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MOCK QUIZ #5

CHAPTER 6 Consumer Market and Consumer Buyer Behavior


PART 1 TRUE OR FALSE (15 points)
1.

If consumer behavior is not well understood, a marketer will have difficulty creating an
appropriate marketing mix. True

2.

Consumers with prior experience in buying a certain product will spend less time
searching for product information and will limit the number of products that they consider.
True

3.

An example of a subculture would be a person's geographic region. True

4.

Groups that have an indirect influence on a person's attitude or behavior can be a part of
his/her reference groups. True

5.

Members within a social class tend to behave more alike compared to members from two
different social classes. True

6.

Marketers dont need to be aware of the status-symbol potential of brands because people
usually choose products which reflect their role and their actual or desired status in a society.
False

7.

Whereas economic circumstances can have a profound effect on consumption, occupation


does not impact how people spend their money and what they buy. False

8.

Selective attention is the tendency to interpret information in a way that will fit our
preconceptions. False

9.

Selective retention works to the advantage of strong brands. True

10.

Because of selective retention, we are likely to forget about the good points of competing
products. True

11.

Every consumer has to pass through all five stages of the buying process when in a
buying situation. False

12.

The buying process starts when the buyer decides to or actually enters a store or service
provider's facility. False

13.

A belief is a person's enduring favorable or unfavorable evaluation, emotional feeling,


and action tendency toward some object or idea. False

14.

With respect to a consumer buying situation that involves variety-seeking behavior, the
market leader generally encourages variety seeking by offering lower prices or deals. False

15.

There are several tools marketing managers can use to increase cognitive dissonance,
which enhances consumers attitude toward their brand. False

PART 2 MULTIPLE CHOICES (15 points)


1.

________ is the study of how individuals, groups, and organizations select, buy, use, and
dispose of goods, services, ideas, or experiences to satisfy their needs and wants.
1. Target marketing
2. Mind mapping
3. Consumer activism
4. Consumer behavior
5. Product differentiation what the marketing research department is able to do

2.

Which of the following would be the best illustration of a subculture?


1. a religion
2. a group of close friends
3. your university
4. a fraternity or sorority
5. your occupation data warehousing system

3.

The relatively homogeneous and enduring divisions in a society, which are hierarchically
ordered and whose members share similar values, interests, and behavior constitute
________.
1. a culture
2. a subculture
3. a social class
4. a family
5. a group

4.

A person's ________ consist(s) of all the groups that have a direct (face-to-face) or
indirect influence on his/her attitudes or behavior.
1. subculture
2. family
3. social class
4. reference groups
5. social networks

5.

Joe is a computer service technician. People in his neighborhood usually depend on his
suggestions for purchasing any computer accessory or hardware, as they believe that he has
access to far more information on computer technology than the average consumer. The
neighbors are also aware that Joe has the required knowledge and background for
understanding the technical properties of the products. Within this context, Joe can be called
a(n) ________.
1. transactional leader
2. opinion leader
3. role model
4. gate-keeper
5. international marketer

6.

For a high-school student, Tim is highly concerned about environmental issues. He is a


strong supporter of the garbage recycling and afforestation campaigns taken up by the
environmental activists in his neighborhood. He wants to become a full time volunteer for
their upcoming wildlife protection program and has even saved money to contribute to the
cause. This group of environmental activists can be categorized under which of the following
reference groups?
1. primary group
2. secondary group
3. aspirational group
4. dissociative group
5. cognitive group

7.

Jason writes a weekly column in his school's newspaper about movies he has seen, books
he has read, and concerts he has attended. His column provides information and opinions.
Feedback from his fellow students is positive, and they are appreciative of the advice that is
given. Which of the following would be the most apt description of the role played by Jason?
1. silent majority
2. protestor
3. protector
4. adapter
5. opinion leader

8.

Social classes differ in media preferences, with upper-class consumers often preferring
________ and lower-class consumers often preferring television.
1. movies
2. radio
3. video or computer games
4. magazines and books
5. music downloads

9.

When Gary was a high school student, he enjoyed rock music and regularly purchased
hip clothing sported by his favorite rock band. However, five years later, when Gary became
an accountant, his preference shifted toward formal clothing. Which of the following
personal characteristics is likely to have had the most influence on Gary's preferences during
his high school days?
1. education
2. age
3. income
4. gender
5. physiological needs

10.

________ portrays the "whole person" interacting with his or her environment.

1. Attitude
2. Personality
3. Lifestyle
4. Self-concept
5. Subculture
11.

At the top of Maslow's hierarchy of needs (shown as a pyramid in the text) are ________
needs.
1. esteem
2. self-actualization
3. social
4. safety
5. physiological

12.

________ is the process by which we select, organize, and interpret information inputs to
create a meaningful picture of the world.
1. Consumption
2. Perception
3. Acculturation
4. Assimilation
5. Cognitive dissonance

13.

