behavioral and NAICS code
 
 147.
If Wendy's customers are buying an eating experience, which of the following rationales would make the most sense if you were to group the products Wendy's sells? 

A. 
grouping by caloric intake
 

B. 
grouping by price
 

C. 
grouping by meal occasion
 

D. 
grouping by usage rate
 

E. 
grouping by level of uniqueness
 
 148.
Grocery retailer Safeway displays the thousands of items it sells in aisles containing related items or product groupings. Examples would be the pet food aisle or the soft drink aisle. Why would Safeway display and sell product groupings in this manner? 

A. 
The groupings increase the number of market-product combinations on the market-product grid, which makes it a more manageable framework for subsequent analysis.
 

B. 
This form of product groupings makes it easier for customers to get in and out of the store more quickly, creating time utility.
 

C. 
The products are grouped so people can relate to them in a more meaningful way when they shop.
 

D. 
Product groupings can be generated quantitatively to show which adhere to the 80/20 rule.
 

E. 
Suppliers get preferential treatment based upon the number of different UPCs they provide.
 
 149.
Hallmark placed its scrapbook supplies, photo albums, and related supplies into one product group because 

A. 
it was easier to forecast future sales since there were fewer market-product combinations.
 

B. 
customers could buy in quantity and take advantage of quantity discounts.
 

C. 
their suppliers provided free displays and shelving to highlight Hallmark's products.
 

D. 
it helped buyers relate to the products and make decisions in a more meaningful way.
 

E. 
it allowed customers to compare price and quality with competitors who displayed their products in a similar manner.
 
 150.
A market-product grid is a framework to relate 

A. 
total estimated expenses for each product sold to each market segment.
 

B. 
total anticipated revenue for each product-market segment combination.
 

C. 
total anticipated profit for each product sold to each market segment.
 

D. 
the market segments of current buyers to relative market share compared to the largest competitor.
 

E. 
the market segments of potential buyers to products offered or potential marketing actions by an organization.
 
 151.
A market-product grid is a framework to relate the __________ to products offered or potential marketing actions by an organization. 

A. 
market segments of potential buyers
 

B. 
marketing objectives of potential products
 

C. 
total anticipated revenue
 

D. 
total anticipated profit
 

E. 
market share of the closest competitor
 
 152.
A market-product grid is a framework to relate the market segments of potential buyers to 

A. 
estimated expenses for products sold.
 

B. 
products offered or potential marketing actions by an organization.
 

C. 
total anticipated revenue.
 

D. 
total anticipated profit.
 

E. 
market share of the closest competitor.
 
 153.
Each cell of the complete market-product grid shows the __________. 

A. 
relative market share
 

B. 
estimated market size
 

C. 
investment required to reach the market
 

D. 
market growth rate
 

E. 
estimated profit
 
 154.
After establishing the market segments and product groupings on a market-product grid, the next step is to 

A. 
fill in the appropriate cells with precise statistical data from primary and/or secondary sources.
 

B. 
estimate, with intelligent guesstimates as necessary, the market size for each cell using a simple scale, such as from zero to three.
 

C. 
total the vertical columns to identify the greatest marketing synergies and efficiencies.
 

D. 
total the horizontal rows to identify greatest operations/production synergies and efficiencies.
 

E. 
identify a marketing action for every product-market combination in the grid.
 
 155.
One advantage of a market-product grid is that it can be used to 

A. 
make cost-cutting decisions under conditions of uncertainty.
 

B. 
screen many new product ideas in order to select the one with the best long-run market potential.
 

C. 
determine which target market segments to select and which product groupings to offer.
 

D. 
select representative samples of consumers for marketing research studies.
 

E. 
relate the product life cycle to consumer demand.
 
 156.
Determining the size of specific markets within a market-product grid is helpful in determining which target market segments to select and 

A. 
how to implement the 80-20 rule.
 

B. 
which products to group into meaningful categories.
 

C. 
how to implement a harvesting strategy.
 

D. 
which product groupings to offer.
 

E. 
which products to reposition.
 
 
   
Figure 8-6
 157.
Figure 8-6 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus. The best way to describe how the student market is segmented is 

A. 
whether the student is a faculty or staff member.
 

B. 
whether the student lives near the campus or far away.
 

C. 
whether the student has the disposable income to eat at Wendy's.
 

D. 
combining the factors of where the student lives and when (s)he is on campus.
 

E. 
the meals eaten at the Wendy's restaurant.
 
 158.
Figure 8-6 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus. Assume a large market (shown by a 3) is three times the size of a small market (shown by a 1) and a medium market (shown by a 2) is twice the size of a small market. The meal occasion (product grouping) that comprises the largest product grouping is 

A. 
breakfast.
 

B. 
lunch.
 

C. 
between-meal snack.
 

D. 
dinner.
 

E. 
after-dinner snack.
 
 159.
Figure 8-6 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus. Assume a large market (shown by a 3) is three times the size of a small market (shown by a 1) and a medium market (shown by a 2) is twice the size of a small market. The largest potential market segment consists of 

A. 
students that live in a dormitory.
 

B. 
students that live in an apartment.
 

C. 
students that are day commuters.
 

D. 
students that are night commuters.
 

E. 
faculty or staff members.
 
 160.
All of the following are criterion used for selecting target market segments EXCEPT: 

A. 
compatibility with the organization's objectives and resources.
 

B. 
market size.
 

C. 
simplicity and cost of assigning potential buyers to segments.
 

D. 
competitive position.
 

E. 
cost of reaching the segment.
 
 161.
Which of the following is a criterion used for selecting a target market? 

A. 
similarity of needs of potential buyers within a segment
 

B. 
difference of needs of sellers between segments
 

C. 
feasibility of a marketing action to reach a segment
 

D. 
market size
 

E. 
simplicity and cost of assigning potential buyers to segments
 
 162.
Which of the following is a criterion used for selecting a target market? 

A. 
similarity of needs of potential buyers within a segment
 

B. 
difference of needs of buyers between segments
 

C. 
expected growth of a segment
 

D. 
feasibility of a marketing action to reach a segment
 

E. 
simplicity and cost of assigning potential buyers to segments
 
 163.
Which of the following is a criterion used for selecting a target segment? 

A. 
potential for increased profit
 

B. 
competitive position
 

C. 
similarity of needs of potential buyers within a segment
 

D. 
difference of needs of buyers among segments
 

E. 
potential of a marketing action to reach a segment
 
 164.
Which of the following is a criterion used for selecting a target segment? 

A. 
potential for increased profit
 

B. 
similarity of needs of potential buyers within a segment
 

C. 
cost of reaching the segment
 

D. 
difference of needs of buyers among segments
 

E. 
potential of a marketing action to reach a segment
 
 165.
Five general criteria are often used to select target segments. They include: (1) the size of the market; (2) expected growth of the market; (3) competitive position of the firm with respect to the market; (4) cost of reaching the segment; and __________. 

A. 
compatibility with the organization's objectives and resources
 

B. 
potential of a marketing action to reach a segment
 

C. 
similarity of needs of potential buyers within a segment
 

D. 
difference of needs of buyers among segments
 

E. 
potential for increased profit
 
 166.
It is not recommended that a firm select a target segment that 

A. 
would require entry in a global marketplace.
 

B. 
requires more than one marketing action.
 

C. 
has few competitors that target this same segment.
 

D. 
is incompatible with its company's goals or objectives.
 

E. 
has a growth potential that would require increasing the current workforce.
 
 167.
Best Foods Company is considering expanding beyond the regional market segments now served by its Hellmann's mayonnaise. One criterion management wants to use to evaluate potential new geographic market segments is whether additional real estate must be purchased or leased to serve new segments. This is an example of which criterion used to select target market segments? 

A. 
Best Foods' competitive position in the segment
 

B. 
Best Foods' product groupings
 

C. 
expected growth of the market segment
 

D. 
size of the market segment
 

E. 
cost of reaching the segment
 
 168.
A rehabilitation center wants to target women in their 20s who have received some permanent disability as the result of a skiing accident. In terms of the criteria used for selecting a target segment, this market would 

A. 
have no expected growth.
 

B. 
not be compatible with the company's current resources.
 

C. 
not be worth doing since its market size is very small.
 

D. 
not be readily accessible to the firm's marketing programs.
 

E. 
be relatively expensive to reach.
 
 169.
During its market segmentation process for the Nike LeBron X basketball shoe, which sells for $200+ a pair, Nike decided to concentrate on affluent teens rather than members of high school basketball teams. This is an example of 

A. 
selecting target market segments to reach.
 

B. 
forming products to be sold into groups.
 

C. 
developing a market-product grid and estimating size of markets.
 

D. 
taking marketing actions to reach target markets.
 

E. 
forming prospective buyers into segments.
 
 170.
Doris Lewis owns Lewis Edibles, Inc., a company that makes Tongue Tinglin' BBQ Sauce. She wants to target local people who like the special blend of flavors found only in North Carolina barbecue sauce. In developing a marketing strategy to sell the sauce, Lewis decided to join Goodness Grows in North Carolina, a specialty food association that advertises local products and distributes them to local supermarkets and gourmet shops. Lewis has just 

A. 
formed a market segment using critical product features.
 

B. 
formed products to be sold into groups.
 

C. 
developed a market-product grid and estimating size of markets.
 

D. 
taken a marketing action to reach a target market segment.
 

E. 
formed prospective buyers into segments.
 
 
   
Figure 8-7
 171.
Figure 8-7 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus with chosen market segments and product groupings. The next step is to develop a simple marketing action to reach a target market. Placing flyers under windshield wipers of cars parked in student parking lots on weekdays between 7:00 a.m. and 4:00 p.m. that offer a $2 off coupon on lunch meal would be especially targeted at potential 

A. 
faculty customers.
 

B. 
staff customers.
 

C. 
day commuter customers.
 

D. 
night commuter customers.
 

E. 
nonstudent customers.
 
 172.
Figure 8-7 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus with chosen market segments and product groupings. The next step is to develop a simple marketing action to reach a target market. Sending out coupons for 10 percent off all purchases between 2:00 p.m. and 4:30 p.m. during the winter quarter would target potential 

A. 
dormitory customers.
 

B. 
night commuter customers.
 

C. 
between-meal snack customers.
 

D. 
after-dinner snack customers.
 

E. 
apartment customers.
 
 173.
Which of the following competitors mentioned in the textbook should the owner of a Wendy's restaurant monitor closely due to its explosive growth in the number of current and proposed locations - one that is or may soon be near this Wendy's? 

A. 
Burger King
 

B. 
In-N-Out Burger
 

C. 
McDonald's
 

D. 
Five Guys Burgers
 

E. 
Smashburger
 
 174.
When considering the quick-service restaurant competition, it will be most important for Wendy's to consider not only the offerings of Burger King, McDonald's, Five Guys Burgers, and other hamburger chains but also the 

A. 
meals at golf and country clubs.
 

B. 
dormitory meal plans at surrounding colleges and universities.
 

C. 
items for sale at gas stations and convenience stores.
 

D. 
local farmer's markets that sell produce.
 

E. 
nearly every food item sold at local grocery stores.
 
 175.
In the early 1980s, Apple, Inc. was often called "Camp Runamok" because 

A. 
every employee was encouraged to do his or her own thing.
 

B. 
it was concentrating on laptops while everyone else was concentrating on personal computers.
 

C. 
all the employees were so young, so they often played more than they worked.
 

D. 
there were no coherent product lines targeted at identifiable market segments.
 

E. 
its personal computers were running amok with viruses, spyware, and other problems.
 
 
   
Apple Market-Product Grid
 176.
In the Apple market-product grid shown above for its personal computer line, the professional segment of medium/large businesses seems willing to purchase all of the items in Apple's product line. This allows Apple to enjoy cost savings due to __________. 

A. 
segment differentiation
 

B. 
marketing synergies
 

C. 
product synergies
 

D. 
segment repositioning
 

E. 
product differentiation
 
 177.
According to the Apple market-product grid above, Apple would most likely get the LEAST market synergies from 

A. 
teachers and college staff.
 

B. 
individuals and small home office users.
 

C. 
medium/large businesses and college faculty.
 

D. 
students, teachers, and college faculty.
 

E. 
creative professionals.
 
 178.
In the Apple market-product grid shown above for its personal computer line, the iMac is popular among all the segments Apple can target. This allows Apple to enjoy __________. 

A. 
segmentation synergies
 

B. 
marketing synergies
 

C. 
product synergies
 

D. 
the 80/20 rule
 

E. 
frequency marketing
 
 179.
According to the Apple market-product grid above, Apple would most likely get the LEAST product synergies from the 

A. 
Mac Pro and MacBook Pro.
 

B. 
Mac Pro and iMac.
 

C. 
Mac Pro and MacBook Air.
 

D. 
Mac Pro and Mac Mini.
 

E. 
iMac and Mac Mini.
 
 180.
Two key types of synergies are __________. 

A. 
supplier and distributor synergies
 

B. 
market and product synergies
 

C. 
industry-dominated and consumer-dominated
 

D. 
product and production synergies
 

E. 
consumer and market synergies
 
 181.
Marketing synergies often come at the expense of product synergies because 

A. 
product synergies are more effective for penetrating a market rather than creating one.
 

B. 
multiple market segments usually require multiple products.
 

C. 
it is easier to change a product than to completely develop a new marketing plan.
 

D. 
a single customer segment will likely require a variety of products.
 

E. 
no company can afford to do both at the same time.
 
 182.
__________ often come at the expense of __________ because a single customer segment will likely require a variety of products, each of which will have to designed and manufactured. 

A. 
Product synergies; marketing synergies
 

B. 
Marketing synergies; product synergies
 

C. 
Supplier synergies; consumer synergies
 

D. 
Distributor synergies; supplier synergies
 

E. 
Marketing synergies; finance synergies
 
 183.
The place a product occupies in consumers' minds on important attributes relative to competitive products is referred to as 

A. 
product repositioning.
 

B. 
relative positioning.
 

C. 
competitive positioning.
 

D. 
product positioning.
 

E. 
selective perception.
 
 184.
Product positioning refers to 

A. 
an outdated concept that assigns product value by association with social class.
 

B. 
the place a product offering occupies in consumers' minds on important attributes.
 

C. 
the competitive advantage of one product over another.
 

D. 
changing the place a product occupies in a consumer's mind relative to competitive products.
 

E. 
using a market-product grid to place products in their appropriate places on that grid to identify potential untapped markets.
 
 185.
Changing the place an offering occupies in consumers' minds relative to competitive products is referred to as 

A. 
product placement.
 

B. 
perceptual mapping.
 

C. 
product positioning.
 

D. 
product repositioning.
 

E. 
product differentiation.
 
 186.
Product repositioning refers to 

A. 
the place a product offering occupies in consumers' minds on important attributes.
 

B. 
using a market-product grid to place products in their appropriate places on that grid to identify potential untapped markets.
 

C. 
changing the place an offering occupies in consumers' minds relative to competitive products.
 

D. 
the practice of selling off a firm's least successful product line and redirecting that revenue into a totally new product.
 

E. 
the competitive advantage of one product over another.
 
 187.
Recently, U.S. dairies, struggling to increase milk sales, tried to change the way adults thought about chocolate milk. The dairies wanted to __________ chocolate milk in the minds of adult consumers. 

A. 
segment
 

B. 
differentiate
 

C. 
explain
 

D. 
promote
 

E. 
reposition
 
 188.
Mott's used an advertising campaign to change the way consumers thought about its applesauce from a dinnertime side dish to a replacement for cooking oil in baking. The advertising message was that using applesauce in baking cuts calories and makes the resulting baked good healthier. Mott's used a __________ strategy. 

A. 
product repositioning
 

B. 
perceptual mapping
 

C. 
product positioning
 

D. 
product differentiation
 

E. 
psychographic
 
 189.
Positioning that involves competing directly with competitors on similar product attributes in the same target market is referred to as __________. 

A. 
competitive repositioning
 

B. 
position downsizing
 

C. 
differentiation positioning
 

D. 
head-to-head positioning
 

E. 
product distinction positioning
 
 190.
One approach to positioning a new product in a market is __________ positioning, which involves competing directly with competitors on similar product attributes in the same target market. 

A. 
perceptual
 

B. 
head-to-head
 

C. 
psychological
 

D. 
differentiation
 

E. 
market
 
 191.
Head-to-head positioning requires a product to 

A. 
compete with products from competitors of the same size and country of origin.
 

B. 
compete with competitors on similar product attributes but in a different market.
 

C. 
compete with competitors on similar product attributes in the same market.
 

D. 
compete against very similar products from its own company.
 

E. 
compete against a single competitor with an identical offering.
 
 192.
In the athletic shoe market, Reebok and Nike practice __________ positioning since both manufacturers vie for the same customers with technologically advanced products. 

A. 
psychological
 

B. 
perceptual
 

C. 
differentiation
 

D. 
head-to-head
 

E. 
market
 
 193.
A positioning approach that involves seeking a less competitive, smaller market niche in which to locate a brand is referred to as __________. 

A. 
competitive repositioning
 

B. 
head-to-head positioning
 

C. 
differentiation positioning
 

D. 
downsize positioning
 

E. 
product repositioning
 
 194.
Differentiation positioning requires a product to 

A. 
emphasize unique product attributes to compete directly with competitors.
 

B. 
compete directly with competitors on similar product attributes in the same target market.
 

C. 
compete with competitors on similar product attributes but in a different market.
 

D. 
seek a less-competitive, smaller market niche in which to locate a brand.
 

E. 
develop marketing actions to move a product or brand to an ideal position.
 
 195.
In the sneaker business, Heelys practiced __________ positioning when it introduced a line of Heelys sneakers that came with an imbedded, detachable wheel in the shoe's heel marketed to young teens. 

A. 
head-to-head
 

B. 
parallel market
 

C. 
lateral
 

D. 
repositioning
 

E. 
differentiation
 
 196.
Some Timex wristwatches can be purchased for less than $30 while Rolex wristwatches may carry a price tag of several thousand dollars. In general, consumers view Timex watches as being dependable, relatively accurate, and inexpensive timepieces that can be purchased in drug stores, discount stores, and department stores. The Rolex brand is perceived as an expensive status symbol distributed in fine jewelry stores or specialty shops. By using distinctly different pricing and distribution strategies, the marketers of Rolex watches 

A. 
compete for the same segment through different channels of distribution.
 

B. 
develop similar products as Timex but under different names.
 

C. 
use a differentiation positioning strategy.
 

D. 
compete for the same customers through similar retail outlets.
 

E. 
create cognitive dissonance in consumers who purchased Timex wristwatches.
 
 197.
"For upscale American families who desire a carefree driving experience, Volvo is a premium-priced automobile that offers the utmost in safety and dependability" is a __________ statement for Volvo in North America. 

A. 
perception
 

B. 
positioning
 

C. 
market-product
 

D. 
vision
 

E. 
differentiation
 
 198.
A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand, is referred to as a 

A. 
perception matrix.
 

B. 
growth-share matrix.
 

C. 
market-product grid.
 

D. 
perceptual map.
 

E. 
product differentiation chart.
 
 199.
A perceptual map refers to 

A. 
a framework used to compare one firm's product offerings with another firm's offerings in relationship to their relative market share.
 

B. 
a framework used to demonstrate the growth or decline of specific market segments within an industry.
 

C. 
a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand.
 

D. 
a framework to relate the market segments of potential buyers to the products offered or potential marketing actions by an organization.
 

E. 
the place a product occupies in a single consumer's mind on unimportant attributes relative to competitive products.
 
 200.
A graph displaying consumers' perceptions of product attributes in two dimensions is referred to as

A. 
perceptual map.
 

B. 
perception matrix.
 

C. 
growth-share matrix.
 

D. 
market-product grid.
 

E. 
product differentiation chart.
 
201.
Marketers use perceptual maps as a means to display or graph in two dimensions the location of products or brands 

A. 
against large market segments in a market-product grid.
 

B. 
against small market segments in a market-product grid.
 

C. 
in virtual space that represents the business or product's time in existence and growth.
 

D. 
in the minds of consumers.
 

E. 
against the revenues generated by other products or brands within the company.
 
 202.
A perceptual map enables a manager to see how __________ perceive competing products or brands, as well as the firm's own product or brand. 

A. 
stakeholders
 

B. 
competitors
 

C. 
independent rating organizations such as Consumer Reports
 

D. 
consumers
 

E. 
the CEO of the firm
 
 203.
The axes on a perceptual map are 

A. 
sales and profitability.
 

B. 
two product attributes, ranging from high to low on that attribute.
 

C. 
market share and market growth rate.
 

D. 
product variety and profitability.
 

E. 
customer perceptions of the firm's product versus the brand of the firm's principal competitor.
 
 204.
Which of these is collected from consumers to develop a product's perceptual map? 

A. 
consumer judgments about the important attributes for a product or brand class
 

B. 
a listing of all prospective brands and products
 

C. 
managerial judgments about how consumers perceive products
 

D. 
rank order of the ratings of an existing brand's preference relative to its competitors
 

E. 
detailed explanations of why consumers make the choices they do
 
205.
To effectively positioning a product or brand, companies take four steps: (1) __________; (2) discover how target customers rate competing products or brands with respect to critical attributes; (3) discover where the company's product or brand is on these attributes in the minds of potential customers; and (4) reposition the company's product or brand in the minds of potential customers.

A. 
decide whether to keep or delete the market segment that your product offering targets
 

B. 
identify the competitors' brands that make up the consideration set
 

C. 
identify the important attributes for the product or brand class
 

D. 
create a marketing plan based on customers' perceptions
 

E. 
identify market niches that were not selected during the market segmentation process
 
 206.
To effectively positioning a product or brand, companies take four steps: (1) identify the important attributes for the product or brand class; (2)__________; (3) discover where the company's product or brand is on these attributes in the minds of potential customers; and (4) reposition the company's product or brand in the minds of potential customers.  

A. 
decide whether to keep or delete the market segment that your product offering targets
 

B. 
identify the competitors' brands that make up the consideration set
 

C. 
identify market niches that were not selected during the market segmentation process
 

D. 
discover how target customers rate competing products or brands with respect to these attributes
 

E. 
create a marketing plan based on customers' perceptions
 
 207.
To effectively positioning a product or brand, companies take four steps: (1) identify the important attributes for the product or brand class; (2) discover how target customers rate competing products or brands with respect to these attributes; (3) ___________; and (4) reposition the company's product or brand in the minds of potential customers.  

