Marketing Canadian 9Th Edition Crane Test Bank Full Chapter PDF

Marketing Canadian 9th Edition Crane
Test Bank
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Chapter 10
Student: ___________________________________________________________________________
1. Which statement below best describes why iCloud was unique in the industry when Apple
launched it in mid-2011?
A. no other service offered seamless integration and syncing between multiple devices
B. other services existed, but only synced multiple personal computers
C. other services existed, but only synced multiple smartphones
D. it was the first service that was profitable
2. Apple's inventions were revolutionary in all of the following industries, except:
A. personal computing
B. animated movies
C. digital publishing
D. gift cards
3. According to innovation at Apple, how it conceives, produces, and markets new products and/or
services, is the foundation for:
A. the success of a business

B. further innovations
C. competitive positioning
D. employee satisfaction
4. A group of products that are closely related because they satisfy a class of needs, are used
together, are sold to the same customer group, are distributed through the same types of outlets,
or fall within a given price range are referred to as a:
A. product class
B. product mix
C. product line
D. marketing mix
5. The Build-A-Bear Workshop in West Edmonton Mall sells custom made teddy bears designed to
be given as gifts for almost every occasion imaginable. For the Build-A-Bear Workshop, teddy
bears are an example of a:
A. product class.
B. product mix.
C. product line.
D. marketing mix.
6. Polaroid Canada has two major __________ consisting of cameras and film.
A. product classes
B. product mixes
C. product lines
D. marketing mixes
7. Nike's __________ are shoes and clothing.
A. product classes
B. product mixes
C. product lines
D. marketing mixes
8. The Toronto Hospital for Sick Children consists of inpatient hospital care, outpatient physician
services, and medical research. For the hospital, these would be considered their:
A. product classes.
B. product mixes.
C. product lines.
D. marketing mixes.
9. The Build-A-Bear Workshop in West Edmonton Mall sells custom made Teddy bears designed to
be given as gifts for almost every occasion imaginable. The Beary Romantic Curly Teddy is one
bear it designed for people to give to each other on Valentine's Day. The Beary Romantic Curly
Teddy is an example of a:
A. product item.
B. product type.
C. product class.
D. brand item.
10. A supplements company has a strategy to minimize the number of products they have to ensure
they can best service all of their existing products. In doing so, their corporate goal is to have no
more than five _________.
A. distinct stock sizes

B. universal product codes
C. stock-keeping units
D. order quantity codes
11. Within each product line, a specific product as noted by a unique brand, size, or price is referred
to as the ____________.
A. product item
B. universal product code
C. stock-keeping unit
D. order quantity code
12. The Build-A-Bear Workshop sells custom made teddy bears designed to be given as gifts for
almost every occasion imaginable. The Beary Romantic Curly Teddy is one bear designed for
people to give to each other on Valentine's Day. The code that the Build-A-Bear Workshop uses
to distinguish this teddy bear from the others in its inventory and to order new stock when its
numbers are depleted is a(n):
A. distinct stock size.

B. universal product code.
C. order quantity code.
D. stock-keeping unit.
13. The Nike LeBron [King James] basketball shoes retail at $199.99 and only come in size 12, the
size of LeBron James' shoe. This item is called a(n):
A. product class.
B. product type.
C. product item.
D. brand item.
14. During a recent shopping trip to the local Zellers store, Pat noticed several things. First, she
noticed that the store offered a tremendous variety of products, including toys, pet foods, clothing
for men, women, and children, health and beauty aids, small household appliances, automotive
products, and more. Further, Pat noticed Zellers offered an array of different products within each
product group. Each product group at Zellers is an example of a ______; all of the product groups
together constitute Zeller's ____.
A. product tangibility; product unit

B. product mix; product unit
C. product line; product mix
D. product unit; product tangibility
15. Newman's Own is a company that gives all of its profits to charities. The company produces
popcorn, salsa, pasta sauce, and salad dressings under the Newman's Own brand name. These
product lines are the company's:
A. product mix.
B. stock-keeping units.
C. product category.
D. product hierarchy.
16. Procter & Gamble offers home cleaning products (such as Mr. Clean), personal health products
(such as Colgate toothpaste), and optometry products (such as contact lenses). Collectively,
these would be Procter & Gamble's:
A. product class.
B. product mix.
D. marketing mix.
17. Fortune Brands offers many product lines, including sporting equipment (Titleist golf balls) and
plumbing products (Moen faucets). Together, these product lines are referred to as a(n):
A. product class.
B. product mix.
D. marketing mix.
18. Colgate toothpaste is likely:
A. purchased by the ultimate consumer.

