Marketing Test 2 - Practice Questions

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Chapters 6-10

An economic buyer is a person who
A. logically compares choices to get the greatest satisfaction from spending time and money.
B. makes buying decisions based only on price.
C. will not pay extra for convenience.
D. always buys products at the lowest price possible.
E. is averse to spending time and money.

A. logically compares choices to get the greatest satisfaction from spending time and money.

Which of the following is NOT an economic need?
A. Dependability in use
B. Connection to family
C. Economy of use
D. Convenience
E. Efficiency in use

B. Connection to family

The text discusses a four-level hierarchy of needs. Which of the following is NOT included in that model?
A. Social needs.
B. Psychological needs.
C. Safety needs.
D. Physiological needs.
E. Personal needs.

B. Psychological needs.

______ needs are concerned with things that involve a person's interaction with others.
A. Physiological
B. Safety
C. Biological
D. Personal
E. Social

E. Social

Psychological theories of motivation and needs suggest that:
A. connecting with others is an example of a personal need.
B. a particular good or service might satisfy different levels of needs at the same time.
C. all consumers satisfy needs in the same order.
D. the desire for a better world is an example of a social need.
E. All of the above are true statements.

B. a particular good or service might satisfy different levels of needs at the same time.

Which of the following is not a selective process used in gathering and interpreting information from the world around us?
A. Selective exposure
B. Selective perception
C. Selective retention
D. Selective attention

D. Selective attention

______ refers to processes that screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs.
A. Selective exposure
B. Selective learning
C. Selective retention
D. Selective attention
E. Selective perception

E. Selective perception

When Taco Bell shows a large close-up of a chicken taco in a television ad, it is:
A. encouraging selective retention.
B. hoping to encourage extensive problem solving by the audience.
C. appealing to the social needs of the audience.
D. appealing to the economic needs of the audience.
E. using a cue to encourage a particular response to the hunger drive.

E. using a cue to encourage a particular response to the hunger drive.

_____ is a person's point of view towards a product, an advertisement, a salesperson, a firm, or an idea.
A. An attitude
B. A belief
C. A preference
D. An impression
E. A cue

A. An attitude

Consumers' attitudes can be learned from:
A. exposure to the attitudes of others.
B. promotion which is directed toward them.
C. previous experiences.
D. All of the above could be true.
E. None of the above.

D. All of the above could be true.

Psychographics is the analysis of a person's day-to-day pattern of living as expressed in that person's
A. safety, social, and personal needs.
B. actions, interests, and occupation.
C. activities, interests, and opinions.
D. culture, beliefs, and attitudes.
E. psychological and physiological needs.

C. activities, interests, and opinions.

Which of the following is NOT a social influence in consumer buying?
A. Social class
B. Beliefs
C. Family
D. Reference groups
E. Culture

B. Beliefs

According to the text, social class in the U.S. is usually measured in terms of:
A. income.
B. occupation, education, and housing arrangements.
C. income, occupation, and education.
D. race, religion, and occupation.
E. income, occupation, and religion.

B. occupation, education, and housing arrangements.

Reference group
A. influence is so strong that a person normally has only one reference group.
B. influence is greatest for older people.
C. influence is equally strong for all products and brands.
D. members may not even know the people who influence their values and attitudes.
E. Both B and C are true.

D. members may not even know the people who influence their values and attitudes.

In the Jockey underwear ads using young people on the beach and the slogan, "Let 'em know you're Jockey", the company is hoping to use __________ groups to influence consumer behavior.
A. cultural
B. family
C. opinion
D. reference
E. social

D. reference

A college student on her way to take an exam remembers that she doesn't have a pencil with an eraser--which the instructor asked everyone to bring. The store where she stops doesn't have regular pencils--but it does sell Scripto mechanical pencils priced at $2.95. That is what she buys. This case illustrates the effect of:
A. personal environment.
B. culture.
C. purchase situation.
D. learned set.
E. dissonance.

C. purchase situation.

Which of the following is NOT one of the levels of consumer problem solving discussed in the text?
A. Dissonance problem solving
B. Routinized response behavior
C. Extensive problem solving
D. Limited problem solving
E. None of the above, i.e. all four are discussed.

A. Dissonance problem solving

Limited problem solving is used
A. when consumers put much effort into deciding how to satisfy a need.
B. for purchases that have little importance or relevance for the customer.
C. by consumers when some effort is required in deciding the best way to satisfy a need.
D. when consumers regularly select a particular way of satisfying a need when it occurs.
E. mostly for impulse purchases.