A. 
discover where the company's product or brand is on these attributes in the minds of potential customers
 

B. 
decide whether to keep or delete the market segment that your product offering targets
 

C. 
identify the competitors' brands that make up the consideration set
 

D. 
create a marketing plan based on customers' perceptions
 

E. 
identify market niches that were not selected during the market segmentation process
 
 
   
Figure 8-A
 208.
Figure 8-A above is a depiction of a __________ for beverages in the minds of adults. 

A. 
hierarchy of needs
 

B. 
perceptual map
 

C. 
marketing matrix
 

D. 
growth-share matrix
 

E. 
perception matrix
 
 209.
The perceptual map in Figure 8-A above shows adult perceptions for beverages. Suppose a marketer is introducing a new beverage that is higher-than-average in nutrition and is intended for adults. It will probably be most useful to promote the drink as similar to what? 

A. 
tea
 

B. 
fruit-flavored drinks
 

C. 
sugared soft drinks
 

D. 
regular milk
 

E. 
coffee
 
 210.
Assume that the perceptual map in Figure 8-A is an accurate representation for adult consumers. A heavy consumer of mineral water is likely to think that mineral water is 

A. 
more nutritious than tea.
 

B. 
more nutritious and a more adult-oriented beverage than milk shakes.
 

C. 
a more adult-oriented beverage than nutritionally designed diet drinks.
 

D. 
less nutritious and a more adult-oriented beverage than fruit-flavored drinks.
 

E. 
a more adult-oriented beverage than sports drinks.
 
 211.
By dividing its tennis racquet market into three categories, which it labels Performance, Recreational, and Junior tennis players, Prince Sports is using a marketing strategy called 

A. 
product differentiation.
 

B. 
product innovation.
 

C. 
market delineation.
 

D. 
market segmentation.
 

E. 
product groupings.
 
 212.
The O3 technology refers to an innovative tennis racquet Prince Sports developed that simultaneously delivers faster racquet speed and a bigger sweet spot in the middle of the frame. Prince Sports has implemented a __________ strategy with its O3 innovative tennis racquet technology. 

A. 
competitive segmentation
 

B. 
head-to-head
 

C. 
product differentiation
 

D. 
usage segmentation
 

E. 
market segmentation
 
 213.
The segmentation strategy used by Prince Sports today is  

A. 
geographic.
 

B. 
behavioral.
 

C. 
psychographic.
 

D. 
socioeconomic.
 

E. 
resource-based.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1.
Advertising Age named its CEO Marketer of the Decade, Fortune rated it as the world's most admired company and Bloomberg Businessweek perennially identifies it as the most innovative company in the world. This firm is 

A. 
IBM
 

B. 
Microsoft
 

C. 
3M
 

D. 
Kodak
 

E. 
Apple
 
 2.
The Apple II, Macintosh, iPod, iPhone, iPad, and CarPlay are all examples of Apple's commitment to __________. 

A. 
sustainable procurement
 

B. 
social responsibility
 

C. 
new product development
 

D. 
using renewable resources
 

E. 
respecting its workforce
 
 3.
The late Steve Jobs oversaw or invented innovations that revolutionized six industries. Which industry below is NOT one of them? 

A. 
music
 

B. 
smartphones
 

C. 
personal computers
 

D. 
cable television
 

E. 
tablet devices
 
 4.
The Apple innovation that leading car manufacturers are incorporating into their offering that allows users a "smarter, safer, and more fun way to use iPhone in the car" is referred to as 

A. 
iPod
 

B. 
iCloud
 

C. 
iCar
 

D. 
iPad
 

E. 
CarPlay
 
 5.
A product refers to 

A. 
a tangible good received in exchange for a person's time and effort.
 

B. 
intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
 

C. 
a good that has in some way been altered, combined, or improved and sold to organizational buyers.
 

D. 
is a thought that leads to an action such as a concept for a new invention.
 

E. 
a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.
 
 6.
A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value is referred to as __________. 

A. 
a utility bundle
 

B. 
a product
 

C. 
a service
 

D. 
an idea
 

E. 
merchandise
 
 7.
A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers' needs and is received in exchange 

A. 
only for legal tender (money).
 

B. 
for providing value.
 

C. 
only for barter.
 

D. 
for a person's time and effort.
 

E. 
for money or something else of value.
 
 8.
A product is a good, service, or idea consisting of a(n) __________ that satisfy consumers' needs and is received in exchange for money or something else of value. 

A. 
promise or commitment exchanged between a seller and a buyer
 

B. 
bundle of tangible and intangible attributes
 

C. 
assortment of value-possessing activities
 

D. 
array of physical attributes
 

E. 
collection of tangible qualities
 
 9.
As a marketing term, __________ generally includes not only physical goods, but also services and ideas as well. 

A. 
marketing
 

B. 
invention
 

C. 
merchandise
 

D. 
product
 

E. 
concept
 
 10.
A good has tangible attributes that a consumer's __________ can perceive. 

A. 
cognitive intelligence
 

B. 
vision
 

C. 
knowledge of past experiences
 

D. 
five senses
 

E. 
emotional intelligence
 
 11.
A product that has tangible attributes that a consumer's five senses can perceive is referred to as a(n) 

A. 
good.
 

B. 
service.
 

C. 
product concept.
 

D. 
new idea.
 

E. 
artifact.
 
 12.
Goods can be divided into __________ goods and __________ goods. 

A. 
functional; aesthetic
 

B. 
required; desired
 

C. 
tactile; conceptual
 

D. 
durable; nondurable
 

E. 
product; service
 
 13.
Which of the following statements regarding goods is most accurate? 

A. 
In order to be classified as a good, an item must appeal to all five senses.
 

B. 
Music is not considered a good because it only involves a single sense - hearing.
 

C. 
Some goods also have intangible attributes.
 

D. 
To market a good that contains visual attributes, you cannot use an auditory medium.
 

E. 
The aroma of chocolate chip cookies is considered an idea because it affects one's senses.
 
 14.
The division of products into durable and nondurable goods helps to __________. 

A. 
comply with NAICS guidelines
 

B. 
address environmental concerns
 

C. 
comply with ISO 9000 requirements
 

D. 
classify products for tax purposes
 

E. 
provide direction for marketing actions
 
 15.
Which of the following statements regarding goods is most accurate? 

A. 
Nondurable goods would rely more on advertising than durable goods.
 

B. 
Durable goods would benefit more on advertising than nondurable goods.
 

C. 
There is little if any difference between marketing actions between durable and nondurable goods.
 

D. 
Nondurable goods would rely more on personal selling than durable goods.
 

E. 
The durable and nondurable classification applies to services as well as to products.
 
 16.
A __________ is defined as an item consumed in one or a few uses. 

A. 
durable good
 

B. 
convenience good
 

C. 
specialty good
 

D. 
shopping good
 

E. 
nondurable good
 
 17.
A nondurable good is defined as a(n) 

A. 
item consumed in one or a few uses.
 

B. 
item that usually lasts over an extended number of uses.
 

C. 
item that lasts at least one year without becoming obsolete.
 

D. 
product purchased only for the use of ultimate consumers.
 

E. 
product used in the production of other products.
 
 18.
Items consumed in one or a few uses, such as food and fuel, are referred to as __________. 

A. 
services
 

B. 
perishable goods
 

C. 
durable goods
 

D. 
nondurable goods
 

E. 
disposable goods
 
 19.
Among consumer products, advertising and wide distribution are especially important for 

A. 
durable goods.
 

B. 
specialty products.
 

C. 
nondurable goods.
 

D. 
production goods.
 

E. 
semidurable goods.
 
 20.
Which of the following is the best example of a nondurable good? 

A. 
laundry detergent
 

B. 
shoes
 

C. 
insurance
 

D. 
iPod
 

E. 
laser surgery
 
 21.
Which of the following is the best example of a nondurable good? 

A. 
automobile
 

B. 
e-reader
 

C. 
baseball
 

D. 
gasoline
 

E. 
shoes
 
 22.
Advertising is most important for which of the following products? 

A. 
bicycle
 

B. 
toaster
 

C. 
orange juice
 

D. 
deck furniture
 

E. 
watch
 
 23.
A durable good is defined as a(n) 

A. 
item consumed in one or a few uses.
 

B. 
item that usually lasts over an extended number of uses.
 

C. 
item that lasts at least one year without becoming obsolete.
 

D. 
product purchased only for the use of ultimate consumers.
 

E. 
product used in the production of other products.
 
 24.
Products that usually last over many uses, such as cars and appliances, are referred to as 

A. 
endurable goods.
 

B. 
nondisposable goods.
 

C. 
imperishable goods.
 

D. 
reliable products.
 

E. 
durable goods.
 
 25.
Cars and appliances are classified as 

A. 
reusable goods.
 

B. 
nondisposable goods.
 

C. 
imperishable goods.
 

D. 
reliable products.
 

E. 
durable goods.
 
 26.
Durable goods emphasize which of the following elements of the promotional mix? 

A. 
sales promotion
 

B. 
personal selling
 

C. 
advertising
 

D. 
public relations
 

E. 
direct marketing
 
 27.
Which of the following is considered a durable good? 

A. 
silverware
 

B. 
caviar
 

C. 
marketing research
 

D. 
chewing gum
 

E. 
voting
 
 28.
Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value are referred to as __________. 

A. 
services
 

B. 
goods
 

C. 
products
 

D. 
marketing mix
 

E. 
ideas
 
 29.
Services refer to 

A. 
ideas that consist of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.
 

B. 
intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
 

C. 
philanthropic activities performed in without expectations of monetary remuneration.
 

D. 
any intangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own.
 

E. 
any tangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own.
 
 30.
Services are 

A. 
the tangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
 

B. 
the activities provided to complement a tangible good, such as technical support for a computer.
 

C. 
the intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
 

D. 
any activity required for the production of a good that cannot be completed "in-house" and must be outsourced to another firm.
 

E. 
the human (nonmechanical) component that is part of the manufacturing process.
 
 31.
Services contribute how much to the U.S. gross domestic product as compared with goods? 

A. 
services contribute about the same
 

B. 
services contribute about half as much
 

C. 
services contribute about twice as much
 

D. 
services contribute about one quarter as much
 

E. 
services are not a component of GDP
 
 
   
Figure 9-1
 32.
As shown in Figure 9-1 above, which of the following statements is most accurate? 

A. 
Services are a smaller part of the gross domestic product than are goods.
 

B. 
In 2012, goods represent a larger part of the gross domestic product than services.
 

C. 
In 1995, services were worth almost $1 billion.
 

D. 
Until 1980, goods and services contributed almost equally to the gross domestic product (GDP).
 

E. 
In 2012, goods were 50 percent of the GDP.
 
 33.
Intangible items such as airline trips, financial advice, or telephone service that an organization provides to consumers are referred to as 

A. 
production goods.
 

B. 
support products.
 

C. 
services.
 

D. 
goods.
 

E. 
benefits.
 
 34.
Which of the following is considered a service? 

A. 
lamp
 

B. 
motorcycle
 

C. 
potato chips
 

D. 
a marketing class
 

E. 
environmentalism
 
 35.
Which of the following is considered a service? 

A. 
online banking
 

B. 
bathing suit
 

C. 
silverware
 

D. 
washing machine
 

E. 
freedom
 
 36.
Which of the following statements about services is most accurate? 

A. 
Although a major contributor to the GDP nationally, services play only a minor role in GDP on a global scale.
 

B. 
The marketing of services is, in a practical sense, identical to the marketing of products or ideas since they both satisfy customer needs.
 

C. 
Only 10% of all jobs created in the United States are in the services sector.
 

D. 
In the U.S., services contribute about twice the value of goods to the GDP.
 

E. 
There is much more in common with the marketing of services and business products than there is between the marketing of services and consumer products.
 
 37.
In marketing, an idea is 

A. 
a thought that leads to a product or action.
 

B. 
an inspiration that evolved from market research.
 

C. 
an observation about a series of events.
 

D. 
a concept explaining the behavior of an individual or group.
 

E. 
an observation about an individual or group and how they use a service or product.
 
 38.
In marketing, a(n) __________ is a thought that leads to a product or action. 

A. 
observation
 

B. 
inspiration
 

C. 
innovation
 

D. 
idea
 

E. 
perception
 
 39.
Which of the following is considered an idea? 

A. 
haircut
 

B. 
birdfeeder
 

C. 
theater production
 

D. 
marketing class
 

E. 
security
 
 40.
Consumer products refer to 

A. 
products used in the production of other items.
 

B. 
products purchased by the ultimate consumer.
 

C. 
products an industrial buyer will make an effort to seek out and buy.
 

D. 
items purchased frequently and with a minimum of shopping effort.
 

E. 
products that assist directly or indirectly in providing products for resale.
 
 41.
Products that are purchased by the ultimate consumer are referred to as __________. 

A. 
generic products
 

B. 
end user goods
 

C. 
personal items
 

D. 
merchandise
 

E. 
consumer products
 
 42.
Which of the following would most likely be considered a consumer product? 

A. 
bricks
 

B. 
cotton fiber
 

C. 
printing press
 

D. 
suitcases
 

E. 
mainframe computer
 
 43.
Products organizations buy that assist in providing other products for resale are referred to as __________. 

A. 
reseller goods
 

B. 
wholesale goods
 

C. 
business products
 

D. 
ancillary products
 

E. 
retail products
 
 44.
Business products refer to 

A. 
products organizations buy that assist in providing other products for resale.
 

B. 
supplies necessary for the day-to-day operations of a business.
 

C. 
ancillary services necessary for the operation of a business.
 

D. 
products that are sold exclusively to for-profit businesses.
 

E. 
products purchased by the ultimate consumer.
 
 45.
Business products are also referred to as __________. 

A. 
B2B products
 

B. 
B2C products
 

C. 
B4B products
 

D. 
BOB products
 

E. 
B4C products
 
 46.
Business products are also referred to as __________. 

A. 
commodities
 

B. 
industrial products
 

C. 
wares
 

D. 
resale products
 

E. 
merchandise
 
 47.
Industrial products are also referred to as __________ products. 

A. 
consumer
 

B. 
merchandise
 

C. 
organizational
 

D. 
resale
 

E. 
business
 
 48.
An iMac personal computer from Apple can be classified according to all of the following categories EXCEPT: 

A. 
a business product.
 

B. 
a nondurable good.
 

C. 
a B2B product.
 

D. 
a durable good.
 

E. 
a consumer product.
 
 49.
Consumer product classifications differ in terms of the: (1) effort the consumer spends on the decision; (2) frequency of purchase; and (3) the 

A. 
amount of money the customer is willing and able to spend.
 

B. 
number of competing or substitute products.
 

C. 
demographics of the consumer.
 

D. 
attributes used in making the purchase decision.
 

E. 
consumer segmentation characteristics.
 
 50.
Convenience products refer to 

A. 
items that consumers will make special efforts to seek out and buy.
 

B. 
items for which consumers compare several alternatives on criteria such as price, quality, or style.
 

C. 
products consumers purchase frequently and with a minimum of shopping effort.
 

D. 
ancillary products used to make other products work more efficiently.
 

E. 
low-cost items for which there are numerous substitutes and generic equivalents.
 
 51.
In terms of price, which of the following types of consumer product would be relatively inexpensive? 

A. 
shopping product
 

B. 
convenience product
 

C. 
specialty product
 

D. 
unsought product
 

E. 
supplies
 
 52.
With respect to distribution, convenience products are available 

A. 
at relatively few outlets.
 

B. 
at a large number of specialty outlets.
 

C. 
only online from the manufacturer.
 

D. 
only at convenience stores.
 

E. 
on a widespread basis at many outlets.
 
 53.
In terms of promotion, which of the following type of product would stress price, availability, and awareness? 

A. 
shopping
 

B. 
convenience
 

C. 
specialty
 

D. 
unsought
 

E. 
supply
 
 54.
In terms of brand loyalty, consumers are aware of a brand but will readily accept substitutes for which type of product? 

A. 
convenience products
 

B. 
specialty products
 

C. 
unsought products
 

D. 
shopping products
 

E. 
supplies
 
 55.
Which of the following is the best example of a convenience product? 

A. 
Kindle Fire
 

B. 
Lexus LS 460 luxury automobile
 

C. 
flight on United Airlines
 

D. 
Roget's Thesaurus
 

E. 
Hidden Valley Ranch salad dressing
 
 56.
Items for which the consumer compares several alternatives on several criteria such as price, quality, or style are referred to as __________. 

A. 
specialty products
 

B. 
selective products
 

C. 
shopping products
 

D. 
prestige products
 

E. 
convenience products
 
 57.
Shopping products refer to items that the consumer 

A. 
purchases frequently, conveniently, and with a minimum of effort.
 

B. 
compares several alternatives on criteria such as price, quality, or style.
 

C. 
makes a special effort to search out and buy.
 

D. 
does not know about or knows about but does not initially buy.
 

E. 
buys as a result of buying others' consumer products, such as impulse purchases.
 
 58.
The type of good for which the consumer compares several alternatives on such criteria as price, quality, and style is a(n) 

A. 
shopping product.
 

B. 
convenience product.
 

C. 
specialty product.
 

D. 
unsought product.
 

E. 
B2B product.
 
 59.
Which type of consumer product is purchased relatively infrequently and the purchase decision takes some time because the consumer compares offerings during the shopping experience? 

A. 
convenience product
 

B. 
shopping product
 

C. 
specialty product
 

D. 
unsought product
 

E. 
discretionary product
 
 60.
With respect to distribution, shopping products are available 

A. 
by special order from the manufacturer.
 

B. 
at an extremely small number of outlets.
 

C. 
at relatively few outlets.
 

D. 
at a large number of selective outlets.
 

E. 
on a widespread basis at many outlets.
 
 61.
With respect to price and availability, shopping products are likely to be 

A. 
relatively inexpensive and widely available.
 

B. 
relatively inexpensive but very limited availability.
 

C. 
very expensive and available at a large number of selective outlets.
 

D. 
very expensive with very limited availability.
 

E. 
fairly expensive and available at a large number of selective outlets.
 
 62.
In terms of promotion, which of the following type of consumer product stresses product differentiation from competitors? 

A. 
shopping product
 

B. 
convenience product
 

C. 
specialty product
 

D. 
unsought product
 

E. 
discretionary product
 
 63.
In terms of brand loyalty, consumers prefer specific brands but will accept substitutes for which type of consumer product? 

A. 
shopping product
 

B. 
convenience product
 

C. 
specialty product
 

D. 
unsought product
 

E. 
discretionary product
 
 64.
You decide to buy a new car. You talk to friends about it, research mechanical specifications in Consumer Reports, test drive different makes and models, and compare prices at several dealerships. Into which classification of consumer products would your new car purchase fall? 

A. 
specialty product
 

B. 
unsought product
 

C. 
discretionary product
 

D. 
shopping product
 

E. 
convenience product
 
 65.
Specialty products refer to 

A. 
products for which there are no close substitutes.
 

B. 
products purchased for their prestige or high perceived value.
 

C. 
products a consumer will make a specific effort to search out and buy.
 

D. 
items for which the consumer compares several alternatives on several criteria such as price, quality, or style.
 

E. 
items that the consumer does not know about or knows about but does not initially buy.
 
 66.
Which type of consumer product is purchased infrequently and takes an extensive amount of time to make the purchase decision? 

A. 
convenience product
 

B. 
shopping product
 

C. 
specialty product
 

D. 
unsought product
 

E. 
discretionary product
 
 67.
With respect to price, which of the following type of consumer product would usually be very expensive? 

A. 
convenience product
 

B. 
shopping product
 

C. 
discretionary product
 

D. 
specialty product
 

E. 
unsought product
 
 68.
Distribution is very limited with which of the following type of consumer product? 

A. 
shopping product
 

B. 
convenience product
 

C. 
discretionary product
 

D. 
prepurchase product
 

E. 
specialty product
 
 69.
In terms of promotion, which of the following type of consumer product stresses status and brand uniqueness? 

A. 
specialty product
 

B. 
convenience product
 

C. 
shopping product
 

D. 
unsought product
 

E. 
discretionary product
 
 70.
In terms of brand loyalty, consumers are very brand loyal and will not accept substitutes for which type of consumer product? 

A. 
shopping product
 

B. 
convenience product
 

C. 
specialty product
 

D. 
unsought product
 

E. 
discretionary product
 
 71.
You greatly admire a set of Waterford crystal serving bowls you see at a dinner party and decide to buy two despite their cost of $250 each. They are only available in your area in a Waterford shop 40 miles from campus. Into which classification of consumer products would the Waterford crystal serving bowls fall? 

A. 
convenience products
 

B. 
shopping products
 

C. 
unsought products
 

D. 
specialty products
 

E. 
discretionary products
 
 72.
Burberry makes fine raincoats, clothing, and other items, many that feature the company's distinctive plaid. Originally found only in Great Britain, Burberry has opened a limited number of exclusive shops in leading cities around the world to reach customers who value its name and quality. Burberry is selling which classification of consumer product? 

A. 
convenience product
 

B. 
shopping product
 

C. 
discretionary product
 

D. 
unsought product
 

E. 
specialty product
 
 73.
Unsought products are 

A. 
any products associated with impulse buys at the supermarket checkout counter.
 

B. 
products that were once very popular but that have become obsolete because they are in the decline stage of their product life cycle.
 

C. 
items within a company's product line that do not perform as well as others in the line.
 

D. 
products that the consumer does not know about or knows about but does not initially want.
 

E. 
products that people choose to ignore because they find them offensive from a moral or ethical perspective.
 
 74.
Which of the following is most likely to be an example of an unsought product? 

A. 
snow shovel
 

B. 
smartphone
 

C. 
gym membership
 

D. 
calculator
 

E. 
burial insurance
 
 75.
Very infrequent purchases with some comparison shopping are characteristic of the purchasing behavior for a type of consumer product (such as a thesaurus) that a prospective buyer may not initially want. This type of consumer service is referred to as a(n) 

A. 
unsought product.
 

B. 
shopping product.
 

C. 
convenience product.
 

D. 
specialty product.
 

E. 
support product.
 
 76.
With respect to promotion, which of the following strategies would most likely be used for unsought products? 

A. 
offering consumer and trade sales promotions
 

B. 
establishing the uniqueness and status of the brand
 

C. 
generating awareness
 

D. 
differentiating the brand from competitive brands
 

E. 
stressing price and availability in advertising
 
 77.
Which of the following is most likely to be an example of an unsought product? 

A. 
iPod MP3 player
 

B. 
Lexus LS 460 luxury automobile
 

C. 
flight on American Airlines to Phoenix
 

D. 
Roget's Thesaurus
 

E. 
Ivory soap
 
 78.
A newly-invented apple peeling and coring machine for the consumer market would be considered a(n) 

A. 
shopping product.
 

B. 
convenience product.
 

C. 
specialty product.
 

D. 
unsought product.
 

E. 
discretionary product.
 
 79.
Fifty percent or more of American adults have not had their teeth checked by a dentist within the last five years. For these people, dental services would most likey be classified as a(n) 

A. 
shopping product.
 

B. 
convenience product.
 

C. 
specialty product.
 

D. 
unsought product.
 

E. 
business product.
 
 
   
Figure 9-2
 80.
According to Figure 9-2 above, column A would represent which type of product? 

