Deck 11: Part 2: Product and Promotion: Creating and Communicating Value

Question 1

Which of the following consist of small-ticket items that businesses consume on an on-going basis but are not needed to develop a final product?

A)accessory equipment
B)convenience goods
C)maintenance, repair, and operating products
D)"Category B" inventory items

Answer 1

C

Question 2

What are the three product layers?

A)core benefit, actual product, and augmented product
B)implied benefit, explicit benefit, and combined benefit
C)physical form, intangible form, and perceived form
D)external layer, internal layer, and environmental layer

Answer 2

A

Question 3

What is the term for expensive products that consumers purchase infrequently and are unwilling to accept substitutes for?

A)consumer products
B)pure goods
C)specialty products
D)unsought products

Answer 3

C

Question 4

A masseuse offers services to help consumers relax and feel better.The time of day,the level of talent of the masseuse,and the masseuse's attitude at the time of service may determine the quality of service the patron receives.This is an example of differences in service quality referred to as which of the following?

A)intangibility
B)variability
C)responsiveness
D)reliability

Question 5

What is the term for unfinished products that are used in producing other products?

A)component parts and processed materials
B)raw materials
C)maintenance, repair, and operating products
D)accessory equipment

Question 6

Which of the following is anything that an organization offers to satisfy consumer needs and wants,including both goods and services?

A)product
B)sale
C)licence
D)prototype

Question 7

Which aspect of a service means that it can't be stored?

A)tangibility
B)high cost
C)variability
D)perishability

Question 8

With their extended hours and numerous locations in a given community,7-Eleven stores offer which of the following to consumers?

A)shopping products
B)convenience products
C)unsought products
D)specialty products

Question 9

What is the term for inexpensive goods and services that take very little consideration on the part of the consumer and are frequently purchased?

A)unsought products
B)specialty products
C)convenience products
D)shopping products

Question 10

What do Uno's Pizzeria and LensCrafters have in common?

A)Their products are examples of intermediate goods.
B)Their products are a mix of goods and services.
C)They offer pure goods.
D)They provide pure services.

Question 11

Denise White has a toothache and has set up an appointment with Dr.Smiley,her dentist.She isn't looking forward to the trip,but she knows that Dr.Smiley can't fix her tooth unless she pays him a visit.What does this illustrate about the characteristic of services?

A)artificiality
B)tangibility
C)compoundability
D)inseparability

Question 12

Which of the following are products that do not offer consumer services?

A)convenience goods
B)raw materials
C)brands
D)pure goods

Question 13

Which of the following,exemplified by marketing research and marketing services,would be purchased by businesses to facilitate operations?

A)product services
B)cannibalization
C)pure services
D)business services

Question 14

Which of the following includes small,movable capital purchases that are designed for a relatively short productive life?

A)unsought products
B)raw materials
C)accessory equipment
D)installations

Question 15

Body soap,a box of rice,and olive oil are examples of what?

A)pure goods
B)consumer products
C)convenience products
D)actual products

Question 16

Consumer product categories include which of the following?

A)convenience products, shopping products, specialty products, and unsought products
B)accessories, maintenance goods, and material goods
C)tangible products, augmented products, limited-use products, and intangible products
D)primary products, intermediate products, and final products

Question 17

What is the term for a physical good or delivered service that provides a core benefit?

A)promised product
B)actual product
C)pure product
D)augmented product

Question 18

What do gasoline for a car,ketchup for french fries,and a lady's scarf have in common?

A)They are inseparable services.
B)They are pure goods.
C)They are "mixed message" products.
D)They are all in the growth stage of their product life cycle.

Question 19

Which statement best summarizes the difference between consumer products and business products?

A)Consumer products are specialty products and business products are shopping products.
B)Consumer goods tend to be consumed quickly, thus having short product lives. Business goods tend to last much longer.
C)Consumer products offer a service component while business products do not offer a service component.
D)Consumer products are for personal use and business products are for production.

Question 20

At the most fundamental level,a consumer buys a product to obtain which of the following?

A)status
B)its core benefit
C)its implicit benefit
D)a lifestyle enhancement

Question 21

A consumer can purchase a soft drink from a vending machine,from a grocery store,or from a variety of other vendors.This suggests that soft drinks are which of the following?

A)accessory goods
B)shopping goods
C)specialty goods
D)convenience goods

Question 22

Canadian Tire recently announced it would market Debbie Travis products in its stores.This is an example of which of the following?

A)comarketing
B)creating a private label
C)brand extension
D)cobranding

Question 23

The quality of a product is best measured in terms of which of the following?

A)internally developed standards that take the complexity of production into account
B)the cost of manufacturing the product
C)a statistical analysis of the number of defects per 1000 units of output
D)how well the product meets the needs of the customer

Question 24

Which of the following occurs when established brands from different companies join forces in an effort to market the same product?

