Deck 16: Developing and Promoting Goods and Services

Question 1

Industrial products are normally divided into two general categories.What are they?

A) Emotional and rational
B) Those costing more than $10 000 and those costing less than $10 000
C) Industrial and consumer
D) Expense items and capital items
E) Domestic and international

Answer 1

D
Expense items and capital items

Question 2

Buildings,manufacturing equipment,computers,and desks are examples of ________ purchased by companies that make other goods.

A) impulse items
B) capital items
C) current expenses
D) fixed expenses
E) expense items

Answer 2

B
capital items

Question 3

Which of the following does not apply to shopping goods?

A) Customers compare brands
B) Evaluated on performance
C) Frequently purchased
D) Evaluated on style
E) Customers compare different stores

Answer 3

C
Frequently purchased

Question 4

Which of the following does not apply to specialty goods?

A) Customers will accept substitutes.
B) Customers will often go from store to store looking for what they want.
C) They are very expensive.
D) Customers are willing to spend a lot of time to find them.
E) Customers know exactly what they want.

Question 5

Items that are expensive,durable,and infrequently purchased by firms producing other goods or services are called ________.

A) capital items
B) impulse items
C) expense items
D) current expense goods
E) fixed expense goods

Question 6

Which of the following is true with regard to the concept of the value package?

A) The physical characteristics of the product are the primary focus for the consumer.
B) The price of the product is the primary focus of the consumer.
C) The value package includes both tangible and intangible attributes of the product.
D) The value package cannot be high if the price of the product is high.
E) The value package concept applies to physical products,but not intangible services.

Question 7

Bread is an example of a(n)_____________,while the catering for a wedding reception is an example of a(n)_____________.

A) shopping good; shopping service
B) convenience good; specialty good
C) specialty good; specialty service
D) convenience good; specialty service
E) shopping good; shopping good

Question 8

Melissa was visiting San Francisco.When she arrived at Fisherman's Wharf,she decided to purchase a souvenir T-shirt for her boyfriend back home.Since there are about 40 T-shirt retailers in that area,Melissa spent the rest of the day searching for the shirt that would convey just the right meaning to her boyfriend.For Melissa,the shirt was a(n)________ good.

A) specialty
B) convenience
C) shopping
D) accessory
E) industrial

Question 9

Mr.Tyler is coming home from a business trip.It is late at night,his cab is waiting,and he suddenly remembers that he forgot to buy his wife a gift.The only shop in the airport that is open sells souvenir T-shirts.Mr.Tyler quickly buys a shirt for $14.95.For him,the shirt was a(n)________ good.

A) convenience
B) industrial
C) shopping
D) accessory
E) specialty

Question 10

Goods that are very important,expensive,and rarely purchased are ________ goods.

A) shopping
B) impulse
C) convenience
D) coincidental
E) specialty

Question 11

Wedding gowns,Rolex watches,Godiva chocolates,and Rolls Royces are examples of ________ goods.

A) coincidental
B) shopping
C) convenience
D) impulse
E) specialty

Question 12

Light bulbs,pencils,pads of paper,and lubricating oils for machines are examples of ________ purchased by companies that make other goods.

A) capital items
B) expense items
C) depreciation goods
D) impulse items
E) none of these

Question 13

For which of the following goods would a consumer purchase frequently and thus spend little time looking for them or comparing their prices?

A) Shopping goods
B) Capital items
C) Convenience goods
D) Specialty goods
E) Comparison goods

Question 14

Black & Decker makes toasters,vacuum cleaners,electric drills,and a variety of appliances and tools.This is Black & Decker's

A) product blend.
B) product offering.
C) product mix.
D) product line.
E) multiple product lines.

Question 15

Pencils,brooms,and gloves are examples of ________,while factories,water towers,and airplanes are examples of __________.

A) capital items; expense items
B) supplies; installations
C) services; capital items
D) expense items; capital items
E) capital items; supplies

Question 16

Stereos,tires,business suits,and furniture are examples of ________ goods.

A) convenience
B) impulse
C) coincidental
D) shopping
E) specialty

Question 17

Which of the following is correct about the product mix and product line concepts?

A) A product line is broader than a product mix.
B) The product mix refers to the group of products a company has available for sale.
C) The product line concept applies to physical products,while the product mix concept applies only to services.
D) A product line focuses on convenience goods,while a product mix focuses on shopping goods.
E) A product line is almost always more expensive than a product mix.

Question 18

Advertisements for the Swatch Chrono watch remind consumers that they don't get just "real" features like shock and water resistance when they buy the product.This is an example of

A) the value package.
B) emotional advertising.
C) institutional advertising.
D) product differentiation.
E) focusing on the visible features of a product.