A. 
shopping
 

B. 
convenience
 

C. 
specialty
 

D. 
prestige
 

E. 
unsought
 
 81.
According to Figure 9-2 above, column B would represent which type of product? 

A. 
shopping
 

B. 
convenience
 

C. 
specialty
 

D. 
prestige
 

E. 
unsought
 
 82.
According to Figure 9-2 above, column C would represent which type of product? 

A. 
shopping
 

B. 
convenience
 

C. 
specialty
 

D. 
prestige
 

E. 
unsought
 
 83.
According to Figure 9-2 above, column D would represent which type of product? 

A. 
shopping
 

B. 
convenience
 

C. 
specialty
 

D. 
prestige
 

E. 
unsought
 
 84.
Considering the classification of consumer products, which of the following products will have the most limited distribution? 

A. 
Secret antiperspirant
 

B. 
Fuji disposable camera
 

C. 
BP gasoline
 

D. 
Marchesa wedding gown
 

E. 
Sony HDTV
 
 85.
Vivienne, a college student with limited financial resources, was considering the purchase of a new automobile. She went from car dealer to car dealer in several different cities searching for the lowest price on a new economy car. She devoted a great deal of time and energy to getting the best value for her money. For Vivienne, an automobile was a(n) __________. 

A. 
specialty product
 

B. 
unsought product
 

C. 
discretionary product
 

D. 
shopping product
 

E. 
convenience product
 
 86.
The demand for a business product that results from the demand for a consumer product is referred to as 

A. 
sequential demand.
 

B. 
selective demand.
 

C. 
primary demand.
 

D. 
secondary demand.
 

E. 
derived demand.
 
 87.
Which of the following best illustrates the concept of derived demand? 

A. 
The number of retail stores in a downtown area decreases even though demand for retail goods increases.
 

B. 
An increase in the number of new, single-family homes results from a spike in the gross national product.
 

C. 
A Chinese plastics company increases its output because of its customers' higher toy exports to the United States.
 

D. 
A heat wave results in an increased demand for air conditioners.
 

E. 
Honda reducing its car prices causes GM to do the same.
 
 88.
Heavy-duty Rayovac flashlights are sold to consumers throughout the United States. However, Philips manufactures the bulbs used in Rayovac flashlights. The quantity of bulbs Philips makes is related to how many flashlights Rayovac sells. This is an example of 

A. 
a tying arrangement.
 

B. 
reciprocity.
 

C. 
strategic alliance demand.
 

D. 
relationship marketing.
 

E. 
derived demand.
 
 89.
The two main classifications of business products are 

A. 
durable and nondurable products.
 

B. 
components and support products.
 

C. 
tangible and intangible products.
 

D. 
consumer and industrial products.
 

E. 
derived and maintenance products.
 
 90.
__________ are items that become part of the final business product. 

A. 
Components
 

B. 
Accessories
 

C. 
Support products
 

D. 
Production goods
 

E. 
Raw assemblies
 
 91.
Raw materials, such as grain or lumber as well as assemblies or parts, are referred to as 

A. 
production goods.
 

B. 
components.
 

C. 
accessories.
 

D. 
support products.
 

E. 
raw assemblies.
 
 92.
Installations, accessory equipment, supplies, and industrial services used to assist in producing other products and services are referred to as __________. 

A. 
components
 

B. 
parts
 

C. 
production goods
 

D. 
raw materials
 

E. 
support products
 
 93.
Products such as tools and repair services that are used to assist in producing other products and services are referred to as __________. 

A. 
components
 

B. 
complementary products
 

C. 
support products
 

D. 
derived products
 

E. 
materials
 
 94.
The type of business products known as support products includes installations, accessory equipment, supplies, and __________. 

A. 
industrial services
 

B. 
components
 

C. 
materials
 

D. 
derived products
 

E. 
complementary products
 
 95.
The type of business products known as support products includes installations, industrial services, supplies, and __________. 

A. 
accessory equipment
 

B. 
components
 

C. 
derived products
 

D. 
complementary products
 

E. 
materials
 
 96.
The type of business products known as support products includes installations, industrial services, accessory equipment, and __________. 

A. 
components
 

B. 
supplies
 

C. 
materials
 

D. 
derived products
 

E. 
complementary products
 
 97.
The type of business products known as support products includes installations, supplies, accessory equipment, and __________. 

A. 
complementary products
 

B. 
materials
 

C. 
industrial services
 

D. 
derived products
 

E. 
components
 
 98.
Among business products, support products include installations such as 

A. 
convenience products.
 

B. 
buildings and fixed equipment.
 

C. 
tools and office equipment.
 

D. 
raw materials and component parts.
 

E. 
maintenance, repair, and legal services.
 
 99.
Installations are support products that include items such as 

A. 
copy paper, mechanical pencils, and light bulbs.
 

B. 
welding masks and computers.
 

C. 
warehouses and automated assembly lines.
 

D. 
lumber and engine parts.
 

E. 
janitorial and legal services.
 
 100.
Among business products, which of the following would most likely be considered an installation? 

A. 
a factory
 

B. 
roof tiles
 

C. 
a cleaning service
 

D. 
a photocopier
 

E. 
a drill press
 
 101.
An extremely large machine for producing sheet metal from steel ingots would be classified as which kind of business products? 

A. 
installations
 

B. 
finished goods
 

C. 
supplies
 

D. 
industrial services
 

E. 
raw materials
 
 102.
Accessory equipment are support products that include items such as 

A. 
stationery, paper clips, and brooms.
 

B. 
tools and office equipment.
 

C. 
buildings and fixed equipment.
 

D. 
raw materials and component parts.
 

E. 
maintenance, repair, and legal services.
 
 103.
Among business products, support products that include tools and office equipment are referred to as 

A. 
installations.
 

B. 
supplies.
 

C. 
raw materials.
 

D. 
accessory equipment.
 

E. 
components.
 
 104.
Among business products, which of the following would most likely be considered accessory equipment? 

A. 
copper wiring
 

B. 
a factory
 

C. 
a cleaning service
 

D. 
pneumatic nail gun
 

E. 
ink-jet printer cartridges
 
 105.
Among business products, drafting tables would be best considered which type of support products? 
A. 
installations
 

B. 
accessory equipment
 

C. 
supplies
 

D. 
industrial services
 

E. 
raw materials
 
 106.
Supplies are support products that include items such as 

A. 
stationery, paper clips, and brooms.
 

B. 
tools and office equipment.
 

C. 
buildings and fixed equipment.
 

D. 
raw materials and component parts.
 

E. 
maintenance, repair, and legal services.
 
 107.
Among business products, supplies usually consist of 

A. 
buildings and fixed equipment.
 

B. 
items used in the manufacturing process and become part of the final product.
 

C. 
tools and office equipment.
 

D. 
items such as pens, batteries, and light bulbs.
 

E. 
raw materials and component parts.
 
 108.
Among business products, printer paper would be classified as which type of support product? 

A. 
installations
 

B. 
accessory equipment
 

C. 
supplies
 

D. 
industrial services
 

E. 
raw materials
 
 109.
Among business products, which of the following would most likely be considered supplies? 

A. 
photocopier
 

B. 
sheet rock
 

C. 
ink-jet printer cartridges
 

D. 
cleaning service
 

E. 
concert hall chairs
 
 110.
Among business products, which of the following would most likely be considered supplies? 

A. 
laser printer
 

B. 
phosphoric acid
 

C. 
cleaning service
 

D. 
magnetic resonance imaging (MRI) scanner
 

E. 
trash bags
 
 111.
Industrial services are support products that include items such as 

A. 
stationery, paper clips, and brooms.
 

B. 
tools and office equipment.
 

C. 
buildings and fixed equipment.
 

D. 
raw materials and component parts.
 

E. 
maintenance, repair, and legal services.
 
 112.
Among business products, which of the following would most likely be considered an industrial service? 

A. 
tractor
 

B. 
phosphoric acid
 

C. 
photocopier maintenance
 

D. 
athletic training facility
 

E. 
syringes
 
 113.
When a small retail chain hires an accountant to do its income taxes, the retail chain would have purchased a(n) __________. 

A. 
ancillary service
 

B. 
industrial service
 

C. 
specialty service
 

D. 
accessory service
 

E. 
contractual service
 
 114.
Among business products, legal counsel for patent information for a firm's R&D department would most likely be classified as which type of support product? 

A. 
ancillary services
 

B. 
contractual services
 

C. 
specialty services
 

D. 
accessory services
 

E. 
industrial services
 
 115.
A retail chain hires a company to design and install a computer network that would allow each store in the chain to check the inventory of others in the chain for customer-requested items. The retail chain purchased which kind of business products? 

A. 
accessory equipment
 

B. 
industrial services
 

C. 
supply materials
 

D. 
component parts
 

E. 
installations
 
 116.
Services can be classified by 

A. 
their method of delivery.
 

B. 
their use of idle capacity time.
 

C. 
the nature of their ownership.
 

D. 
their location on perceptual maps.
 

E. 
organizational reach.
 
 117.
Services can be classified according to whether they are __________, for-profit or nonprofit organizations, or government agencies. 

A. 
national or global
 

B. 
use independent contractors
 

C. 
privately owned or publicly owned
 

D. 
delivered by people or equipment
 

E. 
owned by individuals or corporations
 
 118.
Services can be classified according to whether they are delivered by people or equipment, __________, or government agencies. 

A. 
national or global
 

B. 
use independent contractors
 

C. 
privately owned or publicly owned
 

D. 
owned by individuals or corporations
 

E. 
for profit or nonprofit organizations
 
 119.
Services can be classified according to whether they are delivered by people or equipment, whether they are for profit or nonprofit organizations, and whether they are __________. 

A. 
government agencies
 

B. 
a national organization or a global organization
 

C. 
privately owned or publicly owned
 

D. 
performed by independent contractors
 

E. 
owned by individuals or corporations
 
 
   
Figure 9-3
 120.
Consider Figure 9-3 above. Services can be classified by their method of delivery. Box A represents 

A. 
government-delivered services.
 

B. 
people-delivered services.
 

C. 
fee-delivered services.
 

D. 
equipment-delivered services.
 

E. 
nonprofit-delivered services.
 
 121.
Consider Figure 9-3 above. Services can be classified by their method of delivery. Box B represents 

A. 
equipment-based services.
 

B. 
technology-based services.
 

C. 
fee-based services.
 

D. 
people-based services.
 

E. 
nonprofit services.
 
 122.
The categories for people-based services include __________. 

A. 
volunteers, skilled operators, and professionals
 

B. 
unskilled labor, skilled labor, and professionals
 

C. 
unskilled operators, unskilled labor, and skilled labor
 

D. 
automated, skilled operators, and unskilled labor
 

E. 
automated, skilled operators, and professionals
 
 123.
Which of the following is the best example of a people-based service? 

A. 
movie theaters
 

B. 
airlines
 

C. 
accounting
 

D. 
vending machines
 

E. 
taxis
 
 124.
What do a security guard, a plumber, and a management consultant have in common? 

A. 
They are all tangible services.
 

B. 
They do not have problems with idle production capacity.
 

C. 
They are all equipment-based services.
 

D. 
They are all people-based services.
 

E. 
They never use off-peak pricing.
 
 125.
The categories for equipment-based services include __________. 

A. 
hand tools, simple machines, complex machines
 

B. 
unskilled operators, skilled operators, and professional operators
 

C. 
simple machines, technical equipment, and safety equipment
 

D. 
those powered by unskilled labor, those operated by skilled operators, and those operated by professionals
 

E. 
automated, those operated by unskilled operators, and those operated by skilled operators
 
 126.
Compared with people-based services, equipment-based services do not have the marketing concern of 

A. 
intangibility.
 

B. 
insensitivity.
 

C. 
inventory.
 

D. 
inconsistency.
 

E. 
immeasurability.
 
 127.
Equipment-based services do not have the marketing concern of inconsistency because __________ have been removed from the delivery of the service. 

A. 
risk and product liability
 

B. 
people
 

C. 
learning requirements
 

D. 
automations
 

E. 
accessories
 
 128.
Equipment-based services like ATMs, online brokerage firms, and automated car washes, do not have the marketing concern of 

A. 
inconsistency.
 

B. 
intangibility.
 

C. 
inseparability.
 

D. 
inventory.
 

E. 
independence.
 
 129.
Which of the following is the best example of an equipment-based service? 

A. 
lawn care
 

B. 
doctors
 

C. 
taxis
 

D. 
lawyers
 

E. 
janitorial services
 
 130.
What do a dry cleaning service, an automated carwash, and a taxi service have in common? 

A. 
They are all tangible services.
 

B. 
They are all people-based services.
 

C. 
None of them has problems with idle production capacity.
 

D. 
They never use off-peak pricing.
 

E. 
They are all equipment-based services.
 
 131.
What do an online travel agency, a limousine service, and a railroad have in common? 

A. 
They are all strictly tangible services.
 

B. 
They are all people-based services.
 

C. 
None of them has a problem with idle production capacity.
 

D. 
They are all equipment-based services.
 

E. 
They all require skilled operators.
 
 132.
Recently, many nonprofit organizations such as The American Red Cross 

A. 
were eager to use marketing practices but were not permitted to do so since they were 501C3 organizations as classified by the IRS.
 

B. 
worried that marketing would limit their profitability as nonprofit organizations.
 

C. 
could not afford marketing activities.
 

D. 
have increased their use of marketing practices to improve communication with constituents.
 

E. 
thought that marketing activities would harm demand.
 
 133.
The American Red Cross uses marketing to help achieve its goals. As a service, it can be classified as 

A. 
a nonprofit organization.
 

B. 
equipment-based.
 

C. 
a for-profit organization.
 

D. 
a business firm.
 

E. 
a governmental agency.
 
 134.
Sterile Feral, Inc. is a nonprofit organization that catches wild or stray cats. It then neuters, vaccinates, and releases them back into the wild. In recent years, nonprofit organizations such as Sterile Feral have turned to marketing to help it 

A. 
receive additional government funding.
 

B. 
expand its business to stray dogs.
 

C. 
maintain its nonprofit status.
 

D. 
to achieve its goals of better serving the communities in which it operates.
 

E. 
compete with other similar organizations.
 
 135.
What type of organization is the U.S. Forest Service, which manages our national park system? 

A. 
It is a privately owned firm.
 

B. 
It is a government agency service provider.
 

C. 
It is a good-dominate organization on the service continuum.
 

D. 
It is manufacturer's agency.
 

E. 
It is a regional non-profit.
 
 136.
What do the United States Post Service, the Connecticut Department of Social Services, and the Phoenix Fire Department have in common? 

A. 
They are all privately owned companies.
 

B. 
None fit on the service continuum.
 

C. 
They never experience idle production capacity.
 

D. 
Capacity management is not an issue for these organizations.
 

E. 
They are all government agency service providers.
 
 137.
There are four unique elements to services - intangibility, inconsistency, inseparability, and inventory - which are referred to as the __________. 

A. 
service mix
 

B. 
four I's of services
 

C. 
service matrix
 

D. 
4Ps of services
 

E. 
service continuum
 
 138.
The four I's of services consist of 

A. 
intangibility, inconsistency, inseparability, and innovation.
 

B. 
intangibility, inventory, inflexibility, and impression.
 

C. 
intangibility, inconsistency, inseparability, and inventory.
 

D. 
intangibility, inventory, innovation, and impression.
 

E. 
intangibility, inconsistency, innovation, and impression.
 
 139.
The intangibility element of a service refers to the fact that it 

A. 
has value that can only be determined by using subjective criteria.
 

B. 
can't be held, seen, or touched before the purchase decision.
 

C. 
requires the ability to provide the service even in times of no demand.
 

D. 
can maintain or accumulate good will with customers.
 

E. 
can be objectively evaluated.
 
 140.
Because services tend to be a(n) __________ rather than an object, they are much more difficult for consumers to evaluate. 

A. 
opportunity
 

B. 
good
 

C. 
risk
 

D. 
decision
 

E. 
performance
 
 141.
Consumers have more difficulty evaluating services than they do products; the difficulty results from the 

A. 
intangibility of services.
 

B. 
incongruity of services.
 

C. 
inseparability of services.
 

D. 
inflexibility of services.
 

E. 
interdependence of services.
 
 142.
To help consumers assess and compare services, marketers try to make them __________ or show the benefits of using the service. 

A. 
intangible
 

B. 
consistent
 

C. 
tangible
 

D. 
timely
 

E. 
measurable
 
 143.
To help consumers assess and compare services, marketers try to make them tangible or __________. 

A. 
temporal
 

B. 
consistent
 

C. 
adaptable
 

D. 
measurable
 

E. 
show the benefits of using the service
 
 144.
Singapore Airlines has advertising that shows a traveler in the airline's new seats and emphasizes food and other amenities to overcome the __________ of its service. 

A. 
incongruity
 

B. 
inconsistency
 

C. 
inventory costs
 

D. 
inseparability
 

E. 
intangibility
 
 145.
Sarah has a backache due to overexertion. She believes a massage would loosen her back muscles and help her feel better. She is concerned because a massage, unlike a pair of shoes, cannot be experienced or seen before she buys it. Which characteristic of services is she concerned about? 

A. 
incongruity
 

B. 
inconsistency
 

C. 
intangibility
 

D. 
inventory costs
 

E. 
inseparability
 
 146.
Before moving out of their apartment, Kelly and Doug decided to have their carpets cleaned by Stanley Steemer, a company specializing in professional carpet cleaning. The carpet cleaners arrived on time, cleaned the carpets, and drove away in their bright yellow van; only then did the couple see that they did a good job. Kelly and Doug were unable to judge the service before they bought it, which illustrates the __________ of services. 

A. 
inconsistency
 

B. 
inseparability
 

C. 
inventory costs
 

D. 
intangibility
 

E. 
interdependence
 
 147.
To help consumers assess and compare its airline service, Frontier Airlines uses personable animal characters in its advertising to announce and describe benefits, such as leather seats and stretch seating, to help deal with the 

A. 
incongruity of the service.
 

B. 
inseparability of the service.
 

C. 
intangibility of the service.
 

D. 
inflexibility of the service.
 

E. 
interdependence of the service.
 
 148.
The brochure for Spa Sydell has photographs of people enjoying the various spa amenities. By seeing the pictures of available treatments at the spa, a customer has a better idea of what she is buying. Spa Sydell uses a brochure to help customers deal with the __________ that is associated with using the service. 

A. 
incongruity
 

B. 
inconsistency
 

C. 
inventory costs
 

D. 
inseparability
 

E. 
intangibility
 
 149.
Because services depend on the people who provide them, the quality of a service is often 

A. 
independent of managerial policies.
 

B. 
inconsistent.
 

C. 
inventoried.
 

D. 
tied to a product.
 

E. 
independent of the quality delivered.
 
 150.
Services depend on the people who provide them. As a result, their quality varies with each person's capabilities and day-to-day job performance. This element of services is referred to as __________. 

A. 
incongruity
 

B. 
differentiation
 

C. 
variation
 

D. 
inconsistency
 

E. 
intangibility
 
 151.
Inconsistency of services refers to the fact that 

A. 
there is no regulation of service industries in terms of basic standards of quality.
 

B. 
the quality of service provided by a firm is often inconsistent with its image.
 

C. 
the performance of one employee may vary from the performance of another employee even though the same firm employs both.
 

D. 
training and standardization of service delivery procedures cannot be accomplished.
 

E. 
services have a varying degree of durability.
 
 152.
Developing, pricing, promoting, and delivering services are challenging because the quality of the service is often inconsistent. Organizations attempt to reduce this inconsistency by 

A. 
paying higher incentives to employees to encourage satisfactory performance.
 

B. 
reducing incentives available to employees because of poor performance.
 

C. 
reducing the customer contact points in the service delivery process.
 

D. 
providing standardization and training.
 

E. 
exercising better hiring practices.
 
 153.
The Philadelphia Phillies baseball team may have great hitting and pitching one day, and lose by 10 runs on the next. This is an example of a service being 

A. 
inseparable.
 

B. 
inconsistent.
 

C. 
inventoried.
 

D. 
tied to a product.
 

E. 
independent of the quality delivered.
 
 154.
A local band performed on campus during a pre-graduation party. The students enjoyed the performance, and some of them were interested enough to buy tickets to see another show at a club downtown. But when they went to that concert, the quality of the performance was much poorer than they had heard and seen on campus. The students' disappointment was the direct result of which characteristic of services? 

A. 
inconsistency
 

B. 
impressionability
 

C. 
intangibility
 

D. 
invisibility
 

E. 
uniqueness of the service
 
 155.
Andrea Arenas is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services, such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office, for people who are too busy to perform these simple acts. One way she tries to avoid ___________ of services for her regular customers is to make sure that the same well-trained person is always assigned to work for her clients. 

A. 
inseparability
 

B. 
inconsistency
 

C. 
incongruity
 

D. 
inflexibility
 

E. 
intangibility
 
 156.
Alana operates a wedding preparation service that aids brides-to-be in the planning of their weddings. To maintain a quality image and a standardized offering, Alana provides extensive training for each of her employees. What unique aspect of services is Alana trying to address? 

A. 
impressionability
 

B. 
intangibility
 

C. 
inconsistency
 

D. 
inseparability
 

E. 
uniqueness of the service
 
 157.
Jason graduated from law school and took his mom to dinner after the ceremony. At the restaurant, the server filled their water glasses, checked on their table, and took care of their requests. Jason noted that the last time he was at this same restaurant, the experience was much worse. This scenario illustrates the ___________ of services. 

A. 
impressionability
 

B. 
intangibility
 

C. 
inseparability
 

D. 
uniqueness of the service
 

E. 
inconsistency
 
 158.
Inseparability in services means consumers 

A. 
see little variation from one service provider in an industry to another.
 

B. 
cannot separate the service itself from the deliverer of the service.
 

C. 
are unable to differentiate price from quality.
 

D. 
cannot evaluate a service until it is being or has been used.
 

E. 
cannot separate themselves from the deliverer of the service.
 
 159.
If you find that the staff who work in your college's career center give you poor advise or otherwise did not provide sufficient help in finding you employment after graduation, you may be dissatisfied with your entire college experience. This is an example of which issue associated with services? 

