MKT3013 Practice 2
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Which of the following statements regarding goods is MOST ACCURATE?
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some goods also have intangible attributes
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Which of the following is the BEST example of a nondurable good?
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gasoline
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Intangible items such as airline trips, financial advice, or telephone calls that an organization provides to consumers are referred to as
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services
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An iMac personal computer from Apple can be classified according to all of the following categories EXCEPT:
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a nondurable good
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In terms of price, which of the following type of consumer product would MOST LIKELY be relatively inexpensive?
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convenience product
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Which of the following is the BEST example of a convenience product?
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create toothpaste
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Which type of consumer product is purchased relatively infrequently and takes some time to make the purchase decision because the consumer needs time to compare offerings during the shopping experience?
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shopping product
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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?
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shopping product
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Which type of consumer product is purchased infrequently and takes an extensive amount of time to make the purchase decision?
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specialty product
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With respect to price, which of the following type of consumer product would MOST LIKELY be very expensive?
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specialty product
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In terms of promotion, which of the following type of consumer product stresses status and brand uniqueness?
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specialty product
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In terms of brand loyalty, consumers are very brand loyal and will not accept substitutes for which type of consumer product?
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specialty product
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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?
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specialty products
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Which of the following is MOST LIKELY to be an example of an unsought product?
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burial insurance
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Leona hates carrying a camera with her on vacations. If she only knew of the existence of the Canon pocket digital camera that easily fits in any pocket! For Leona, the Canon camera is a(n)
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unsought product
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The type of business products known as support products includes installations, accessory equipment, supplies, and __________
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industrial services
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Installations are support products that include items such as
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warehouses and automated assembly lines
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An extremely large machine for producing sheet metal from steel ingots would be classified as which kind of business products?
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installations
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Among business products, drafting tables would be BEST considered which type of support products?
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accessory equipment
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Among business products, printer paper would be classified as which type of support product?
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supplies
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When consumers consider all types of household cleaners, they are considering the __________ of household cleaners. When consumers limit their choice of household cleaners to only those that come in spray bottles, they are considering a __________ of household cleaners.
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product class; product form
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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)
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stock keeping unit
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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.
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are used together
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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 __________.
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product line
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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.
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product mix
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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
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product mix
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An important way of viewing new products is in terms of their effects on consumption, which from the perspective of consumers is by
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the degree of learning involved
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The emphasis of a marketing strategy for a continuous innovation concentrates on
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generating awareness
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At the time of its introduction, which of the following products was the BEST example of a continuous innovation?
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Sunsilk Silky Straight shampoo and conditioner with tip-targeting technology
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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. This is an example of which type of innovation?
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dynamically continuous innovation
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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
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discontinuous innovation
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Which of the following new products is the BEST example of the LOWEST level of risk from the company's point of view?
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adding Ball Park Beef Franks with Cheese to the Ball Park Franks line
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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
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brand extension
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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. A few years ago, Frito-Lay thought this was a great new-product concept: Why not develop 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. So the "logic" lost out and Frito-Lay Lemonade failed. This innovation strategy is known as a
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brand extension
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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
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not satisfying customer needs on critical factors
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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
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bad timing
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Which stage in the new-product process has as its purpose to identify the role the new product might serve in the firm's overall objectives?
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new-product strategy development
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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?
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new product strategy development
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All of the following are sources for new product ideas EXCEPT:
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regulators
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Dell used __________ to develop an online site to generate 13,464 ideas for new products and website and marketing improvements.
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crowdsourcing
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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 (the 3,000 tiny gripping "fingers") technology could be used to improve the gripping power of batting or work gloves.
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screening and evaluation
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Concept tests are part of which stage in the new-product process?
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screening and evaluation
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Detailed financial projections and assessments of marketing and product synergies are a part of which stage of the new-product process?
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business analysis
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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.
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development
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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.
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development
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All of the following are examples of test markets EXCEPT:
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concept test market
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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.
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market testing
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If a firm hired SymphonyIRIGroup'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?