________ can work to the advantage of marketers with strong brands when consumers
make neutral or ambiguous brand information more positive.
1. Selective attention
2. Selective distortion
3. Selective retention
4. Selective choice

5. Selective embellishment
14.

________ is the tendency to interpret information in a way that will fit our
preconceptions.
1. Selective retention
2. Cognitive dissonance
3. Selective distortion
4. Subliminal perception
5. Selective embellishment

15.

There are several tools marketing managers can use to increase cognitive dissonance,
which enhances consumers attitude toward their brand.
1. need recognition, alternative aggregation, reevaluation, purchase decision, postpurchase
behavior
2. need positioning, stimulus response reactions, evaluation of alternatives, purchase
decision, post-purchase behavior
3. need positioning, alternative
postpurchase evaluation

aggregation

and

divestment,

purchase

decision,

4. information search, need positioning, evaluation of alternatives, product trial, purchase


decision, post-purchase satisfaction
5. need recognition, information search, evaluation of alternatives, purchase, and
postpurchase behavior

MOCK QUIZ #6
CHAPTER 6 Business Market and Business Buyer Behavior
PART 1 TRUE OR FALSE (15 points)
1. The business market consists of all the organizations that acquire goods and services used in the
production of other products or services that are sold, rented, or supplied to others. TRUE
2. The business marketer normally deals with far fewer, much larger buyers than the consumer
marketer does. TRUE
3. The total demand for many business goods and services is elastic (inelastic); that is, it is highly
affected by or responsive to price changes. FALSE

4. The buyer in a straight rebuy usually changes product specifications, prices, delivery
requirements, or other terms. FALSE
5. Most business buyers reject what is called systems buying from one seller. FALSE
6. With respect to the buying center, approvers (gatekeepers) are people who have the power to
prevent sellers or information from reaching members of the buying center. FALSE
7. Influencers influence the buying decision by helping define specifications and providing
information for evaluating alternatives. TRUE
8. In the buying center, several people can occupy a given role such as user or influencer, and one
person may play multiple roles. TRUE
9. In business markets, the buying process begins when someone places an order with a sales
representative. TRUE
10. Shimano sells the fishing and golfing equipment it manufactures to sporting goods stores, which
in turn sell the equipment to anglers and golfers. Shimano is engaged in business marketing.
TRUE
11. For a product to be called a business product, it must be used to manufacture other products,
become part of another product, or aid the normal operations of an organization. TRUE
12. The emergence of the Internet has made buying and selling in the business market a process that
is only efficient for the largest producer to pursue. FALSE
13. Business-to-Business marketers have found that they can use tools such as LinkedIn and
YouTube to boost brand awareness. TRUE
14. The government sector (national agencies/departments, LGUs GOCCs, etc) is a minor segment
of the business market. FALSE
15. If DuPont runs advertisements encouraging people to buy clothing that contains Lycra (a DuPont
product), this would be an attempt to influence derived demand. TRUE

PART 2 MULTIPLE CHOICES (15 points)


1.
_____ is the marketing of goods and services to individuals and
organizations for purposes other than personal consumption.
a. Secondary marketing
b. Interactive marketing
c. Business marketing
d. High-level marketing
e. Industrial marketing
2.
A product is defined as a business product rather than a consumer
good on the basis of its:
a.
intended use
b.
physical characteristics
c.
price
d.
distribution method
e.
tangible attributes
3.

Business marketing does NOT include goods and services that:

a.
b.
c.
d.
e.

become part of another product


are used to manufacture other products
are used for personal consumption
facilitate the normal operations of an organization
are acquired for resale

4.
Which of the following is the best example of a sale that could
only take place in the business market?
a.
A professor is purchasing a Mac to use at home
b.
A music store owner is ordering the newest Elvis Ultimate
Live collection DVD for her mother
c.
A teen is purchasing ring tones to use on her phone
d.
A librarian is purchasing new books for the schools library
e.
All of these are examples of business sales
5.
The Solar Group, a Metro Manila-based mailbox manufacturer,
sells mailboxes to contractors who are building mega-subdivisions, to hardware stores,
and directly to new homeowners. What kind of products is the Solar Group selling?
a.
Business products only
b.
Both business and consumer goods
c.
Installations
d.
Consumer goods only
e.
Supplies
6.
Since GE began accepting bids via the Internet, the length of the
bidding process in GE's lighting division has been reduced from 21 days to 10. Since
requesting the bids is easier, purchasing agents approach more potential vendors. The
ability to locate more vendors has lowered the cost of goods by 5 to 15 percent. GE's
experience illustrates:
a.
how using the Internet decreases competition
b.
how business marketing is becoming global
c.
how business marketing is using the Internet to become
more efficient
d.
how the use of the Internet has influenced consumer
markets to become larger and more powerful than business markets
e.
how the Internet increases efficiency in data exchange
7.
Ed Rodney works for the Department of Trade and Industry Pangasinan as business development officer. He devises ways to encourage businesses to
relocate to the province. In other words, Rodney is involved in business marketing. He is
compiling a list of potential businesses that might be willing to move their operations to
Pangasinan. Which of the following possible clients should he include in his list?
a.
Any family that takes an annual vacation
b.
Newlyweds
c.
Families that enjoy hiking
d.
Companies that have growing sales

e.