C. by consumers when some effort is required in deciding the best way to satisfy a need.

Routinized response behavior
A. is most likely when past purchases of similar products have not satisfied the consumer's needs.
B. is more likely when previous behavior has not yet been reinforced.
C. is most common for purchases where the consumer has much experience in how to meet a need.
D. increases the time required to make a purchase decision.
E. is likely in a new purchase situation.

C. is most common for purchases where the consumer has much experience in how to meet a need.

Dissonance
A. discourages a consumer from considering further information once a purchase has been made.
B. is likely to result in a consumer buying the same product next time.
C. is more likely to occur with low involvement products.
D. is less likely to occur when a consumer has repeatedly purchased the same product.
E. occurs in the adoption process after a consumer becomes interested in a product.

D. is less likely to occur when a consumer has repeatedly purchased the same product.

Which of the following is NOT an organizational buyer?
A. The Red Cross buying office supplies.
B. A sporting goods retailer buying skis.
C. A law office buying a background music service.
D. None of the above are organizational buyers.
E. All of the above are organizational buyers.

E. All of the above are organizational buyers.

Bank of Omaha is an example of what type of organizational customer?
A. Government
B. Nonprofit
C. Producer
D. Intermediary
E. None of the above.

C. Producer

Macy's is considered which type of organizational customer?
A. Producer.
B. Intermediary.
C. Government.
D. Nonprofit.

B. Intermediary.

In comparison to the buying of final consumers, the purchasing of organizational buyers:
A. is strictly economic and not at all emotional.
B. is always based on competitive bids from multiple suppliers.
C. leans basically toward economy, quality, and dependability.
D. is even less predictable.
E. Both A and C are true statements.

C. leans basically toward economy, quality, and dependability.

Buying specialists for organizations are commonly called:
A. supply agents.
B. vendor agents.
C. value analysts.
D. purchasing managers.
E. consumer buyers.

D. purchasing managers.

During the purchase of janitorial services for a new building, Teresa has responsibility for working with suppliers and arranging the terms of the sale. In this role, Teresa appears to be acting as
A. a gatekeeper.
B. a decider.
C. a buyer.
D. a user.
E. an influencer.

C. a buyer.

During the purchase of new tooling at Acme Tool and Die, which of the following is an example of a gatekeeper?
A. Sara, a purchasing manager, arranges the terms of the sale.
B. Ross, from R&D, supplies information for evaluating alternatives.
C. Charlotte, in manufacturing, has the power to select or approve suppliers.
D. Andre, a research assistant, gathers and distributes information about alternatives.
E. Rita, from the manufacturing floor, will use the new tooling.

D. Andre, a research assistant, gathers and distributes information about alternatives.

Natalie Simopoulos, director of procurement at Grecian Glass Company must approve every purchase order, and Anthony Markatos, purchasing manager, must authorize any sales rep who wants to talk to a Grecian Glass employee. Natalie and Anthony are acting as _____ and _____, respectively.
A. decider and gatekeeper
B. influencer and user
C. gatekeeper and influencer
D. buyer and decider
E. user and gatekeeper

A. decider and gatekeeper

When a company creates a rating form for its suppliers and rates their on-time delivery, product quality, service advice, and so forth, in order to determine which suppliers to put on an approved list of suppliers for specific products, this process is called a(n):
A. JIT rating.
B. resident buyer analysis.
C. vendor analysis.
D. ISO 9000 certification.
E. buying center analysis.

C. vendor analysis.

Which of the following is NOT one of the organizational buying processes discussed in the text?
A. Multiple task buying.
B. Modified rebuy buying.
C. New-task buying.
D. Straight rebuy buying.
E. None of the above, i.e., all are buying processes.

A. Multiple task buying.

New-task buying
A. is a routine repurchase that may have been made many times before.
B. occurs when an organization has a new need and the customer wants a great deal of information.
C. is an in-between process where some review of the buying situation is done.
D. occurs when an organization has a routine need and the customer wants only minimal information.
E. involves no review of suppliers.

B. occurs when an organization has a new need and the customer wants a great deal of information.

When a company is trying to decide which type of smart phone to purchase for its sales staff and has never had to make that specific type of purchase before, this buying situation is called a(n):
A. Straight rebuy.
B. New-task buy.
C. JIT buy.
D. Modified rebuy.
E. ISO 9000 buy.

B. New-task buy.

A purchase having some multiple influence and requiring some information would fit the description of a
A. new-task buy.
B. modified buy.
C. straight rebuy.
D. modified rebuy.
E. simplified buying.