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controlled test market
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Gatorade offers a range of product offerings. The firm uses one name for all its products in a product class. Gatorade is using a __________ strategy.
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family branding
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Over a decade ago, Survivor premiered as a nighttime reality TV show during the summer season when TV ratings are normally low and TV viewing options consisted primarily of reruns. The marketing goals for the first show included making television viewers aware of its existence and generating enough excitement about the show so that millions of viewers would watch the first episode. Based on this description, the TV show was in what stage of its product life cycle?
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introduction
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When the Egg Farmers of Canada implemented its "Get Cracking" advertising campaign, the organization was trying to stimulate __________ demand.
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primary
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For years, when most consumers thought of cranberries, they thought of the Ocean Spray brand. Then Northland cranberry juice came on the market, claiming that it was superior to the Ocean Spray brand. Northland was creating __________ demand for its cranberry products.
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selective
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All electric-powered automobiles such as the Chevy Sparks shown in the photo above are in which stage of their product life cycle?
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introduction
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Which of the following is an example of a product in the growth stage of the product life cycle?
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e-book readers
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Consider the photo above of Apple's iPhone 5C. Apple launched its revolutionary iPhone in 2007, the first smartphone that used a multi-touch user interface. iPhone unit sales then skyrocketed for several years. Recently, smartphone sales have slowed and profits have declined somewhat as fierce competition from Samsung, Motorola, Nokia (Microsoft), BlackBerry, and several others battle for new customers or those who are considering switching their mobile/smartphones after their contracts expire. The smartphone market is expected to grow at a slower compound annual rate of 13 percent in the next few years. To maintain market shares and attract new customers, smartphone marketers are dropping their average smartphone prices or offering new, lower-cost phones like Apple did with its iPhone 5C (compared to its iPhone 5S). Globally, Apple's iPhone had a 15 percent share of the smartphone market in 2013—second to Samsung, whose share was 41 percent. Which stage of the product life cycle are smartphones like the iPhone 5C in?
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growth stage
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Launched in 2012, Pepsi Next (see the photo above) is a "mid-calorie soft drink targeted at consumers who want both taste and low calories. However, over the previous decade or so, other similar mid-/low-calorie soft drinks have failed, such as Pepsi Edge and Coca Cola C2. Which stage of the product life cycle are carbonated soft drinks in according to the textbook?
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maturity stage
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In the late 1950s and 1960s, television westerns were extremely popular. These adventure shows had settings and costumes that were very unlike other shows of that time (comedy, variety, crime, etc.). Popular programs included Gunsmoke, Bonanza, Wagon Train, The Big Valley, etc. When ratings declined as viewers gradually stopped watching this TV genre, production companies found the networks no longer wanted to produce and televise such shows. The television western was a product category that had entered the __________ stage of its product life cycle.
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decline
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Your product has been suffering from steadily eroding sales. You have tried a number of options to revitalize the product's sales and profits, but after seven changes in your strategy, you have yet to find success. Which of the following actions would be the LEAST appropriate next step?
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stimulate primary demand
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Even though Liquid Paper correction fluid is in the __________ stage of its product life cycle, Sanford, its manufacturer, has not deleted it from its line because there is still a residual core of consumers who use the product.
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decline
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Some singers sing a great song that shoots to the top of the charts. The singers then go on tour and have sold-out concerts everywhere they appear. Just as quickly (particularly if they are unable to follow their first hit song with a second one), they are singing in half-filled concert halls, then smaller clubs, and eventually no one wants to hear them perform. Such "one-hit wonder" singers are best categorized as being __________ products (or services).
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fad
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When Apple first introduced the Apple II personal computer in 1977, industry analysts predicted that very few would be sold. However, a short time after the product was made available, consumers who were young, highly educated, adventuresome, and who were well informed began buying them. While those buyers were relatively few in number, marketers like IBM and Compaq were encouraged because other, less adventuresome consumers like businesspeople would likely adopt personal computers later. Based on the diffusion of innovation concept, those first buyers of personal computers were __________.