B. purchased for resale.
C. used in the production of other items.
D. a product a consumer will make an effort to seek out and buy.
19. Two major ways to classify products are by type of ______ and degree of _________.
A. user; product tangibility

B. utility; customizability
C. value; utility
D. class; utility
20. Why would a cash register be considered a business good?
A. It is a product or services used to make the consumer's task easier.

B. It is a product purchased for resale.
C. It is a product that assists directly or indirectly in providing products for resale.
D. It is a product that a consumer will make an effort to seek out and buy.
21. Consumer goods are products purchased by the ultimate consumer, whereas _____ are products
used in the production of other products for ultimate consumers.
A. convenience goods
B. shopping goods
C. business goods
D. specialty goods
22. Which of the following would most likely be considered a consumer good?
A. ball bearings
B. back hoe
C. printing press
D. suitcase
23. Which of the following is NOT an example of a purchase of industrial goods?
A. Ford buying paint for its automobiles

B. A printing company buying paper
C. An accounting firm buying a new computer system
D. A daycare buying diapers
24. Each of the following describes products that assist directly or indirectly in providing products for
resale EXCEPT:
A. Industrial goods
B. Consumer goods
C. B2B goods
D. Organizational goods
25. Classification of products using the terms: nondurable goods, durable goods, and services
essentially describe the _______ of a product.
A. consumption
B. tangibility
C. liquidity
D. porosity
26. Which of the following is the best example of a nondurable good?
A. cat food
B. shoes
C. insurance
D. DVD player
27. Which of the following is the best example of a nondurable good?
A. automobile
B. health care
C. hair cut
D. gasoline
28. Among consumer goods, advertising and wide distribution are especially important for:
A. durable goods.
B. unsought goods.
C. nondurable goods.
D. production goods.
29. Advertising is important for products such as Coffee Crisp candy bars and Dasani bottled water
that are purchased frequently and at relatively low cost. Wide distribution in retail outlets is
essential. Why?
A. They are durable goods and cannot be sold without personal selling to answer consumers'
questions.
B. They are unsought goods so advertising targets consumers' impulsiveness.
C. They are nondurable goods and easily substitutable so consumers need to be reminded of
their existence.
D. They are production goods and can easily go out of stock.
30. Cat food is to a nondurable good, as _________ is to a durable good.
A. vehicle
B. financial service (i.e. mortgage)
C. life insurance
D. toothpaste
31. Which of the following is considered a durable good?
A. silverware
B. caviar
C. market research
D. chewing gum
32. Which of the following is considered a durable good?
A. gasoline
B. flour and sugar
C. stereo equipment
D. an airplane ticket to Toronto
33. Which product below is likely to be sold using personal selling primarily?
A. gasoline
B. iPad
C. airplane ticket
D. baking goods
34. A major difficulty in classifying products by type of user is that some products can be considered
both consumer and industrial goods. To clarify decisions for developing the marketing mix
strategy, classifying by the type of user focuses on the market and:
A. market size.
B. business mission.
C. purchase behaviour.
D. generated revenue.
35. Special marketing efforts are usually needed to communicate the benefits to potential buyers of
________________, because they are intangible.
A. nondurable goods
B. unsought goods
C. durable goods
D. services
36. Gasoline would be considered a:
A. Industrial goods
B. Shopping goods
C. Specialty goods
D. Convenience goods
37. Convenience goods are:
A. products purchased by organizations.

B. products purchased for resale.
C. products used in the production of other items for ultimate consumer use.
D. products the consumer purchases frequently and with a minimum of shopping effort.
Figure 10-1
38. According to Figure 10-1, column "A" would represent what type of product?
A. Shopping
B. Convenience
C. Specialty
D. Prestige
39. According to Figure 10-1, column "B" would represent what type of product?
A. Shopping
B. Convenience
C. Specialty
D. Prestige
40. According to Figure 10-1, column "C" would represent what type of product?
A. Shopping
B. Convenience
C. Specialty
D. Prestige
41. According to Figure 10-1, column "D" would represent what type of product?
A. Shopping
B. Convenience
C. Specialty
D. Unsought
42. Which of the following is the best example of a convenience good?
A. Sony CD player
B. Lexus LS 400 luxury automobile
C. Flight on Air Canada
D. Ivory soap
43. Janine recently went gluten free and is purchasing breakfast cereals for the first time. Which
statement below best describes her experience?
A. she will make a special effort to seek out and buy.

