Question 1

List the three major classes of consumer goods.

Accepted Answer

Convenience goods, s

Question 2

In which stage of product development does market research have a major role?

Accepted Answer

A)  Prototype development 
B)  Commercialization 
C)  Business analysis 
D)  Product testing 
E)  Concept testing 
A)  Prototype development 
B)  Commercialization 
C)  Business analysis 
D)  Product testing 
E)  Concept testing

Question 3

When UPS asked customers how the company could improve its service, UPS was using

Accepted Answer

A)  video mining. 
B)  observation. 
C)  experimentation. 
D)  focus groups. 
E)  surveys. 
A)  video mining. 
B)  observation. 
C)  experimentation. 
D)  focus groups. 
E)  surveys.

Question 4

Snazzy Sodas is known for its variety of all-natural sodas as well as its efforts toward social responsibility. The company has decided to produce a new line of energy drinks, and while it does not have the resources to promote its product widely, it can make a sizeable impact with a carefully chosen market segment. The CEO favours marketing the product primarily to young males, but the VP of operations recommends targeting female professionals. Which of the following, if true, would support the CEO's position?

Accepted Answer

A)  Snazzy decided that producing a line of energy drinks would be more profitable than attempting to penetrate international markets. 
B)  Young males, as a group, consume more energy drinks than any other market segment. 
C)  Energy drinks cost more per ounce than other popular beverages. 
D)  Energy drink manufacturers have recently tried to associate their product with positive social causes. 
E)  Different companies define "young" differently. 
A)  Snazzy decided that producing a line of energy drinks would be more profitable than attempting to penetrate international markets. 
B)  Young males, as a group, consume more energy drinks than any other market segment. 
C)  Energy drinks cost more per ounce than other popular beverages. 
D)  Energy drink manufacturers have recently tried to associate their product with positive social causes. 
E)  Different companies define "young" differently.

Question 5

A product's benefits include all of the following except which?

Accepted Answer

A)  The emotional satisfaction associated with owning the product 
B)  The satisfaction associated with experiencing the product 
C)  The time required to purchase the product 
D)  The functions of the product 
E)  The acceptance by a peer group 
A)  The emotional satisfaction associated with owning the product 
B)  The satisfaction associated with experiencing the product 
C)  The time required to purchase the product 
D)  The functions of the product 
E)  The acceptance by a peer group

Question 6

What are the psychographic variables used in market segmentation?

Accepted Answer

Lifestyle,

Question 7

Why is it important for companies to develop new products?

Accepted Answer

To expand or diversify product lines, co

Question 8

Penelope's Pizza, a local chain of carryout restaurants, has made the decision to expand to a national basis. It plans to open 50 Penelope's in 20 cities across the country within the next two years. In order to efficiently integrate all the tools and company resources to maximize the impact on new customers, Penelope's Pizza is considering using an integrated marketing strategy to promote a coherent national brand perception. The account manager argues that an integrated marketing strategy is the way to go, but the CEO argues that each local community is different, and the needs, values, and norms of the host cities should drive the marketing campaign. After becoming a successful national brand, Penelope's Pizza has made the decision to expand overseas and enter the global market. Using a globally integrated marketing plan, Penelope's plans to enter the pizza market in Germany, Japan, and India. The CEO wants to use an adaptation plan in the new markets, and thus offer kielbasa pizza in Germany, sushi pizza in Japan, and vegetarian pizza in India. The advertising firm recommends a standardization approach as being more cost efficient and brand identifiable. Which statement, if true, supports the CEO's argument?

Accepted Answer

A)  Traditionally, all three markets are slow to adapt to the idea of fast food, and prefer meals with known ingredients that are familiar to them. 
B)  The cost of introducing new ingredients to the menu will increase the price of pizza by 15 percent. 
C)  Marketing surveys show that the under-30 generation in each of the three countries is increasingly eager to consume fast food as a status symbol of increasing wealth. 
D)  The current economic slump has decreased the volume of sales for all fast foods on a global basis. 
E)  Obtaining vendors for new pizza toppings would require the hiring of additional translators in each country. 
A)  Traditionally, all three markets are slow to adapt to the idea of fast food, and prefer meals with known ingredients that are familiar to them. 
B)  The cost of introducing new ingredients to the menu will increase the price of pizza by 15 percent. 
C)  Marketing surveys show that the under-30 generation in each of the three countries is increasingly eager to consume fast food as a status symbol of increasing wealth. 
D)  The current economic slump has decreased the volume of sales for all fast foods on a global basis. 
E)  Obtaining vendors for new pizza toppings would require the hiring of additional translators in each country.