A)diffusion
B)cannibalization
C)cobranding
D)convenience products

Question 25

When marketers characterize quality,they are concerned with two dimensions.Which dimension refers to how well the product performs its core function?

A)the level of separability
B)product consistency
C)the quality level
D)reliability

Question 26

Filbertina,a company that markets nuts and other healthy snack foods,has always tried to project an upscale image.However,the company has decided to develop another product line of less expensive snacks.Marketing manager Joseph Hampton generally supports the strategy but is concerned about how the new line will impact sales of the company's current brand.Joseph appears to be concerned about the possibility of which of the following?

A)brand confusion
B)market diffusion
C)cannibalization
D)brand dispersion

Question 27

Marketers in the clothing business often create private brands in an effort to do which of the following?

A)bolster a reputation that links to the company's brand
B)create and protect an upscale image
C)gain exposure based on product recognition
D)leverage strengths to enter new markets

Question 28

Which of the following is a group of products offered by a firm that are closely related to each other,either in terms of how they work or the customers they serve?

A)product spectrum
B)product mix
C)product line
D)product category

Question 29

What are the stages of the new product development process?

A)idea generation, idea screening, market research, development, testing, and observation research
B)idea generation, idea screening, analysis, development, testing, and commercialization
C)idea generation, idea screening, analysis, development, testing, and promotional planning
D)idea generation, idea screening, market research, focus groups, intercept surveys, and observation research

Question 30

Successful product differentiation requires which of the following?

A)Differences must be real rather than merely perceived.
B)The product has both higher quality and lower cost than those of the competition.
C)The product not only must be different from those of competitors, it also must be better.
D)Marketers put most of their efforts into developing an appropriate brand name.

Question 31

Stop and Shop Inc.is a discount grocery store that sells a variety of fruit and vegetable brands,including Libby's,Green Giant,and Dole.Recently,Stop and Shop has started selling its own versions of the same products.The Stop and Shop brand is referred to as which of the following?

A)exclusive brand
B)home-grown brand
C)national brand
D)private-label or store brand

Question 32

What are businesses most concerned with when purchasing raw materials?

A)price and service
B)quantity and brand
C)image
D)customization

Question 33

In which phase of the product development process are ideas eliminated that do not meet the company's mission or that are too expensive to develop?

A)idea generation
B)idea screening
C)analysis
D)development

Question 34

Which of the following involves purchasing the right to use another company's brand name or symbol?

A)line extension
B)branding
C)licensing
D)diffusion

Question 35

Each stage of the new product development process requires management to give its approval before moving forward.What does this ensure?

A)The company doesn't create product diffusion.
B)Companies don't waste resources on marginal concepts.
C)All products that actually make it through the process will be successful.
D)Employees have a stake in the process.

Question 36

Which of the following refers to how well a product performs its core functions?

A)product variability
B)the sigma coefficient
C)quality level
D)product consistency

Question 37

The Nike brand is quite elastic.We see the Nike Swoosh on athletic shoes,as well as on an assortment of athletic apparel for almost every sport.Lately,the company has begun branching out into several entirely new product categories,such as MP3 players.This indicates that Nike has decided to pursue a strategy of which of the following?

A)line extension
B)cobranding
C)brand equity
D)brand extension

Question 38

Which of the following involves making slight modifications to existing products in an effort to distinguish a product from the competition?

A)dynamically continuous innovation
B)discontinuous innovation
C)continuous innovation
D)disconnected innovation

Question 39

What is the term for the characteristics of a product that companies offer consumers?

A)hedonic attributes
B)product layers
C)pure services
D)product features

Question 40

Which of the following represents a key difference between shopping and specialty products?

A)With specialty products, consumers will go out of their way to purchase the "right" brand and will rarely accept a substitute; with shopping goods, consumers will spend shopping time searching for the brand that offers the best value.
B)Shopping products are expensive but are bought very frequently, so it is worth the consumer's efforts to develop a close relationship with a provider of these goods. Specialty products are less expensive and bought only relatively rarely, so customers put less effort into shopping for them.
C)Branding is not important in a specialty product, but it is very important in a shopping product.
D)Shopping products are pure goods, while specialty products typically include elements of both goods and services. This enhances the perception that they offer a better deal than regular shopping goods.

Question 41

Which of the following is most likely to be classified as a dynamically continuous innovation?

A)the Wright Brothers' first airplane
B)M&M's pastel coloured candies
C)General Mills Frosted Cheerios
D)Apple's iPhone

Question 42

At which stage in the product life cycle is a product experiencing periods of rising sales and profits?

A)maturity
B)growth
C)introduction
D)decline

Question 43

With the invention of the telephone,Alexander Graham Bell created a completely new way for people to communicate over long distances.His invention demonstrates which of the following?