B. she will likely compare several alternatives on several criteria.
C. she will not have success.
D. she will make purchases frequently and with a minimum of shopping effort.
44. Shopping goods are items:
A. such as a Rolex watch that a consumer makes a special effort to search out and buy.
B. for which the consumer compares several alternatives on criteria, such as price, quality, or
style.
C. used to assist in producing other goods and services.
D. the consumer purchases frequently and with a minimum of shopping effort.
45. The manner in which a consumer good is classified depends on the individual. One person may
view a camera as a ________ and visit several stores before deciding on a brand, whereas a
friend may view cameras as a _________ and will only buy a Nikon.
A. shopping good; specialty good

B. convenience good; specialty good
C. specialty good; prestige good
D. prestige good; unsought good
46. Which of the following is the best example of a shopping good?
A. CD player
C. Mercedes Benz CL250
D. Roget's Thesaurus
47. When Dell created a website where any individual can submit future ideas or products based on
their experience with the company, Dell was using which specific strategy?
A. open innovation
B. crowdsourcing
C. idea generation
D. online ideation
48. You decide to buy a new car. You talk to friends about it, research mechanical specifications in
Consumer Reports, test drive different makes and models, and compare prices at several
dealerships. Into which classification of consumer goods would your new car purchase fall?
B. shopping goods
C. specialty goods
D. unsought goods
49. As the founder of a new startup, you pose a question on your website, asking current and
potential customers what else they would like to see the startup offer or improve upon.
Essentially, the startup is using ______________ for ideas.
A. crowdsourcing
B. online ideation
C. real-time feedback
D. "free time"
50. You greatly admire a set of Ralph Lauren crystal goblets you see at a dinner party, and decide to
buy four, despite the somewhat surprising price of $60 each. They are only available in your area
in a Polo Ralph Lauren shop, 40 miles from campus. Into which classification of consumer goods
would the crystal goblets fall?
B. shopping goods
C. specialty goods
D. unsought goods
51. All of the following could be considered sources of open innovation ideas, except:
A. current employees
B. universities
C. investors
D. partner firms
52. Burberry makes fine raincoats, clothing, and other items, many featuring the company's
distinctive plaids. Originally found only in Great Britain, Burberry has opened exclusive shops in
leading cities around the world to reach customers who value its name and quality. Burberry is
selling in which classification of consumer goods?
B. shopping goods
C. specialty goods
D. unsought goods
53. Websites such as IDEO and InnoCentive use ___________ to obtain ideas.
A. crowdsourcing
B. online ideation
C. real-time feedback
D. "free time"
54. Which of the following is most likely to be an example of an unsought good?
A. CD player
C. Flight on Air Canada
D. Ceramic French poodle
55. Leona hates carrying a camera with her on vacations. If she only knew of the existence of the
1/2" thick Logitech Pocket Digital camera which easily fits in any pocket. For Leona, the Logitech
camera is a(n):
A. shopping good.
B. convenience good.
C. specialty good.
D. unsought good.
56. Fifty percent or more of Canadian adults have not had their teeth checked by a dentist within the
last five years. For these people dental services would be classified as a(n):
A. shopping good.
B. convenience good.
C. specialty good.
D. unsought good.
57. In terms of price, which of the following types of goods would most likely be relatively
inexpensive?
A. shopping goods
B. convenience goods
C. specialty goods
D. unsought goods
58. With respect to distribution, convenience goods are available:
A. at relatively few outlets.

B. at a large number of selective outlets.
C. on a widespread basis at many outlets.
D. at a very limited number of outlets.
59. In terms of promotion, which of the following types of goods would stress price, availability, and
awareness?
A. shopping
B. convenience
C. specialty
D. unsought
60. In terms of brand loyalty, consumers are aware of a brand but will readily accept substitutes. This
is characteristic of:
A. shopping goods.
B. convenience goods.
C. specialty goods.
D. unsought goods.
61. Which type of consumer good is purchased relatively infrequently and takes some time to make
the purchase decision due to some comparison shopping?
B. shopping goods
C. specialty goods
D. unsought goods
62. With respect to price, which of the following types of consumer goods would most likely be fairly
expensive?
B. shopping goods
C. specialty goods
D. unsought goods
63. All of the following are advantages in using virtual reality test marketing, except:
A. it is often less expensive

B. it is often more flexible
C. it can often reduce the time to market
D. it can often be more expensive
64. With respect to price and availability, shopping goods are likely to be:
A. relatively inexpensive and widely available.

