Dimensions Of Marketing Strategy Full Test Bank Chapter 12

1.

Profits are negative in the growth stage of the product life cycle.

 
 
True    False

2.

The perceived value of a product by consumers is an important consideration when pricing that product.

 
 
True    False

3.

Penetration pricing is less flexible than price skimming.

 
 
True    False

4.

Distribution channels for consumer products and business products are the same.

 
 
True    False

5.

Advertising is direct, two-way communication with buyers and potential buyers. 
 
True    False

6.

The Office Superstore surpasses all the competing office stores in the area because it offers the largest variety of products to meet customer expectations. As a result, this company fulfills the dimension of value associated with the product element of the marketing mix. Which of the following statements is true regarding what The Office Superstore must do in terms of the other dimensions of the marketing mix? 
 

7.

Which of the following is the stage in the product development process where most new product ideas are rejected because they seem inappropriate for an organization? 
 

8.

Which of the following stages of the product development process assesses a product's compatibility in the market? 
 

9.

Sun Dane Inc., a tire manufacturing company, is in the process of developing a new product. Its R&D team has shortlisted the idea of a tire fitted with a sheet to keep off dirt. It is in the process of transforming the idea into an actual model. Sun Dane is currently in the _____ stage. 
 

10.

Before introducing a new product, a prototype is created at the _____ stage. 
 

11.

All of the following are true of the process of developing new products EXCEPT 
 

12.

Delightful Dish, a new restaurant focused on offering delicious food that is also healthy, employs a team of nutritionists, doctors, food critics, and chefs that work together to develop healthy, balanced, and tasty recipes for the restaurant. Which of the following steps in the product development process does this scenario best describe? 
 

13.

EduPub, an educational publisher, has found that the market for textbooks is not as strong as it used to be. In an attempt to solve this problem, EduPub challenges its employees to share their ideas for new product models. One of its employees suggests creating an all digital product that has a narrative component as well as all the assessments and activities in one place. EduPub brings together a team of designers, engineers, marketers, and customers to determine whether or not this idea will be successful in the market. Which of the following is a reason this team may determine for moving forward with this idea? 
 

14.

Martin's Cleaning Supplies Company has an idea for a cleaner that is universal and can clean any surface type. This could simplify the cleaning process for homeowners as well as janitors and other professional cleaners. The most important question this company should consider when deciding whether to develop this product, in terms of business analysis, is 
 

15.

_____ is a trial minilaunch of a product in limited areas that represent the potential market.

16.

Supreme Sandwiches, a nationwide sandwich shop chain, introduces a new sandwich in the Midwest to try out its marketing strategy before offering the product across the country. Thus, this sandwich shop is in the _____ stage of the product development process. 
 

17.

_____ is the full introduction of a complete marketing strategy and the launch of a product. 
 

18.

Computech, a company that produces and repairs computers, is getting ready to release a new computer that allows users to talk into its microphone and have the computer transcribe the words into a document. This new computer model will save customers time and the effort of having to use a keyboard to type what they want to write. It will also greatly reduce the incidence of typos and spelling and grammatical errors. Computech is currently in the commercialization step of the product development process. Which of the following is something the firm is likely to do at this stage in the process? 
 

19.

Michael goes to the grocery store to buy a gallon of milk for his cereal and coffee. In this scenario, the gallon of milk is an example of a _____ product. 
 

20.

Sarah went to the grocery store to buy a few items for an upcoming birthday party she is throwing. While she is waiting in the checkout line, she sees a magazine with an article about her favorite actress. She ends up buying it, along with her other items. This magazine is an example of a(n) _____ product. 
 

21.

Before buying a new stereo, Christopher goes to several stores and searches online to compare competitive products in terms of price, features, quality, and style. In this scenario, the stereo is an example of a _____ product. 
 

22.

Peter is a hockey player on a men's league team. During a recent game, Peter took a slap shot and broke his stick. When he goes to the sporting goods store to replace it, he will most likely consider the price of the stick as well as its quality because he wants to avoid another broken stick. As an avid hockey player, who has used multiple stick brands, Peter has two brands he prefers over the others, so he is most likely to buy one of those brands. The hockey stick in this scenario is an example of a _____ product. 
 

23.

Motorcycles are an example of _____ products. 
 

24.

Maureen has recently gotten engaged. She wants to buy a wedding dress designed by Pnina Tornai. As an avid viewer of Say Yes to the Dress, she knows that Kleinfeld Bridal has the largest selection of dresses by this designer. Even though she lives in Colorado, she makes the arrangements to travel to New York to buy her dress at Kleinfeld. In this scenario, the wedding dress is a(n) _____ product. 
 