Question 9

The influence category which includes "lifestyle" is ________, while the category that includes an individual's "motivations" is ________.

Accepted Answer

A)  personal; psychological 
B)  psychological; social 
C)  cultural; social 
D)  social; cultural 
E)  social; psychological 
A)  personal; psychological 
B)  psychological; social 
C)  cultural; social 
D)  social; cultural 
E)  social; psychological

Question 10

Packaging serves one primary function: to protect the product during shipping.

Accepted Answer

A) True 
 B)False

Question 11

________ is segmentation by such traits as age, income, gender, ethnicity, and marital status.

Accepted Answer

A)  Random selection 
B)  Demographics 
C)  Psychographics 
D)  Product use 
E)  Geographics 
A)  Random selection 
B)  Demographics 
C)  Psychographics 
D)  Product use 
E)  Geographics

Question 12

Penelope's Pizza, a local chain of carryout restaurants, has made the decision to expand to a national basis. It plans to open 50 Penelope's in 20 cities across the country within the next two years. In order to efficiently integrate all the tools and company resources to maximize the impact on new customers, Penelope's Pizza is considering using an integrated marketing strategy to promote a coherent national brand perception. The account manager argues that an integrated marketing strategy is the way to go, but the CEO argues that each local community is different, and the needs, values, and norms of the host cities should drive the marketing campaign. Penelope's Pizza also wants to be at the forefront of current trends and changes in the practice of advertising. The account manager wants to focus on consumer generated advertising via YouTube, Twitter, and Facebook, whereas the CEO prefers to focus on mainstream media. Which of the following, if true, would support the position of the account manager?

Accepted Answer

A)  The number of television cable channels has skyrocketed in recent years. 
B)  Over the same time, the four major television networks suffered a 20 percent decrease in viewership, leading to a reduction in advertising rates. 
C)  The emphasis on effectiveness and accountability has lowered the production costs for a 30-second television commercial. 
D)  Television networks are seeking to ban the feature in recording devices that allows viewers to record television shows while deleting all commercial messages. 
E)  Young adults, under the age of 30, consume the largest amount of pizza per capita and are the greatest users of social media. 
A)  The number of television cable channels has skyrocketed in recent years. 
B)  Over the same time, the four major television networks suffered a 20 percent decrease in viewership, leading to a reduction in advertising rates. 
C)  The emphasis on effectiveness and accountability has lowered the production costs for a 30-second television commercial. 
D)  Television networks are seeking to ban the feature in recording devices that allows viewers to record television shows while deleting all commercial messages. 
E)  Young adults, under the age of 30, consume the largest amount of pizza per capita and are the greatest users of social media.

Question 13

Hilltel sells mobile phones and other handheld devices. The company has decided to sell its products internationally and is considering using a standardized marketing approach wherever it sells its products. Hilltel's CEO thinks that having a standardized marketing strategy will enable the company to control and plan production better. Which of the following, if true about using a single marketing approach, would strengthen her case?

Accepted Answer

A)  It means the company will sell in the same way to countries regardless of culture. 
B)  It allows for simplifying inventory and quality control processes. 
C)  It means that more employees will need to be hired at the company's headquarters. 
D)  It locks the company into one marketing strategy for the long term. 
E)  It means that more extensive managerial oversight in sales will be needed. 
A)  It means the company will sell in the same way to countries regardless of culture. 
B)  It allows for simplifying inventory and quality control processes. 
C)  It means that more employees will need to be hired at the company's headquarters. 
D)  It locks the company into one marketing strategy for the long term. 
E)  It means that more extensive managerial oversight in sales will be needed.

Question 14

A group of people in Canada buy all Express Yourself fashion products because they feel the clothes relate to their rebel lifestyle. What kind of segmentation would best help you define this group of individuals?