D. modified rebuy.

The Foreign Corrupt Practices Act:
A. prohibits U.S. firms from paying bribes to foreign officials.
B. levies stiff penalties against people who pay bribes.
C. applies to foreign firms or individuals who accept payments while in the U.S.
D. was amended to allow small grease money payments if they are customary in that country.
E. All of the above.

E. All of the above.

Marketing research:
A. provides new information for use in decision-making.
B. must be a joint effort between the researcher and the manager.
C. may be handled by outside specialists or by people within the firm.
D. All of the above are true.
E. None of the above is true.

D. All of the above are true.

A ______________ is an organized way of continually gathering and analyzing data to get information to help marketing managers make ongoing decisions.
A. marketing information system
B. marketing model
C. marketing research project
D. marketing research department
E. marketing logistics system

A. marketing information system

A complete marketing information system should:
A. provide a good overall view on many types of problems.
B. allows marketing managers to get needed information while they are actually making decisions.
C. provide answers to specific questions.
D. continually gather data from internal and external sources, and from market research studies.
E. All of the above are true.

E. All of the above are true.

Regarding "marketing research" and "marketing information systems":
A. marketing information systems gather, access, and analyze data from intracompany sources, while marketing research handles all external sources.
B. both tend to focus on nonrecurring information needs.
C. marketing information systems tend to increase the quantity of information available for decision making, but with some decrease in quality.
D. most firms have gone "too far" trying to apply modern decision-making techniques.
E. None of the above is true.

E. None of the above is true.

Which of the following statements BEST reflects the point of view of the text with respect to marketing research?
A. "We don't use computers, surveys and the like because marketing's information needs are usually not that precise anyway."
B. "When we work with outside marketing research specialists, we expect them to take the time to really understand the problem we are trying to solve."
C. "As marketing manager, I feel that the marketing researchers should be left alone to do their research--since they often come up with interesting suggestions."
D. "As marketing research director, I should know the marketing manager's position in advance, so we can prove it is correct if possible."
E. "Our company is very small, but we should have our own marketing research department anyway--to get the information we need to make good decisions."

B. "When we work with outside marketing research specialists, we expect them to take the time to really understand the problem we are trying to solve."

The scientific method is important in marketing research because it:
A. forces the researcher to follow certain procedures, thereby reducing the need to rely on intuition.
B. develops hypotheses and then tests them.
C. specifies a marketing strategy which is almost bound to succeed.
D. Both A and B are correct.
E. All of the above are correct.

D. Both A and B are correct.

Educated guesses about the relationships between things or about what will happen in the future are:
A. theories.
B. laws.
C. "facts."
D. hypotheses.
E. None of the above.

D. hypotheses.

Which of the following is NOT part of the five-step marketing research process discussed in the text?
A. Writing the proposal
B. Analyzing the situation
C. Solving the problem
D. Interpreting the data
E. Defining the problem

A. Writing the proposal

Often the most difficult step in the marketing research process is:
A. analyzing the situation.
B. defining the problem.
C. getting problem-specific data.
D. interpreting the data.
E. All of the above.

B. defining the problem.

When a marketing manager scans a firm's MIS to try to obtain information about why the firm's product sales are down, this is an example of a(n):
A. intranet.
B. hypothesis testing.
C. experiment.
D. data warehouse.
E. situation analysis.

E. situation analysis.

Which of the following statements concerning secondary data is correct?
A. Secondary data usually takes longer to obtain than primary data.
B. Secondary data is only available within the firm.
C. Secondary data was originally collected for some other purpose.
D. All of the above are correct.
E. None of the above are correct.

C. Secondary data was originally collected for some other purpose.

Which of the following statements about secondary data is correct?
A. Secondary data is obtained only from sources outside of the firm.
B. Secondary data may be available much faster than primary data.
C. Results of "old" surveys are not secondary data.
D. Secondary data is usually more expensive to obtain than primary data.
E. All of the above are true.

B. Secondary data may be available much faster than primary data.

____ is an example of a primary data source.
A. Cost data
B. A marketing information system
C. Company files
D. Observation
E. Library

D. Observation

The big advantage of qualitative research in marketing is:
A. ease of interpretation.
B. it provides a good basis for statistical analysis.
C. the in-depth responses it provides.
D. the analysis can be handled on a personal computer.
E. None of the above.

C. the in-depth responses it provides.

A consumer products manufacturer wants consumer reaction to its existing products. Interaction is considered important to stimulate thinking. The firm should use:
A. the observation method.
B. focus group interviews.
C. the GSR (galvanic skin response) method.
D. quantitative interviews.
E. telephone interviews.