B. relatively inexpensive but very limited availability.
C. fairly expensive, available at a large number of selective outlets.
D. very expensive, very limited availability.
65. In terms of promotion, which of the following types of goods stress product differentiation from
competitors?
A. shopping goods
C. specialty goods
D. unsought goods
66. In terms of brand loyalty, consumers prefer specific brands, but will accept substitutes after
consideration with which type of consumer goods?
A. shopping goods
C. specialty goods
D. unsought goods
67. Which type of consumer good is purchased infrequently and takes an extensive amount of time to
make the purchase decision and obtain the item?
B. shopping goods
C. specialty goods
D. unsought goods
68. With respect to price, which of the following types of consumer goods would most likely be very
expensive?
B. shopping goods
C. specialty goods
D. unsought goods
69. Distribution is most limited with which of the following types of consumer goods?
A. shopping goods
C. specialty goods
D. unsought goods
70. All of the following are considerations to understand the ‘business fit' of a potential new offering,
except:
A. alignment with firm's mission and vision

B. alignment with firm's corporate objectives
C. manufacturing feasibility
D. selling price
71. When analyzing a new potential service offering, it is critical for the organization to use which of
the following tools?
A. consumer usability analysis

B. test-case analysis
C. capacity management
D. alternative competitive analysis
72. Off-peak pricing for a new service offering is a result of using ____________ to fully understand
the potential service offering.
A. consumer usability analysis

B. test-case analysis
C. capacity management
D. alternative competitive analysis
73. Poor product quality is often the result of poor:
A. testing
B. marketing efforts
C. needs vs. wants analysis
D. consumer development
74. Windows Vista was destined to fail because Microsoft failed to conduct thorough:
A. product testing
B. marketing analysis
C. needs vs. wants analysis
D. consumer development
75. Marissa, a college student and her father, a wealthy businessman, were each considering the
purchase of a new automobile. As a college student with limited financial resources, Marissa went
from car dealer to car dealer in several different cities searching for the lowest price on a new
economy car. She devoted a great deal of time and energy to getting the best value for her
money. Marissa's father, however, knew that he would buy another new car next year. Because it
was convenient, he simply went to the local auto dealer and, with little thought or effort regarding
the buying decision, bought the first luxury car that he saw. For Marissa, an automobile was a
_____; for her father, a car was a ____.
A. specialty good; shopping good

B. specialty good; convenience good
C. convenience good; specialty good
D. shopping good; convenience good
76. The main result of poor product protocol, or product definition, is:
A. wasted dollars for R&D

B. poor consumer response
C. ineffective marketing plans
D. human resource challenges
77. If consumer demand for Ford cars (a consumer product) increases, the company may increase its
demand for paint-spraying equipment (a business good). This illustrates _______.
A. unit demand
B. contrived demand
C. derived demand
D. primary demand
78. Specialized bicycles may increase the demand for Shimano gears if there is an increase in
consumer demand for specialized mountain bikes. This illustrates _______.
A. derived demand
B. contrived demand
C. secondary demand
D. primary demand
79. A company that manufactures door hinges used by GM in its car doors gets increased orders
from GM because more consumers are demanding GM vehicles. This illustrates _______.
A. derived demand
B. contrived demand
C. secondary demand
D. primary demand
80. The demand for one product that results from the demand for another product is called:
A. derived demand.
B. contrived demand.
C. primary demand.
D. secondary demand.
81. Which of the following best illustrates the concept of derived demand as explained in the text?
A. The number of retail stores in a downtown area decreases and demand for retail goods
increases.
B. An increase in the number of new single family homes results from a spurt in the gross
national product.
C. The heat wave results in an increased demand for air conditioners.
D. Jet engine manufacturers experience increased sales because more tourists are taking
international vacations.
82. Heavy-duty Rayovac flashlights are sold throughout Canada. The bulbs used in the flashlights,
however, are manufactured by Philips, and the quantity of bulbs Philips sells is related to how
many flashlights Rayovac manufactures. This is an example of:
A. a tying arrangement.
B. derived demand.
C. buildup marketing.
D. relationship marketing.
83. A company that manufactures door hinges used by GM in its car doors gets increased orders
from GM because more consumers are demanding GM vehicles. This illustrates ________ for
this __________.
A. derived demand; prestige good

B. primary demand; unsought good
C. secondary demand; shopping good
D. derived demand; production good
84. The two main classifications of business goods are:
A. durable and nondurable.