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innovators
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Imagine that Post Cereal introduces a cereal bar—Trail Mix Crunch—just like the ones Kellogg's and General Mills already have on the market. Post has decided to promote the bars using ads without coupons and to price the bars at about the same price as these other brands. Post Cereal Trail Mix Crunch cereal bars will also be distributed to the same stores as the products from Kellogg's and General Mills' bars. Which of the following barriers to new product adoption will MOST LIKELY prevent the Post Cereal Trail Mix Crunch cereal bars from being a successful product?
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value barrier
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Which of the following quotes from a new product adopter would signal the need for a firm to counteract a value barrier?
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"Big deal, the only difference is the shape of the package."
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Alka-Seltzer was originally made as a hangover remedy that cured a headache and settled the stomach. Today, you can purchase Original Alka-Seltzer, Extra Strength Alka-Seltzer, Alka-Seltzer Morning Relief (for morning headaches and fatigue), and Alka-Seltzer Heartburn Relief, each of which has slightly different ingredients to solve the inherent problem identified in its respective brand names. To broaden the product line to increase sales to new target market segments, the makers of Alka-Seltzer used a __________ strategy.
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product modification
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When Wendy's wants to increase the value of its Dave's Hot 'N Juicy cheeseburger to its customers, it combines complementary items (French fries and a soft drink—a medium-sized Coke with the burger) to expedite the ordering process, given the myriad of menu order options available. This product modification approach is called __________.
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production bundling
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If Proctor and Gamble (P&G) were to package a Gillette Fusion ProGlide Razor with its Old Spice Pure Sport Anti-Perspirant & Deodorant, P&G would be engaged in __________
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product bundling
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Major American car manufacturers are offering buying incentives to newly graduated college students who traditionally have little or no credit. Car manufacturers are using which of the following market modification strategies?
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finding new users
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Mott's applesauce promotes itself as a low-fat alternative to cooking oil for baked goods. Mott's is __________.
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creating new use situations through a market modification strategy
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For many years, Kellogg's Frosted Flakes, a ready-to-eat breakfast cereal, was perceived as a cereal for children. Tony the Tiger, a cartoon character, extolled Frosted Flakes, and advertisements depicted children enjoying the product with Tony in competitive situations. Recently, in response to declining sales of Frosted Flakes, the cereal-maker has adopted a new series of advertisements that show adults admitting that they enjoy Frosted Flakes, too. Kellogg's is attempting to __________.
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reposition frosted flakes
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When Rose went shopping for a new purse, she thought she had found a real value—a Gucci purse for about 50% of what she was expecting to pay. When she looked at it more closely, she noticed that the purse was identical to a Gucci but was not manufactured by Gucci. This was MOST LIKELY an example of
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product counterfeiting
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When consumers think of Harley-Davidson, the image is of a masculine, non-conformist. With Vespa motor scooters, the image is of a brainy environmentalist. Both Vespa and Harley-Davidson __________.
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have brand personalities
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Figure 11-6 above shows the sequential process of building brand equity. The second step is to establish a brand's meaning in the minds of consumers. This step consists of two dimensions, "B" and "C," which stand for __________ and __________.
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brand performance; brand imagery
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Mattel has a contractual agreement to let Colgate use the Barbie name and image on kids' toothpaste and toothbrushes. Colgate pays Mattel a fee for the use of the Barbie name and image. This is an example of __________.
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branding licensing
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Which of the following products has the brand name that BEST suggests its benefit according to the six criteria for selecting a good brand name?
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Match Light charcoal
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IKEA sells a portable workbench called the FAHRTFULL. The product has many positive features, and in German or Swedish markets, the name describes the product's features well (fahrt meaning travel). This brand name in the United States, however, may not be as effective due to __________.
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its unfavorable phonetic and semantic associations in English
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Every product manufactured by the maker of Slim-Fast carries the Slim-Fast brand name. This company uses __________.