B. focus group interviews.

Which of the following is a disadvantage of quantitative research (compared to qualitative research)?
A. It is harder to get in-depth answers.
B. The conclusions are likely to vary more from analyst to analyst.
C. The results are harder to summarize.
D. It is not as fast for respondents.
E. None of the above is true.

A. It is harder to get in-depth answers.

According to the text, "product":
A. means a physical good.
B. includes all the elements of a marketing mix.
C. means the need-satisfying offering of a firm.
D. refers to goods but not services.
E. All of the above.

C. means the need-satisfying offering of a firm.

From a marketing perspective, a high quality copy machine is one that:
A. does a good job satisfying a customer's requirements or needs.
B. offers the most features.
C. is produced with the best materials.
D. has the longest warranty.
E. is designed and manufactured to last the longest.

A. does a good job satisfying a customer's requirements or needs.

Saxon Shoes is a large independent shoe store. In the men's department, the store offers three different brands of slip-on tassel loafers for men: Bass, priced at $75; Rockport, priced at $125; and Allen Edmonds, priced at $250. In terms of product quality, which of the following is an accurate statement?
A. The Bass shoes have the lowest quality.
B. The Allen-Edmonds shoes have the highest quality.
C. The Rockport shoes have mid-level quality.
D. The quality of the three brands depends on the degree to which they meet the needs of the consumers in the target market.
E. All of the above.

D. The quality of the three brands depends on the degree to which they meet the needs of the consumers in the target market.

A "product" might include:
A. a brand name, a package, and a warranty.
B. instructions.
C. a service which does not include a physical good at all.
D. some physical item and its related features.
E. All of the above.

E. All of the above.

Services, as opposed to physical products:
A. May be stored for later use.
B. Are usually sold first, and then produced.
C. Are usually produced and consumed in different time frames.
D. Never require the presence of the consumer in order to be performed.
E. None of the above.

B. Are usually sold first, and then produced.

A large U.S. firm produces potato chips, shortening, dishwasher detergent, laundry detergent, shampoo, disposable diapers, and facial tissues. These are the firm's
A. product classes.
B. product assortment.
C. individual products.
D. marketing mix.
E. product line.

B. product assortment.

Which of the following could be an example of a firm's product line?
A. Coffees.
B. Disposable diapers.
C. Snow skis.
D. Ski boots.
E. All of the above.

E. All of the above.

Branding is good for some CONSUMERS because it:
A. makes shopping easier.
B. provides dependable guides to product quality.
C. helps assure regular satisfaction.
D. All of the above.
E. None of the above.

D. All of the above.

Branding can help BRANDERS because it:
A. may lower promotion costs.
B. can improve the company's image.
C. encourages repeat buying.
D. may develop customer loyalty.
E. All of the above.

E. All of the above.

Branding:
A. is especially helpful with a low quality product.
B. is handled by manufacturers, but not intermediaries.
C. helps consumers, but it is bad for the firm because it increases expenses.
D. is more likely to be successful if demand for the general product class is strong enough to allow a profitable price.
E. None of the above is true.

D. is more likely to be successful if demand for the general product class is strong enough to allow a profitable price.

Which of the following conditions would not be favorable to branding?
A. Dependable and widespread availability is possible
B. Economies of scale in production
C. Fluctuations in product quality due to inevitable variations in raw materials
D. Product easy to identify by brand or trademark
E. Demand is strong so the price can be high enough to be profitable

C. Fluctuations in product quality due to inevitable variations in raw materials

Which of the following is NOT a level of brand familiarity?
A. Brand nonexistence.
B. Brand rejection.
C. Brand nonrecognition.
D. Brand preference.
E. Brand insistence.

A. Brand nonexistence.

Ross Wrigley refuses to buy Billy Goat brand of beer, his attitude toward this brand is called _____.
A. brand rejection
B. brand familiarity
C. brand nonrecognition
D. brand recognition
E. brand positioning

A. brand rejection

If members of the target market for an Apple iPad do not initially recognize the brand name, but compelling advertising results in more members remembering the brand, we say the Apple iPad has achieved:
A. brand rejection.
B. brand preference.
C. brand nonrecognition.
D. brand insistence.
E. brand recognition.

E. brand recognition.

Characteristics of a good brand name include all of the following except:
A. Be easy to spell and pronounce.
B. Be trendy and fashionable.
C. Describe the product and key benefits.
D. Be legally available for use by the firm.
E. Match the brand's packaging.