A)bleeding-edge innovation
B)discontinuous innovation
C)nonderivative innovation
D)dynamically continuous innovation

Question 44

In the effort to design innovative new products,several leading-edge companies-including Electronic Arts,GE,and BMW-have begun which of the following?

A)using sophisticated laboratory analysis and expert computer systems to make the development process more scientifically rigorous
B)outsourcing their design work to companies that specialize in this type of work
C)allowing customers to participate directly in the product development process
D)devoting a greater share of their internal resources to their marketing departments

Question 45

A product can increase its sales at the expense of competitors only once it enters which stage of the product life cycle?

A)growth
B)introduction
C)decline
D)maturity

Question 46

Which of the following is an example of continuous innovation?

A)Amazon's Kindle e-Book reader with built-in wireless download capability
B)Apple's iPhone
C)General Mills's introduction of Honey Nut Cheerios
D)Ford's Model T

Question 47

What strategy is your favourite ice cream maker following when it releases new flavours?

A)continuous innovation
B)dynamically discontinuous innovation
C)discontinuous innovation
D)dynamically continuous innovation

Question 48

As gas prices rise,hybrid vehicles are being considered by more consumers.This is because which of the following features of hybrid cars rises in comparison to standard cars when gasoline becomes more expensive?

A)separability
B)trialability
C)variability
D)relative advantage

Question 49

The makers of M&M candies change the colour coating on a seasonal basis.What does this product modification represent?

A)dynamically continuous innovation
B)discontinuous innovation
C)diffused innovation
D)continuous innovation

Question 50

Which of the following is a theoretical model that includes the stages of introduction,growth,maturity,and decline?

A)product adoption cycle
B)product life cycle
C)product diffusion cycle
D)product sustainability cycle

Question 51

Nylex Electronics has announced a revolutionary new rechargeable battery that operates more than twice as long as any current battery and fully recharges in less than 10 minutes.Nylex's new product is an example of which of the following?

A)continuous innovation
B)discontinuous innovation
C)dynamically continuous innovation
D)dynamically discontinuous innovation

Question 52

What are two keys to the success of the commercialization stage of new product development?

A)gaining market share and new customers
B)gaining market share and offering price-related promotions
C)gaining celebrity endorsements and eliminating production glitches
D)gaining distribution and launching promotions

Question 53

What is one reason why Apple's iPhone might have high diffusion rate?

A)It represents discontinuous innovation.
B)Most consumers view cell phones as convenience goods.
C)It involves highly complex technology.
D)Its use is highly observable.

Question 54

As it becomes easier for potential customers to observe others using a new product and as the product's relative advantages become greater,which rate tends to be higher?

A)rate of diffusion
B)internalization rate
C)separability rate
D)retention rate

Question 55

As it becomes more difficult for consumers to grasp what a product does and how it works,which of the following becomes slower?

A)movement through the product life cycle
B)rate of market separability
C)business cycle
D)rate of diffusion

Question 56

Pantene mails samples of its new shampoo to residential communities in an effort to increase the rate of which of the following?

A)adoption and diffusion
B)permeability
C)salability
D)marketability

Question 57

A product is usually experiencing low sales and nonexistent profits and marketers are increasing promotion to raise awareness at which stage in the product life cycle?

A)growth
B)decline
C)introduction
D)maturity

Question 58

Theresa is doing her weekly shopping when she takes a free sample of coffee being offered to shoppers.She likes the new coffee blend and places a 500-gram bag in her grocery cart.Which product trait makes it easier for customers to sample and adopt?

A)compatibility
B)complexity
C)trialability
D)observability

Question 59

Adventurous risk-takers who are wont to adopt a product as soon as it is first introduced into a market make up approximately what percentage of consumers?

A)2.5%
B)9%
C)27%
D)15%

Question 60

Which of the following is the rate at which products are adopted in the marketplace?

A)diffusion
B)displacement
C)replacement
D)confusion

Question 61

The manager of your local Starbucks is trying to increase store traffic on Friday nights from 8 to 10 p.m.She has decided to offer live music by local musicians and to promote this change mostly through publicity and word-of-mouth.Which of the following statements about this decision is most accurate?

A)Publicity and word-of-mouth will work only if they create a different message than the message that is created by the store's other promotional tools.
B)Publicity and word-of-mouth will increase promotional expenses dramatically.
C)Publicity and word-of-mouth are likely to be ineffective because they do not create as powerful an impact as advertising.
D)Publicity and word-of-mouth are likely to have a powerful impact, but the manager will have little direct control over the message they create.

Question 62

Marketers CANNOT directly control which of the following?

A)any of its promotional tools
B)the development of a marketing plan
C)the publicity the firm receives
D)advertising messages and their placement in the media

Question 63

An example of publicity for your local pet store would be which of the following?

