_______ refers to the characteristics of a product or service that bear on its ability to satisfy stated or

implied customer needs.

1 point

A) Brand equity

B) Product quality

C) Product labeling

D) Brand image

E) Brand personality

A ________ is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or
seller of a product or service.

1 point

A) feature

B) brand

C) line extension

D) package

E) value chain

________ involves designing and producing the container or wrapper for a product.

1 point

A) Packaging

B) Patenting

C) Servicing

D) Co-branding

E) Labeling

A product's ________ identifies the product or brand, describes several things about the product, and
promotes the brand.

1 point

A) line extension

B) portfolio

C) label

D) design
E) feature

A ________ is a group of products that are closely related because they function in a similar manner, are
sold to the same customer groups, are marketed through the same type of outlets, or fall within given
price ranges.

1 point

A) product line

B) line extension

C) private brand

D) multibrand

E) new brand

________ involves adding more items within the present range of the product line.

1 point

A) Market diversification

B) Brand extension

C) Product line filling

D) Upward product line stretching

E) Downward product line stretching

Proton Corp. is an automobile manufacturer known for producing efficient, durable, and low-priced cars.
Recently, the company launched a new range of luxury cars to broaden its market appeal and to add
prestige to its existing line of cars. This is an example of ________.

1 point

A) social marketing

B) product line filling

C) product line stretching

D) internal marketing

E) cannibalization

A ________ consists of all the product lines and items that a particular seller offers for sale

1 point

A) product mix

B) store brand
C) supply chain

D) value chain

E) line extension

Product mix ________ refers to the number of different product lines the company carries.

1 point

A) length

B) height

C) width

D) consistency

E) depth

Product mix ________ refers to the total number of items a company carries within its product lines.

1 point

A) length

B) depth

C) height

D) width

E) consistency

Product mix ________ refers to the number of versions offered for each product in the line.

1 point

A) length

B) depth

C) height

D) width

E) consistency

The ________ of the product mix refers to how closely related the various product lines are in end use,
production requirements, distribution channels, or some other way.

1 point

A) length

B) depth
C) consistency

D) width

E) height

A reputed cosmetic company in New York City added new product lines in order to increase its business.
In other words, it ________.

1 point

A) lengthened its existing product line

B) decreased its product line consistency

C) widened its product mix

D) engaged in market diversification

E) engaged in social marketing

The strongest brands are positioned on ________.

1 point

A) desirable benefit

B) good packaging

C) service inseparability

D) strong beliefs and values

E) product attributes

Some companies obtain the rights to use the names or symbols previously created by other
manufacturers for a fee. This process is known as ________.

1 point

A) multibranding

B) positioning

C) segmenting

D) co-branding

E) licensing

________ occurs when a company introduces additional items in a given product category under the
same brand name, such as new flavors, forms, colors, ingredients, or package sizes.

1 point

A) Line extension
B) Megabranding

C) Interactive marketing

D) Internal marketing

E) Co-branding

________ involves the use of a successful brand name for new or modified products in a new category.

1 point

A) A line extension

B) A product line

C) A brand extension

D) Co-branding

E) Cannibalization

Which of the following is a potential drawback of multibranding?

1 point

A) Multibranding tends to decrease brand loyalty.

B) Company resources are likely to be concentrated on a single brand.

C) Multibranding curbs the growth opportunities of established brands.

D) Each brand might obtain only a small market share, and none may be very profitable.

E) Multibranding causes companies to refrain from product diversification.

________ refers to the amount of money charged for a product or service.

1 point

A) Value

B) Cost

C) Price

D) Wage

E) Salary

________ is the only element in the marketing mix that produces revenue.

1 point

A) Price

B) Product
C) Place

D) Fixed costs

E) Variable costs

________ occurs when two established brand names of different companies are used on the same
product.

1 point

A) Market diversification

B) Niche marketing

C) Co-branding

D) Licensing

E) Cannibalization

What sets the ceiling for product prices?

1 point

A) product manufacturing costs

B) sellers' perceptions of the product's value

C) customer perceptions of the product's value

D) variable costs

E) break-even volume

What sets the floor for product prices?

1 point

A) consumer perceptions of the product's value

B) product costs

C) competitors' strategies

D) advertising budgets

E) market competition

________ pricing uses buyers' perceptions of value as the key to pricing.

1 point

A) Customer value-based

B) Cost-based
C) Time-based

D) Markup

E) Target return

Which of the following involves introducing less-expensive versions of established, brand-name

products?

1 point

A) markup pricing

B) good-value pricing

C) time-based pricing

D) cost-based pricing

E) target profit pricing

Retailers such as Carrefour charge a constant, daily low price with few or no temporary price discounts.
This is an example of ________.

1 point

A) competition-based pricing

B) everyday low pricing

C) cost-plus pricing

D) break-even pricing

E) penetration pricing

________ involves setting prices based on the costs for producing, distributing, and selling the product
plus a fair rate of return for effort and risk.

1 point

A) Value-based pricing

B) Competition-based pricing

C) Cost-based pricing

D) Penetration pricing

E) Break-even pricing

A company must pay each month's bills for rent, heat, interest, and executive salaries regardless of the
company's level of output. This exemplifies its ________ costs.