B. Be trendy and fashionable.

A trademark or brand name can become public property if:
A. the owner doesn't renew the registration each year.
B. it becomes a common descriptive word for the product.
C. the owner doesn't register it under the Lanham Act.
D. it is sold in international markets.
E. All of the above.

B. it becomes a common descriptive word for the product.

Boatwright College gives manufacturers of clothing and gift items permission to place the college's name and emblem on a wide variety of merchandise. In return, Boatwright is paid a fee for granting this permission. In this case, the Boatwright name and logo is a:
A. Manufacturer brand.
B. Individual brand.
C. Dealer brand.
D. Licensed brand.
E. Private brand.

D. Licensed brand.

Packaging
A. can serve as a useful enhancement tool.
B. can increase costs to the consumer.
C. can serve as a useful promotional tool.
D. is concerned with protecting the product in shipping and on the shelf.
E. All of the above are true.

E. All of the above are true.

E. All of the above are true.

B. A package should satisfy not only the needs of final consumers but also those of intermediaries.

Consumer product classes are based on ______________, while business product classes are based on ______________.
A. how the product is to be used, the price for the product
B. how consumers shop for the product, how the product is to be used
C. the price of the product, the quality of the product
D. how the product is produced, how the product is sold
E. how the product is sold, how the product is produced

B. how consumers shop for the product, how the product is to be used

Which of the following is NOT one of the consumer product classes discussed in the text?
A. Unsought products
B. Imitation products
C. Shopping products
D. Convenience products
E. Specialty products

B. Imitation products

Convenience products are products
A. a consumer needs but is not willing to spend much time or effort shopping for.
B. which consumers are aware of but not interested in.
C. meant for use in producing other products.
D. toward which consumer attitudes may be negative.
E. that consumers want because they are easy to use or consume.

A. a consumer needs but is not willing to spend much time or effort shopping for.

If a consumer product is used regularly and usually bought frequently and routinely with little thought (although branding may be important), this product is:
A. a routine product.
B. a specialty product.
C. a homogeneous shopping product.
D. a staple product.
E. a casual product.

D. a staple product.

Compared to other consumer products, the major distinguishing characteristic of emergency products is the customer's:
A. desire to negotiate for a "deal."
B. urgency to get the need satisfied.
C. willingness to shop around for a lower price.
D. interest in the brand name.
E. willingness to shop and compare.

B. urgency to get the need satisfied.

Regarding consumer product classes, a convenience product is to an emergency product as
A. a staple is to an emergency product
B. a shopping product is to a heterogeneous shopping product
C. an unsought product is to a specialty product
D. a new unsought product is to a regularly unsought product
E. a specialty product is to a homogeneous shopping product

B. a shopping product is to a heterogeneous shopping product

Consumer products which customers see as basically the same and want to buy at the lowest price are called:
A. heterogeneous shopping products.
B. homogeneous shopping products.
C. comparison products.
D. unsought products.
E. convenience products.

B. homogeneous shopping products.

Lisa Campos was interested in buying a coffee pot to use at college and a cassette player for her sister's birthday present. At the local discount store, she compared prices on coffee pots and chose the cheapest. She read the product information on each cassette player and finally chose one with stereo headphones and a rechargeable battery. For Lisa, the coffee pot was
A. a convenience product, but the cassette player was a specialty product.
B. a heterogeneous shopping product, but the cassette player was a staple.
C. an impulse product, but the cassette player was a convenience product.
D. a specialty product, but the cassette player was a heterogeneous shopping product.
E. a homogeneous shopping product, but the cassette player was a heterogeneous shopping product.

E. a homogeneous shopping product, but the cassette player was a heterogeneous shopping product.

Specialty products are consumer products which:
A. have elastic demand.
B. very few customers want or can afford to buy.
C. are relatively expensive and purchased only rarely.
D. consumers are willing to search for because they really want them.
E. All of the above.

D. consumers are willing to search for because they really want them.

Which of the following is an "unsought product"?
A. Gravestones aimed at "senior citizens."
B. A new type of "health food" produced by a new, small company.
C. Life insurance aimed at college students.
D. Encyclopedias aimed at new parents.
E. All of the above.

E. All of the above.

The product life cycle has four stages. Which of the following is not one of these?
A. Market introduction
B. Market growth
C. Market maturity
D. Economic competition
E. Sales decline

D. Economic competition

As a product moves through its product life cycle:
A. a firm should change its target market--but not its marketing mix.
B. the competitive situation moves toward monopoly.
C. industry profits keep increasing along with industry sales.
D. customers' needs and attitudes may change.
E. All of the above are true.