Students on spring break

8.
A particular segment of the business market includes those
individuals and organizations that purchase goods and services for the purpose of making
a profit. They achieve this goal by using purchased goods and services to make other
goods, to become part of other goods, or to facilitate the daily operations of the
organization. This group is called the _____ segment of the business market.
a.
institution
b.
reseller
c.
wholesaler
d.
producer
e.
government
a.
b.
c.
d.
e.

9.
Which of the following is true for business marketers?
They deal with more and larger buyers than consumer marketers.
They deal with more and smaller buyers than consumer marketers.
They deal with fewer and larger buyers than consumer marketers.
They deal with fewer and smaller buyers than consumer marketers.
They deal with the same kind of buyers as consumer marketers.

10. Which of the following is a challenge in which business marketers


differ from the consumer marketers?
a.
understanding deep customer needs in new ways
b.
identifying new opportunities for organic business growth
c.
geographically concentrated buyers
d.
calculating better marketing performance and accountability
metrics
e.
competing and growing in global markets, particularly China
11.
Ultimately, the amount of steel sold to General Motors depends on
the consumers' demand for GM cars and trucks. From the standpoint of the steel
manufacturer, which of the following demand forms is most pertinent?
a.
derived demand
b.
inelastic demand
c.
geographic demand
d.
relational demand
e.
static demand
12. The demand for business goods is ultimately derived from the
demand for ________.
a.
raw materials
b.
consumer goods
c.
services
d.
business solutions

e.

e-commerce

13. The total demand for many business goods and services is not much affected by price changes.
Thus, this demand is ________.
a.
derived
b.
fluctuating
c.
accelerated
d.
multiple
e.
inelastic
14. Shoe manufacturers are not going to buy much more leather if the price of leather falls, nor will
they buy much less leather if the price rises, unless they can find satisfactory substitutes. This is
an example of ________.
a.
inelastic demand
b.
direct purchasing
c.
the acceleration effect
d.
a modified rebuy
e.
a straight rebuy
15. Kenilworth Inc. is shifting from its rented four-room office to a standalone office building owned
by the company itself. This can be classified as a ________.
a.
modified rebuy
b.
regular buy
c.
straight rebuy
d.
new rebuy
e.
new task

MOCK QUIZ #7
CHAPTER 8 Segmentation, Targeting, and Positioning
PART 1 TRUE OR FALSE (25 points)
1
A market segment consists of a group of consumers who share a similar
set of needs and wants. TRUE
2
Fisher-Price is identifying Asian markets that are interested in their line of
talking toys. Fisher-Price is engaged in the process of market segmentation. TRUE
3

Fisher-Price developed a line of toys for infants in China. Babies make up

the market for these products. FALSE


4
A market segment is deemed to have substantiality if it contains a large
number of potential customers. FALSE
5
A segmentation plan must produce segments that are accessiblethat is,
the firm must be able to reach members of targeted segments with customized marketing
mixes. TRUE
6
A market segmentation study done by the University of Thessaly in
Greece classified recreational skiers in terms of their gender, age, and income levels. The
study used psychographic segmentation variables. FALSE
7
Clearing Skies Press published a book by Robert Ruark entitled Keeping
the Baby Alive Till Your Wife Gets Home. It is an advice book for new fathers. The
market for this book is based on demographics. TRUE
8
In market segmentation, individual psychographic variables can be
combined with other variables to provide more detailed descriptions of market segments.
TRUE
9
The slogan used by Apple to promote the iPhone, Theres an app for
that, indicates the company relies heavily on benefit segmentation variables.
10
Clorox describes individuals who buy lots of cleaning products as heavy
users. This is an example of how companies use benefit segmentation. FALSE
11
While it is important to understand potential business customers buying
processes, this is not a helpful segmentation basis. FALSE
12
The first step in segmenting a market is to choose a basis or bases for
segmenting the markets. FALSE
13
One reason marketers use market segmentation as a tool is that once
completed, the process need not be repeated. FALSE
14

Dakin Farms in Paraaque uses mass marketing. Marketers would call the

strategy an undifferentiated targeting strategy. TRUE


15
Procter & Gamble markets several different brands of laundry detergent,
such as Tide, ERA, Gain, and Dreft, each targeting a different market segment. This is an
example of concentrated targeting. FALSE
16

A products position refers to where it is located on store shelves. FALSE

17

Product differentiation is a positioning strategy. TRUE

18
The most attractive segment is one in which entry barriers are low and exit
barriers are high. FALSE
19
A segment is attractive when there are actual or potential substitutes for
the product. FALSE
20
A segment is unattractive if the company's suppliers are able to raise
prices or reduce quantity supplied. TRUE
21

An attractive niche consists of customers having a distinct set of needs.