B. production and support.
C. tangible and intangible.
D. production and shopping.
85. SJC Sheet metal manufactures components of the roof and floor for most vehicles manufactured
in Southern Ontario. Their clients include Ford, GM, and Toyota. SJC Sheet manufactures:
A. production goods.
B. supplies.
C. specialty goods.
D. accessory equipment.
86. Items used in the manufacturing process _____ are called production goods.
A. that are used to construct a manufacturing facility

B. that are essential to research and development
C. that finance industrial expansion
D. that become part of the final product
87. Wax for making candles would most likely be classified as which type of good?
A. production goods
B. specialty goods
C. support goods
D. convenience goods
88. Legal counsel for a business would be considered a(n):
A. nondurable goods
B. intangible goods
C. specialty goods
D. support good
89. Support goods are:
A. products purchased by the ultimate consumer.

B. products for which the consumer will compare several alternatives on several criteria.
C. items used to assist in the production of other goods.
D. items the consumer purchases frequently and with a minimum of shopping effort.
90. Support goods are items used to assist in producing other goods and services. Support goods
include installations, accessory equipment, and:
A. supplies and services.

B. industrial equipment.
C. consumer tie-ins.
D. process materials.
91. Support goods include all of the following EXCEPT:
A. services.
B. supplies.
C. accessory equipment.
D. raw materials.
92. Which support good is likely to be purchased using the straight rebuy decision sequence?
A. installations
B. accessory equipment
C. supplies
D. services
93. A retail chain hires a company to design and install a computer network that would allow each
store in the chain to check the inventory of others in the chain for customer-requested items. The
retail chain would have purchased a(n):
A. support good.
B. production good.
C. convenience good.
D. fabricating part.
94. Installations:
A. are similar to consumer convenience goods.

B. consist of buildings and fixed equipment.
C. are items used in the manufacturing process that become part of the final product.
D. include tools and office equipment.
95. Price considerations factor prominently in the decision-making process for which support good?
A. installations
B. production goods
C. raw materials
D. services
96. The 18-hole golf course that a subdivision developer had custom designed and built to attract
more new home buyers to the subdivision would be an example of a(n):
A. production good.
B. accessory equipment.
C. supply.
D. installation.
97. Reviewing the reputation of support goods is most critical for which item?
A. KPMG audit services

B. Office Depot paper clips
C. Dufferin Quarries for gravel
D. Lenovo enterprise computer installers
98. Drafting tables would best be considered which type of support goods?
A. installations
C. supplies
D. services
99. Supplies:
A. are similar to consumer convenience goods.

B. consist of buildings and fixed equipment.
C. are items used in the manufacturing process that become part of the final product.
D. include tools and office equipment.
100.Printer paper would be classified as which type of support goods?
A. installations
C. supplies
D. services
101.A retail chain hires a company to design and install a computer network that would allow each
store in the chain to check the inventory of others in the chain for customer-requested items. The
retail chain would have purchased a(n):
A. accessory equipment.
B. service.
C. supply material.
D. component part.
102.Which category can include maintenance and repair services and advisory services, such as tax
or legal counsel, where the seller's reputation is critical?
A. accessory equipment
B. services
C. supply materials
D. component parts
103.Which category includes tools and office equipment and is usually purchased in small-order sizes
by buyers—often through distributors?
B. services
C. supply materials
D. component parts
104.A significant amount of capital is required to purchase ___________, the business buyer deals
directly with construction companies and manufacturers through sales representatives:
B. installations
C. supply materials
D. component parts
105.Which of the following is NOT an attribute of a new product?
A. The product is less than 6 months old.

B. The product requires a significant degree of "new" learning by consumers.
C. The product is "new" in legal terms.
D. The product is "new" from a competitor's perspective.
106.Industry Canada considers a product new only:
A. for a period of six months.

B. for a period of twelve months.
C. until a similar product is introduced by a competitor.
D. until a newer version of the same product is produced.
107.Prego recently introduced a Pasta Bake Sauce, which was made so that it was not necessary to
pre-cook the pasta before blending pasta, sauce, meat, and cheese in a casserole. Legally, this
product would only be considered new:
A. for the first twelve months that it was regularly available.