D. customers' needs and attitudes may change.

During the market introduction stage of the product life cycle:
A. considerable money is spent on promotion while place development is left until later stages.
B. products usually show large profits if marketers have successfully carved out new markets.
C. most potential customers are quite anxious to try out the new-product concept.
D. funds are being invested in marketing with the expectation of future profits.
E. product and promotion are more important than place and price.

D. funds are being invested in marketing with the expectation of future profits.

Total industry profits reach their maximum during the __________ stage of the product life cycle.
A. market maturity
B. sales decline
C. market development
D. market introduction
E. market growth

E. market growth

Health Care Products Company has noticed that in one of its product-markets industry sales have leveled off and competition has been getting tougher. This product-market appears to be in the ____ stage of the product life cycle.
A. market maturity
B. market introduction
C. market growth
D. sales decline
E. market decline

A. market maturity

Midway, Inc. has seen most of its competitors drop out of its product-market due to declining industry sales and profits. But Midway still has much demand for its product from a small group of loyal customers. This product-market is in which product life cycle stage?
A. Market introduction
B. Market maturity
C. Market development
D. Market growth
E. Sales decline

E. Sales decline

Which of the following observations concerning the product life cycle is NOT TRUE?
A. Product life cycles describe industry sales and profits for a product idea within a particular product-market.
B. The sales and profits of an individual brand follow the life-cycle pattern.
C. A product idea may be in a different life-cycle stage in different markets.
D. Product life cycles should be related to specific markets.
E. A given firm may introduce or drop a specific product during any stage of the product life cycle.

B. The sales and profits of an individual brand follow the life-cycle pattern.

In the market introduction stage of a fast product life cycle, _____ helps develop loyal customers early and keeps competitors out.
A. a low initial penetration price
B. intensive distribution
C. promotion that builds selective demand
D. promotion that reminds
E. a market skimming price

A. a low initial penetration price

Which of the following is LESS LIKELY to happen as a product moves through the later stages of the product life cycle?
A. Place - move toward selective distribution.
B. Promotion - build selective demand.
C. Price - meet competition.
D. Competitive situation - Heading toward pure competition.
E. Product - Some drop out.

A. Place - move toward selective distribution.

According to your text, which of the following is an example of a "new product"?
A. An existing product that has been modified in some way.
B. An existing product for which new uses have been found in other product-markets.
C. An existing product being offered to new markets.
D. All of the above.
E. None of the above.

D. All of the above.

According to the FTC, for a producer to call a product "new," the product:
A. must be no more than two months old.
B. must have achieved brand insistence.
C. must be entirely new or changed in a functionally significant or substantial respect.
D. must have been changed in some way during the last year.
E. None of the above is a correct answer.

C. must be entirely new or changed in a functionally significant or substantial respect.

Which of the following is NOT a separate stage of the new-product development process?
A. Idea generation.
B. Screening.
C. Idea evaluation.
D. Marketing Research.
E. Commercialization.

D. Marketing Research.

Which of the following is an effective source of ideas at the idea generation stage of the new-product development process?
A. Customer complaints.
B. Lead-users of the product.
C. Competitors' products.
D. Products found in overseas markets.
E. All of the above.

E. All of the above.

The Consumer Product Safety Commission can:
A. order costly repairs of "unsafe products."
B. back up its orders with fines or jail sentences.
C. set safety standards for products.
D. All of the above.
E. Both A and C--but NOT B.

D. All of the above.

It is difficult to maintain consistent quality in services because
A. services are nonperishable.
B. as opposed to products, services are tangible in nature.
C. the server is inseparable from the service.
D. variability is reduced as more humans are involved in delivery.
E. it requires minimum human interaction.

C. the server is inseparable from the service.

_____ means giving employees the authority to correct a problem without first checking with management.
A. Responsibility adjustment
B. Empowerment
C. Training
D. Induction
E. Benchmarking

B. Empowerment

Regarding product life cycles, which is TRUE?
A. Industry sales and profits tend to reach their maximum during the market maturity stage.
B. Product life cycles describe industry sales and profits within some product-market.
C. Product life cycles are generally getting shorter and cannot be extended.
D. Every new brand must pass through all four stages of the product life cycle.
E. All of the above are true.

B. Product life cycles describe industry sales and profits within some product-market.

According to the text, product life cycles are:
A. getting longer.
B. speeding up in the later stages.
C. now about the same length as 100 years ago.
D. getting shorter.
E. slowing down in the early stages.