A. 
inseparability
 

B. 
intangibility
 

C. 
impressionability
 

D. 
incongruity
 

E. 
inflexibility
 
 160.
When Mandy last got her drive-thru order at the fast-food restaurant, she thought the employee who helped her was cold and unfriendly. The food tasted good but was overshadowed by the employee's demeanor. Since then, Mandy often says something derogatory to her friends about the restaurant based on this single experience. This is an example of which issue associated with services? 

A. 
inseparability
 

B. 
intangibility
 

C. 
impressionability
 

D. 
incongruity
 

E. 
inflexibility
 
 161.
Inventory of services differs from that of products in what way? 

A. 
Time is less important to customers of services than customers of products.
 

B. 
Only service inventory can be reduced through more efficient movement of products.
 

C. 
There are larger costs associated with the handling of service inventory.
 

D. 
Unlike goods providers, the service provider is often unavailable when there is a demand for the service.
 

E. 
Service inventory costs are related to idle production capacity rather than storage or handling.
 
 162.
A situation that occurs when a service provider is available but there is no demand is referred to as 

A. 
off-peak pricing.
 

B. 
idle production capacity.
 

C. 
static demand.
 

D. 
capacity management.
 

E. 
excess inventory.
 
 163.
Idle production capacity refers to 

A. 
the minimum number of customers that a service provider can serve and still remain profitable.
 

B. 
the maximum number of customers that a service provider must serve in order to remain profitable.
 

C. 
the ability of a service provider to redirect its efforts so even when there is no primary demand, employees are still able to meet selective demand.
 

D. 
a situation that occurs when a service provider is available but there is no demand for the service.
 

E. 
a situation that occurs when the primary demand for a service exceeds that number of service deliverers available to meet that demand.
 
 164.
What does idle production capacity refer to? 

A. 
a situation where the demand for exceeds the availability of service providers and as a result, no services can be offered
 

B. 
when the supply of service providers exceeds the primary demand for the service
 

C. 
a situation where a service provider is available but there is no demand for the service
 

D. 
integrating the service component of the marketing mix with efforts to influence consumer demand
 

E. 
the potential profits of one service provider serving multiple clients at the same time
 
 165.
The emergency room staff in Houston's largest hospital is pleasantly surprised when a four-day Fourth of July weekend brings in few accident victims for treatment. They know from experience that such public holidays usually have high rates of accidents. For the hospital's business office, the lower demand for the emergency room services means 

A. 
a break in the service continuum.
 

B. 
its services are no longer tangible.
 

C. 
its services can be separated from the staff.
 

D. 
the hospital has idle production capacity.
 

E. 
an opportunity for gap analysis.
 
 166.
Andrea Arenas is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office for people who are too busy to perform these simple acts. She has often been hired by major corporations to perform services for their harried executives, and even other employees. Her staff is overworked and she will soon hire more employees to fill demand. Arenas is not currently experiencing __________; in fact, all of her employees and equipment are fully being used. 

A. 
off-peak pricing
 

B. 
idle production capacity
 

C. 
static demand
 

D. 
capacity marketing
 

E. 
capacity inventory
 
 167.
Southwest Airlines operates five flights daily between Chicago and Phoenix during the winter. One flight leaves Phoenix at 12:10 p.m. The plane, a Boeing 737, has a capacity of 120 passengers. During the past month, the flight has averaged 24 passengers, a load factor of only 20 percent. Once the plane takes off, the empty seats generate no revenue for the airline for that flight. What unique aspect of services does this situation describe? 

A. 
incongruity
 

B. 
intangibility
 

C. 
inconsistency
 

D. 
inseparability
 

E. 
idle production capacity
 
 168.
The type of analysis that compares the differences between consumers' expectations about a service and their experience with it based on dimensions of service quality is referred to as 

A. 
customer relationship management.
 

B. 
service encounter differential.
 

C. 
gap analysis.
 

D. 
a customer contact audit.
 

E. 
a service audit.
 
 169.
In using a gap analysis, the two basic components of a customer's evaluation of a service are 

A. 
expectations and customer contact.
 

B. 
expectations and experience.
 

C. 
intangibility and inconsistency.
 

D. 
experience and credence.
 

E. 
inconsistency and inseparability.
 
 170.
How a person establishes expectations for a service not yet experienced is influenced by __________, personal needs, past experiences, and promotional activities. 

A. 
the economy
 

B. 
consumer income
 

C. 
word-of-mouth communications
 

D. 
competitive trends
 

E. 
how the organization delivers its service
 
 171.
How a person establishes expectations for a service not yet experienced is influenced by word-of-mouth communications, __________, past experiences, and promotional activities. 

A. 
personal needs
 

B. 
the economy
 

C. 
consumer income
 

D. 
competitive trends
 

E. 
how the organization delivers its service
 
 172.
How a person establishes expectations for a service not yet experienced is influenced by word-of-mouth communications, personal needs, __________, and promotional activities. 

A. 
how the organization delivers its service
 

B. 
past experiences
 

C. 
competitive trends
 

D. 
the economy
 

E. 
consumer income
 
 173.
How a person establishes expectations for a service not yet experienced is influenced by word-of-mouth communications, personal needs, past experiences, and __________. 

A. 
the economy
 

B. 
consumer income
 

C. 
competitive trends
 

D. 
promotional activities
 

E. 
how the organization delivers its service
 
 174.
In a gap analysis, a person can establish expectations for a service he or she has not yet experienced through word-of-mouth communications, personal needs, past experiences, and promotional activities. However, the actual experiences are determined by 

A. 
the way the organization delivers its service.
 

B. 
the positive reinforcement from friends, family, and peers, after the service was provided.
 

C. 
repeat encounters with the same service provider.
 

D. 
psychological feelings of well-being.
 

E. 
a formal post-purchase evaluation or questionnaire.
 
 175.
Many restaurants now ask consumers to evaluate their experience on a short questionnaire when they pay their bill. This assessment of consumer expectations compared to the actual experience they had is a form of __________. 

A. 
service encounter survey
 

B. 
customer profile analysis
 

C. 
gap analysis
 

D. 
customer contact audit
 

E. 
service audit
 
 176.
Which of the following are key dimensions of service quality that might be used to perform a gap analysis for airline travel? 

A. 
gap analysis, intangibility, and reliability
 

B. 
respect, diligence, and honesty
 

C. 
honesty, intangibility, and diligence
 

D. 
alacrity, fairness, and product knowledge
 

E. 
reliability, tangibility, and responsiveness
 
 177.
The term product class refers to 

A. 
the NAICS designation of an individual product or brand.
 

B. 
the designation of an individual product based upon its form.
 

C. 
a variation of a product within a product mix.
 

D. 
the designation of a product based on whether it is a consumer product or business product.
 

E. 
the entire product category or industry a set of offerings belong to.
 
 178.
Variations of a product (shape, configuration) within a product class are referred to as the 

A. 
product form.
 

B. 
product item.
 

C. 
product line.
 

D. 
product class.
 

E. 
product mix.
 
 179.
A product item refers to 

A. 
the variations within a product class.
 

B. 
the entire product category or industry.
 

C. 
a group of SKUs that are closely related.
 

D. 
a specific product that has a unique brand, size, or price.
 

E. 
the services offered by an organization.
 
 180.
The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given as gifts for almost every occasion imaginable. The Love Bandit Bear is one bear it designed for people to give to each other on Valentine's Day. The Love Bandit Bear is an example of a 

A. 
product item.
 

B. 
product mix.
 

C. 
product class.
 

D. 
product form.
 

E. 
product line.
 
 181.
A __________ is the unique identification number that defines an item for ordering or inventory purposes. 

A. 
unique stock mark
 

B. 
QR code
 

C. 
stock keeping unit
 

D. 
order quantity code
 

E. 
NAICS stock code
 
 182.
The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given as gifts for almost every occasion imaginable. The Love Bandit Bear is designed for people to give to each other on Valentine's Day. The unique identification number that the Vermont Teddy Bear Company uses to distinguish this Teddy bear from the others in order to track it in the warehouse is called a(n) 

A. 
stock ID code.
 

B. 
QR code.
 

C. 
NAICS stock code.
 

D. 
order quantity code.
 

E. 
stock keeping unit.
 
 183.
A group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same types of outlets, or fall within a given price range is referred to as a __________. 

A. 
product class
 

B. 
product mix
 

C. 
product category
 

D. 
marketing category
 

E. 
product line
 
 184.
A __________ is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same type of outlets, or fall within a given price range. 

A. 
product item
 

B. 
product line
 

C. 
product mix
 

D. 
product class
 

E. 
product form
 
 185.
A product line refers to 

A. 
a product and all its ancillary services (warranties, financing, etc.).
 

B. 
the variations within a product class.
 

C. 
a specific product SKU that has a unique brand, size, or price.
 

D. 
a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same types of outlets, or fall within a given price range.
 

E. 
the entire product category or industry.
 
 186.
A product line is a group of product or service items that are closely related because they satisfy a class of needs, __________, are sold to the same customer group, are distributed through the same type of outlets, or fall within a given price range. 

A. 
are made of similar components
 

B. 
are used together
 

C. 
have one SKU number
 

D. 
require high levels of R&D
 

E. 
made from the same formulations
 
 187.
A product line is a group of product or service items that are closely related because they satisfy a class of needs, are used together, __________, are distributed through the same type of outlets, or fall within a given price range. 

A. 
are made of similar components
 

B. 
require high levels of R&D
 

C. 
are sold to the same customer group
 

D. 
made from the same formulations
 

E. 
have one SKU number
 
 188.
A product line is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, __________, or fall within a given price range. 

A. 
are made of similar components
 

B. 
made from the same formulations
 

C. 
require high levels of R&D
 

D. 
have one SKU number
 

E. 
are distributed through the same type of outlets
 
 189.
A product line is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, and are distributed through the same type of outlets, or __________. 

A. 
are made of similar components
 

B. 
fall within a given price range
 

C. 
made from the same formulations
 

D. 
are identical except for price
 

E. 
require high levels of R&D
 
 190.
Which of the following statements about product lines is most accurate? 

A. 
An advantage of a narrow product line is the ability to have a greater gap between price points.
 

B. 
Product lines refer to consumer products; product mixes refer to industrial products.
 

C. 
An advantage of broad product lines is increased likelihood of access to large retail chain distribution.
 

D. 
A benefit of having a narrow product line is that it enables both consumers and retailers to simplify their buying decisions.
 

E. 
A broad product line reduces R&D costs.
 
 191.
Which of the following is an example of a product line? 

A. 
Scope mouthwash
 

B. 
Zephyrhills natural spring water in 8 oz. bottles
 

C. 
The Yellow Pages for Gainesville, Florida
 

D. 
Hallmark Mother's, Father's Day, and Grandparent's Day cards
 

E. 
Apple iPad
 
 
   
Crapola Granola Products Photo
 192.
The Crapola Granola products photo shown above best describes which of the following? 

A. 
a product item
 

B. 
a product line
 

C. 
a product mix
 

D. 
a product category
 

E. 
a brand line
 
 193.
The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given as gifts for almost every occasion imaginable. For the Vermont Teddy Bear Company, Teddy bears are an example of a 

A. 
product class.
 

B. 
product mix.
 

C. 
SKU.
 

D. 
marketing category.
 

E. 
product line.
 
 194.
During a recent shopping trip to Target, Carlie noticed that the store offered many Glad products, including many different types of trash bags and a large variety of food storage containers. For Glad, each of these two product groupings is an example of a __________. 

A. 
product line
 

B. 
product item
 

C. 
product mix
 

D. 
product industry
 

E. 
product class
 
 195.
All of the different product lines offered by an organization are collectively referred to as a 

A. 
product class.
 

B. 
product mix.
 

C. 
product SKUs.
 

D. 
marketing mix.
 

E. 
target mix.
 
 196.
A product mix refers to 

A. 
all of the different product lines offered by an organization.
 

B. 
the variations within a product class.
 

C. 
a specific product SKU that has a unique brand, size, or price.
 

D. 
a group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same types of outlets, or fall within a given price range.
 

E. 
the entire product category or industry.
 
 197.
Procter & Gamble, however, has a large __________ that includes product groupings such as beauty and grooming (Crest toothpaste and Gillette razors) and household care (Downy fabric softener, Tide detergent), and Pampers diapers. 

A. 
marketing mix.
 

B. 
product class.
 

C. 
product items.
 

D. 
product lines.
 

E. 
product mix.
 
 198.
A company's product mix is equal to the sum of its 

A. 
marketing mix.
 

B. 
product class.
 

C. 
product items.
 

D. 
product lines.
 

E. 
SKUs.
 
 199.
Newman's Own is a company that gives all of its profits to charities. The company produces popcorn, salsa, pasta sauces, and salad dressings under the Newman's Own brand name. These product lines comprise the company's 

A. 
product mix.
 

B. 
stock keeping units.
 

C. 
product category.
 

D. 
product class.
 

E. 
marketing category.
 
 200.
The relationship between a product line and product mix is 

A. 
product mixes include product lines.
 

B. 
product lines include product mixes.
 

C. 
product lines refer to consumer products; product mixes refer to business products.
 

D. 
product mixes refer to consumer products; product lines refer to industrial products.
 

E. 
there is no significant difference other than minor product variations of color, size, or form.
 
 201.
Feature bloat is 

A. 
an exaggeration of a product's performance capabilities.
 

B. 
the overcharging in price for a minor product enhancement.
 

C. 
the requirement of having consumers learn new behaviors with a continuous innovation.
 

D. 
an excessive number of product attributes that overwhelms consumers with unnecessary complexity.
 

E. 
the increase in package size when adding more content or making it larger (the mega phenomenon).
 
 202.
The proliferation of extra characteristics in a product that overwhelms many consumers with mind-boggling complexity is referred to as 

A. 
feature overkill.
 

B. 
product line extension.
 

C. 
feature bloat.
 

D. 
sensory overload.
 

E. 
product differentiation.
 
 203.
According to Robert Stephens of the Geek Squad, the biggest complaint about technical support people is 

A. 
their inability to communicate in laymen's terms.
 

B. 
that they are difficult to understand.
 

C. 
that they take too long to answer the telephone.
 

D. 
that they lack product knowledge.
 

E. 
that they are rude and egotistical.
 
 204.
A product can be classified as new from all of the following perspectives EXCEPT: 

A. 
the organization's.
 

B. 
existing offerings.
 

C. 
legal.
 

D. 
the firm's competitors.
 

E. 
the consumer's.
 
 205.
A product can be classified as new if it __________ from existing products. 

A. 
is functionally different
 

B. 
is different in color
 

C. 
is different in its packaging
 

D. 
is different in price
 

E. 
requires a different distribution channel
 
 206.
An important way of viewing new products is in terms of their effects on consumption, which from the perspective of consumers is by 

A. 
the price.
 

B. 
the extent of media promotion.
 

C. 
the degree of potential product cannibalization.
 

D. 
the presence of feature bloat.
 

E. 
the degree of learning involved.
 
 207.
A product that is new in some way but requires no new behaviors to be learned by consumers is a 

A. 
continuous innovation.
 

B. 
discontinuous innovation.
 

C. 
dynamically continuous innovation.
 

D. 
product transformation.
 

E. 
concurrent innovation.
 
 208.
The emphasis of a marketing strategy for a continuous innovation concentrates on 

A. 
obtaining narrow distribution.
 

B. 
setting a low price.
 

C. 
generating awareness.
 

D. 
using reminder advertising to reeducate consumers.
 

E. 
using personal selling.
 
 209.
At the time of its introduction, which of the following products was the best example of a continuous innovation? 

A. 
home security system
 

B. 
disposable lighter
 

C. 
microwave oven
 

D. 
electric toothbrush
 

E. 
video camera
 
 210.
Wrigley's new Alert Energy Caffeine Gum "offers a portable solution that lets adults control their caffeine intake." This new gum is most likely which type of innovation? 

A. 
continuous innovation
 

B. 
dynamically continuous innovation
 

C. 
discontinuous innovation
 

D. 
insignificant innovation
 

E. 
disruptive innovation
 
 211.
At the time of its introduction, which of the following products was the best example of a continuous innovation? 

A. 
the first Apple iPhone
 

B. 
Atari, the first video game system
 

C. 
Sunsilk Silky Straight shampoo and conditioner with tip-targeting technology
 

D. 
Dragon Naturally Speaking voice-recognition software
 

E. 
Naturalpoint Trakir, which replaces the computer mouse by tracking head movements and then translating those head movements into cursor commands
 
 212.
The addition of Clorox II bleach to Tide laundry detergents is an example of a 

A. 
discontinuous innovation.
 

B. 
bundled innovation.
 

C. 
dynamically continuous innovation.
 

D. 
disruptive innovation.
 

E. 
continuous innovation.
 
 213.
The first LCD (liquid crystal display) flat-panel HD (high definition) TV is an example of which type of innovation? 

A. 
continuous innovation
 

B. 
dynamically continuous innovation
 

C. 
discontinuous innovation
 

D. 
insignificant innovation
 

E. 
disruptive innovation
 
 214.
A product that disrupts consumers' normal routines but does not require totally new learning is a 

A. 
continuous innovation.
 

B. 
dynamically continuous innovation.
 

C. 
discontinuous innovation.
 

D. 
progressive innovation.
 

E. 
disruptive innovation.
 
 215.
The emphasis of a marketing strategy for a dynamically continuous innovation would include 

A. 
advertising to generate awareness.
 

B. 
obtaining widespread distribution.
 

C. 
advertising to explain points of difference and benefits.
 

D. 
setting a low price.
 

E. 
using personal selling.
 
 216.
LG Electronics Inc. has entered into an agreement with Google to offer selected smartphone models that use a multitouch interface rather than buttons to make calls with Google's Android operating system. When the multitouch interface was first introduced, it was an example of which type of innovation? 

A. 
continuous innovation.
 

B. 
discontinuous innovation.
 

C. 
disruptive innovation.
 

D. 
dynamically continuous innovation.
 

E. 
evolutionary innovation.
 
 217.
There have been pasta sauces on the market for years. These sauces have always required the pasta to be precooked before it is mixed with the sauces and other ingredients. The development of Prego Pasta Bake Sauce that does not require the use of pre-cooked pasta would be an example of a(n) 

A. 
continuous innovation.
 

B. 
discontinuous innovation.
 

C. 
evolutionary innovation.
 

D. 
disruptive innovation.
 

E. 
dynamically continuous innovation.
 
 218.
Philips Sonicare recently introduced the DiamondClean rechargeable toothbrush. A key innovation is its Quadpacer interval timer that goes off after 30-seconds to prompt the user to move on to the next quadrant of the mouth that results in better cleaning and improved gum health. This is an example of which type of innovation? 

A. 
disruptive innovation
 

B. 
continuous innovation
 

C. 
discontinuous innovation
 

D. 
dynamically continuous innovation
 

E. 
evolutionary innovation
 
 219.
LG Electronics recently introduced the Fridge-TV with a 15" television screen mounted in the right side refrigerator door. This is an example of which type of innovation? 

A. 
inventive innovation
 

B. 
continuous innovation
 

C. 
discontinuous innovation
 

D. 
dynamically continuous innovation
 

E. 
continuous invention
 
 
   
Heinz EZ Squirt Photo
220.
When Heinz introduced its new EZ Squirt Ketchup bottle (see the photo above), the degree of newness for the consumer would make this a 

A. 
continuous innovation.
 

B. 
discontinuous innovation.
 

C. 
dynamically continuous innovation.
 

D. 
spontaneous innovation.
 

E. 
continuous invention.
 
 221.
A product that requires the learning of entirely new consumption patterns among consumers is referred to as a(n) 

A. 
continuous innovation.
 

B. 
discontinuous innovation.
 

C. 
dynamically continuous innovation.
 

D. 
evolutionary innovation.
 

E. 
progressive innovation.
 
 222.
A discontinuous innovation is a product that 

A. 
disrupts consumers' normal routine but does not require totally new learning.
 

B. 
requires no new learning by consumers.
 

C. 
is not purchased by innovators and early adopters.
 

D. 
initiates obsolescence of a product class.
 

E. 
requires consumers to learn entirely new patterns of behavior and product usage.
 
 223.
The emphasis of a marketing strategy for a discontinuous innovation would most likely be to 

A. 
generate awareness among consumers.
 

B. 
advertise benefits to consumers that stress points of differentiation.
 

C. 
educate consumers about new consumption patterns through personal selling.
 

D. 
obtain widespread distribution in multiple channels.
 

E. 
stress price differentials from competitors' products.
 
 224.
Which of the following products at the time of its introduction was the best example of a discontinuous innovation? 

A. 
DVD player
 

B. 
disposable lighters
 

C. 
instant light charcoal
 

D. 
liquid laundry detergent
 

E. 
automatic dishwashers
 
 225.
In the early 1900s, your great-great-grandfather probably purchased his first automobile. After years of driving a horse and buggy, he got into his new car and drove it into his new garage. The new automobile was an example of a 

A. 
continuous innovation.
 

B. 
dynamically continuous innovation.
 

C. 
disruptive improvement.
 

D. 
discontinuous innovation.
 

E. 
evolutionary innovation.
 
 226.
Napster was the first software that allowed an individual to easily search for and exchange MP3 music files with other individuals (in some cases illegally). When it was introduced, Napster would have been an example of a 

A. 
discontinuous innovation.
 

B. 
continuous innovation.
 

C. 
dynamically continuous innovation.
 

D. 
regulatory innovation.
 

E. 
disruptive improvement.
 
 227.
Dragon Naturally Speaking, a speech recognition software program that allows you to use your voice instead of a keyboard to input text into a word processing program, is an example of a(n) 

A. 
continuous innovation.
 

B. 
discontinuous innovation.
 

C. 
dynamically continuous innovation.
 

D. 
disruptive improvement.
 

E. 
evolutionary innovation.
 
 
   
Figure 9-4
 228.
According to Figure 9-4 above, column A represents a(n) 

A. 
spontaneous innovation.
 

B. 
continuous innovation.
 

C. 
discontinuous innovation.
 

D. 
dynamically continuous innovation.
 

E. 
evolutionary innovation.
 
 229.
According to Figure 9-4 above, column B represents a(n) 

A. 
continuous innovation.
 

B. 
discontinuous innovation.
 

C. 
disruptive innovation.
 

D. 
dynamically continuous innovation.
 

E. 
evolutionary innovation.
 
 230.
According to Figure 9-4 above, column C represents a 

A. 
continuous innovation.
 

B. 
discontinuous innovation.
 

C. 
dynamically continuous innovation.
 

D. 
spontaneous innovation.
 

E. 
simultaneous innovation.
 
 231.
The Federal Trade Commission (FTC) considers a product new only 

A. 
for a period of one year after it enters widespread distribution.
 

B. 
if it is functionally different from a competitor's product.
 

C. 
until a new and improved version of the same product is produced.
 

D. 
for a period of six months after it enters regular distribution.
 

E. 
for a period of seventeen years at which time patent rights are returned to the public domain.
 
 232.
Prego recently introduced a Pasta Bake Sauce, which was made so that it was not necessary to precook the pasta before blending pasta, sauce, meat, and cheese in a casserole. Legally, this product would only be considered new 

A. 
for the first six months that it was regularly available at a variety of grocery stores.
 

B. 
until a competitor like Ragu had issued a similar product targeted to the same market.
 

C. 
as long it retained these exact product characteristics.
 

D. 
if it was functionally the same as its salsa sauce.
 

E. 
until its advertising had been seen by every member of its target audience.
 
 233.
From an organization's perspective regarding its new products and innovations, which of the following new-product strategies has the LOWEST level of risk? 