Accepted Answer

A)  Intrinsic segmentation 
B)  Psychographic segmentation 
C)  Demographic segmentation 
D)  Geographic segmentation 
E)  Product-use variables segmentation 
A)  Intrinsic segmentation 
B)  Psychographic segmentation 
C)  Demographic segmentation 
D)  Geographic segmentation 
E)  Product-use variables segmentation

Question 15

The five major environmental factors in the marketing environment are

Accepted Answer

A)  political-legal, socio-cultural, technological, infrastructure, and competitive. 
B)  political-legal, economic, intellectual, socio-cultural, and competitive. 
C)  political-legal, socio-cultural, technological, economic, and competitive. 
D)  infrastructure, socio-cultural, technological, climatic, and competitive. 
E)  political-legal, intellectual, technological, economic, and competitive. 
A)  political-legal, socio-cultural, technological, infrastructure, and competitive. 
B)  political-legal, economic, intellectual, socio-cultural, and competitive. 
C)  political-legal, socio-cultural, technological, economic, and competitive. 
D)  infrastructure, socio-cultural, technological, climatic, and competitive. 
E)  political-legal, intellectual, technological, economic, and competitive.

Question 16

With respect to the 4 P's, "price" refers only to the actual amount of money that consumers must pay for a product or service.

Accepted Answer

A) True 
 B)False

Question 17

You and your spouse notice that the sports car you currently own is not going to be suitable for travelling when the new baby comes along. You are in the problem recognition stage of the consumer buying process.

Accepted Answer

A) True 
 B)False

Question 18

How does the product life cycle mesh with the product development process?

Accepted Answer

A)  Product commercialization is the start of the introduction stage of the life cycle. 
B)  Commercialization indicates that the product has become a "star." 
C)  Prototype development is the start of the introduction stage of a life cycle. 
D)  Product testing and test marketing take place during the growth stage of the life cycle. 
E)  The two do not mesh. 
A)  Product commercialization is the start of the introduction stage of the life cycle. 
B)  Commercialization indicates that the product has become a "star." 
C)  Prototype development is the start of the introduction stage of a life cycle. 
D)  Product testing and test marketing take place during the growth stage of the life cycle. 
E)  The two do not mesh.

Question 19

Martin is the new director of marketing at Panther Shoes, a manufacturer of sports apparel. In Martin's first staff meeting, a heated discussion erupts over the need to develop new products. The product manager explains that they have had a loyal following of consumers and do not need to develop new products. Others disagree. How should Martin respond?

Accepted Answer

No matter how successful a company's cur

Question 20

Describe the elements of the marketing mix. What is their collective role?

Accepted Answer

The elements of the marketing mix includ

List the three major classes of consumer goods.

In which stage of product development does market research have a major role?

When UPS asked customers how the company could improve its service, UPS was using

A product's benefits include all of the following except which?

What are the psychographic variables used in market segmentation?

Why is it important for companies to develop new products?

The influence category which includes "lifestyle" is , while the category that includes an individual's "motivations" is .

Packaging serves one primary function: to protect the product during shipping.

________ is segmentation by such traits as age, income, gender, ethnicity, and marital status.

A group of people in Canada buy all Express Yourself fashion products because they feel the clothes relate to their rebel lifestyle. What kind of segmentation would best help you define this group of individuals?

The five major environmental factors in the marketing environment are

With respect to the 4 P's, "price" refers only to the actual amount of money that consumers must pay for a product or service.

You and your spouse notice that the sports car you currently own is not going to be suitable for travelling when the new baby comes along. You are in the problem recognition stage of the consumer buying process.

How does the product life cycle mesh with the product development process?

Describe the elements of the marketing mix. What is their collective role?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters

Exam 12: Understanding Marketing Principles and Developing Products

List the three major classes of consumer goods.

In which stage of product development does market research have a major role?

When UPS asked customers how the company could improve its service, UPS was using

A product's benefits include all of the following except which?

What are the psychographic variables used in market segmentation?

Why is it important for companies to develop new products?

The influence category which includes "lifestyle" is ________, while the category that includes an individual's "motivations" is ________.

Packaging serves one primary function: to protect the product during shipping.

________ is segmentation by such traits as age, income, gender, ethnicity, and marital status.

A group of people in Canada buy all Express Yourself fashion products because they feel the clothes relate to their rebel lifestyle. What kind of segmentation would best help you define this group of individuals?

The five major environmental factors in the marketing environment are

With respect to the 4 P's, "price" refers only to the actual amount of money that consumers must pay for a product or service.

You and your spouse notice that the sports car you currently own is not going to be suitable for travelling when the new baby comes along. You are in the problem recognition stage of the consumer buying process.

How does the product life cycle mesh with the product development process?

Describe the elements of the marketing mix. What is their collective role?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters

The influence category which includes "lifestyle" is , while the category that includes an individual's "motivations" is .