D. getting shorter.

As a product moves into the market maturity stage of its life cycle, the marketing manager should:
A. try to build primary demand.
B. move toward exclusive distribution.
C. expect the market to move toward pure competition.
D. All of the above are true.
E. None of the above is true.

C. expect the market to move toward pure competition.

Regarding product life cycles, good marketing managers know that:
A. all new brands start off in the market introduction stage.
B. product life cycles can be extended through product modifications.
C. a product must pass through all the product life cycle stages.
D. no strategy planning is needed during the sales decline stage.
E. a firm should use penetration pricing during market introduction, especially if the cycle is expected to move slowly.

B. product life cycles can be extended through product modifications.

Kodak announced that it would no longer produce 35 millimeter film cameras, but would manufacture digital cameras exclusively. Sales of digital cameras have grown steadily and have far outpaced the sale of 35 mm cameras in recent years, even among professional photographers. Kodak's decision indicates that 35 mm cameras are probably in the ________ stage of the product life cycle.
A. Market introduction
B. Market growth
C. Sales decline
D. Market maturity

C. Sales decline

Top management of a large company recently approached the dean of a major business school about starting a specialized MBA program for the company's employees. After further discussions, the dean decided that the program did not fit well with the objectives and resources of the school, so the program was put on the "back burner" until conditions changed. The proposed MBA program was at what stage of the new-product development process when it was shelved?
Idea generation
A. Screening
B. Idea evaluation
C. Development
D. Commercialization

B. Idea evaluation

Which of the following statements about new-product development are true?
A. The process should be informal to encourage innovation.
B. The greatest number of product ideas is in the idea evaluation stage.
C. The best criteria for evaluating new product ideas in the early stages is return on investment (ROI).
D. The process should have top management support.
All of the above statements are true.

D. The process should have top management support.

Target's "Cherokee" brand of men's clothing is available only at Target stores. The brand provides a low-cost alternative to other men's fashions available at department stores and via catalogs. The Cherokee brand is a(n):
A. manufacturer brand.
B. dealer brand.
C. licensed brand.
D. national brand.
E. generic brand.

B. dealer brand.

Heinz has a new ketchup bottle that has the cap on the bottom, instead of the top. The bottle uses gravity to help the consumer get every last drop of ketchup out of the bottle. The cap is also designed to pour cleanly, so that dried ketchup does not accumulate around the opening. This new bottle demonstrates how packaging can:
A. promote product.
B. protect the product.
C. lower distribution costs.
D. incorporate UPC codes.
E. enhance product usage.

E. enhance product usage.

McDonald's announced that at select locations, if drive-through customers do not get exactly what they want within two minutes of placing the order, their next meal will be free. This promise by McDonald's is a good example of a(n):
A. service guarantee.
B. warranty.
C. unit price.
D. limited warranty.
E. no-fault insurance policy.

A. service guarantee.

Jack White wanted to purchase a new dress shirt. He went to a local department store, toured the men's department, and thought all the brands looked about the same. He decided to buy the store brand shirt, because it was the cheapest. For Jack, the new shirt was a(n):
A. convenience product.
B. heterogeneous shopping product.
C. specialty product.
D. homogeneous shopping product.
E. impulse product.

D. homogeneous shopping product.

Edna Bates, a marketing researcher who is an expert in customer satisfaction research, is asked by a client to conduct a study dealing with a completely uNfamiliar research topic. Edna consults secondary data to gain more insight about this unfamiliar area. Edna is engaged in the _________ stage of the marketing research process.
A. problem definition
B. situation analysis
C. gathering problem-specific data
D. data interpretation
E. solving the problem

B. situation analysis

A researcher wants to study 1,000 consumers and
needs information about a lot of personal and
sensitive issues. Which of the following would be
the best way to gather this information?
A. Mail survey
B. Focus group
C. Telephone survey
D. Face-to-face interview
E. Experiment

A. Mail survey

A sales training firm wants feedback on the quality of its classes and training services. The firm planned to send mail surveys to CEOs of its client companies to get the needed information. However, one executive objected to the survey plan, saying, "CEOs don't attend our classes. How will they know if the classes are any good?" Another executive added, "If the survey isn't relevant to the CEOs, it will be thrown away and we'll get no data." It appears that the research design presents problems with:
A. response rate.
B. relevance of population.
C. validity.
D. improper statistical analysis.
E. both A and B.