TRUE
22
The last step in the seven-step marketing segmentation process would be
to develop a marketing-mix strategy reflective of segment positioning strategies. TRUE
23
A local service company has decided to segment its market based on
occupation; therefore, it has chosen a form of demographic segmentation for its approach.
TRUE
24
Demographic variables are popular because they are often associated with
consumer needs and wants and they are easy to measure. TRUE
25

Life stage defines a person's age. TRUE

PART 2 MULTIPLE CHOICES (25 points)

1 A _____ is a group of people or organizations that has wants and needs that can be satisfied by
particular product categories, has the ability to purchase these products, and is willing to
exchange resources for the products.
a
firm
b
buyer
c
market
d
consumer
e
target
2 The Belly Cast kit by Proud Body helps an expectant mom to make a cast of her pregnant body,
decorate it and keep it for a lifetime. The primary market segment for the Belly Cast kit is:
a
all parents
b
expectant moms
c
recently married couples
d
parents of toddlers
e
collectors of unusual art
3 Ford Motor Company produces passenger cars, commercial trucks and specialty vehicles,
performance vehicles, and race cars. Ford uses a procedure called _____ to divide its large
market.
a
micromarketing
b
positioning
c
market segmentation
d
cannibalization
e
perceptual mapping
4 A market is people or organizations that have:
a
the ability, willingness, and power to buy
b
a medium of exchange and products they desire
c
needs and wants and an ability and willingness to buy
d
unmet needs or wants and products or services that satisfy those unmet
needs or wants
e
communication, financial, and capital resources
5 A(n) _____ is a subgroup of individuals or organizations sharing one or more characteristics that
cause them to have relatively similar product needs.
a
market universe
b
market segment
c
aggregated market
d
segmentation base
e
population sample

6 _____ is the process of dividing a market into meaningful groups that are relatively similar and
identifiable.
a
Perceptual mapping
b
Positioning
c
Micromarketing
d
Market sampling
e
Market segmentation
7 The purpose of market segmentation is to:
a
reduce the market down to a specific size that the firm can
handle
b
divide the market into equal size and profit regions for sales
territories
c
group a large number of markets together enabling a
company to serve them simultaneously
d
develop a generalized definition of the market as a whole
e
enable the marketer to tailor marketing mixes to meet
the needs of one or more specific groups
8 Home Cookin Catering would like to improve customer satisfaction and increase repeat
business. When you ask the owners to describe a typical customer, they say it is impossible and
explain that with corporate functions, family affairs, and fund-raisers, they do not have a typical
customer. You suggest it is time for market segmentation because:
a
it will enable them to build an accurate description of
customer needs by group and to design a marketing mix to fit each segment
b
the company needs to reduce the size of the market it
serves
c
the company needs to learn how to group these markets
together into one market to serve all of them adequately
d
it will help develop a generalized definition of the market
as a whole and reveal the optimal marketing mix for this market
e
this will position the company in the minds of its
consumers as compared to its competitors
9 A group of middle school students stop by a bicycle store. The store has just received a new
shipment of high-end racing bicycles. The bicycles range in price from PhP40,000 to
PhP120,000. All of the students want one of these new bikes, but none has the means to buy one.
Is this group of consumers a potential market for the expensive bikes?
a
Yes, they are a potential market since they are all about the
same age.
b
No, they do not have the ability to purchase at this time.
c
No, to qualify as a market, they must need the product.

d
Yes, they are a market because this product could satisfy
their consumer wants and desires.
e
Yes, they are a market because this group shares relatively
similar product needs and purchasing characteristics.
10 The process of market segmentation involves breaking down a heterogeneous market into
homogeneous and identifiable segments. If this process is carried to its extreme, then one could
say that:
a
this is the reason segmentation cannot be used by small
firms
b
all individuals have the same needs in spite of cultural
differences
c
everyone belongs to the same segment
d
segmentation controls the demand for products
e
every individual in the world is a market segment
11 Market segmentation can assist marketers to do all of the following EXCEPT:
a
develop more precise definitions of customer needs and
wants
b
identify which variable base should be used for
segmenting
c
more accurately define marketing objectives
d
improve resource allocation
e
evaluate performance
12 All of the following are criteria for successful market segmentation EXCEPT:
a
substantiality
b
identifiability and measurability
c
accountability
d
accessibility
e
responsiveness
13 A manufacturer of lenses used in microscopes, binoculars, and telescopes has segmented its
market into scientific equipment manufacturers, sporting equipment manufacturers, and retailers
who sell replacement lenses. In order for this segmentation scheme to be successful, all of the
following criteria must be met EXCEPT:
a
substantiality
b
accessibility
c
identifiability and measurability
d
complexity
e
responsiveness