B. until a competitor had issued a similar product targeted to the same market.
C. as long it retained these exact product characteristics.
D. until every member of its target audience was aware of its existence.
108.Mr. Clean is an antibacterial cleaning liquid for home use. The manufacturer of Mr. Clean
believed the addition of Sparkling Apple-Scented Mr. Clean to the Mr. Clean product line, will be:
A. seen as a discontinuous innovation.

B. viewed as new from the company's perspective because it is a product line extension.
C. viewed as a high-risk product line addition because it is new to the market.
D. defined as new by Industry Canada for the usual six month period.
109.The terms continuous innovation, dynamically continuous innovation, and discontinuous

innovation, are classifications based on:
A. generated sales.
B. production technology.
C. degree of learning required by the consumer.
D. channels of distribution.
110.Gillette has updated its existing ‘Close to You Dry Shaver' to allow it to be used in the shower
(Close to You Wet-Dry Shaver). This new Shaver would be considered a(n)
A. continuous innovation.
B. discontinuous innovation.
C. dynamically continuous innovation.
D. symbiotic innovation.
111.Which of the following products at the time of its introduction was the best example of a
continuous innovation?
A. home security system

B. disposable lighter
C. microwave oven
D. electric toothbrush
112.Which of the following products was the best example of a continuous innovation when
introduced?
A. The PalmPilot personal assistant

B. Atari video game system
C. Breathe Right nasal strips
D. ViaVoice Gold voice recognition software
113.The addition of Sparkling Apple-Scented, Invigorating Breeze-Scented, and Summer Citrus-

Scented versions of Mr. Clean antibacterial cleaning liquid is an example of:
A. discontinuous innovation.
B. phased innovation.
C. continuous innovation.
D. gradual innovation.
114.When automakers first added airbags to the passenger side of the automobile it was an example
of what is called a(n)
A. continuous innovation
B. dynamically continuous innovation
C. discontinuous innovation
D. insignificant innovation
115.A product which disrupts consumers' normal routines but does NOT require totally new learning is
a:
dynamically continuous innovation?
A. compact disc player

B. disposable lighter
C. personal computer
D. automatic dishwasher
117.The emphasis of a marketing strategy for a dynamically continuous innovation would include:
A. advertising to generate awareness.

B. obtaining widespread distribution.
C. advertising to explain product features and their advantages.
D. setting the price low.
118.There have been pasta sauces on the market for years. These sauces have always required the
pasta be pre-cooked before it is mixed with the sauces and other ingredients. The development
of Prego Pasta Bake Sauce that does not require the use of pre-cooked pasta would be an
example of a:
119.For someone used to downloading music online, iTunes, when it first launched, would be
considered a(n):
discontinuous innovation?
A. iTunes
B. iPad
C. iPhone
D. MacBook Air
121.In the early 1900s, your great-grandfather probably purchased his first automobile. After years of
driving horses and buggies, your great-grandfather got in his new car and drove it into his new
garage. Great-grandfather's new automobile was an example of a:
B. dynamically continuous innovation.
C. dramatically continuous innovation.
D. discontinuous innovation.
122.Napster software allowed an individual to easily search and swap MP3 (a technique for
compressing files into a size that moves faster on the Internet) musical files with other
individuals. When it was introduced, it would have been an example of a:
123.Heinz launched its EZ Squirt Ketchup in an array of unlikely hues—from green and orange to
pink and teal—with kid-friendly squeeze bottles and nozzles. When it was introduced, it would
have been an example of a:
124.IBM's ViaVoice speech recognition software, which enabled users to speak into a computer and
have the computer translate their speech to the computer screen meant that people had to learn
totally new behaviours to produce word processed documents. This is an example of:
Figure 10-2
125.According to Figure 10-2, column "A" represents a
A. spontaneous innovation.
B. continuous innovation.
C. discontinuous innovation.
D. dynamically continuous innovation.
126.According to Figure 10-2, column "B" represents a
A. discontinuous innovation.
C. spontaneous innovation.
D. simultaneous innovation.
127.According to Figure 10-2, column "C" represents a
D. spontaneous innovation.
128.E-book devices such as Kindle by Amazon changed the way we read! For example, the Kindle is
a software and hardware platform that requires you to learn how to use this technology, whether
you buy the Kindle reader device or have the content sent to your iPhone. The Kindle would be
considered a(n):
D. spontaneous innovation.
129.There have been pasta sauces on the market for years. These sauces have always required the
pasta be pre-cooked before it is mixed with the sauces and other ingredients. The newly
developed Prego Pasta Bake Sauce does not require the use of pre-cooked pasta. Prego would
most likely promote this product through:
A. personal salespeople.
B. product trials.
C. the implementation of a penetration strategy.
D. advertising how the sauce differs from those currently on the market.
130.The emphasis of a marketing strategy for a discontinuous innovation would most likely be to:
A. generate awareness among consumers and obtain widespread distribution.