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corporate branding
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When General Mills teams up with Hershey Foods to create a cereal called Reese's Peanut Butter Puffs (the Reese's brand belonging to Hershey's), what is the General Mills' branding strategy called?
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co-branding
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Product packaging, such as the Pringles cylindrical package, is one example of the product's __________.
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functional benefits
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A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can
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increase sales and profitability
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To be identified as a market segment, its members must
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have common needs and respond similarly to a marketing action.
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All of the following are market segmentation strategies EXCEPT:
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multiple products, one segment
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When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids __________.
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the extra cost of developing and producing additional versions of the product
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One marketing action that can be taken to sell a single product or service to multiple market segments is to
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develop separate promotional campaigns.
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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?
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geographic segmentation
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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?
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one product with multiple market segments
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Which of the following is an example of a multiple products and multiple market segments strategy?
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Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo.
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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
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better serves customers' needs
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Custom Foot operates 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
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mass customization
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Chip-N-Dough Cookie Company will let you select cookies and put a photo of yourself on the tin. This is an example of
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mass customization
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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 __________.
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cannibalization
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Which of the following is an example of a "Tiffany/Walmart" strategy?
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Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22.
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The Walt Disney Company carefully markets two distinct Winnie-the-Poohs; one is the original line-drawn figures 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
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a "Tiffany/Walmart" strategy.
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The purpose of the five key steps in segmenting and targeting markets is to
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link market needs of customers to the organization's marketing program.
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Criteria for forming segments involve both similarities and differences. Which of the following statements is MOST ACCURATE?
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Within a segment, the needs of potential buyers should be similar; among segments, the needs of buyers should be different.
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Four general categories used to segment consumer markets are geographic segmentation, demographic segmentation, __________, and behavioral segmentation.
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psychographic segmentation
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As Figure 9-4 above shows, there are four general categories used to segment consumer markets in the U.S., each having its own variables and typical breakdowns that can be used to segment them. "B" describes the __________ base of segmentation.
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behavioral
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Campbell's Soup Company found that its canned nacho cheese sauce, which could be heated and poured directly onto nacho chips, was too hot (spicy) 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.
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geographic
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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?
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deomographic
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All of the following are psychographic segmentation variables EXCEPT:
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birth era
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Magazines like Fitness, Field & Stream, Golf Digest, and Health focus on how people live their lives, and thus all use a __________ segmentation strategy.
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psychograpic
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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.
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behaviorally
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Product features and usage rate are both variables used to employ __________ segmentation.
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behavioral
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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.
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Behavioral
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Airlines have developed frequent-flier programs to encourage passengers to use the same airline repeatedly. This marketing strategy is based on
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behavioral segmenation
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The 80/20 rule is most closely related to which basis of segmentation?
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behavioral
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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?
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the 80/20 rule
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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?
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The products are grouped so people can relate to them in a more meaningful way when they shop.
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One advantage of a market-product grid is that it can be used to
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determine which target market segments to select and which product groupings to offer.
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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?
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cost of reaching the segment
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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
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selecting target market segments to reach
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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 __________.
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product synergies
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In the Apple market-product grid shown above for its personal computer line, the "medium/large business" professional segment seems willing to purchase all of the items in Apple's product line. This allows Apple to enjoy cost savings due to __________.
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market synergies
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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.
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reposition
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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.
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product repositioning
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Head-to-head positioning requires a product to
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compete with competitors on similar product attributes in the same market.
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In the sneaker market, Reebok and Nike practice __________ positioning since both manufacturers vie for the athletic shoe market with technologically advanced products.
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head-to-head
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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.
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differentiation
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Marketers use perceptual maps as a means to display or graph in two dimensions the location of products or brands
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in the minds of consumers
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A perceptual map enables a manager to see how __________ perceive competing products or brands, as well as the firm's own product or brand.
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consumers
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The perceptual map in Figure 9-A 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 more nutritious than which beverage?
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sugared soft drinks
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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 __________.
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product synergies