A)referrals to the store by satisfied pet owners
B)a story in the local newspaper about the store's Adopt-a-Pet weekend program
C)Internet advertising
D)newspaper advertising in the weekly circular

Question 64

Due to technological changes,pagers and videocassettes are slowly leaving the market.These products are in which stage of the product life cycle?

A)decline
B)secondary
C)recession
D)maturity

Question 65

Which of the following describes publicity?

A)it is not controlled by the marketer
B)it is paid for by the marketer's competition
C)it is intended to persuade consumers not to buy
D)it is paid, nonpersonal communication with the general public

Question 66

In the growth stage of the product life cycle,which of the following is most accurate?

A)Competition will begin to intensify as competing firms introduce their own versions of the product.
B)Competition will spur major price cuts that dramatically cut into profits.
C)Competition has already become well-established, with many weaker firms already leaving the market.
D)Competition is virtually nonexistent because competitors have not had enough time to introduce their own products.

Question 67

Marketers in a competitive environment work to extend the profitable period of a product's life cycle by doing which of the following?

A)slowing down the rate of diffusion
B)emphasizing discontinuous innovation
C)temporarily removing the product from the market, then reintroducing it at a later date
D)finding new uses for the product and changing the product

Question 68

As the general manager of KTRV radio 1030,you are trying to take advantage of changes in technology to increase the number of listeners to your station.Which of the following is a strategy you could employ?

A)change the call letters for your station to something easier to remember
B)gain more control over your message by making greater use of publicity
C)eliminate advertising
D)develop an online radio Website

Question 69

When it comes to the promotional messages they receive about a product,consumers do which of the following?

A)tend to forget one message as soon as another message is presented
B)respond mostly to messages that appeal to their sense of humour
C)combine information from the various sources to create a unified impression of the product
D)filter the messages and ignore any that aren't consistent with their previously held opinions

Question 70

Although technology can help marketers reach larger target markets,it also presents new challenges like which of the following?

A)store owners who do not display promotional material on time
B)consumers wanting more information than is available
C)consumers who move around too much
D)technology-savvy consumers who can control whether the message is received

Question 71

Ian has decided to start a business installing voice over Internet protocol (VOIP)software on computers,which allows individuals to make phone calls via the Internet.To get his business up and running,Ian has decided to place an ad in the paper.He does not have any money,so he has to put the cost of the ad on his credit card.Ian will spend more money than he will make in the first three months due to the fact that his VOIP business is in which stage of its life cycle?

A)maturity
B)decline
C)introduction
D)growth

Question 72

In marketing,promotion refers to which of the following?

A)communication intended to influence consumer purchase decisions through information, persuasion, and reminders
B)any activities designed to increase sales that don't involve advertising or personal selling
C)the paid placement of advertising where consumers shop
D)efforts that focus more on building goodwill among all stakeholders than on generating immediate sales by final consumers

Question 73

What is the goal of promotion?

A)to reach the largest number of people
B)to inform, persuade, and remind consumers to purchase a good or service
C)to establish the best distribution strategy for the organization's products
D)to develop the best marketing mix

Question 74

Which of the following is the most accurate statement about trends affecting promotion?

A)Changes in technology have made it important for firms to focus their promotional efforts on passive forms of entertainment.
B)Changes in technology are creating both major threats and major new opportunities for those creating promotional messages.
C)Promotion is likely to become much less important in the future.
D)Promotional strategies that worked well in the past are likely to be successful in the future.

Question 75

The typical consumer receives approximately how many advertising messages a day?

A)30 000
B)3000
C)2700
D)27 000

Question 76

Which of the following do companies use to coordinate their messages through every promotional vehicle?

A)virus detection software
B)integrated marketing communication
C)promotional channels
D)positioning statement

Question 77

As a product moves through the stages of the product life cycle,marketers normally will find which of the following to be true?

A)They must adjust their marketing strategies to reflect changing market conditions.
B)Sales peak well before profits.
C)Sales and profits tend to increase at a constant rate.
D)They can maximize profits by sticking to a consistent marketing strategy.

Question 78

The goal of integrated marketing communication (IMC)is to do which of the following?

A)find the most effective promotional vehicle and focus all efforts on it
B)minimize the amount of money spent to provide a given number of promotional messages to potential customers
C)create a variety of independent messages about a product
D)provide a unified impression about the product

Question 79

To create a coordinated marketing message,marketers must have information about the consumer and which of the following?

A)the competition, the product, the market, and the strategy of the organization
B)the message, the market, and the competition
C)the competition, the message, the market, and the store selling the product
D)the message, the competition, and the intent of the product's use

Question 80

In the introduction stage of the product life cycle,marketing efforts are focused on which of the following?

A)building customer awareness of the product
B)reinforcing brand positioning
C)dynamic innovation
D)protecting market share from competitors