1 point
A) overhead

B) variable

C) target

D) total

E) unit

Companies facing the challenge of setting prices for the first time can choose between two broad
strategies: market-penetration pricing and ________.

1 point

A) comparative pricing

B) competitive pricing

C) market-skimming pricing

D) market-segmentation pricing

E) cost-plus pricing

A market-skimming pricing strategy should NOT be used for a new product when ________.

1 point

A) the product's quality and image support its higher price

B) enough buyers want the products at that price

C) competitors are unable to enter the market

D) competitors can undercut prices easily

E) producing a smaller number of goods is feasible

Which of the following product mix pricing strategies involves setting prices across an entire product
range based on cost differences between the products, customer evaluations of different features, and
competitors' prices?

1 point

A) by-product pricing

B) product bundle pricing

C) optional product pricing

D) captive product pricing

E) product line pricing

When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices,
they are most likely using ________.

1 point

A) break-even pricing

B) target profit pricing

C) good-value pricing

D) cost-plus pricing

E) target return pricing

Which of the following product mix pricing strategies involves pricing products that must or can only be
used with the main product?

1 point

A) by-product pricing

B) product bundle pricing

C) captive product pricing

D) product line pricing

E) optional product pricing

Which of the following is a price adjustment strategy?

1 point

A) product bundle pricing

B) by-product pricing

C) product line pricing

D) optional product pricing

E) discount and allowance pricing

A marketing channel which consists of one or more intermediaries is known as a(n) ________ marketing
channel.

1 point

A) cyclic

B) upstream

C) looped

D) direct
E) indirect

The greater the number of channel levels in a marketing channel, the ________.

1 point

A) less distance between producer and end-consumer

B) greater the channel complexity

C) less time it takes for products to reach end-consumers

D) greater the control producers have over the distribution of their products

E) greater the control producers have over the demand of their products

Which of the following is a conventional consumer marketing channel?

1 point

A) producer to business distributor to end-consumer

B) producer to wholesaler to retailer to end-consumer

C) producer to end-consumer to business customer

D) producer to retailer

E) producer to business distributor to business customer

Conflict which occurs between different levels of the same marketing channel is known as ________
conflict.

1 point

A) horizontal

B) vertical

C) multitiered

D) equilateral

E) communal

The ________ organization is the most common type of contractual relationship.

1 point

A) franchise

B) horizontal

C) conventional

D) multi-national
E) entrepreneurial

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified
sponsor is called ________.

1 point

A) sales promotion

B) advertising

C) direct marketing

D) personal selling

E) public relations

The use of short-term incentives to encourage the purchase or sale of a product or service is called
________.

1 point

A) direct marketing

B) sales promotion

C) personal selling

D) public relations

E) publicity

Which of the following promotion tools involves building up a good corporate image and handling
unfavorable stories and events?

1 point

A) sales promotion

B) personal selling

C) direct marketing

D) public relations

E) advertising

Which of the following promotion categories is most likely to include the use of displays, discounts,
coupons, and demonstrations?

1 point

A) sales promotion

B) direct marketing
C) horizontal diversification

D) public relations

E) advertising

Which of the following promotion categories is most likely to use the promotion tools of press releases,
sponsorships, events, and Web pages?

1 point

A) sales promotion

B) direct marketing

C) advertising

D) public relations

E) horizontal diversification

Today several companies are adopting the concept of ________, which carefully combines and
coordinates the company's many communication channels to deliver a clear, consistent, and compelling
message about the organization and its brands.

1 point

A) integrated marketing communications

B) pull strategy

C) vertical diversification

D) nonpersonal communication channels

E) buzz marketing

Sam, the owner of a small company, learned that a competitor was planning to spend $150,000 on
promotion in the next financial year. As soon as he learned this, Sam called his finance manager and
said, "I want to spend $150,000 on promotion next year." In this case, which method of promotional
budgeting is used by Sam?

1 point

A) the objective-and-task method

B) the percentage-of-sales method

C) the competitive-parity method

D) the bottom-up method

E) the pull-push method

Using a(n) ________ strategy, the producer directs its marketing activities toward final consumers to
induce them to buy the product

1 point

A) pull

B) blitz

C) push

D) buzz

E) pulse

Under which promotional mix strategy does the producer direct its marketing activities (primarily
advertising and consumer promotion) toward channel members to induce them to carry the product
and promote it to final consumers?

1 point

A) pull strategy

B) blitz strategy

C) push strategy

D) buzz strategy

E) pulse strategy

Which of the following companies has a market-oriented business definition?

1 point

A) An electronics company, whose business definition is: "We produce microchips."

B) A hotel, whose business definition is: "We rent rooms."

C) An apparel company, whose business definition is: "We make and sell women's clothing."

D) A cosmetic company, whose business definition is: "We sell hope and self-esteem."

E) A pizzeria, whose business definition is: "We sell the world's most delicious thin-crust pizzas."

Which of the following is true with regard to the product/expansion grid?

1 point

A) It classifies SBUs into four distinct categories.

B) It is a useful device for identifying growth opportunities.

C) It helps companies analyze their internal strengths and weaknesses.

D) It functions on the premise that firms should downsize to regain market share.
E) It is a useful device for segregating customers into distinct categories.