14 According to the criterion of _____ a selected segment must be large enough to warrant
developing and maintaining a special marketing mix. Serving the specific needs of this segment
must be commercially viable, even if the number of potential customers is small.
a
causality
b
accountability
c
responsiveness
d
accessibility
e
substantiality
15 The marketing researcher for Bubastis Cat Treats has noticed an growing number of cat owners
purchasing organic treats for their pets. The researcher thinks there is a market for organic cat
treats, but shes not sure if the segment is substantial. In this case, substantiality means the
segment:
a
has enough special stores, magazines, and other outlets that
it will be possible to direct advertisements at this group
b
is large enough to permit a profitable market effort
toward its members
c
exhibits a response rate to marketing variables different
from the rates of other segments
d
is too large and needs to be reduced to a more easily
identifiable and measurable size
e
will be difficult to develop a product to match this group of
buyers
16 Consumers in Louisiana love hot sauce, and Tabasco and Crystal brands are particularly popular
there. Consumers in Michigan do not like hot food, so they purchase very little hot sauce. A
national chain of grocery stores would likely use _____ segmentation when stocking condiment
merchandise.
a
geographic
b
economic
c
demographic
d
benefit
e
geo-demographic

17 A manufacturer of blankets knows heavy 100 percent wool blankets sell better in the New
England area where the winters are harsh and that lighter-weight blankets sell better in the
Southeast market where mild winters require fewer and lighter covers for the bed. Segmenting
the market according to climate is an example of _____ segmentation.
a
psychographic
b
lifestyle
c
perceptual
d
demographic

geographic

18 The Coca-Cola Company has over 450 brands in over 195 countries. According to their web site,
their products range from Samurai, an energy drink available in Asia, to Vita, an African juice
drink. Coca-Cola uses _____ segmentation in this marketing strategy.
a
geographic
b
economic
c
demographic
d
usage-rate
e
multi-positioning
19 Almost all cell phones sold in the United States are black or gray. Almost all cell phones sold in
Europe are colorful, and very few black phones are sold. A cell phone manufacturer knowing this
information could use _____ segmentation when selling its phones internationally.
a
geographic
b
economic
c
demographic
d
benefit
e
multi-positioning
20 Marketers use _____ to segment markets because this information is widely available, and
factors such as age or gender are often related to consumer purchasing and consumption
behavior.
a
benefits
b
psychographics
c
demographics
d
usage rates
e
sociocultural attributes
21 Income, ethnic background, gender, and age are all examples of _____ segmentation bases.
a
geodemographic
b
organizational
c
demographic
d
socioeconomic
e
psychographic
22 Colgate manufactures a fruit-flavored SpongeBob Squarepants toothpaste for kids. The agebased variable that distinguishes the market for this product is an example of a(n) _____
segmentation.
a
geographic
b
demographic
c
psychographic

d
e

benefits
usage rate

23 Fisher-Price developed a rugged, waterproof camera for children. This product uses _____
segmentation.
a
ethnicity
b
income
c
age
d
gender
e
occupation
24 Abbeville Press published a book by Armin Brott and Jennifer Ash entitled The Expectant
Father: Facts, Tips, and Advice for Dads-to-Be. It is an advice book for men whose partners are
expecting a baby. What demographic variables have been used to define the market for this
book?
a
Benefit desired and lifestyle
b
Gender and family life-cycle stage
c
Age, gender, and personality
d
Benefit desired and gender
e
Usage-rate and lifestyle
25 H&M plans to open a new store in Saudi Arabia. It will be staffed completely by women. Saudi
Arabia has strict laws about women interacting with men other than their husbands so only
women will be permitted to shop there. Which type of demographic segmentation is H&M
using?
a
Lifestyle
b
Usage rate
c
Benefit
d
Age
e
Gender

MOCK QUIZ #8

CHAPTER 9 Product, Service and Branding Strategy

PART 1 TRUE OR FALSE (20 points)

1 Sebastian got a haircut this afternoon. His haircut cannot be called a


product, however, because it is a service, not a tangible good. FALSE
2 An elementary school teacher purchased a ream of art paper, a box of
crayons, and some modeling clay. The teacher intends to use these products in her
classroom, so they would be classified as business products. TRUE
3 Convenience products, though inexpensive, still require considerable
shopping effort by buyers. FALSE
4 Inez believes makeup is the most important part of her wardrobe. She
spends considerable time comparing the prices, skin tones, and color options available at
various cosmetics counters in department stores. For Inez, makeup is a convenience
product. FALSE
5 Rolex watches are very expensive, can only be purchased in high-end
jewelry stores located in large metropolitan areas, and most buyers will accept no
substitutes. Rolex watches are an example of a shopping product. FALSE
6 A product unknown to the potential buyers or a known-product that the
buyers do not actively seek is referred to as an undesirable product. FALSE
7 Coca-Cola is one of the worlds largest manufacturers of beverages. It
makes over 2,800 different beverage products, including sparkling drinks, waters, juices,
juice drinks, teas, coffees, sports drinks, and energy drinks. The great variety of
beverages made by Coca-Cola represents its product mix. TRUE
8 Procter & Gambles Olay line of skin products is very popular and
profitable. P&G has launched an Olay body wash that is supposed to fight wrinkles. This
is an example of a repositioning. FALSE
9