A. 
a radical invention
 

B. 
a brand extension
 

C. 
a product line extension
 

D. 
a jump in innovation
 

E. 
a product refinancing
 
 234.
From an organization's perspective regarding its new products and innovations, which of the following new-product strategies has the HIGHEST level of risk? 

A. 
a radical invention
 

B. 
a brand extension
 

C. 
a product line extension
 

D. 
a jump in innovation
 

E. 
a product deletion
 
 235.
Mr. Clean is an antibacterial cleaning liquid for home use. If Proctor and Gamble (P&G), the manufacturer of Mr. Clean, added Mr. Clean Magic Eraser Bath Scrubber to the Mr. Clean product line, it would be seen by P&G as 

A. 
a discontinuous innovation.
 

B. 
a new product from the company's perspective because it is a product line extension.
 

C. 
a high-risk product mix extension because it is new to the market.
 

D. 
new by the Federal Trade Commission for the usual one-year period.
 

E. 
not a new-product because it does not represent a different SKU.
 
 236.
Which of the following new products is the best example of the LOWEST level of risk from the company's point of view? 

A. 
adding Ball Park Beef Franks with Cheese to the Ball Park Franks line
 

B. 
moving from production of land-line telephones to smartphones
 

C. 
marketing the first Apple computer
 

D. 
changing the formula from Coca-Cola to New Coke and then back to Coca Cola Classic
 

E. 
offering online marketing classes rebranded under a new college name
 
 237.
Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar product category seems like a good idea. This is what Cosmopolitan, purveyor of fashion magazines, did when it introduced its own __________, which failed quickly. 

A. 
aspirin
 

B. 
yogurt
 

C. 
disposable underwear
 

D. 
soda (soft drink)
 

E. 
perfume
 
 238.
Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea. Several years ago, Cosmopolitan magazine introduced Cosmopolitan-branded yogurt, and it failed quickly. This innovation strategy is known as a 

A. 
radical invention
 

B. 
product line extension
 

C. 
disruptive innovation
 

D. 
brand extension
 

E. 
product deletion
 
 239.
A few years ago, Frito-Lay developed Frito-Lay Lemonade as a thirst-quencher for those consumers who also like Frito-Lay's salty snacks such as Fritos corn chips. But when people think of the brand name Frito-Lay, thirst-quenching is not a benefit that comes to mind and Frito-Lay Lemonade failed. This innovation strategy is known as a 

A. 
brand extension.
 

B. 
radical invention.
 

C. 
product line extension.
 

D. 
disruptive innovation.
 

E. 
product deletion.
 
 240.
Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea. Several years ago, Harley-Davidson introduced perfume under the Harley-Davidson brand name - and it failed quickly. This innovation strategy is known as a 

A. 
radical invention.
 

B. 
product line extension.
 

C. 
disruptive innovation.
 

D. 
product deletion.
 

E. 
brand extension.
 
 241.
A new product or service protocol refers to 

A. 
the standardized procedures a firm follows for the inception, design, manufacturing, promotion, and distribution of a new product.
 

B. 
a formalized statement of intent regarding what will be sold, to whom it will be sold, and by whom it will be sold.
 

C. 
maintaining compliance with all licensing, manufacturing, and distribution standards established by the U.S. Federal Trade Commission (FTC).
 

D. 
a statement that identifies a well-defined target market, specific customers' needs, wants, and preferences, and what the product or service will be and do to satisfy consumers.
 

E. 
the raw unwritten ideas to produce a single commercially successful new product.
 
 242.
A statement that identifies: a well-defined target market; specific customers' needs, wants, and preferences; and what the product will be and do to satisfy consumers is referred to as a new product's or service's 

A. 
protocol.
 

B. 
proposition.
 

C. 
modus operandi.
 

D. 
formula.
 

E. 
methodology.
 
 243.
Ideally, before a new product or service is developed, a firm should have a precise __________, which is a statement defining the target market, specifying customers' needs, and defining what the product or service will be and do to satisfy consumers. 

A. 
formula
 

B. 
contract
 

C. 
modus operandi
 

D. 
protocol
 

E. 
methodology
 
 244.
New product or service failures may be reduced or avoided if the company developing them has 

A. 
support from marketer-dominated sources of information.
 

B. 
a clear patent approved by the governments within the countries it wants to market.
 

C. 
a statement of competitive intent.
 

D. 
stakeholder approval in the development process.
 

E. 
a precise protocol.
 
 245.
Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) __________; (2) specific customers' needs, wants, and preferences; and (3) what the product or service will be and do to satisfy consumers. 

A. 
a clear plan for product distribution
 

B. 
an analysis of potential competitors' products
 

C. 
a precise budget of how much can be spent for the marketing program
 

D. 
a well-defined target market
 

E. 
clear financial goals and expectations
 
 246.
Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) a well-defined target market; (2) __________; and (3) what the product or service will be and do to satisfy consumers. 

A. 
a clear plan for distribution
 

B. 
specific customers' needs, wants, and preferences
 

C. 
an analysis of potential competitors' products or services
 

D. 
a precise budget of how much can be spent for the marketing program
 

E. 
clear financial goals and expectations
 
 247.
Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) a well-defined target market; (2) specific customers' needs, wants, and preferences; and (3) __________. 

A. 
what the product or service will be and do to satisfy consumers
 

B. 
a clear plan for distribution
 

C. 
clear financial goals and expectations
 

D. 
an analysis of potential competitors' products or services
 

E. 
a precise budget of how much can be spent for the marketing program
 
 248.
Most American families buy the same __________ items over and over again - making it difficult to gain buyers for new products. 

A. 
25
 

B. 
50
 

C. 
100
 

D. 
125
 

E. 
150
 
 249.
Less than __________ of new consumer packaged goods (CPG) exceed first-year sales of $50 million - the benchmark of a successful CPG launch. 

A. 
3 percent
 

B. 
10 percent
 

C. 
17 percent
 

D. 
28 percent
 

E. 
35 percent
 
 250.
When General Mills introduced Fingos, a corn chip-sized sweetened cereal flake, it assumed that its customers would normally snack on them dry like a potato chip. Unfortunately, consumers did not switch from munching on popcorn and potato chips. The primary reason for the failure of Fingos was __________. 

A. 
an insignificant point of difference relative to competing snacks - consumers wouldn't switch from eating snacks from Frito-Lay and others
 

B. 
too little market attractiveness - the growth in the snacks market is declining
 

C. 
poor execution of the marketing mix - General Mills did not offer free samples at grocery stores
 

D. 
poor product quality - the chips were not the same size
 

E. 
incomplete market and product protocol - the brand name "Fingos" did not get consumers excited
 
 251.
One of the eight primary marketing-related reasons for new-product failure is __________. 

A. 
not listening to the voice of the engineer
 

B. 
incomplete market and product protocol
 

C. 
too much advertising or too aggressive a tone for it
 

D. 
failure to anticipate competitors actions
 

E. 
insufficient funding for roll-out
 
 252.
Kimberly-Clark developed its Avert Virucidal tissues that contained vitamin C derivatives, which were scientifically designed to kill cold and flu germs when users sneezed, coughed, or blew their noses into them. Unfortunately, people didn't believe the claim and were frightened by the "cidal" in the brand name. The reason for this product failure was 

A. 
an insignificant point of difference.
 

B. 
too little market attractiveness.
 

C. 
poor execution of the marketing mix.
 

D. 
poor product quality.
 

E. 
incomplete market and product protocol.
 
 253.
Until 1996, U.S. carmakers sent very few right-hand-drive cars to Japan while German car makers exported several models with the steering wheel on the right to accommodate the way the Japanese drive their cars on the left side of the road. American car manufacturers could blame their failure to a great degree on 

A. 
an insignificant point of difference.
 

B. 
too little market attractiveness.
 

C. 
not satisfying customer needs on critical factors.
 

D. 
poor product quality.
 

E. 
incomplete market and product protocol.
 
 254.
Microsoft introduced its Zune player a few years after Apple launched its iPod and other competitors had offered their new MP3 players. Zune sales were very disappointing and Microsoft eventually killed the product. According to the textbook, the primary reason for the Zune's failure was due in large part to 

A. 
bad timing.
 

B. 
not satisfying customer needs on critical factors.
 

C. 
poor product quality.
 

D. 
an insignificant point of difference.
 

E. 
incomplete market and product protocol.
 
 255.
One of the eight primary marketing-related reasons for new-product failure is __________. 

A. 
not listening to the voice of the engineer
 

B. 
no economical access to buyers
 

C. 
too much advertising or too aggressive a tone for it
 

D. 
failure to anticipate competitors actions
 

E. 
insufficient funding for roll-out
 
 256.
Thirsty Dog! is a zesty beef-flavored, vitamin-enriched, mineral-loaded, lightly carbonated bottled water for your dog. It might have been a great product, but competition over shelf space was fierce and the product could not generate enough sales per square foot for retailers. The makers of this product had 

A. 
poor product quality.
 

B. 
no economical access to buyers.
 

C. 
an insignificant point of difference.
 

D. 
incomplete market and product protocol.
 

E. 
poor execution of the marketing mix.
 
 257.
One of the eight primary marketing-related reasons for new-product failure is __________. 

A. 
the product is too innovative
 

B. 
a competitor with a similar product withdrew from the market
 

C. 
too socially controversial
 

D. 
poor product quality
 

E. 
product was marketed as a new product but it did not meet the legal definition of new
 
 258.
After Microsoft launched its Xbox 360 video-game console, millions began to experience the "red ring of death." The problem: The consoles' microprocessors ran too hot, causing them to pop off their motherboards. This cost the company not only money to extend its product warranty, but a huge portion of future sales and market share to competitors Sony and Nintendo. This failure was due to 

A. 
not satisfying customer needs on critical factors.
 

B. 
poor product quality.
 

C. 
an insignificant point of difference.
 

D. 
incomplete market and product protocol.
 

E. 
too little market attractiveness.
 
 259.
Garlic Cake was supposed to be served as an hors d'oeuvre with sweet breads, spreads, and meats, but at its introduction the company forgot to explain this to potential consumers. This product failure demonstrates 

A. 
not satisfying customer needs on critical factors.
 

B. 
poor product quality.
 

C. 
poor execution of the marketing mix.
 

D. 
an insignificant point of difference.
 

E. 
bad timing.
 
 260.
OUT! International's Hey! There's A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid's bedroom. Although a clever idea, it failed because it 

A. 
did not satisfy customer needs on critical factors.
 

B. 
had poor product quality.
 

C. 
had bad timing.
 

D. 
had an incomplete market and product protocol.
 

E. 
had too little market attractiveness.
 
 261.
Groupthink occurs in a meeting when 

A. 
everyone has an opinion but no one is willing to take charge.
 

B. 
everyone has the same idea after using the brainstorming idea-generation technique.
 

C. 
there is too much competition among marketing managers, so no one is willing to share his/her ideas.
 

D. 
someone suspects that there is a problem with the new product concept but is afraid to speak up because everyone else is so enthusiastic about it.
 

E. 
top management wants the new product to go forward regardless of what anyone else thinks.
 
 262.
One of the two ORGANIZATION-related problems of inertia that can cause new-product failures is __________. 

A. 
poor product quality
 

B. 
encountering groupthink in task force and committee meetings
 

C. 
poor execution of the marketing mix
 

D. 
bad timing
 

E. 
incomplete market and product protocol
 
 263.
If you are using a marketing dashboard to discover which cities in Florida are not meeting their sales growth goal for your sunscreen products, what marketing metric should be used to measure sales performance? 

A. 
every metric possible
 

B. 
shelf space for this year and last year by city
 

C. 
production costs
 

D. 
customer psychographics
 

E. 
annual percent sales change by city
 
 264.
Marketing dashboards are useful in measuring actual market performance versus the goals set in new-product planning, such as sales. Once shortfalls are identified, the first step would be to conduct market research to determine __________. 

A. 
how to change the promotional strategy
 

B. 
whether the problem is internal or external to the organization
 

C. 
whether to drop or keep the failing product or market
 

D. 
whether to change the goal, and therefore, the marketing metric used to measure it
 

E. 
if the numbers used for evaluation in the marketing dashboard are accurate
 
 
   
UMD9: Marketing Dashboard Map
 265.
In the UMD9: Marketing Dashboard Map above, the annual growth rate in each state is shown, with green (which looks gray on printed paper) meaning good and red (which looks black on printed paper) meaning very bad. If an organization's 2013 sales for the entire U.S. were $50 million and its 2012 U.S. sales were $30 million, what is the annual % sales change? 

A. 
40%
 

B. 
67%
 

C. 
100%
 

D. 
125%
 

E. 
133%
 
 266.
In the UMD9: Marketing Dashboard Map above, the annual growth rate in each state is shown, with green (which looks gray on printed paper) meaning good and red (which looks black on printed paper) meaning very poor. If you were a marketing manager faced with this dashboard, which of the following would be the best action? 

A. 
Focus on the shortfalls in Idaho (ID) and Utah (UT).
 

B. 
Revise the relevant goals for both east and west coast.
 

C. 
Conduct additional market research in the southern United States.
 

D. 
Examine your distribution system in the northeastern United States.
 

E. 
Change the marketing metric being used to evaluate the states individually.
 
 267.
The seven stages an organization goes through to identify business opportunities and convert them into salable products or services is referred to as the __________. 

A. 
commercialization process
 

B. 
SWOT process
 

C. 
business prospect development cycle
 

D. 
opportunity stage gate sequence
 

E. 
new-product process
 
 268.
The new-product process refers to 

A. 
the informal process of brain storming to generate new-product concepts at a marketing staff meeting.
 

B. 
the process of presenting cross-functional teams with a written new-product concept statement and asking them to respond to it in writing.
 

C. 
the seven stages an organization goes through to identify business opportunities and convert them into salable products or services.
 

D. 
the two stages an organization goes through from idea generation to commercialization.
 

E. 
a formalized protocol for new-product development that begins at the corporate level and ends at the functional level.
 
 269.
The new-product process an organization goes through to identify business opportunities and convert them into salable products or services contains 

A. 
three main steps: research, production, and distribution.
 

B. 
four distinct steps: research, evaluation, production, and distribution.
 

C. 
five key phases ranging from idea generation to creating the first prototype.
 

D. 
seven stages from new product strategy development to commercialization.
 

E. 
three phases: planning, implementation, and evaluation.
 
 
   
Figure 9-5
 270.
Figure 9-5 above represents the seven stages of the new-product development process. Stage 1 is the __________ stage. 

A. 
idea generation
 

B. 
screening and evaluation
 

C. 
screening and analysis
 

D. 
new-product strategy development
 

E. 
product assessment
 
 271.
Figure 9-5 above represents the seven stages of the new-product development process. Stage 2 is the __________ stage. 

A. 
idea generation
 

B. 
screening and evaluation
 

C. 
screening and analysis
 

D. 
new-product strategy development
 

E. 
product assessment
 
 272.
Figure 9-5 above represents the seven stages of the new-product development process. Stage 3 is the __________ stage. 

A. 
idea generation
 

B. 
screening and evaluation
 

C. 
screening and analysis
 

D. 
new-product strategy development
 

E. 
product assessment
 
 273.
Figure 9-5 above represents the seven stages of the new-product development process. Stage 4 is the __________ stage. 

A. 
idea generation
 

B. 
screening and evaluation
 

C. 
business analysis
 

D. 
new-product strategy development
 

E. 
market testing
 
 274.
Figure 9-5 above represents the seven stages of the new-product development process. Stage 5 is the __________ stage. 

A. 
business analysis
 

B. 
screening and evaluation
 

C. 
market testing
 

D. 
commercialization
 

E. 
development
 
 275.
Figure 9-5 above represents the seven stages of the new-product development process. Stage 6 is the __________ stage. 

A. 
business analysis
 

B. 
screening and evaluation
 

C. 
market testing
 

D. 
commercialization
 

E. 
development
 
 276.
Figure 9-5 above represents the seven stages of the new-product development process. Stage 7 is the __________ stage. 

A. 
business analysis
 

B. 
screening and evaluation
 

C. 
market testing
 

D. 
commercialization
 

E. 
development
 
 277.
One reason new products fail is that although most major corporations use a formal decision making process, sometimes they fail to critically evaluate the progress along the way. This is why many firms have a __________ to ensure that problems are corrected before proceeding to the next stage. 

A. 
written protocol
 

B. 
Stage-Gate process
 

C. 
cross-functional team
 

D. 
prototype test
 

E. 
test market
 
 278.
The stage of the new-product process that defines the role for a new product in terms of the firm's overall objectives is referred to as __________. 

A. 
distinctive competency determination
 

B. 
new-product strategy development
 

C. 
strategic marketing process
 

D. 
strategic invention process
 

E. 
product protocol definition
 
 279.
New-product strategy development refers to 

A. 
the stage of the new-product process where specific product features and benefits are selected prior creating a new-product prototype.
 

B. 
a formalized protocol for new product development determined by director of marketing.
 

C. 
the stage of the new-product process that defines the role for a new product in terms of the firm's overall objectives.
 

D. 
the process of presenting cross-functional teams with a written new-product concept statement and asking them to respond to it in writing.
 

E. 
the stage of the new-product process that turns the idea on paper into a prototype, which results in a demonstrable, producible product corresponding to its protocol.
 
 280.
The first stage of the new-product process is 

A. 
idea generation.
 

B. 
screening and evaluation.
 

C. 
business analysis.
 

D. 
new-product strategy development.
 

E. 
concept testing.
 
 281.
Which stage in the new-product process is a SWOT analysis used to identify the strategic role the new product might serve in the firm's business portfolio? 

A. 
idea generation
 

B. 
screening and evaluation
 

C. 
business analysis
 

D. 
development
 

E. 
new-product strategy development
 
 282.
During the first stage of the new-product process, two important activities take place. They are 

A. 
SWOT analysis and environmental scanning.
 

B. 
open innovation and business analysis.
 

C. 
concept testing and product forecasting.
 

D. 
R&D and operations set-up.
 

E. 
environmental scanning and open innovation.
 
 283.
In which stage in the new-product process would a firm use both a SWOT analysis and environmental scanning to assess its strengths and weaknesses relative to the trends it identifies as opportunities or threats? 

A. 
idea generation
 

B. 
screening and evaluation
 

C. 
new-product strategy development
 

D. 
business analysis
 

E. 
development
 
 284.
Occasionally, a firm's Stage 1 product development activities can be blind-sided by a revolutionary new product or technology that completely disrupts its business, which is sometimes called a __________. 

A. 
marketing opportunity
 

B. 
disruptive innovation
 

C. 
business threat
 

D. 
crowdsourcing
 

E. 
concept test
 
 285.
The stage of the new-product process that develops a pool of concepts to serve as candidates for new products is referred to as __________. 

A. 
idea generation
 

B. 
product development
 

C. 
open innovation assessment
 

D. 
screening and evaluation
 

E. 
new-product strategy development
 
 286.
Developing a pool of concepts to serve as candidates for new products is the __________ stage of the new-product process. 

A. 
open innovation
 

B. 
screening and evaluation
 

C. 
product development
 

D. 
new-product strategy development
 

E. 
idea generation
 
 287.
Idea generation is the stage in the new-product process that 

A. 
develops a pool of concepts to serve as candidates for new products.
 

B. 
selects a single concept and scrutinizes it for all potential benefits and flaws.
 

C. 
separates ideas into two categories: consumer-oriented and organization-oriented.
 

D. 
requires the organization to perform a SWOT analysis and an environmental scan.
 

E. 
consists of the techniques used to screen and reject those ideas that have no merit.
 
 288.
Idea generation refers to 

A. 
the stage of the new-product process when concepts are converted to prototypes.
 

B. 
the stage of the new-product process that develops a pool of concepts to serve as candidates for new-products.
 

C. 
the stage of the new-product process where possible promotional campaigns and advertising themes are created.
 

D. 
the techniques used to screen and reject those ideas that have no merit.
 

E. 
the discussion and decision of which as target market segments will be selected.
 
 289.
Many forward-looking companies have discovered that their own organization does not generate enough useful new-product ideas. This has caused them to find new product ideas by developing strategic relationships with outside individuals and organizations, a practice known as __________. 

A. 
innovation alliances
 

B. 
open innovation
 

C. 
open collaboration
 

D. 
piggy-back thinking
 

E. 
stakeholder cooperation
 
 290.
Open innovation may enhance the __________ stage of the new-product process. 

A. 
open innovation
 

B. 
screening and evaluation
 

C. 
product development
 

D. 
new-product strategy development
 

E. 
idea generation
 
 291.
Open innovation helps organization overcome __________, one of the organizational inertias common in new-product failures. 

A. 
groupthink
 

B. 
intelligent failures
 

C. 
incomplete protocols
 

D. 
NIH barriers
 

E. 
bad timing
 
 292.
All of the following are sources for new product ideas EXCEPT: 

A. 
competitors.
 

B. 
universities.
 

C. 
regulators.
 

D. 
suppliers.
 

E. 
employees.
 
 293.
Business researchers emphasize that firms must actively involve customers and suppliers in the new-product development process. This means that the focus should be on what the new product will __________ rather than simply what they want. 

A. 
look like
 

B. 
cost them
 

C. 
do for them
 

D. 
feel like
 

E. 
consist of in terms of new features
 
 294.
Generating insights leading to marketing actions based on massive numbers of peoples' ideas is called __________. 

A. 
brainstorming
 

B. 
groupthink
 

C. 
outsourcing
 

D. 
crowdsourcing
 

E. 
NIH method
 
 295.
Dell used __________ to develop an online site to generate 13,464 ideas for new products and website and marketing improvements. 