Question 19

Milk,newspapers,bread,and batteries are examples of ________ goods.

A) specialty
B) shopping
C) convenience
D) coincidental
E) impulse

Question 20

Relatively inexpensive consumer products that are generally consumed rapidly are known as

A) luxury goods.
B) industrial goods.
C) specialty goods.
D) convenience goods.
E) shopping goods.

Question 21

What is the fundamental idea underlying the product life cycle?

A) Only one in 50 new product ideas becomes commercially viable.
B) Profitability is highest in the growth stage.
C) Competition becomes very strong in the maturity stage.
D) Risk is very high during the introduction stage.
E) Products have a limited profit-producing life.

Question 22

It takes _______ new product ideas to generate just one new product that reaches the market,and then only _____ out of 10 new products on the market succeeds.

A) 100; 1
B) 200; 3
C) 50; 1
D) 30; 4
E) 20; 6

Question 23

Marketers at Wallson Corp.are trying to make potential consumers aware of the company's new product and its benefits.Profits are non-existent at this time.This is the ________ stage of the product life cycle.

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

Question 24

Mirror Corp.has just completed the "screening" phase of the new product development process.What should they do next?

A) Use input from the concept-testing phase to produce a preliminary version of the product.
B) Conduct market research to solicit consumers' input about the benefits the proposed product must provide for consumers.
C) Eliminate all product ideas that do not mesh with the firm's abilities,expertise,or objectives.
D) Begin limited production of the product.

Question 25

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

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

Question 26

Hydrogen fuel cells and solar-powered cars are in the ________ stage of their product life cycles.

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

Question 27

The marketing staff at Batson Corp.have developed a long list of possible new product ideas.In terms of the new product development process,what should they do next?

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

Question 28

Speed to market is very important to a firm's success.One study has estimated that a product that is six months late will sacrifice ________ percent of its lifetime profit potential.

A) 18
B) 28
C) 12
D) 33
E) 23

Question 29

Ford offers four different models of the Escort that run the gamut from the three-door sport model to the five-door sedan.This represents

A) a product offering.
B) multiple product lines.
C) a product line.
D) a product blend.
E) a product mix.

Question 30

You work for a firm that manufactures and sells pet accessories.As part of your job,you frequently visit city parks and observe how people interact with their pets.You also talk to the staff members of veterinary clinics to discover how people relate to their pets.This activity is part of the ________ phase of new product development.

A) idea generation
B) business analysis
C) prototype development
D) screening
E) product testing

Question 31

Suppose that you are asked to come up with a new product.What would your first step be?

A) Idea screening
B) Idea generation
C) Commercialization
D) Business analysis
E) Test marketing

Question 32

During this stage of a product's life cycle,sales and profits fall.New products in the introduction stage take away sales,and companies typically reduce promotional support.This is the ________ stage.

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

Question 33

Penny has been hired by a manufacturing company to come up with a new remote control.Penny's first step would be

A) prototype development.
B) test marketing.
C) screening.
D) business analysis.
E) new product ideas.

Question 34

The ________ is a series of stages through which a product passes during its profit-producing life.

A) new product development model
B) price cycle
C) profit life cycle
D) market segmentation model
E) product life cycle

Question 35

Why are business firms interested in the development of new products?

A) The federal government encourages every product manufacturer to spend 1% of revenue on new product development.
B) New products are necessary to stay in business.
C) New products keep the warranty and service departments busy.
D) New products provide the fun that marketing managers need.
E) Product development provides an opportunity for large tax write-offs.

Question 36

Automobiles and colour TVs are in the ________ stage of their product life cycle.

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

Question 37

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

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 in any way.

Question 38

Lexington Corp.has been involved in a new product development process for several months.They have completed several preliminary tasks,the most recent of which was estimating costs and benefits for a proposed new product that looks promising.What should they do next?

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

Question 39

Baker Company is determining consumer response to a new product under real conditions.Which phase of the product development process is the company in?

A) Business analysis
B) Concept testing
C) Commercialization
D) Screening
E) Product testing and test marketing

Question 40

The new product that Bellson Corp.introduced last year is now experiencing rapidly increasing sales,and the product has begun to show a profit.But Bellson notices that two competitors have recently introduced a similar product.This is what happens in the ________ stage of a product's life cycle.

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

Question 41

What are the three stages of brand loyalty?

A) Brand awareness,brand preference,and brand insistence
B) National brands,private brands,and generic brands
C) Brand insistence,tamper-resistant packaging,and label requirements
D) Licensed brands,generic products,and trade marks
E) Question marks,stars,dogs

Question 42

Which of the following is correct with regard to packaging?