25.

Auto Assemblers Inc. buys light bulbs to provide light for its workers who build cars on an assembly line. In this scenario, the light bulbs are an example of a _____ product. 
 

26.

Industrial products such as lumber, cotton, and iron ore are classified as 
 

27.

Earth-moving equipment, stamping machines, and robotic equipment used on auto assembly lines are examples of 
 

28.

In the process of assembling cars, Auto Assembly Inc. uses tires, window glass, batteries, and spark plugs, among other things. These items can be classified as 
 

29.

Model Homes Inc. produces trailers and other factory-made homes. Paint is an example of _____ for this house building company. 
 

30.

All of the following are examples of industrial services EXCEPT 
 

31.

7-UP, Cherry 7-UP Antioxidant, and Diet 7-UP are products in Dr. Pepper Snapple Group's 7-Up 
 

32.

A product _____ is all the products offered by an organization.

33.

Medical Products Inc. has just developed a new home examination kit that allows customers to perform most of the functions a doctor performs at an annual physical at home. Currently, this product is experiencing negative profits and the company is spending a great deal of money on advertising to make consumers aware of the product. As a result, this product is most likely in the _____ stage of the product life cycle. 
 

34.

During the _____ stage of the product cycle, a firm tries to strengthen its position in the market by emphasizing the product's benefits and identifying market segments that want these benefits. 
 

35.

During the _____ stage of the product life cycle, a product's profits peak and then start to decline. 
 

36.

Globotech has developed a smartphone with a state-of-the-art camera to allow customers to use their phones as their main photo and video device. This smartphone is currently experiencing the declining sales curve and declining profits that are characteristic of the maturity stage. Which of the following is a reason for this decline in sales and profits? 
 

37.

If a company is eliminating certain models of a product and cutting back on expenditures, the product is most likely in the _____ stage of the product life cycle. 
 

38.

Which of the following is true regarding a product's progression through the product life cycle? 
 

39.

Which of the following activities is associated with identifying products? 
 

40.

A _____ is a brand that is legally protected from use by any other firm. 
 

41.

Pyramid Builders, an architectural firm, uses a pyramid as a distinctive design that is part of its brand. This pyramid is an example of a 
 

42.

Peanut butter is an example of a 
 

43.

Timothy is a doctor who prescribes medication to patients for a variety of ailments. Since he knows that most insurance companies will only cover lower priced versions of these medications, he prescribes mostly _____ pharmaceuticals. 
 

44.

Private distributor brands are 
 

45.

Which of the following is true regarding a product's packaging? 
 

46.

Fresh Foods is required by law to include the ingredients, nutrition facts, suggestions for use in recipes, and the manufacturer's contact information on its product packaging. This presentation of important information on the package is known as 
 

47.

The _____ reflects the degree to which a good, service, or idea meets the demands and requirements of customers. 
 

48.

Sharper Edge is a kitchen knife manufacturer that produces knives that never need to be sharpened. This is an example of 
 

49.

All of the following are true regarding the quality of service EXCEPT 
 

50.

The financial value placed on an object involved in an exchange between a buyer and a seller is known as its 
 

51.

Which key element of the marketing mix directly relates to the generation of revenue and profits? 
 

52.

It took Gamer Central years to develop its new videogame, establish channels through which to distribute this game, and design and implement its advertising campaign for the game. However, the game's price can be set or changed in a few minutes. This reflects the fact that 
 

53.

LCG Inc., a mobile manufacturing company, is launching its new product in the market. The managers at LCG want to price the product in a way that would enable the company to recover the investments made toward developing the product. Which pricing strategy would be most effective for LCG Inc.? 
 

54.

Which of the following is typically related to pricing new products? 
 

55.

Auto Elite produces luxury cars with heated leather seats, sleek design features, and expensive technology that includes giving drivers a 360-degree view of the exterior of the car while they are driving. The pricing strategy that would most likely be associated with these cars is 
 

56.

Dynamix Computers initially charged a low price for its new computer and then raised the price after gaining a large market share. Which of the following pricing strategies did Dynamix Computers use initially in this scenario? 
 

57.

When Ample Appliances Inc. releases new appliances, it often uses price skimming and sets the initial price at the highest possible price that buyers are willing to pay. Which of the following is a reason Ample Appliances Inc. would choose price skimming instead of penetration pricing? 
 

58.

When a company sets a low price for a new product to discourage competition from entering the market, it is using the _____ strategy. 
 

59.

_____ encourages consumers to make purchases based on emotion rather than rational considerations about the price. 
 

60.