The best generator of repeat sales is satisfied customers. TRUE

10 Devore loves southern-style cooking and always buys Glory Foods brand
of collard greens, black-eyed peas, and hot sauces. In fact, she refuses to purchase any
other brand because Glory Foods products taste just like her grandmothers cooking.
Devore is showing intense brand loyalty. FALSE
11 Kelloggs, Hanes, and General Electric are examples of a manufacturers
brand. TRUE
12 Retailers love national brands because overhead is low and there are no
marketing costs, and they bring higher margins than private brands. FALSE
13 The most important functions of packaging are to contain and protect
products, promote products, facilitate product storage, and facilitate recycling. TRUE
14 A warranty does not confirm the quality or performance of a good or
service. FALSE
15 Consumers may evaluate identical products differently depending on how
they are branded. TRUE
16 Physical goods, services, and stores can be branded, but ideas and people
cannot. FALSE
17 When Honda expanded its brand into such areas as automobiles,
snowblowers, and marine engines, it was pursuing a strategy called line extension.
FALSE
18 The role of a relatively high-priced brand in the portfolio is often to attract
customers to the brand franchise or to "build traffic." FALSE
19 Brand extensions can reduce the costs of introductory launch campaigns
and make it easier to convince retailers to stock and promote a new product. TRUE
20 Marketers must judge each potential brand extension by how effectively it
leverages existing brand equity from the parent brand, as well as how effectively, in turn,
it contributes to the parent brand's equity. TRUE

PART 2 MULTIPLE CHOICES (20 points)

1 A _____ is everything, both favorable and unfavorable, that a person


receives in an exchange. It can be tangible, intangible, a service, an idea, or a
combination of these things.
a brand equity
b quality
c warranty
d transaction
e product
2
a
b
c
d
e

The _____ is the starting point in creating a marketing mix.

price
product
distribution channel
promotional media
production line
3

All of the following are examples of products EXCEPT:

a
b
c
d
e

carton of milk
contact lenses
haircut
pair of shoes
All of the above are products.

a
b
c
d
e

Brand equity
Packaging
Color
Weight
Size

Which of the following is NOT an example of a product's tangible feature?

5 When a greenhouse plant grower sells plants to nursery retailers, is selling


_____ products.
a
specialty
b
consumer
c
convenience

d
e

business
unsought

6 Rock-Tenn produces cardboard cartons to be used by companies in the


food industry. Rock-Tenn is selling _____ products.
a specialty
b consumer
c business
d convenience
e unsought
7 _____ products are purchased with little shopping effort. These products
typically are purchased regularly, usually with little planning, and require wide
distribution.
a Convenience
b Specialty
c Branded shopping
d Unbranded shopping
e Generic
8

The convenience product marketing strategy includes:


a wide distribution of the product
b higher than ordinary prices
c few retail outlets other than convenience stores
d significantly lower promotion budgets
e products that are not easily substitutable

9 Amy stopped by the grocery store to pick up a gallon of milk. As she was
waiting to check out she noticed that People Magazine had an interesting cover story
about Scarlett Johansson. As Amy is a huge fan Scarlett, she had to buy a copy. In this
example, the People Magazine is an example of a(n) _____ product.
a specialty
b convenience
c business
d shopping
e unsought
10 Compared to the other classifications of consumer products, shopping
products are:
a widely available so they need little or no promotion
b usually less expensive than convenience products
c purchased without significant planning

d usually more expensive than convenience products and are


found in fewer stores
e purchased immediately after the consumer realizes he or she needs
them
11 Kathy is driving Chaz, her young son, home from soccer practice when
Chaz say, Mom, Im thirsty. Kathy immediately pulls the SUV into the nearest gas
station and buys Chaz a Coke. For Kathy, the Coke is best described as an example of
buying a _____ product.
a homogeneous shopping
b heterogeneous shopping
c convenience
d specialty
e component
12 Which of the following is the best example of a convenience product?
a
Concert tickets
b
Chewing gum
c
Jeans
d
Chemical for the swimming pool
e
A birthday present
13 Harrison wanted a gas water heater. He watched newspaper ads until he
found one on sale. For Harrison the water heater is a(n) _____ product.
a shopping
b convenience
c component
d unsought
e specialty
14 Which of the following is the best example of a shopping product for most
consumers?
a Washing detergent
b Crackers
c Soft drink
d Digital camera
e Magazine
15 Unsought products typically are products that:
a consumers purchase when they see them in a convenient location
b consumers definitely don't want
c only require reminder advertising to be successful