B. advertise benefits to consumers, stressing point of differentiation and consumer advantage.
C. educate consumers about entirely new consumption patterns through product trial and
personal selling.
D. obtain widespread distribution.
131.Many services-marketing experts suggest that creating and delivering new services is much
more difficult than creating new tangible products and new services differ from product
innovations in several important ways. Which of the following best illustrates these differences?
A. for labour-intensive, interactive services, the actual providers (the service delivery staff) are
part of the customer experience and thus are part of the innovation
B. most service companies focus on creating only incremental improvements
C. most service companies focus on continuous innovation
D. the new-service development process is often easy for the service customer to observe
A. many services require the physical presence of the customer, which demands local
decentralized production of the service
A. new services usually do not have a tangible product to carry a brand name
A. the new-service development process is difficult to map out for the service company and often
difficult for the service customer to observe
D. the new-service development process is often easy to map out for the service company and
often easy for the service customer to observe
135.Each of the following statements illustrates a reason why creating and delivering new services is
much more difficult than creating new tangible products EXCEPT:
A. The new-service development process is also difficult to map out for the service company and
often difficult for the service customer to observe.
B. Most service companies focus on creating incremental improvements.
C. New services usually do not have a tangible product to carry a brand name.
D. Many services require the physical presence of the customer, which demands local
decentralized production of the service.
136.Services-marketing experts generally agree that there is a hierarchy of new-service categories

that is somewhat similar to the continuous, dynamically continuous, and discontinuous innovation
continuum for physical products. This hierarchy consists of ______ categories.
A. four
B. five
C. six
D. seven

continuum for physical products. CNNs 24/7 global news service and eBay's online auction
services would be examples of:
A. style changes
B. process-line extensions
C. service-line extensions
D. major service innovations
continuum for physical products. New uniforms for service personnel and new colour schemes
for the service facilities would be examples of:
A. style changes

continuum for physical products. A Canadian university or college offering a totally online MBA
program where you never have to visit the campus to complete your degree would be example
of:
A. style changes
C. major process innovations

continuum for physical products. Many Canadian banks now offer their customers insurance
offerings would be example of:
A. style changes

continuum for physical products. Many Canadian banks offering telephone or Internet banking
would be example of:
A. style changes
continuum for physical products. A hospital that adds valet parking when you visit a family
member who is being treated there would be an example of:
A. supplementary-service innovations

continuum for physical products. FedEx Office offering high-speed Internet access at its locations
for its customers would be an example of:

continuum for physical products. Serving customers quicker would be an example of:
B. basic service improvement
145.Which of the following is NOT a common reason for new-product failures?
A. poor execution of the marketing mix

B. market was too biased
C. poor product quality
D. too little market attractiveness
146.Suppose that you are a marketing consultant hired to analyze why a new reality television show
failed to attract an audience in spite of the fact that there are at least a half a dozen successful
reality shows on broadcast and cable television. Which of the following would you NOT think
could be a reason for the shows failure?
A. poor product quality

B. insignificant point of difference compared to shows already on the air
C. too much knowledge of consumers' television viewing preferences
D. poor execution of the marketing mix
147.A young musician goes on tour to promote his new album. The concerts are a huge success, but
due to a problem in distribution, the musician's CDs do not arrive in the music stores until six
weeks after the tour. Why did CDs sales fall far short of plans?

B. insignificant point of difference
C. too little market attractiveness
148.When General Foods introduced Post Cereals with freeze-dried fruits, people found that by the
time the fruit had absorbed enough milk, the flakes were soggy. Why did this product fail?

B. insignificant point of difference compared to competitive offerings
149.Assume a new electric automobile is developed that performs much like gasoline except that it
doubles a car's miles-per-gallon. However, electricity costs two and one-half times as much as
gasoline. Why do you think such a new product might fail?