A) Fresh fruit and structural steel do not really need much packaging.
B) The function of packaging is limited to product protection.
C) Packaging does not provide advertising or promotion for products.
D) Packaging costs can be as high as 50 percent of the total cost to make a product.
E) All of these.

Question 43

Coca-Cola,Pepsi-Cola,Kleenex,and Chevrolet are examples of

A) private labels.
B) brand names.
C) product names.
D) product line names.
E) public labels.

Question 44

Maxwell House,Kleenex,and Lysol are all examples of

A) brand names.
B) private brands.
C) industrial products.
D) brand equity.
E) licensed brands.

Question 45

Which of the following is not a reason for packaging products?

A) Serves as an in-store advertisement
B) Serves as an attractive display
C) Provides reassurance of safety for consumption of the product
D) Packaging is harmful to the environment
E) Reduces the risk of damage,breakage,or spoilage

Question 46

A ___________ gives exclusive legal right to use a brand name,while a _________ protects an invention or idea.

A) patent; trademark
B) copyright; trademark
C) trademark; copyright
D) copyright; patent
E) trademark; patent

Question 47

Shawna prefers Tim Hortons' coffee,but she will buy other types of coffee if a Tim Hortons is not conveniently located.She is exhibiting

A) brand awareness.
B) brand indifference.
C) brand preference.
D) brand insistence.
E) licensed brand insistence.

Question 48

Harley-Davidson's famous logo is emblazoned on products such as boots,eyewear,gloves,purses,lighters,and watches,and the motorcycle maker receives more than $210 million annually from fees it receives.This is an example of a _________ brand.

A) national
B) licensed
C) generic
D) private
E) value-added

Question 49

What is the difference between a patent and a trademark?

A) A patent gives a company more protection than a trademark.
B) A trademark is more valuable than a patent.
C) Trademark protection lasts longer than patent protection.
D) A trademark protects a specific brand name,while a patent protects a basic product idea.
E) None of these is correct.

Question 50

What can a firm do to protect its products and brand names from being used by a competitor?

A) Obtain a trademark
B) Use tamper-resistant packaging
C) Use a private brand name
D) Use a generic brand name
E) Obtain a Universal Product Code

Question 51

Which brands are often widely recognized by consumers because of campaigns for products produced and distributed by the manufacturer?

A) Private brands
B) National brands
C) Licensed brands
D) Launched brands
E) Generic brands

Question 52

When Burger King tells you about a new restaurant that it is opening near you,it is attempting to fulfill which promotional objective?

A) Remind you about the product
B) Communicate information
C) Position products
D) Control sales volume
E) Eliminate competition

Question 53

What is a trademark?

A) A universal product code
B) An operating license from the Canadian government
C) The exclusive legal right to use a brand name
D) Protection for an invention
E) A licensed brand

Question 54

Which of the following is correct with regard to copyrights?

A) Copyrights apply only to a basic idea,not to the tangible expressions of the idea.
B) Copyrights are more valuable than either patents or trademarks.
C) Copyrights extend to creators for their entire lives.
D) Copyrights cannot be extended to the estates of the person who originally received the copyright.
E) All of these statements are correct.

Question 55

In 2012,______ companies were at the top of the "brand value" list.

A) oil and gas
B) pharmaceutical
C) technology
D) automobile
E) luxury goods

Question 56

Marketing tends to focus on reminder advertising in the ______ stage of the product life cycle.

A) introduction
B) growth
C) maturity
D) decline
E) re-introduction

Question 57

In the 2012 BrandZ Top 100 Global Brands Ranking list,which company had the most successful brand in the world?

A) Apple
B) The NFL
C) Google
D) Coca-Cola
E) IBM

Question 58

Craftsman tools (Sears),Life products (Shoppers Drug Mart),and President's Choice (Loblaws)are all examples of ______ brands.

A) national
B) licensed
C) generic
D) private
E) value-added

Question 59

What term refers to regular consumer recognition and preference for a specific brand-name product?

A) Brand insistence
B) Brand identification
C) Label
D) Brand equity
E) Brand loyalty

Question 60

The Consumer Packaging and Labelling Act has two main purposes:

A) To restrict what cigarette and alcohol manufacturers can say on the labels of their products,and to provide a set of rules for packaging and labelling of consumer products
B) To state packaging requirements for consumer goods,and to state packaging requirements for industrial goods
C) To state packaging and labelling requirements for goods,and to state packaging requirements for services
D) To provide a set of rules for packaging and labelling of consumer products,and to ensure that the manufacturer provides full and factual information on labels
E) To make sure that product quantities are stated in English and French and to ensure that the manufacturer provides full and factual information on labels

Question 61

In Canada,advertising expenditures are smallest in which medium?