E. both A and B.

A marketing research firm conducted a telephone survey for a consumer products company. It provided new and interesting information about brand image, the competition, and other topics. At the end of the research company's results presentation, the sales manager commented, "This is all interesting information, but it doesn't tell me why our market share is declining among 18 to 34 year old women, nor does it offer me any suggestions about actions I can take to deal with the situation." The sales manager's complaint suggests that the research suffers from problems with:
A. a lack of action implications for management.
B. poor planning by the researcher and managers C. at the outset of the project.
D. poor sampling.
E. a low response rate.
both A and B.

E. a low response rate.

Consuela Velasquez is a receptionist for a group of seven physicians. As she controls the calendars for the physicians, any sales representatives from pharmaceutical companies wanting to call on the physicians have to go through Consuela. As a result, it is very important for sales reps to cultivate a good relationship with her. In the buying center, Consuela would be best described as a:
A. buyer.
B. user.
C. influencer.
D. gatekeeper.
E. decider.

D. gatekeeper.

Ahmed Jamison is a purchasing specialist for a large company. He has the authority to execute purchase orders or amounts up to $100,000. On a purchase order for a higher amount, Ahmed arranges the terms of sale, but the transaction has to be approved by the company president. In the buying center for a purchase in excess of 100,000,
Ahmed is a _________ and the president is a _________:
A. buyer; influencer.
B. influencer; buyer.
C. buyer; decider.
D. gatekeeper; decider.
E user; influencer.

C. buyer; decider.

Nikita Jackson, a sales representative for an industrial supply house, calls on a prospective business customer. The customer has an established relationship with another supplier, but says that there have been some reliability problems with deliveries. Nikita seizes the opportunity to describe her company's state-of-the-art logistics and transportation system that provides outstanding delivery reliability at low shipping costs. Nikita is encouraged because her customer seems to be in a ___________ situation.
A. straight rebuy
B. modified rebuy
C. new-task
D. extensive problem-solving
E. limited problem-solving

B. modified rebuy

Auto parts wholesaler Fixem, Inc. decides to invest in a new data management system to increase the efficiency of its warehouse operations. Previously, all record-keeping was done via printed documents, but now all transactions will be electronic. This change will require Fixem to expend a significant amount of money for hardware, software, and training. However, in the long run, the cost savings
should exceed the up-front investment. Fixem has arranged for presentations to be made by three different vendors. Fixem seems to be facing a ______________ buying situation.
A. straight rebuy
B. modified rebuy
C. new-task
D. extensive problem-solving
E. limited problem-solving

C. new-task

Gotcha! is a chain of trendy stores catering to the urban contemporary market. As part of its close relationship with suppliers, Gotcha! has an Internet site that is accessible only by suppliers, and it provides up-to-the minute point-of-sale information from all of the Gotcha! stores. Suppliers can see how their products are doing at retail during any
time of the day or night. In the relationship between
Gotcha! and its suppliers, the Gotcha! supplier site is an example of:
A. information sharing.
B. legal bonds.
C. reciprocity.
D. operational linkages.
E. negotiated contracts.

A. information sharing.

Ads for Haynes Jeep-Chrysler feature the slogan,
"Come to Haynes, where the fun begins." This is
an appeal to the consumer's:
A. physiological need.
B. safety need.
C. personal need.
D. social need.
E. information need.

C. personal need.

Pat purchased a Ford Taurus, but traded it for
another brand before it was out of warranty
because it constantly needed repairs. Now, every
time Pat sees an ad that mentions the quality of
Ford's new vehicles all she can think about is the
problems she had with her Taurus. This an
example of:
A. need-based thinking.
B. selective retention.
C. selective exposure.
D. selective perception.
E. psychographics.

D. selective perception.

Anime, the cartoon-like Japanese art form, has generated significant interest among Generation Y consumers in the U.S. Anime conventions occur frequently and the largest ones draw more than 20,000 attendees. Anime fans, many in costume, come to these conventions to shop, participate
in anime workshops, and to simply hang out with people with similar interests. Promotion of these conventions capitalizes mainly on:
A. learning.
B. psychological needs.
C. selective processes.
D. reference group influences.
E. culture.

D. reference group influences.

Alice was a bit unsure about her decision after buying a new car. Her uneasiness was diminished after receiving a congratulatory note from the owner of the dealership. The note contained a coupon stating that her first scheduled maintenance on the vehicle would be free. These tactics are part of the dealer's strategy to reduce:
A. dissonance.
B. low involvement purchasing.
C. routinized response behavior.
D. social influences.
E. information search.

A. dissonance.

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