Carefree Cosmetics Company sells its eye shadow for $24.99 rather than $25. Thus, it is using

61.

Floral Fragrance, a high-end perfume manufacturer, charges high prices for its perfume because customers associate high prices with superior quality. This is an example of

62.

If a company's goal is to develop an image of having high-quality luxury products, it should employ a(n) 
 

63.

Because consumers associate a drug's price with potency, some pharmaceutical companies use the _____ strategy to price their over-the-counter drugs. 
 

64.

Pet Palace, a local pet store, places its own brand of dog food next to the more established brands. Doing so makes it obvious that Pet Palace's dog food is less expensive than the other brands, thus making it look like a better deal to customers. This is an example of 
 

65.

Buy It All Wholesale Club sells items in large volumes, which allows it to sell items for less per unit. This is known as a _____ discount. 
 

66.

_____ are often employed to boost sales. 
 

67.

After Halloween, Sugar Shack, a large candy store, places all the Halloween candy on sale for 75 percent off. This is an example of 
 

68.

Beauty and Balance, a store that sells cosmetics, hair products, and perfume, sent out an advertisement to its customers to let them know that for the month of December, the price for all eye liners has been reduced from $20 to $12. This is an example of 
 

69.

Candlemania has employed a quantity discount. Which of the following describes how Candlemania might do this? 
 

70.

47 Avenue buys shoes for men, women, and children from a large producer and sells them directly to end users. In this scenario, 47 Avenue is a  
 

71.

All of the following are true of retailers EXCEPT 
 

72.

Wedding Favors Inc. markets its themed wedding favors, table numbers, and decor via its catalog and website. This is an example of 
 

73.

Justin markets kitchen accessories, such as can openers, garlic presses, and apple corers and slicers, by going to people's homes and giving face-to-face sales presentations. This is known as 
 

74.

Television Haven buys televisions from a manufacturer and then sells them to department stores. Television Haven is most likely a 
 

75.

In a survey of business managers, a disruption in the _____ was viewed as the number-one crisis that could decrease revenue. 
 

76.

Farmers who sell their fruit and vegetables to consumers at roadside stands or farmer's markets use a _____ consumer marketing channel. 
 

77.

Which of the following types of consumer marketing channels is used for products such as college textbooks, automobiles, and appliances? 
 

78.

Which of the following types of consumer marketing channels is used for the distribution of products like refrigerators, televisions, soft drinks, cigarettes, clocks, watches, and office products? 
 

79.

Services are usually distributed through _____ marketing channels. 
 

80.

Golden Ticket Chocolates sells its chocolate candies to an agent, a wholesaler, and a retailer before they go to the consumer. Thus, these chocolates use 
 

81.

Emily makes handmade jewelry and sells it to consumers at craft fairs. This is an example of the _____ marketing channel. 
 

82.

Since services usually require the customer's presence and participation, they are usually distributed through 
 

83.

Since business customers like to communicate directly with the producers of their products to gain the technical assistance and personal assurances that only the producer can offer, more than half of all business products are sold through 
 

84.

The intensity of market coverage depends on the 
 

85.

_____ distribution makes a product available in as many outlets as possible. 
 

86.

Garrett's Gum tries to make its chewing gum available at every location where a consumer might desire to purchase it, including grocery stores, gas stations, office vending machines, and transportation hubs. Thus, Garrett's Gum is distributing its gum 
 

87.

Selective distribution 
 

88.

To maintain customer satisfaction in selling its luxury cars, Auto Elite provides salesperson assistance, technical advice, warranties, and repair services. Most of its customers buy these cars after shopping and comparing price, quality, and style. Auto Elite uses _____ distribution. 
 

89.

_____ distribution exists when a manufacturer gives an intermediary the sole right to sell a product in a defined geographic territory. 
 

90.

High-quality items such as musical instruments, sailboats, and airplanes will most likely use _____ distribution. 
 

91.

Inventory control, transportation, and warehousing are all examples of activities of 
 

92.

Clothing Horse, a women's clothing store in the mall, performs inventory control, stores excess products in its warehouse, and handles the products. This store makes its clothing, shoes, and accessories available when they are wanted, with adequate customer service and at minimum cost to customers. Thus, Clothing Horse is creating time and place utility and using 
 

93.

Which of the following modes of transportation offers speed and a high degree of dependability but is the most expensive? 
 

94.

Rustic Rooms Furniture uses _____ to ship its furniture pieces to customers because they can reach more locations. This form of transportation handles freight quickly and economically, offers door-to-door service, and is more flexible in its packaging requirements than several of the other forms of transportation. 
 