A) Internet
B) Television
C) Magazines
D) Radio
E) Outdoor

Question 62

The most important factor to consider in designing the best promotional mix is

A) promotion and the buyer decision process.
B) the product.
C) promotional mix budget.
D) the target audience.
E) costs of the product.

Question 63

What is the strategy behind the use of reminder advertising?

A) To develop an awareness of the differences between the company's product and a competitor's product
B) To keep the product's name in the mind of the consumer,especially during the maturity and decline stages of the product life cycle
C) To use a direct comparison of products in the hope of convincing consumers to switch products
D) To develop an awareness of the company and the product
E) To influence consumers to buy the company's products instead of a competitor's products

Question 64

When Lava soap advertises that it is a great product for dirty,grimy,manly hands,it is attempting to fulfill which promotional objective?

A) Communicate information
B) Remind you about the product
C) Control sales volume
D) Eliminate competition
E) Product positioning

Question 65

All of the following are basic types of promotional tools except

A) advertising.
B) personal selling.
C) sales promotions.
D) publicity and public relations.
E) branding.

Question 66

Internet marketing has several weaknesses,including ________.

A) information overload
B) security-related issues
C) limited markets
D) profitability problems
E) all of these are weaknesses

Question 67

This communications vehicle is highly segmented,allows for excellent visual communication,and is long-lived,but requires a long lead-time.

A) Direct mail
B) Television
C) Magazines
D) Newspaper
E) Outdoor

Question 68

Why would a business firm want to have controlling sales volume as a promotional objective?

A) A company will aggressively push its products through wholesalers and retailers who persuade customers to buy it.
B) The production and distribution systems will run more smoothly when the firm achieves a more stable sales volume during the year.
C) The company is trying to appeal to a specific segment of the market.
D) Consumers are more likely to purchase a product when they have been informed about it.
E) The company wants to be able to communicate information to consumers when it is more economical to do so.

Question 69

Mega Computers is using direct mail to send 10-percent-off coupons to its list of potential customers.This is an example of a ________ strategy.

A) pull
B) product
C) position
D) push
E) place

Question 70

In terms of advertising revenues,which medium is the most important?

A) Newspapers
B) Television
C) Radio
D) The internet
E) Magazines

Question 71

The communications vehicle that is flexible,has rapid coverage,but lasts briefly and cannot target audiences very well is

A) direct mail.
B) newspapers.
C) magazines.
D) radio.
E) television.

Question 72

Adrianna developed a new perfume.She wanted to market the perfume via a communication vehicle that appeals to many consumer senses,targets a specific audience,and reaches as many people as possible.Adrianna would select ________ advertising.

A) television
B) magazine
C) radio
D) direct mail
E) newspaper

Question 73

Digitally adding a Reitman's shopping bag on a kitchen table in a movie scene is an example of

A) television advertising.
B) virtual advertising.
C) retail advertising.
D) word-of-mouth advertising.
E) deceptive advertising.

Question 74

The communications vehicle that is inexpensive,that effectively segments the customers,but is not very long lasting is

A) radio.
B) direct mail.
C) newspaper.
D) television.
E) magazines.

Question 75

The communications vehicle that is very selective about its audience,allows a more personalized message,and whose response rate is very predictable is

A) direct mail.
B) television.
C) magazines.
D) radio.
E) newspaper.

Question 76

Samantha wanted to use a flexible communication vehicle that would give her rapid coverage.She should select ________ advertising.

A) television
B) newspaper
C) magazine
D) radio
E) direct mail

Question 77

The part of the promotional mix that is paid,non-personal communication used by an identified sponsor to inform an audience about a product is

A) publicity.
B) sales promotion.
C) personal selling.
D) advertising.
E) pricing.

Question 78

What type of advertising strategy should be used during the growth and maturity stages of a product's life cycle?

A) Informative
B) Residual
C) Reminder
D) Comparative
E) Persuasive

Question 79

What is a difficulty faced by the marketing manager who wishes to use product positioning as a promotional objective?

A) The company must determine when to increase promotional activities during slow periods.
B) The company must determine how to provide information to consumers.
C) The company must determine how much to spend on communicating the information about their products to consumers.
D) The company must first identify the market segment that it wants to reach.
E) The company must limit the high-cost promotional methods to high-priced goods.

Question 80

Mega Computers has decided to promote its new line of computers by offering its wholesalers and retailers an additional 5 percent off list prices.This is an example of a ________ strategy.

A) product
B) pull
C) push
D) place
E) position