d
e

require little or no decision making by the buyer


consumers don't know about or don't actively look for

a
b
c
d
e

16 Branding is ________.
all about creating unanimity between products
the process of performing market research and selling products or services to customers
endowing products and services with the power of a brand
the process of comparing competing brands available in the market
use of online interactive media to promote products and brands

a
b
c
d
e

loyalty
equity
preference
identity
licensing

17 Brand ________ is the added value endowed to products and services.

18 Adam wants to buy a washing machine and is looking for something that
is not too expensive. When he goes to make the purchase, he finds there are two options
that meet his requirements. One is an IFB Bosch product, while the other is a newly
imported South Korean brand. Adam is not very familiar with the latter and does not
hesitate in choosing Bosch. This example implies that ________.
a the imported brand will not survive the competition from Bosch
b Bosch has a positive customer brand equity
c the South Korean company has a low advertising budget
d the imported brand is unreliable
e the Bosch washing machine has better features than the imported brand
19 Which type of consumer product requires comparison shopping because it
is usually more expensive than a convenience product and is found in fewer stores?
a An unsought product
b A secondary product
c A unique product
d A shopping product
e A selective product

20 Why is creation of a product the starting point for the marketing mix?
a The production department must know what to produce first.
b Production strategy is the first of the four Ps listed in the marketing
mix.

c Determination of the price, promotional campaign, and


distribution network cannot begin until the product has been specified.
d Product development takes the longest amount of time to complete.
e Actually, the product does not have to be the starting point-promotional strategies are often the starting point.

MOCK QUIZ #9
CHAPTER 10 New-Product Development and Product Life Cycle Strategies

PART 1 TRUE OR FALSE (20 points)


1
One advantage for being first on the market with a new product is
increased product loyalty. TRUE
2
The development of Coke Zero by Coca-Cola would not be considered a
new product since the company was already making soft drinks. It would simply be
called a line extension. FALSE
3

Very few firms follow a formal new-product development process. TRUE

4
A firm's new-product strategy links the new-product development process
with the objectives of the marketing departments, the business unit, and the corporation.
TRUE
5
For a firm that adheres to the product concept, the logical place to start
generating new-product ideas is with the customers of the firm.TRUE
6
Andersen Electronics is currently engrossed in its first estimations of
costs and revenues for a new amusement park video skill game. This firm is engaged in
a new-product business analysis. TRUE
7
Without the Internet, it would be impossible to conduct simultaneous
product development from different parts of the world.TRUE
8
A test market is one example of a focus group where consumers are
encouraged to try a new product and provide feedback to the manufacturer. TRUE
9
One benefit of test marketing is that the marketing activity is shielded
from competitors. FALSE
10
The Internet offers a fast, cost-effective way to conduct test
marketing.TRUE

11

The decision to market a product is called commercialization. TRUE

12
Increasing globalization of markets and of competition provides a reason
for multinational firms to consider new-product development from a worldwide
perspective.TRUE
13
Procter & Gamble is introducing a new fabric softener dispenser that
consumers stick to the inside of the dryer drum and plans to send consumers free
samples in the mail. This strategy will likely increase the rate of adoption of the new
product. TRUE
14
Martina loves her new Kindle and has tweeted to her followers several
times about how great the product is. This is an example of communication directly from
the marketer to potential adopters. FALSE
15
The product life cycle is a biological metaphor that traces the stages of a
products acceptance, from its introduction (birth) to its decline (death). TRUE
16

The growth stage is the first stage of the product life cycle. FALSE

17
Increasing competition, aggressive brand advertising, and healthy profits
are all characteristics found in the introductory stage of the product life cycle. FALSE
18
Profits typically reach their peak during the growth stage of the product
life cycle.TRUE
19
A CD player is a good example of a product in the maturity stage of the
product life cycle. FALSE
20
The product life cycle concept encourages marketing managers to act
reactively. FALSE
PART 2 MULTIPLE CHOICES (25 points)

a
b
c
d
e

1
New products are important to a company for all the following reasons
EXCEPT:
increased revenues
immediate profits
sustained growth
increased product loyalty
greater market responsiveness

a
b
c
d
e

2
Which of the following would be considered a new product?
A new product line
A new-to-the-world product
An addition to an existing product line
An improvement or revision of an existing product
All of these choices
3

Marketers consider all of the following examples of new products

c
d
e

EXCEPT:
a 2014 model year automobile with the same style, parts, and color as the 2013 model
the addition of a management consultant service to a company that once specialized in
investment management
a new design for Reach brand toothbrushes
a new flavor of Ben & Jerrys brand ice cream
the development of a less-painful procedure for the treatment of varicose veins

a
b
c
d
e

4
When P&G began marketing Tide Free & Gentle, which is dye- and
perfurme-free, this represented which new product category?
Repositioning strategy
New product line
Addition to an existing product line
Discontinuous innovation
Revision to existing products