A. 
brainstorming
 

B. 
crowdsourcing
 

C. 
group think
 

D. 
outsourcing
 

E. 
data mining
 
 296.
IDEO is a company that 

A. 
creates innovative promotional programs for its clients' new products.
 

B. 
is a firm that developed the formal Stage-Gate process to commercialize new products for its clients.
 

C. 
uses design thinking to develop new products for other organizations.
 

D. 
rates new products like Consumer Reports.
 

E. 
runs patent searches for companies that don't have and internal legal department.
 
 297.
Brainstorming sessions at IDEO can generate as many as __________ ideas for products in an hour. 

A. 
10
 

B. 
25
 

C. 
50
 

D. 
100
 

E. 
200
 
 298.
In addition to seeking ideas from more well-known sources, organizations also get ideas from universities, inventors, and smaller nontraditional firms. For example, General Mills partnered with Brigham Young University to license its patent for __________. 

A. 
scones with coffee-flavored cream frosting
 

B. 
an Omega-3 enriched SKU for the Philadelphia cream cheese line
 

C. 
a carbonated yogurt called Go-Gurt Fizzix
 

D. 
deep fried chicken skins for people who cannot eat pork
 

E. 
a crispy baked macaroni and cheese snack that can be eaten out of a bag like Cheetos
 
 299.
Imagine you work for a TV production company that has been approached by one of the broadcast TV networks to develop a concept for a new reality show. Where are you most likely to look first for ideas? 

A. 
conducting a survey among the 2 million people belonging to the NPD Consumer Panel
 

B. 
observing similar reality programs that are on competing television networks like CBS or MTV
 

C. 
contacting contestants from other reality shows like Survivor or The Amazing Race
 

D. 
brainstorming ideas from the TV production company's employees
 

E. 
reading about the stars of reality TV programs in gossip magazines like Us Weekly and TV programs like TMZ
 
 300.
The Marriott Corporation sent a six-person intelligence team to travel and stay at economy hotels around the country for a six-month period. The purpose of these visits was to 

A. 
allow the team to reap the benefits of the new product, Fairfield Inns.
 

B. 
assess the strengths and weaknesses of economy hotels that could be used in the new-product development process for the launch of a new economy hotel chain.
 

C. 
complete customer satisfaction surveys to purposefully create inaccuracies in the marketing research for competing economy hotels.
 

D. 
obtain the demographics and media behavior of consumers who stay at these facilities in order to develop a target market profile.
 

E. 
refute the assumption that open innovation can benefit the Marriott Corporation.
 
 301.
Because early-stage financing is almost always a problem for those starting a new business, __________ is a way to gather an online community of supporters to financially rally around a specific project that is unlikely to get resources from traditional sources. 

A. 
crowdfunding
 

B. 
open sourcing
 

C. 
venture capital
 

D. 
online banking
 

E. 
crowdsourcing
 
 302.
Which of the following firms uses crowdfunding to raise capital for products that are unlikely to get resources from traditional sources? 

A. 
IDEO
 

B. 
Kickstarter.com
 

C. 
Warren Buffet's Berkshire Hathaway
 

D. 
the Industrial Design Group
 

E. 
Unfundale.com
 
 303.
The stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort is referred to as __________. 

A. 
development
 

B. 
stage-gate
 

C. 
idea generation
 

D. 
business analysis
 

E. 
screening and evaluation
 
 304.
Screening and evaluation refers to the stage of the new-product process 

A. 
at which prospective customers are exposed to new product prototypes for the first time.
 

B. 
at which new product concepts that have been found viable are converted into actual prototypes.
 

C. 
that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort.
 

D. 
that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections.
 

E. 
where consumers evaluate a new product's performance in an actual-use situation.
 
 305.
The screening and evaluation stage of the new-product process involves 

A. 
internal and external evaluations of new-product ideas.
 

B. 
product selection and budgeting projections.
 

C. 
business and cost analyses.
 

D. 
patent searches and environmental scanning.
 

E. 
idea selection and prototype development.
 
 306.
The __________ stage of the new-product process includes an examination of the technical feasibility for the product, such as 3M determining that the firm's micro-replication technology (the 3,000 tiny gripping fingers) could be used to improve the gripping power of batting or work gloves. 

A. 
development
 

B. 
Stage-Gate
 

C. 
idea generation
 

D. 
business analysis
 

E. 
screening and evaluation
 
 307.
An important aspect of the screening and evaluation stage of the new-product process is an examination of the technical feasibility for the product. For example, 3M was able to use the firm's micro-replication technology (the 3,000 tiny fingers) to 

A. 
improve the gripping power of batting or work gloves.
 

B. 
keep baseball caps from sliding off the heads of bald men.
 

C. 
make Formula One race cars more aerodynamic.
 

D. 
as a replacement for Velcro's hook-and-loop fasteners.
 

E. 
hold pictures in a photo album without damaging them.
 
 308.
A 3M researcher worked with university students to develop the Post-it→ Flag Highlighter. His team evaluated the technical feasibility of the proposed design and determined whether the idea met the firm's new-product objectives. At which stage of the new-product process was this product? 

A. 
idea generation
 

B. 
screening and evaluation
 

C. 
business analysis
 

D. 
new-product strategy development
 

E. 
concept testing
 
 309.
Customer experience management (CEM) is 

A. 
the integration of the service component of the marketing mix with efforts to influence consumer demand.
 

B. 
the unique combination of benefits received by targeted buyers that include quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
 

C. 
the process of managing the entire customer experience within the company.
 

D. 
a cluster of benefits that an organization promises customers to satisfy their needs.
 

E. 
the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.
 
 310.
__________ includes considering employee interactions with customers to ensure they are consistently delivered and experienced, clearly differentiated from other offerings, and relevant and valuable to the target market. 

A. 
Capacity management
 

B. 
Customer experience management
 

C. 
Derived demand
 

D. 
Internal marketing
 

E. 
The key service factor
 
 311.
An external evaluation with consumers that consists of preliminary testing of a new-product idea rather than the actual product is referred to as 

A. 
new-product strategy development.
 

B. 
idea generation.
 

C. 
crowdsourcing.
 

D. 
market testing.
 

E. 
a concept test.
 
 312.
A concept test is an 

A. 
internal evaluation among members of the entire cross-functional new-product development team that consists of preliminary testing of a new-product idea rather than the actual product.
 

B. 
external evaluation with consumers that consists of preliminary testing of a new-product idea rather than the actual product.
 

C. 
internal evaluation that consists of preliminary testing of a new-product idea using a mock-up or prototype of the new item.
 

D. 
in-house computer simulation of the new product that closely resembles the actual product to forecast sales.
 

E. 
in-depth questionnaire filled out both by internal marketing personnel and external customers to ensure that the final product meets all the needs expressed in the original product plan.
 
 313.
Concept tests are part of which stage in the new-product process? 

A. 
development
 

B. 
screening and evaluation
 

C. 
idea generation
 

D. 
new-product strategy development
 

E. 
business analysis
 
 314.
The stage of the new product process that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections is referred to as 

A. 
idea generation.
 

B. 
business analysis.
 

C. 
marketing analysis.
 

D. 
product development.
 

E. 
commercialization.
 
 315.
Business analysis refers to the stage of the new product process 

A. 
where the target markets are selected and resources are allocated to reach them.
 

B. 
where the target market segments that show potential are selected and those that do not are eliminated.
 

C. 
that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections.
 

D. 
where there is a formal accounting of all monies spent on R&D to determine the return on investment (ROI) that the new product will give back to the firm.
 

E. 
that internally and externally evaluates new-product ideas to eliminate those warranting no further effort.
 
 316.
An assessment of the fit of the proposed new products, from whether it can be economically developed and manufactured to the marketing strategy needed, take place during which stage of the new-product process? 

A. 
business analysis
 

B. 
screening and evaluation
 

C. 
new-product strategy development
 

D. 
development
 

E. 
These activities are addressed at every stage with the exception of new-product strategy development.
 
 317.
A general review of possible marketing and product synergies, economic analysis, and cannibalization potential would all take place during which stage of the new-product process? 

A. 
business analysis
 

B. 
screening and evaluation
 

C. 
new-product strategy development
 

D. 
development
 

E. 
These activities are addressed at every stage except new-product strategy development.
 
 318.
Detailed financial projections and assessments of marketing and product synergies are a part of which stage of the new-product process? 

A. 
idea generation
 

B. 
market testing
 

C. 
business analysis
 

D. 
development
 

E. 
commercialization
 
 319.
Factors such as specifying product features, marketing strategy, and financial projections are a part of which stage of the new-product process? 

A. 
idea generation
 

B. 
market testing
 

C. 
development
 

D. 
commercialization
 

E. 
business analysis
 
 320.
All of the following actions occur during the business analysis stage of the new-product process EXCEPT: 

A. 
using capacity management to find ways to match the availability of the service offering to when it is needed.
 

B. 
assessing the marketing and product synergies related to the company's existing operations.
 

C. 
turning the idea on paper into a prototype.
 

D. 
determining whether the new product can be protected with a patent or copyright.
 

E. 
assessing whether the proposed new product fits with the company's mission and objectives.
 
 321.
A full-scale operating model of the product under development is referred to as a 

A. 
sample.
 

B. 
framework.
 

C. 
template.
 

D. 
prototype.
 

E. 
blueprint.
 
 322.
A prototype is a 

A. 
miniature version of an actual new product used in concept testing to identify any changes that need to be made prior to its commercialization.
 

B. 
full-scale operating model of the product under development.
 

C. 
sample of a new product given to prospective customers and opinion leaders used to generate awareness prior to the product's commercial release.
 

D. 
simulated operating model of the product given to consumers to use in full-scale field testing.
 

E. 
digital version of a product produced in multiple shapes, colors, and sizes to determine which version of the product customers like best.
 
 323.
For services, business analysis must consider __________, which finds ways to match the availability of the service to when it is needed. 

A. 
capacity management
 

B. 
customer experience management
 

C. 
derived demand
 

D. 
internal marketing
 

E. 
the seven I's of services GDP
 
 324.
In implementing capacity management, service providers use __________ to charge different prices for different times of the day or week to help match the supply and demand for their services. 

A. 
off-peak pricing
 

B. 
dynamic pricing
 

C. 
capacity pricing
 

D. 
down-time pricing
 

E. 
yield management pricing
 
 325.
One tool available for services when dealing with capacity management is to use __________ to charge different prices during different times of the day or the week to help match the supply and demand for their services. 

A. 
variable hours of operation - opening or closing a store at different times
 

B. 
sales promotion incentives such as coupons
 

C. 
off-peak pricing
 

D. 
build-to-order service delivery systems
 

E. 
rationing
 
 326.
The stage of the new-product process that turns an idea on paper into a prototype is referred to as __________. 

A. 
idea generation
 

B. 
screening and evaluation
 

C. 
business analysis
 

D. 
commercialization
 

E. 
development
 
 327.
Development refers to the stage of the new-product process 

A. 
where initial ideas are generated and discussed.
 

B. 
that turns an idea on paper into a prototype.
 

C. 
where product characteristics and product benefits are selected.
 

D. 
where cross-functional team members and leaders are selected and initial tasks are assigned.
 

E. 
where the first version of a product enters the marketplace.
 
 328.
In the new-product process, product ideas that survive the business analysis stage proceed to the __________ stage. 

A. 
market testing
 

B. 
screening and evaluation
 

C. 
business analysis
 

D. 
development
 

E. 
commercialization
 
 329.
At Mattel, Barbie is child-tested to be sure the doll cannot be broken apart and accidentally choke a child. This type of consumer or safety test occurs during the __________ stage of the new-product process. 

A. 
new-product strategy development
 

B. 
development
 

C. 
business analysis
 

D. 
screening and evaluation
 

E. 
market testing
 
 330.
After the new owner purchased a fully equipped yogurt factory, it took a yogurt master a year and a half to come up with the perfect formulation for Chobani Greek Yogurt. The most likely stage of the new-product process during which this time was spent is __________. 

A. 
development
 

B. 
market testing
 

C. 
idea generation
 

D. 
screening and evaluation
 

E. 
business analysis
 
 331.
New-product strategy development calls for INGenius Co. to develop a battery recycler for the business market. Which is the most likely stage of the new-product process in which manufacturing issues regarding the new product become an especially important element? 

A. 
market testing
 

B. 
idea generation
 

C. 
screening and evaluation
 

D. 
development
 

E. 
business analysis
 
 332.
If you watch much television, you have seen the ads that show a controlled crash of a car containing crash test dummies and the resultant vehicular damage. In the new-product process, this safety test would occur during the __________ stage. 

A. 
development
 

B. 
market testing
 

C. 
idea generation
 

D. 
screening and evaluation
 

E. 
business analysis
 
 333.
According to the textbook, which of the following firms is in the development stage of the new-product process for a driverless car? 

A. 
Honda
 

B. 
Apple
 

C. 
Google
 

D. 
Ford
 

E. 
General Motors
 
 334.
Another name for the steps in the service delivery process is __________. 

A. 
service interactions
 

B. 
access points
 

C. 
path-analysis
 

D. 
service encounters
 

E. 
wheel of services
 
 335.
Which of the following activities are accomplished during the development stage for services? 

A. 
developing off-peak pricing strategies
 

B. 
using fast prototyping to improve the initial service design
 

C. 
ensuring that employees have the commitment and skills to meet customers' expectations and sustain their loyalty
 

D. 
using capacity management models to match service availability with consumers' needs
 

E. 
analyzing the sequence of service encounters
 
 336.
Since its launch, Netflix has changed its business model in order to 

A. 
compete with Blockbuster's retail store expansion.
 

B. 
respond to changing customer service needs.
 

C. 
expand its focus from entertainment to movie collectibles and memorabilia.
 

D. 
avoid head-to-head competition with satellite television providers, which recently announced a strategic partnership with Blockbuster that offers a similar service as Netflix.
 

E. 
begin preparations to withdraw from its traditional method of mail delivery, which takes 2-3 business days, and introduce next-day delivery through FedEx.
 
 337.
The stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy is referred to as 

A. 
development.
 

B. 
market testing.
 

C. 
business analysis.
 

D. 
commercialization.
 

E. 
screening and evaluation.
 
 338.
Market testing refers to 

A. 
exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.
 

B. 
making sales and profit projections on prototype products to make go-no-go decisions.
 

C. 
conducting marketing research among a sample of consumers in the target market to determine which version of a new-product concept is deemed the best.
 

D. 
independently run comparison tests with similar products currently in the marketplace to determine which one performs best.
 

E. 
conducting safety tests to determine whether the new product meets the established requirements when it isn't used as planned.
 
 339.
All of the following are examples of test markets EXCEPT: 

A. 
controlled test market
 

B. 
concept test market
 

C. 
simulated test market
 

D. 
laboratory test market
 

E. 
standard test market
 
 340.
Nicole owns a small organic spice company called RaisaSpice and was looking for a new product to add to her company's line. A friend suggested combining spices from India with tea. In the __________ stage of the new-product process, the spice and tea mixtures were distributed to grocery stores in Portland and Seattle to see if they sold well. 

A. 
idea generation
 

B. 
screening and evaluation
 

C. 
business analysis
 

D. 
market testing
 

E. 
commercialization
 
 341.
Audiences are allowed to preview actual movies (a sneak preview) such as The Hunger Games and Star Trek so that changes might be made before they are released to the general public during which stage of the new-product process? 

A. 
market testing
 

B. 
business analysis
 

C. 
commercialization
 

D. 
screening and evaluation
 

E. 
concept testing
 
 342.
Breyer's introduced a new line of ice cream flavors for sale in elegant black containers. This was done on a limited scale to determine consumer reactions before national distribution of the product. Breyer's new product was in the __________ stage of the new-product process. 

A. 
commercialization
 

B. 
screening and evaluation
 

C. 
business analysis
 

D. 
development
 

E. 
market testing
 
 343.
Which of the products listed below would be the best candidate for full-scale market testing? 

A. 
totally free checking account from Bank One
 

B. 
household frequent flyer program from Delta Airlines
 

C. 
mid-priced luxury sedan made in America by Mazda
 

D. 
new iced coffee beverage from Starbucks
 

E. 
slimmer iMac computer
 
 344.
Test marketing involves offering a product for sale 

A. 
to random sample of people in the top ten major cities of the U.S.
 

B. 
in as broad a geographic region as possible.
 

C. 
to consumers that are representative of the target market.
 

D. 
on a limited basis in a defined area.
 

E. 
only on certain days of the week and hours of the day.
 
 345.
Which of the following statements about test marketing is most accurate? 

A. 
Test marketing is especially important for new services.
 

B. 
Expensive consumer products must be test marketed in extremely upscale shopping malls to guarantee accurate results.
 

C. 
Test marketing is better suited to relatively inexpensive new consumer goods than for new services.
 

D. 
Test marketing is especially important for new, expensive industrial products.
 

E. 
Standard test markets are the least expensive and fastest type.
 
 346.
If a firm used IRI's BehaviorScan service to track sales of a new product made to a panel of consumers and assess the effectiveness of advertising and other promotion tactics, what type of test market is this? 

A. 
laboratory test market
 

B. 
concept test market
 

C. 
simulated test market
 

D. 
controlled test market
 

E. 
standard test market
 
 347.
Because of the time, cost, and confidentiality problems of test markets, consumer packaged goods firms often turn to __________, a technique that replicates a full-scale test market to a limited degree, often in a mall setting. 

A. 
partial rollouts
 

B. 
screening and evaluation
 

C. 
virtual reality testing
 

D. 
time-to-market measures
 

E. 
simulated test markets
 
 348.
Simulated test markets (STMs) are often run in shopping malls where consumers are 

A. 
asked how much a person is willing to pay for an unfamiliar item.
 

B. 
asked whether they saw the firm's advertising campaign.
 

C. 
questioned about how often they are likely to shop in that particular location.
 

D. 
asked to identify differences between the consumer's behavioral intention and actual behavior regarding a firm's new product.
 

E. 
questioned to identify product users and their likely consumption and media patterns.
 
 349.
The stage of the new-product process that positions and launches a new product in full-scale production and sales is referred to as __________. 

A. 
marketing program execution
 

B. 
disbursement
 

C. 
launch
 

D. 
commercialization
 

E. 
final distribution
 
 350.
Commercialization refers to 

A. 
the point at which a new product has diffused throughout the marketplace.
 

B. 
the introduction of an offering to sequential geographic areas of the U.S.
 

C. 
exposing actual products to prospective consumers under realistic purchase conditions.
 

D. 
the stage of the new-product process that positions and launches a new product in full-scale production and sales.
 

E. 
the point where new-product concepts are transformed into prototypes.
 
 351.
Commercialization is the stage in the new-product process 

A. 
at which the product is positioned and launched in full-scale production and sales.
 

B. 
during which the firm performs its final evaluations of the new-product.
 

C. 
when second-year sales forecasts are compared to actual first-year sales figures using a marketing dashboard.
 

D. 
when advertising campaigns are evaluated using Starch scores to identify brand awareness.
 

E. 
at which the product generates the greatest sales and profits.
 
 352.
The most expensive stage in the new-product process for most products and services is 

A. 
commercialization.
 

B. 
screening and evaluation.
 

C. 
business analysis.
 

D. 
development.
 

E. 
market testing.
 
 353.
A slotting fee is a payment that a 

A. 
wholesaler makes to place a new product on a retailer's shelf.
 

B. 
manufacturer makes to have a wholesaler distribute a new product to retailers.
 

C. 
manufacturer makes to place a new product on a retailer's shelf.
 

D. 
manufacturer makes to a wholesaler as compensation for warehousing inventory.
 

E. 
manufacturer makes to a retailer as compensation for sales not made while the product was on the shelf.
 
 354.
Marketers pay slotting fees to grocers in payment for space - or slots - on their retail shelves. Such slotting fees significantly increase the cost of which stage of the new-product process? 

A. 
business analysis
 

B. 
market testing
 

C. 
screening and evaluation
 

D. 
commercialization
 

E. 
idea generation
 
 355.
Kroger required that Birds Eye pay $15,000 per month to get its new Vegetable Quinoa Pilaf placed in the middle shelves in the frozen vegetable freezer section of all its supermarkets around the country. This payment is an example of a 

A. 
product placement fee.
 

B. 
bribe.
 

C. 
slotting fee.
 

D. 
product support fee.
 

E. 
shelf space allowance.
 
 356.
A failure fee is a penalty payment 

A. 
a retailer assesses a manufacturer to handle defective new products that customers returned.
 

B. 
a wholesaler makes to a retailer as compensation for sales not made while the product was on the shelf.
 

C. 
a retailer makes to a manufacturer for stockouts - not keeping point-of-purchase displays continuously stocked with the new product.
 

D. 
a manufacturer makes to a wholesaler as compensation for case-lot sales not made to retailers.
 

E. 
a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that fails to sell.
 
 357.
If a new grocery product does not achieve a predetermined sales target, some retailers require a penalty payment by the manufacturer to compensate them for sales that its valuable shelf space was unable to generate. What is this type of payment called? 

A. 
an opportunity cost charge
 

B. 
lost sales fee
 

C. 
shelf space allowance
 

D. 
product displacement fee
 

E. 
a failure fee
 
 358.
Introducing new-products sequentially into geographic areas of the U.S. to allow production levels and marketing activities to build up gradually to minimize the risk of new-product failure is referred to as 

A. 
limited rollouts.
 

B. 
phased rollouts.
 

C. 
market-product expansion.
 

D. 
regional rollouts.
 

E. 
phased commercialization.
 
 359.
A new beverage by Snapple is currently being sold only in the western United States. Over the next year, Snapple plans to introduce the beverage into areas in the Midwest, and then the eastern U.S. This distribution strategy during commercialization is referred to as a 

A. 
limited rollout.
 

B. 
phased rollout.
 

C. 
regional rollout.
 

D. 
market-product expansion.
 

E. 
phased commercialization.
 
 360.
Speed or __________ is often vital in introducing a new product. 

A. 
perpendicular development
 

B. 
time to market
 

C. 
red tape cutting
 

D. 
fast concepting
 

E. 
delivery expediting
 
 361.
Parallel development is the simultaneous development of both 

A. 
the product and promotion strategies.
 

B. 
production and financing tactics.
 

C. 
the product and the production process.
 

D. 
production and selling methodologies.
 

E. 
R&D and financial analysis.
 
 362.
Parallel development, involving the simultaneous development of both the product and the production process, is the responsibility of __________. 

A. 
cross-functional teams
 

B. 
the marketing department
 

C. 
research and development engineers
 

D. 
product managers
 

E. 
top management
 
 363.
__________ often speeds up software development by using a "do it, try it, fix it" approach that encourages continuous improvement even after the initial design. 