95.

Which of the following activities is most closely associated with warehousing? 
 

96.

Heel and Toe Shoes has its own private warehouse to store, handle, and move its boots, sandals, sneakers, and heels. Which of the following is a reason Heel and Toe Shoes would want its own warehouse? 
 

97.

The role of _____ is to communicate with individuals, groups, and organizations to facilitate an exchange directly or indirectly. 
 

98.

Which of the following is an element of the promotion mix? 
 

99.

The process of coordinating the promotion mix elements and synchronizing promotion as a unified effort is known as  
 

100.

When Viera, an automobile company, pays a television network to air its commercial, it is using 
 

101.

When Skin Solutions promotes its facial wash and lotion to adolescents, it emphasizes acne control and clear skin. However, when it promotes its products to adults, it emphasizes wrinkle control and firm skin. This is an example of how 
 

102.

Which of the following promotion mix variables is best for promoting expensive products with specialized uses, such as houses? 
 

103.

_____ is the most flexible of the promotional methods. 
 

104.

Karen works for a pharmaceutical company. Her company sends her to medical conferences several times a year, so she can talk to professionals in the medical field and identify potential buyers of her company's products. Which of the following steps of the personal selling process does this scenario best describe? 
 

105.

Which of the following steps of personal selling is associated with asking a prospect to buy a product? 
 

106.

Venn Networks recently unveiled its new smartphone at a press conference. There was a news release about the new smartphone and all the members of the company's top management interacted with the media during this conference. Venn Networks is using the promotional strategy of _____ in this scenario. 
 

107.

Which of the following is a difference between advertising and publicity? 
 

108.

To promote its new computer, Computech seeks out trendsetters in communities and gets them to "talk up" the computer to their friends, family, co-workers, and others. By doing this, Computech is trying to create a trend or acceptance of its product. This is called 
 

109.

Which of the following elements of the promotion mix involves direct inducements offering added value or some other incentive for buyers to enter into an exchange? 
 

110.

Cassie's Craft Store offers its customers weekly mobile coupons for specific products. This is an example of 
 

111.

When a _____ strategy is used, a company attempts to motivate wholesalers and retailers to make the product available to their customers. 
 

112.

Janice is a saddle fitter for Ideal Saddles, which makes English riding saddles using premium Italian leather. Janice gives a prominent stable owner, Tara, a large discount on one of her company's custom saddles in the hope that Tara will recommend Ideal Saddles to her clients. This is an example of a(n) _____ strategy. 
 

113.

A _____ strategy uses promotion to create consumer demand for a product. 
 

114.

When GK, a company producing razors and shaving accessories for men, asks supermarkets to give its new razors shelf space and special displays, it is using a 
 

115.

The exclusive use of advertising indicates a _____ strategy. 
 

116.

Personal selling to marketing channel members indicates a _____ strategy. 
 

117.

Colors, a company manufacturing cosmetics and body care products, doesn't want to pay the expensive costs of carrying celebrity sponsored perfume brands. However, since many of the company's customers want to buy these products, its refusal to carry them caused decreasing market share. As a result, the company eventually started carrying these sought after brands. This is an example of how 
 

118.

When Energia, a soft drink manufacturer, seeks to use viral ads on the Internet to introduce its new beverage to the consumers even before introducing it to supermarkets, it uses a 
 

119.

All of the following are reasons companies use promotion EXCEPT to 
 

120.

Effective promotional positioning uses promotion to 
 

121.

Bart's Beer targets its 1964 Beer toward those who want to drink beer without consuming many calories. This best exemplifies 
 

122.

Clean Clothes, a manufacturer of washing machines and dryers, is experiencing a period of decreasing sales. It provides rebates and free installation to customers to 
 

123.

Into the Wild is a company that produces a wide range of goods for people interested in adventure sports. Recently, one of the employees in its research division devised a plan for a new product called Superbag. The Superbag will be designed such that all the needs of an adventure enthusiast—tents, sleeping bags, tools, batteries, and shoes—will be provided in an extremely lightweight and ergonomically designed bag. The product has already passed the idea screening process. What will be the next step for the management of Into the Wild as it develops this product?

124.

Ajax Computers is launching its new laptop, which is capable of highly sophisticated sound and multimedia functions. The company reportedly spent millions of dollars in developing this laptop, which will be targeted toward gaming enthusiasts, avid movie watchers, and graphics designers. Which of the two pricing strategies used for new products will be suitable for Ajax Computers in this scenario?

125.

How does supply chain management create alliances between channel members in a distribution system?