a
b

5
Heinz is expected to introduce more than 400 new products in the next
two years. One of the products is a spicier ketchup aimed at the baby boomer market.
The spicier ketchup would be considered what type of new product?
a
Discontinuous innovation
b
New-to-market
c
New product line
d
Lower-priced products
e
Addition to existing product line
6
Apple recently introduced a newly designed iPod nano with Multi-Touch
capability, a built-in FM radio, and mix-making Genius. Since it was not trying to reach a
new target market, Apple was using which new product strategy?
a Improvement or revision of existing product
b Addition to an existing product line
c Discontinuous innovation
d Repositioned product
e New product line
7
When Procter & Gamble wanted to enter the hair care market, it
purchased Wella, a leading German company specializing in hair care products. What
new product category does this acquisition represent for P&G?
a repositioning strategy
b new product line
c addition to an existing product line
d discontinuous innovation
e revision to existing products
8
Oakley, a manufacturer of protective eyewear for various kinds of sports,
has introduced sunglasses that play music. The glasses weigh just a few ounces and
can hold up to 120 songs. These sunglasses would be an example of a(n):
a repositioning strategy
b new product line
c addition to an existing product line
d discontinuous innovation

revision to existing products

9
Companies that are most likely to succeed in the development and
introduction of new products typically are characterized by all of the following EXCEPT:
a establish an environment conducive to achieving new-product
objectives
b make the long-term commitment needed to support innovation
and new-product development
c capitalize on experience to achieve and maintain competitive
advantage
d use a company-specific approach that is driven by corporate
objectives and strategies with a well-defined new-product strategy at its core
e introduce ten new products every year
10
A(n) _____ links the new-product development process with the
objectives of the marketing department, business unit, and corporation.
a
product-review committee
b
concept test
c
episodic innovation
d
new-product strategy
e
product strategy bridge
11

A new-product strategy:
a links the new-product development process with the objectives of
the marketing department, the business unit, and the corporation
b is part of an organization's overall marketing strategy
c specifies the roles new products play in the organization's overall
plans
d describes the characteristics of products the organization wants to
offer and the markets it wants to serve
e is accurately described by all of these
12

Which of the following is the LEAST likely source for new-product ideas?
a A companys distributors
b Its customers
c Its employees
d Its financial lenders
e Its competitors

13
The process of converting applications for new technologies into
marketable products is called:
a basic research
b product modification
c marketing development
d product development
e correlation analysis
14

Which of the following questions is NOT likely to be asked during the

business analysis stage?


a What is the likely demand for the product?
b Which celebrity spokesperson can we hire to promote the
product?
c Would current customers benefit from the product?
d What is the risk of failure?
e What new facilities would be needed?
15
In the _____ stage of new-product development, the technical feasibility
of manufacturing the new product is examined as a prototype is produced.
a screening
b development
c market testing
d concept testing
e business analysis
16
_____ is a limited introduction of a product and a marketing program to
determine the reactions of potential customers in a market situation.
a Use testing
b Test marketing
c Concept testing
d Laboratory testing
e Discontinuous innovation
17

When selecting a test market city, a researcher should look for a city:
a where the demographics and purchasing habits mirror the
overall market for the product
b that has media spillover from other cities to increase media
alternatives
c that is as large as possible
d that has limited distribution
e where there is no competition
18
The maker of Purell hand sanitizer tested consumers' reactions to its
Purell Sanitizing Wipes by getting consumers to look through a newspaper with grocery
store ads, make out a grocery list, and then "shop" in a mock store filled with real
products, including the new product. This is an example of a(n):
a adoption-rate test
b simulated (laboratory) market test
c concept test
d use test
e juried consumer test
19

The final stage in the new-product development process is:


a product testing
b market testing
c commercialization
d product prototyping
e simulated marketing

20
Jenis Splendid Ice Creams has decided to put its new Beet Cake with
Black Walnut ice cream on the market. This product has entered the _____ stage of
new-product development.
a business analysis
b development
c test marketing
d commercialization
e research and development
21
During the _____ stage of the new-product development process,
production starts, inventories are built up, the product is shipped to distribution points,
the sales force is trained, and advertising and promotion begin.
a commercialization
b product testing
c market analysis
d product prototyping
e simulated marketing
22

All of the following are reasons products fail EXCEPT:


a overestimation of market size
b poor match between product features and customer desires
c a price too high or too low
d direct distribution
e not offering any discernible benefit compared to existing products

23

The MOST important factor in successful new-product introduction is:


a a good match between the product and market needs
b strong company leadership
c an obsession with quantity rather than quality
d a project-based team approach to new-product development
e a history of carefully listening to customers

24
A brand of iced tea, called Gold Peak, has high marketing costs as well
as high production costs. Promotions for the product are aimed at gaining distribution
and informing consumers that this premium product tastes like its home-brewed. In
which stage of the product life cycle is Gold Peak iced tea?
a introductory
b growth
c maturity
d decline
e saturation
25
The phase of the product life cycle in which healthy profits usually begin
to appear is the _____ stage.
a growth
b decline
c introductory
d maturity
e commercialization