A. 
Time to market
 

B. 
Parallel development
 

C. 
Test marketing
 

D. 
Groupthink
 

E. 
Fast prototyping
 
 364.
Which of the following methods is commonly used in software development to speed up the development process? 

A. 
expedited time to market
 

B. 
fast prototyping
 

C. 
parallel development
 

D. 
controlled test marketing
 

E. 
concept testing
 
 365.
The initial target market for X-1 products consisted of __________. 

A. 
seniors who want easy-to-use TV remotes with large buttons
 

B. 
athletes who want waterproof, sweatproof, and weatherproof audio equipment
 

C. 
audiophiles who want HD Sirius/XM Satellite radio receivers in their homes
 

D. 
consumers who want an inexpensive MP3 player like the old Sony Walkman
 

E. 
smartphone users who want a "plug-in" device that lets them listen to AM radio on their smartphone
 
 366.
X-1 uses all of the following sources to generate new-product ideas EXCEPT: 

A. 
co-workers
 

B. 
Team X-1
 

C. 
employees
 

D. 
retail buyers
 

E. 
R&D lab IDEO
 
 367.
X-1 performs all of the following activities during the development stage of its new-product process EXCEPT: 

A. 
conduct safety tests
 

B. 
conduct market tests
 

C. 
use 3D drawings
 

D. 
conduct functionality tests
 

E. 
develop prototypes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

1.
Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as...
 
 
2.
All nations and regions of the world do not participate equally in world trade. World trade flows reflect...
 
 
3.
Almost all countries have some division of social class (upper, middle, and lower). The determining factor for the assignment to one of these classes may differ from country to county. For example, in the United States, the primary determining factor is occupation; in India, it is birthright; in China, it is geographical region and education; and in Singapore, it is income. These differences are best explained in terms of a country's...
 
 
4.
Appliances and smartphones are classified as...
 
 
5.
Around the world, middle-class, youth, and elite markets that consume similar assortments of products and services, regardless of geographic location, are referred to as...
 
 
6.
At which stage in the product life cycle do industry profits usually peak?
 
 
7.
At which stage of the product life cycle are microwave ovens?
 
 
8.
The balance of trade is the...
 
 
9.
Based on a study of 6,500 teens in 26 countries, when asked what country had the most influence on their attitudes and purchase behavior, 54 percent of teens from the United States, 87 percent of those from Latin America, 80 percent of the Europeans, and 80 percent of those from Asia named...
 
 
10.
Brand equity is...
 
 
11.
Business products are...
 
 
12.
Cannibalization would most likely occur if...
 
 
13.
The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as...
 
 
14.
The classifications of innovators, early adopters, early majority, late majority, and laggards are all based upon...
 
 
15.
The complementary nature of economic flows internationally, whereby imports stimulate exports and vice versa, is called _______ and is one argument for free trade among nations.
 
 
16.
Consumer products are...
 
 
17.
Convenience products are...
 
 
18.
Countertrade refers to...
 
 
19.
Cross-cultural analysis refers to the study of...
 
 
20.
Databases that are subject to _________ platforms undertake reasoning and commonsense tasks that allow computers to perform sophisticated behaviors like guiding self-driving cars and making purchase recommendations.
 
 
21.
The EU has benefited firms in its member nations because...
 
 
22.
The extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions is referred to as...
 
 
23.
A field of study that examines the correspondence between symbols and their role in the assignment of meaning for people is referred to as...
 
 
24.
The four I's of service consist of...
 
 
25.
A global brand refers to...
 
 
26.
A global marketing strategy refers to...
 
 
27.
A good, as opposed to a service or an idea, has tangible attributes that a consumer's _______ can perceive.
 
 
28.
Goods can be divided into _______ goods and _______ goods.
 
 
29.
The increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently is referred to as...
 
 
30.
An institution that sets rules governing trade between its members through a panel of trade experts who decide on trade disputes between members and issue binding decisions is referred to as the...
 
 
31.
In terms of the global marketplace, there are three primary types of companies: ________ firms, international firms, and transnational firm.
 
 
 
 
 
 
 
 
 
 
 

32.
KFC in Japan sells tempura crispy strips. In northern England, it stresses gravy and potatoes. In Thailand, it offers fresh rice. In Holland, instead of potatoes, KFC offers customers a potato and onion croquette. In France, KFC sells pastries alongside its chicken. These examples illustrate that KFC exhibits an appreciation for the _______ of other societies.
 
 
33.
Marketing dashboards are useful in measuring actual market performance versus the goals set in new-product planning, such as sales. Once shortfalls are identified, the first step would be to conduct market research to determine.
 
 
34.
Marketing researchers have observed that today we live in an era of data deluge. The challenge facing managers is not data collection or even storage but how to...
 
 
35.
A market-product grid is a framework to relate...
 
 
36.
The monetary value of all products and services produced in a country during one year is referred to as the...
 
 
37.
A multidomestic marketing strategy refers to...
 
 
38.
Multiproduct branding is a branding strategy...
 
 
39.
Nike employs a _________ strategy at its website, nikeid.com, which allows customers to design a sneaker to their own personal specifications.
 
 
40.
A nondurable good is...
 
 
41.
The practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas is referred to as...
 
 
42.
The preference for a specific brand is called ______ demand.
 
 
43.
Primary demand is a desire for the _____ rather than for a _____; it is often the focus of marketing when there are few competitors with the same product.
 
 
44.
A product can be classified as new if it _______ from existing products.
 
 
45.
Product form refers to...
 
 
46.
Product item refers to...
 
 
47.
A product manager is sometimes called a...
 
 
48.
A product mix refers to...
 
 
49.
A _____ product requires little learning by the consumer, and the benefits of the purchase are readily understood.
 
 
50.
Products that usually last over many uses, such as cars and appliances, are referred to as...
 
 
51.
Raw materials, such as grain or lumbar, as well as assemblies or parts are referred to as...
 
 
52.
Recently, the United States imposed a 35 percent tariff on Chinese tire imports in hopes of sustaining U.S. jobs in tire manufacturing. This addition of tariffs is an example of...
 
 
53.
A restriction placed on the amount of a product allowed to enter or leave a county is referred to as a...
 
 
54.
Services can be classified by...
 
 
55.
The ______ stage of the product life cycle is characterized by rapid increases in sales.
 
 
56.
A strategy of dropping a product from the product line during the decline stage of the product life cycle is referred to as...
 
 
 
 
 
 
 
 
 

57.
Tailoring products or services to the tastes of individual customers on a high-volume scale is referred to as...
 
 
58.
Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to offer...
 
 
59.
To eliminate the need to continually monitor currency exchange rates, 16 of the countries in the European Union (EU) have adopted a common currency, which is called the...
 
 
60.
Trading up refers to...
 
 
61.
Unsought products are...
 
 
62.
U.S. citizens pay $5 billion more annually for shoes and Japanese citizens pay $6 billion more for rice than the actual cost of the products because...
 
 
63.
The use of _______ as a tool for exchanging goods, services, and information on a global scale is one of the developments that has affected world trade.
 
 
64.
What is the marketing objective for the decline stage of the product life cycle?
 
 
65.
What is the marketing objective for the growth stage of the product life cycle?
 
 
66.
When a company uses a product line extension, it...
 
 
67.
When a country's exports exceed its import...
 
 
68.
When a firm sells its domestically produced products in a foreign country through an intermediary it is referred to as...
 
 
69.
When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy...
 
 
70.
When considering the quick-service restaurant competition, it will be most important for Wendy's to consider not only the offerings of Burger King, McDonald's, Five Guys, and other hamburger chains but also the...
 
 
71.
Which of the following countries is the world's leading exporter?
 
 
72.
Which of the following countries is the world's leading importer?
 
 
73.
Which of the following is a criterion used for selecting a target market?
 
 
75.
Which of the following is an example of a Tiffany/Walmart strategy?
 
 
76.
Which of the following issues raises raises concerns about the ethics of protectionism?
 
 
77.
Which of the following statements about the dynamics of world trade is most accurate?
 
 
78.
Which of the following statements about the relationship between the imports into the United States and exports from the United States during the last 30 years is most accurate?
 
 
 
 
 
 
 
 
 

79.
Yum! Brands, the parent company of KFC, has pursued an aggressive growth strategy in China. There are now more than 3,700 restaurants in 650 Chinese cities, and KFC has a 40 percent market share of the entire fast-food industry there. Yum! Brands China owns and directly manages about 90 percent of its Chinese stores, so it appears that the company prefers _____ in this market.
 
 
 

 

1.
The 80/20 rule suggests that
 
 
2.
Banana Republic, the clothing retailer, focuses a large proportion of its promotional activities toward its Banana Republic Luxe credit card holders. These Luxe cardholders must reach a specific spending threshold in each year of patronage. The company is using __________ segmentation.
 
 
3.
ChoiceShirts is an online company that makes made-to-order T-shirts. Its online customers can order their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch. This is an example of
 
 
4.
Four general categories used to segment consumer markets are geographic segmentation, demographic segmentation, __________, and behavioral segmentation.
 
 
5.
If Wendy's customers are buying an eating experience, which of the following rationales would make the most sense if you were to group the products Wendy's sells?
 
 
6.
A market-product grid is a framework to relate the __________ to products offered or potential marketing actions by an organization.
 
 
7.
Market segmentation refers to
 
 
8.
One advantage of a market-product grid is that it can be used to
 
 
9.
Organizational synergy is the increased customer value achieved through
 
 
10.
Personality and lifestyle are both variables used to employ __________ segmentation.
 
 
11.
The primary focus of Zappos' market segmentation strategy is to sell
 
 
12.
To be identified as a market segment, members of the group must
 
 
13.
Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to offer
 
 
14.
Usage rate refers to
 
 
15.
The Walt Disney Co. carefully markets two distinct Winnie-the-Poohs; one is the original line-drawn figure on fine china sold at Nordstrom and the other is a cartoon-like Pooh on polyester bed sheets sold at Target. This is an example of
 
 
16.
When a telemarketer calls to sell a consumer life insurance, the last questions asked is what category does the person's household income fall into (less than $50,000; $50,000 to $99,999; and $100,000 and over). When the telemarketer asks about household income, this indicates the use of which type of consumer variable the firm is using to segment its market?
 
 
17.
When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy
 
 
18.
When considering the quick-service restaurant competition, it will be most important for Wendy's to consider not only the offerings of Burger King, McDonald's, Five Guys, and other hamburger chains but also the
 
 
19.
Which of the following is a criterion used in forming market segments?
 
 
20.
Which of the following is an example of a multiple products, multiple market segments strategy?
 
 
 
 
 
 
 
 
 
 
 
 
 

 

1.
According to Figure 8-1 above, what does B represent in the marketing research process?
 
 
2.
Based on the lecture, which of the following is a good example of collecting primary data using personal observation?
 
 
3.
A common way of collecting questionnaire data to generate ideas that involves a single researcher asking questions of one respondent is referred to as a(n)
 
 
4.
A country's communications, transportation, financial, and distribution systems are considered to be its
 
 
5.
Dan Muller talked about the use of Marketing Research at Timken. He mentioned that they have marketing managers who need to research and understand their markets to find innovative products to offer. If you were one of these managers and decided to talk to your customers about problems they were having with competitive products, what kind of research would you be using?
 
 
6.
Data are the
 
 
7.
Even though there are hundreds of different languages and dialects, the three major languages used in global diplomacy and commerce are
 
 
8.
In class, we looked at a variety of possible Global Market Entry Strategies. In the example in lecture, which approach did Goodyear Tire & Rubber take?
 
 
9.
In class, we saw part of the video "The Merchants of Cool." In this video, MTV needed research to help solve a problem. What problem did MTV have at the time?
 
 
10.
In class we talked about primary data collection using mechanical observation. Which of the following is a good example of that approach?
 
 
11.
In class, we thought about vacationing and found that many in the class wanted a restful vacation, while others want an activity filled vacation, and a few people wanted a vacation where they could take their pet. The students in our class appear to group together and to have different wants and preferences when it comes to vacations. This is a good example of:
 
 
12.
Information technology refers to
 
 
13.
Recently Colgate-Palmolive introduced Colgate Enamel Health toothpaste, one that claims to replenish and polish tooth enamel, the hard outer layer of the tooth that provides a protective barrier to inner layers. This new formula helps to separate the Colgate product from its top competitors, such as Crest. What marketing strategy did Colgate-Palmolive use here?
 
 
14.
A researcher studying the fact that in some nations black is a sign of mourning while in others white is a sign of mourning would be studying
 
 
15.
Since global marketing is affected by economic considerations, a scan of the global marketplace should include which of the following factors?
 
 
16.
Which of the following is an example of a multiple products, multiple market segments strategy?
 
 
17.
Which of the following statements concerning ethnographic research is most accurate?
 
 
18.
Which of the following statements concerning personal observation is most accurate?
 
 
 
 
 
 
 
 
 
 
 
 

 

1.
According to lecture, SCM requires us to put information systems and metrics in place that focus on performance across the entire supply chain. Why is this important?
 
 
2.
According to the lecture, the PETA TV ad which used singing cows was a good example of a:
 
 
3.
Alamo, a national car rental firm, firm, targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. The company is using ____________ segmentation.
 
 
4.
All of the following are competition-oriented approaches to selecting an approximate price level
 
 
5.
All of the following statements regarding order getters are true which?
 
 
6.
As noted in class, GEICO originally used a(n) ______________ channel of marketing.
 
 
7.
At White Chemical Co., management is examining its selling strategy and wants to acknowledge the role its sales staff has in undertaking sales support (non-selling) activities, yet keep the salespeople directed toward increasing sales for the next year. What advice is most likely to be appropriate here?
 
 
8.
Behavioral segmentation may be based on
 
 
9.
Buyers are interested in having numerous competing and complementary items from which to choose. The buyer requirement for ________ is satisfied through the breadth and depth of products and brands that intermediaries carry.
 
 
10.
A consumer buys a new digital camera. In using the camera, the consumer takes pictures, uses software to enhance the picture, purchased a new printer and prints the pictures at home. The consumer needed to look online for some help on how to do all of this. For this consumer, we would classify the digital camera as a:
 
 
11.
Downsizing reduces the __________.
 
 
12.
The European Union passed a law called the E-Privacy Directive to
 
 
13.
Given that a firm's profit is high enough for it to remain in business, an objective may be to __________, which will in turn lead to increases in market share and profit.
 
 
14.
An implied warranty
 
 
15.
In class, we considered the case of Church & Dwight company. We noted that, in the consumer product area, the company markets Household Deodorizers, Household Cleaners, Oral Care Products, Laundry Products, Pet Care Products, Personal Care Products, Arm & Hammer Baking Soda, and Deodorant & Anti-Perspirants. Based on this information, how much depth do they have in their product mix?
 
 
16.
In class, we discussed, the Product Life Cycle (PLC) concept. In which stage of the PLC would we find little (if any) competition?
 
 
17.
In class, we heard about one of the best companies in the world in terms of social media marketing. They used a social media campaign called "Wonderfilled" to get consumer involvement. What company did we hear about?
 
 
18.
In class, we heard about the ways in which social media can generate sales. Which of the are the ways?
 
 
19.
In class, we heard from Dan Muller as he discussed segmentation at Timken. Which of the following types of segmentation did he indicate Timken was using?
 
 
20.
In class, we looked at a Price Skimming strategy. What are the reasons that this approach to pricing works?
 
 
21.
In class, we looked at the case of Best Buy, where 20% of their customers generate a significant amount of profits by purchasing high margin items without bothering to use rebates. According to the lecture, what type of segmentation base is this?
 
 
22.
In class, we said that Redken, the hair care brand, is an example of a company with what kind of product mix?
 
 
23.
In class, we talked about the stages in the personal selling process. In general, when a prospect offers an objection to the sales pitch, it often signals:
 
 
 
 
 
 
 
 
 
 
 
 
 

24.
In class, we thought about what people want on their vacations. One group of consumers has pets that they want to take with them on vacation. They want to have their pets stay with them in their hotel room. We decide to develop a marketing mix to appeal to this group. What do we call this group of consumers?
 
 
25.
In class, we thought about what type of ad schedule would be best for a company like H&R Block Tax services. What did we suggest for them?
 
 
26.
In class we viewed a segment from CNBC's "The Entrepreneurs," in which two male models develop a new brand of granola. They selected the name "FEED" and the product got "rave reviews." Which of the following represented a "next step" in growing their new business?
 
 
27.
In determining how much to spend on an integrated marketing communication campaign, you can choose to use the promotion-to-sales ratio as a guide. In class, we said that if you have a lower ratio than competition, it means:
 
 
28.
In lecture, we heard from Gary Trinetti talking about Supply Chain Management. He indicated that supply chain management crosses over many areas. Which of the following are the areas that SCM covers?
 
 
29.
In marketing, ________ describes the number of stores in a geographical area.
 
 
30.
In some instances, firms pair multiple channels with a multibrand strategy. The purpose of this strategy is to __________ of the firm's family brand and differentiate its marketing channels.
 
 
31.
In terms of a promotional schedule, businesses such as ski resorts, airlines, and professional sports teams are likely to reduce their promotional activity
 
 
32.
In terms of brand loyalty, consumers are very brand loyal and will not accept substitutes for which type of consumer product?
 
 
33.
In the retail life cycle, __________ is the stage of emergence of a retail outlet, with a sharp departure from existing competition
 
 
34.
Jordan Lewis owns a company that makes Triangle BBQ Sauce. She wants to target local people who like the special blend of flavors found only in North Carolina barbecue sauce. In developing a marketing strategy to sell the sauce, Lewis decided to join Goodness Grows in North Carolina, a specialty food association that advertises local products and distributes them to local supermarkets and gourmet shops. Lewis has just
 
 
35.
The new sharing economy consists of all of the following except which?
 
 
36.
Off-price retailing refers to the
 
 
37.
One tool available when trying to even out the variations in demand for services is
 
 
38.
People who tried a . product, were satisfied, and bought it again are called __________ purchasers.
 
 
39.
Predatory pricing is
 
 
40.
Product repositioning refers to
 
 
41.
The ratio of _______ to price is referred to as value.
 
 
42.
The salesperson's objective is to "obtain a purchase commitment from the prospect and create a customer" during which stage in the personal selling process?
 
 
43.
Sales research and practice show that knowledge of the customer and sales situation are key ingredients for
 
 
 

44.
A small electronics company has begun production of a small line of high-quality, professional studio-model components targeted at audiophiles who shop at thousands of specialty stores across the United States. How should the small electronics company best distribute its new products?
 
 
45.
The swoosh that appears on every Nike product is an example of a
 
 
46.
There are seven stages of the new-product development process. The stage of the new-product development process that defines the role for a new product in terms of the firm's overall objectives is the __________ stage.
 
 
47.
Thinking about the effect of price, if you price your product (or service) too low, you ______; and if you price your product too high, you _______.
 
 
48.
Tuition, charges, fares, fees, and rates are all terms
 
 
49.
Under the Clayton Act, __________ with existing channel members may be illegal.
 
 
50.
The use of specialty catalogs from firms such as IKEA, Crate and Barrel, and L.L. Bean have been affected by all of the following factors except which?
 
 
51.
Washburn Guitars recently purchased Parker Guitar, another guitar manufacturer that designs products for professionals and collectors, and will combine the two production facilities into a new location. Washburn expects the acquisition to reduce its rent and tax expenses by 40 percent, and the new skilled employees will reduce the hours of work needed for each unit by 15 percent. This would cause the slope of the total cost curve to __________ and the break-even quantity to
 
 
52.
Which of the following is a government agency that provides a service?
 
 
53.
Which of the following is a task involved in managing personal selling?
 
 
54.
Which of the following is expected to be the next chapter for Apple's
 
 
55.
Which of the following statement is most accurate?
 
 
56.
Which of the following statements about Gatorade is most accurate?
 
 
57.
Which of the following statements about the PLC as a pricing constraint is most accurate?
 
 
58.
Which of the following statements about user-generated content (UGC) is most accurate?
 
 
59.
Which type of pricing assumes that different customers are willing to pay a DIFFERENT price for using the SAME AMOUNT of resources?
 
 
60.
With a cost-oriented pricing strategy, a price setter stresses the __________ side of the pricing problem and the price is set by looking at __________.
 
 
 
 
 
 
 
 
 

 

1.
The 80/20 rule suggests that
 
 
2.
The actual procedures, mechanisms, and flow of activities by which a service is created and delivered is referred to as
 
 
3.
the added value a brand name gives to a product beyond the functional benefits provided.
 
 
4.
aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.
 
 
5.
Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as
 
 
6.
any word, device (design, sound, shape or color), or combination of these used to distinguish a seller's products or services.
 
 
7.
Any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller's products or services is referred to as a
 
 
8.
applying the current brand name to enter a completely different product class.
 
 
9.
As more competitors launch their own products and the product progresses along its life cycle, company attention is focused on creating __________ demand, or the preference for a specific brand.
 
 
10.
Because early-stage financing is almost always a problem for those starting a new business, __________ is a way to gather an online community of supporters to financially rally around a specific project that is unlikely to get resources from traditional sources
 
 
11.
A branding strategy in which a firm markets some products under its own name(s) and other products under the name of a reseller because the segment attracted to the reseller is different from its own market is referred to as
 
 
12.
a concept that describes the stages a product goes through in the marketplace—introduction, growth, maturity, and decline.
 
 
13.
a contractual agreement whereby a company allows another firm to use its brand name or trademark with its products or services for a royalty or fee.
 
 
14.
A contractual agreement whereby one company (licensor) allows its brand name or trademark to be used with products or services offered by another company (licensee) for a royalty or fee is referred to as
 
 
15.
The desire for a product class rather than for a specific brand is called __________ demand.
 
 
16.
During the introduction stage of the product life cycle, __________ pricing strategy may be used. This pricing strategy charges a high initial price to recoup the costs of product development.
 
 
17.
During the introduction stage of the product life cycle, the strategy that discourages competitive entry by charging a low price for a new product is referred to as __________ pricing.
 
 
18.
Each cell of the complete market-product grid shows the
 
 
19.
An entire product category or industry is referred to as
 
 
20.
The facts and figures related to a research problem are referred to as
 
 
21.
The first stage of the new-product development process is
 
 
22.
A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a
 
 
23.
a framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.
 
 
24.
Generating insights leading to marketing actions based on massive numbers of people's ideas is called
 
 
25.
How do services contribute to gdp compared to goods
 
 
26.
The identification that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it, is referred to as a
 
 
27.
If a new grocery product does not achieve a predetermined sales target, some retailers require a penalty payment by the manufacturer to compensate them for sales that its valuable shelf space was unable to generate. What is this type of payment called?
 
 
28.
An important way of defining new products is in terms of their effects on consumption. This approach classifies new products according to
 
 
29.
The initial purchase of a product by a consumer is referred to as
 
 
30.
In terms of the diffusion of innovation, early adopters account for __________ percent of product adopters.
 
 
31.
In terms of the diffusion of innovation, innovators account for __________ percent of product adopters.
 
 
32.
In terms of the diffusion of innovation, late majority accounts for __________ percent of product adopters.
 
 
33.
in which a company uses one name for all its products in a product class.
 
 
34.
Manufacturing a product only when there is an order from a customer is referred to as
 
 
35.
a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products.
 
 
36.
A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products is referred to as
 
 
37.
The market segmentation strategy known as frequency marketing focuses on
 
 
38.
markets some products under its own name(s) and other products under the name of a reseller because the segment attracted to the reseller is different from its own market.
 
 
 
 
 
 
 
 
 
 
 

39.
New product brands introduced as defensive moves to counteract and confront a firm's competition are referred to as
 
 
40.
an organization's use of a name, phrase, design, symbol, or combination of these to identify its products and distinguish them from those of competitors.
 
 
41.
A payment called ________ which a manufacturer makes to place a new product on a retailer's shelf.
 
 
42.
produces products but sells them under the brand name of a wholesaler or retailer.
 
 
43.
A product can be classified as new from all of the following perspectives except which?
 
 
44.
A product can be classified as new if it __________ from existing products.
 
 
45.
Products that usually last over many uses, such as cars and appliances, are referred to as
 
 
46.
A product that disrupts consumers' normal routine but does not require totally new learning is a
 
 
47.
The proliferation of extra capabilities in a product that overwhelms many consumers with mind-boggling complexity is referred to as
 
 
48.
quantity consumed or patronage (store visits) during a specific period.
 
 
49.
Research objectives are
 
 
50.
Segmentation based on some observable actions or attitudes by prospective customers, such as what benefits they seek, as well as where, how frequently, and why they buy, is referred to as
 
 
51.
Segmentation based on some subjective mental or emotional attributes, aspirations, or needs of prospective customers is referred to as
 
 
52.
Segmentation based on where prospective customers live or work is referred to as
 
 
53.
the seven stages an organization goes through to identify business opportunities and convert them into salable products or services.
 
 
54.
Speed or __________ is often vital in introducing a new product.
 
 
55.
The stage of the new-product development process that defines the role for a new product in terms of the firm's overall objectives is referred to as
 
 
56.
a statement that identifies a well-defined target market, specific customers' needs, wants, and preferences, and what the product or service will be and do to satisfy consumers.
 
 
57.
Tailoring products or services to the tastes of individual customers on a high-volume scale is referred to as
 
 
58.
When a company sells a new product with the current brand name to enter a new market segment in its product class, it is using a __________ strategy.
 
 
59.
When a product spreads through the population, it is called the
 
 
60.
Which stage in the product life cycle is characterized by a slowing of total industry sales or product class revenue?
 
 
 

 

 
 
 
Which of the following new products is the best example of the lowest level of risk from the company's point of view?
A) adding Ball Park Beef Franks with Cheese to the Ball Park Franks line
B) moving from production of landline telephones to smartphones
C) marketing the first Apple computer
D) changing the formula from Coca-Cola to New Coke and then back to Coca-Cola Classic
E) offering online marketing classes rebranded under a new college name
 
 
 
Battery maker Duracell introduced a new product called the Duracell Powermat, which is a wireless charging pad for mobile devices. Because of the perceived fit with its other products, this new product was received well by consumers despite being in a different product category. This innovation strategy is known as a
A) brand extension.
B) radical invention.
C) product line extension.
D) disruptive innovation.
E) product accumulation.
 
 
 
Wrigley's new Alert Energy Caffeine Gum "offers a portable solution that lets adults control their caffeine intake." This new gum is most likely which type of innovation?
A) continuous innovation
B) dynamically continuous innovation
C) discontinuous innovation
D) insignificant innovation
E) disruptive innovation
 
 
 
The first LCD (liquid crystal display) flat-panel HD (high-definition) TV is an example of which type of innovation?
A) continuous innovation
B) dynamically continuous innovation
C) discontinuous innovation
D) insignificant innovation
E) disruptive innovation
 
 
 
If you watch television, you may have seen the ads that show a controlled crash of a car containing crash test dummies and the resultant vehicular damage. In the new-product development process, this safety test would occur during the ________ stage.
A) development
B) market testing
C) idea generation
D) screening and evaluation
E) business analysis
 
 
 
Recently, the Google team announced its fleet of driverless cars had completed over 1 million miles of "autonomous driving." The Google driverless car is at which stage of the new-product development process?
A) development.
B) market testing.
C) idea generation.
D) screening and evaluation.
E) business analysis.
 
 
 
Prego introduced a Pasta Bake Sauce, which called for uncooked pasta blended with pasta, sauce, meat, and cheese in a casserole. Legally, this product should only be labeled as new
A) for the first six months that it was regularly available at a variety of grocery stores.
B) until a competitor such as Ragu had issued a similar product targeted to the same market.
C) as long it retained these exact product characteristics.
D) if it was functionally the same as its salsa sauce.
E) until its advertising had been seen by every member of its target audience.
 
 
 
Which of the following is considered a service?
A) hotel stay
B) trash bags
C) silverware
D) washing machine
E) freedom
 
 
 
An extremely large machine for producing sheet metal from steel ingots would be classified as which kind of business product?
A) installations
B) finished goods
C) supplies
D) industrial services
E) raw materials
 
 
 
During which stage of the new-product development process are audiences allowed to preview actual movies like Thor: Ragnarok (a sneak preview) so that changes might be made before they are released to the general public?
A) market testing
B) business analysis
C) commercialization
D) screening and evaluation
E) concept testing
 
 
 
Which of the following is the best example of a nondurable good?
A) napkins
B) water heater
C) insurance
D) iPod
E) laser surgery
 
 
 
The Vermont Teddy Bear Co. sells handmade teddy bears designed to be given as gifts for almost every occasion imaginable. The Love Bandit Bear is designed for people to give as a gift on Valentine's Day. The Love Bandit Bear is an example of a
A) product item.
B) product mix.
C) product class.
D) product form.
E) product line.
 
 
 
During a recent shopping trip to Target, Carlie noticed that the store offered many Glad products, including many different types of trash bags and a large variety of food storage containers. For Glad, each of these two product groupings is an example of a
A) product line.
B) product item.
C) product mix.
D) product industry.
E) product class.
 
 
 
 
 
 
 
 
 
 

 
 
 
Newman's Own is a company that gives all of its profits to charities. The company produces popcorn, salsa, pasta sauces, and salad dressings under the Newman's Own brand name. These product lines comprise the company's
A) product mix.
B) stock keeping units.
C) product category.
D) product class.
E) marketing category.
 
 
 
Which of the following is considered a durable good?
A) rake
B) caviar
C) movie tickets
D) staples
E) voting
 
 
 
If an organization's 2017 sales for the entire United States were $50 million and its 2016 U.S. sales were $30 million, what is the annual percentage sales change?
A) 40
B) 67
C) 100
D) 125
E) 133
 
 
 
Among business products, copiers would be best considered which type of support product?
A) installations
B) accessory equipment
C) supplies
D) industrial services
E) raw materials
 
 
 
Mr. Clean is an antibacterial cleaning liquid for home use. If Procter & Gamble (P&G), the manufacturer of Mr. Clean, added Mr. Clean Magic Eraser Bath Scrubber to the Mr. Clean product line, it would be seen by P&G as
A) a discontinuous innovation.
B) a new product from the company's perspective because it is a product line extension.
C) a high-risk product mix extension because it is new to the market.
D) new by the Federal Trade Commission for the usual one-year period.
E) not a new product because it does not represent a different SKU.
 
 
 
At Mattel, Barbie is child-tested to be sure the doll cannot be broken apart and accidentally cause a child to choke on pieces. This type of consumer or safety test occurs during the ________ stage of the new-product development process.
A) new-product strategy development
B) development
C) business analysis
D) screening and evaluation
E) market testing
 
 
 
Dragon Naturally Speaking, a speech recognition software program that allows you to use your voice instead of a keyboard to input text into a word processing program, is an example of a(n)
A) continuous innovation.
B) discontinuous innovation.
C) dynamically continuous innovation.
D) disruptive improvement.
E) evolutionary innovation.
 
 
 
At the time of its introduction, which of the following products was the best example of a continuous innovation?
A) home security system
B) disposable lighter
C) microwave oven
D) electric toothbrush
E) video camera
 
 
 
When a small retail chain hires an accountant to do its income taxes, the retail chain would have purchased a(n)
A) ancillary service.
B) industrial service.
C) specialty service.
D) accessory service.
E) contractual service.
 
 
 
A retail chain hires a company to design and install a computer network that would allow each store in the chain to check the inventory of others in the chain for customer-requested items. The retail chain purchased which kind of business products?
A) accessory equipment
B) industrial services
C) supply materials
D) component parts
E) installations
 
 
 
 
 
 
 

 
 
 
A 3M researcher worked with university students to develop the Post-it® Flag Highlighter. When his team evaluated the technical feasibility of the proposed design and determined whether the idea met the firm's objectives set earlier, at which stage of the new-product development process was this product?
A) idea generation
B) screening and evaluation
C) business analysis
D) new-product strategy development
E) concept testing
 
 
 
Which of the following best illustrates the concept of derived demand?
A) The number of retail stores in a downtown area decreases even though demand for retail goods increases.
B) An increase in the number of new, single-family homes results from a spike in the gross national product.
C) A Chinese plastics company increases its output because of its customers' higher toy exports to the United States.
D) A heat wave results in an increased demand for air conditioners.
E) Honda reducing its car prices causes GM to do the same.
 
 
 
Until 1996, U.S. carmakers sent very few right-hand-drive cars to Japan while German carmakers exported several models with the steering wheel on the right to accommodate driving on the left-hand side of the road in Japan. American car manufacturers could blame their failure to a great degree on
A) an insignificant point of difference.
B) too little market attractiveness.
C) not satisfying customer needs on critical factors.
D) poor product quality.
E) incomplete market and product protocol.
 
 
 
Among business products, which of the following would most likely be considered an industrial service?
A) tractor
B) glass cleaner
C) photocopier maintenance
D) athletic training facility
E) syringes
 
 
 
Intangible items such as theater performances, legal advice, or music streaming that an organization provides to consumers are referred to as
A) production goods.
B) support products.
C) services.
D) goods.
E) benefits.
 
 
 
Kroger required that Birds Eye pay $15,000 per month to get its new Vegetable Quinoa Pilaf placed in the middle shelves in the frozen vegetable freezer section of all its supermarkets around the country. This payment is an example of a
A) product placement fee.
B) bribe.
C) slotting fee.
D) product support fee.
E) shelf space allowance.
 
 
 
At the time of its introduction, which of the following products was the best example of a continuous innovation?
A) The first Apple iPhone
B) Atari, the first video game system
C) Sunsilk Silky Straight shampoo and conditioner with tip-targeting technology
D) Dragon Naturally Speaking voice-recognition software
E) Naturalpoint Trakir, which replaces the computer mouse by tracking head movements
 
 
 
Among business products, printer paper would be classified as which type of support product?
A) installations
B) accessory equipment
C) supplies
D) industrial services
E) raw materials
 
 
 
Personal selling is least important for which of the following products?
A) bicycle
B) toaster
C) toothpaste
D) deck furniture
E) watch
 
 
 
 
 
 
 

 
 
 
Installations are support products that include items such as
A) copy paper, mechanical pencils, and lightbulbs.
B) welding masks and computers.
C) warehouses and automated assembly lines.
D) lumber and engine parts.
E) janitorial and legal services.
 
 
 
Which of the following is an example of a product line?
A) Listerine mouthwash
B) Zephyrhills natural spring water in eight-ounce bottles
C) The Yellow Pages for Gainesville, Florida
D) Alex and Ani bracelets
E) Samsung Galaxy Edge S8
 
 
 
Which of the following is considered a service?
A) presidential candidate
B) bicycle
C) taco
D) cab ride
E) environmentalism
 
 
 
In the early 1900s, your great-great-grandfather probably purchased his first automobile. After years of driving a horse and buggy, he got into his new car and drove it into his new garage. The new automobile was an example of a(n)
A) continuous innovation.
B) dynamically continuous innovation.
C) disruptive improvement.
D) discontinuous innovation.
E) evolutionary innovation.
 
 
 
Philips Sonicare recently introduced the DiamondClean rechargeable toothbrush. A key innovation is its Quadpacer interval timer that goes off after 30 seconds to prompt the user to move on to the next quadrant of the mouth, resulting in better cleaning and improved gum health. This is an example of which type of innovation?
A) disruptive innovation
B) continuous innovation
C) discontinuous innovation
D) dynamically continuous innovation
E) evolutionary innovation
 
 
 
The new Samsung Family Hub Refrigerator has a 21.5-inch touchscreen, ingredient-tracking fridge-cams, and an assortment of fridge apps. This is an example of which type of innovation?
A) inventive innovation
B) continuous innovation
C) discontinuous innovation
D) dynamically continuous innovation
E) continuous invention
 
 
 
It is common now for laptops and tablets to utilize multitouch functions, such as "pinch to zoom," either on the screen interface or with the tracking mouse. When the multitouch interface was first introduced, it was an example of which type of innovation?
A) continuous innovation
B) discontinuous innovation
C) disruptive innovation
D) dynamically continuous innovation
E) evolutionary innovation
 
 
 
Among business products, supplies usually consist of
A) buildings and fixed equipment.
B) items used in the manufacturing process that become part of the final product.
C) tools and office equipment.
D) items such as pens, batteries, and lightbulbs.
E) raw materials and component parts.
 
 
 
Considering the classification of consumer products, which of the following products will have the most limited distribution?
A) Secret antiperspirant
B) Fuji disposable camera
C) BP gasoline
D) Marchesa wedding gown
E) Sony HDTV
 
 
 
 
 
 
 

 
 
 
Nicole owns a small organic spice company called RaisaSpice and was looking for a new product to add to her company's line. A friend suggested combining spices from India with tea. In the ________ stage of the new-product development process, the spice and tea mixtures were distributed to grocery stores in Portland and Seattle to see if they sold well.
A) idea generation
B) screening and evaluation
C) business analysis
D) market testing
E) commercialization
 
 
 
Among business products, which of the following would most likely be considered accessory equipment?
A) copper wiring
B) a factory
C) a cleaning service
D) pneumatic nail gun
E) ink-jet printer cartridges
 
 
 
A new beverage by Snapple is currently being sold only in the western United States. Over the next year, Snapple plans to introduce the beverage into areas in the Midwest, and then the eastern United States. This distribution strategy during commercialization is referred to as a
A) limited rollout.
B) phased rollout.
C) market-product expansion.
D) regional rollout.
E) phased commercialization.
 
 
 
Vivienne, a college student with limited financial resources, was considering the purchase of a new laptop. She visited several office supply and consumer electronics stores, searching for the lowest price on a reliable new laptop. She devoted a great deal of time and energy to getting the best value for her money. For Vivienne, a laptop was a(n)
A) specialty product.
B) unsought product.
C) discretionary product.
D) shopping product.
E) convenience product.
 
 
 
You decide to buy a new car. You talk to friends about it, research mechanical specifications in Consumer Reports, test-drive different makes and models, and compare prices at several dealerships. Into which classification of consumer products would your new car purchase fall?
A) specialty product
B) unsought product
C) discretionary product
D) shopping product
E) convenience product
 
 
 
You greatly admire a set of Waterford crystal serving bowls you see at a dinner party and decide to buy two despite their cost of $250 each. They are only available in your area in a Waterford shop 40 miles from campus. Into which classification of consumer products would the Waterford crystal serving bowls fall?
A) convenience products
B) shopping products
C) unsought products
D) specialty products
E) discretionary products
 
 
 
Which of the following would most likely be considered a consumer product?
A) auto lift
B) cotton fiber
C) printing press
D) suitcase
E) massage table
 
 
 
Fifty percent or more of American adults have not had their teeth checked by a dentist within the past five years. For these people, dental services would most likely be classified as a(n)
A) shopping product.
B) convenience product.
C) a specialty product.
D) unsought product.
E) business product.
 
 
 
A newly invented apple peeling and coring machine for the consumer market would be considered a(n)
A) shopping product.
B) convenience product.
C) specialty product.
D) unsought product.
E) discretionary product.
 
 
 
 
 
 
 

 
 
 
Which of the following products at the time of its introduction was the best example of a discontinuous innovation?
A) DVD player
B) disposable lighters
C) instant light charcoal
D) liquid laundry detergent
E) automatic dishwashers
 
 
 
Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea. Several years ago, Harley-Davidson introduced perfume under the Harley-Davidson brand name and it failed quickly. This innovation strategy is known as a
A) radical invention.
B) product line extension.
C) disruptive innovation.
D) product deletion.
E) brand extension.
 
 
 
The addition of Clorox II bleach to Tide laundry detergents is an example of a
A) discontinuous innovation.
B) bundled innovation.
C) dynamically continuous innovation.
D) disruptive innovation.
E) continuous innovation.
 
 
 
Heavy-duty Rayovac flashlights are sold to consumers throughout the United States. Philips manufactures the bulbs used in Rayovac flashlights. The quantity of bulbs Philips makes is related to how many flashlights Rayovac sells. This is an example of
A) a tying arrangement.
B) reciprocity.
C) strategic alliance demand.
D) relationship marketing.
E) derived demand.
 
 
 
Pasta sauces have always required the accompanying pasta to be precooked before it is mixed with the sauces and other ingredients. The development of Prego Pasta Bake Sauce that calls for uncooked pasta would be an example of a
A) continuous innovation.
B) discontinuous innovation.
C) evolutionary innovation.
D) disruptive innovation.
E) dynamically continuous innovation.
 

 

1.
According to the service continuum, which of the following offerings has the highest level of intangibility?
 
 
2.
An ad for Conesco Insurance asks the question, "How long will you wait to start planning for long-term care?" The ad shows an elderly women being assisted by a nurse as she tries to win money on a game show. The idea that she will not have the care she needs because she failed to plan her finances for the future when she was younger is an example of a
 
 
3.
An announcement that Apple has just introduced a new version of its iMac personal computer is an example of which type of publicity tool?
 
 
4.
Ann's young son suffers from allergies and complains about his watery eyes and drowsiness. Ann feels bad because she thought there was nothing she could do to help him. When Ann saw the ad for a new drug that counters these symptoms in Martha Stewart Living magazine, she vowed to ask his doctor about this product on her son's next visit. Ann is at which stage in the hierarchy of effects?
 
 
5.
An assessment of the "business fit" of the proposed new product, from whether it can be economically produced to the marketing strategy needed to have it succeed, takes place during which stage of the new-product development process?
 
 
6.
A company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for old dishwashers in a small apartment complex it owns. Because the company is buying more than 10 dishwashers, it is eligible for a $150-per-unit quantity discount. Financing charges total $20 per unit. The company gets $10 per dishwasher for the 15 dishwashers traded in. What is the final price the company will pay for each dishwasher (not the total cost)?
 
 
7.
Epicurious is a website where recipes are posted by the site owner and individual cooks. Using a "four-fork" rating system, users rate and comment on these recipes for ease or difficulty in preparation, the taste of the finished dish, and whether or not they would use the recipe again. Epicurious is most likely what type of social media website?
 
 
8.
For marketers, the primary objective of coupons is to
 
 
9.
If a clothing store is hoping to let customers know of its competitive prices on jeans, a useful smartphone app to spread this information most likely would be
 
 
10.
If you wanted to generate brand buzz for an upcoming product using Twitter, what is the best way to implement Twitter?
 
 
11.
In the early 1900s, your great-great-grandfather probably purchased his first automobile. After years of driving a horse and buggy, he got into his new car and drove it into his new garage. The new automobile was an example of
 
 
12.
A Levi's ad features the introduction of the company's new Levi's 501 CT. What type of product advertisement is this ad?
 
 
13.
Media richness is __________ in face-to-face communication than in telephone or e-mail communications.
 
 
14.
Microsoft introduced its Zune player a few years after Apple launched its iPod and other competitors had offered their new MP3 players. Zune sales were very disappointing and Microsoft eventually killed the product. According to the textbook, the primary reason for the Zune's failure was due in large part to
 
 
15.
One of the disadvantages associated with radio as an advertising medium is that it
 
 
16.
An online movie streaming service charges $14.99 per month for its basic package. However, when a competitor introduced the same service at $13.99, the firm dropped its price to $13.99. The firm most likely made this price reduction in an attempt to
 
 
17.
The owner of a small restaurant that sells takeout fried chicken and biscuits each month pays $2,500 in rent, $500 in utilities, $750 interest on his loan, insurance premium of $200, and $250 on advertising on local buses. A bucket of chicken is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. How many buckets of chicken does the restaurant need to sell to break even each month?
 
 
18.
Procter & Gamble Co. created an advertisement for its Old Spice Red Zone Swagger antiperspirant. In terms of the communication process, the __________ in the ad informed prospective customers that the antiperspirant offered more protection than the Old Spice High Endurance brand.
 
 
19.
Promotional mix refers to
 
 
20.
Sarah has a backache due to overexertion. She believes a massage would loosen her back muscles and make her feel better. She is concerned because a massage, unlike a pair of shoes, cannot be felt before she buys it. Sarah realizes massages have __________ properties.
 
 
21.
The successive price cutting by competitors to increase or maintain their unit sales or market share is referred to as
 
 
22.
The tangibles that make up the service, such as buildings, landscaping, vehicles, furnishings, signage, brochures, and equipment, comprise which element of the seven Ps of services marketing?
 
 
 
 
 
 
 
 
 
 
 
 
 

23.
To create a successful advertising campaign on Facebook, a good strategy is for a brand manager to use it to
 
 
24.
When a representative for Pampered Chef cooking utensils invites friends to her home and spends 30 minutes demonstrating the superiority of the Pampered Chef products, she is engaging in
 
 
25.
When introducing a new or innovative product, setting the highest initial price that customers who really desire the product are willing to pay is referred to as a(n)
 
 
26.
Which of the following is considered a service?
 
 
27.
Which of the following is the best example of a convenience product?
 
 
28.
Which of the following statements about relationship marketing is most accurate?
 
 
29.
Which of the following statements regarding goods is most accurate?
 
 
30.
Which of the following types of promotion uses customized interaction?
 
 
 

 

 

 
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