B. insignificant point of difference
150.All of the following are protocol criteria for new-product development, except:
A. a well-defined target market

B. specific customers' needs, wants, and preferences
C. what the product will be and do
D. a well-priced product
151.One cause for product failure is incomplete market and product definition before product
development starts. This problem can be avoided if the company developing the new product
has:
A. a static organizational culture.

B. top management involvement in the development process.
C. a marketer-dominated source of information for consumers.
D. a protocol.
152.The probability that a new product will be a success is greater if each of the following situations
exists EXCEPT:
A. it is a uniquely superior product.

B. it fits with its company's R&D and manufacturing capabilities.
C. it fits with its company's marketing mix activities.
D. it is defined after development commences.
153.Molson launched a Brazilian imported beer in Canada called A Marca Bavaria.

After three years and disappointing sales, the product was removed from the market. Which of
the following is NOT suggested as an organizational problem that can lead to new-product
failure?
A. Not really listening to the "voice of the consumer."

B. Skipping steps in the new-product process.
C. Pushing a poorly conceived product into the market to generate quick revenue.
D. Learning critical takeaway lessons from past failures.
154.All of the following are stages in the new-product development process, except:
A. idea generation
B. business analysis
C. manufacturing
D. commercialization
155.Use of a tool such as ‘Six Sigma’ would most commonly be found in which stage of the new-
product process?
A. idea generation
B. distinctive competency
C. new-product strategy development
D. business mission
156.Including lead users in your new-product development strategy can be advantageous because it
can lead to:
A. higher rates of product success

B. higher price of product offered
C. higher manufacturing efficacy
D. better use of Six Sigma
157.Cross-functional teams are most likely to be used in which stage of the new-product process?
A. new-product strategy development

B. idea generation
C. development
D. market testing
158.Six Sigma is:
A. a means of denoting companies that are completely international in scope.

B. a rating system used to indicate societal responsibility.
C. a highly disciplined process used to develop and deliver near-perfect products.
D. a system used to determine which companies are most efficient at developing and marketing
new products.
159.Developing a pool of concepts as candidates for new products is an example of:
A. proactive production strategy.

B. new-product mix.
C. product development.
D. idea generation.
160.Perceptual maps and product positioning diagrams are most likely used in which new-product
stage?
A. business analysis
B. competitive assessment
C. product development
D. commercialization
161.Sara Burns is the owner of a company called Spice and was looking for a new product to go with
her company's line of food condiments, when a friend suggested combining spices with tea. This
is an example of:
A. accidental invention.
B. bootlegging time.
C. idea generation.
D. management by walking around.
162.Assume that, as marketing director for Mazda, you see your sales decreasing in the years since
the Honda Prelude with four-wheel steering was introduced. If you hope to regain sales in this
market quickly through a new-product action, the most valuable sources of ideas would be:
A. consumer suggestions.
B. employee suggestions.
C. research and development breakthroughs.
D. competitive products.
163.When it comes to developing new services over new products there are some significant
differences. All of the following represent the differences except:
A. the service delivery staff is part of the customer experience.

B. focus on the competition, not on consumers.
C. local decentralized production of the service is required.
D. the new-service development process is often difficult for the customer to observe.
164.Imagine you work for a production company that has been approached by one of the networks to
develop a concept for a new reality show. These seem to be the years of the reality television
shows—just like we had not too long ago several new shows modeled after Friends. Where are
you and your co-workers most likely to look first for a concept?
A. conducting Nielsen a survey

B. by observing what's on television
C. through research and development
D. by relying on brainstorming
165.In a presentation to Senior Management, you show a weighted point system to a number of ideas
a cross-functional team generated. At what stage is this presentation most likely to occur?
A. idea generation
B. screening and evaluation
C. business analysis
D. development
166.Conducting in-person taste tests and using the Internet to virtually test new concepts are most
likely to occur in which stage?
A. internal and external evaluations of new-product ideas

B. brainstorming
D. budgeting
167.Marketing researchers could ask consumers if they would prefer to serve their children juice in
easy-to-open pouches, plastic bottles with screw-on caps, or individual easy-open boxes. When
the consumers tell the researcher which package concept they prefer, they are taking part in
which stage of the new-product process?
A. idea generation
B. development
D. concept testing
168.Which of the following statements about the screening and evaluation stage of the new-product
process is true?
A. The external approach decides whether the new-product idea is technically feasible.
B. Concept testing is part of the internal approach.
C. New-product ideas are eliminated during the business analysis stage.
D. A mock-up of a movie based on the Friends series shown to moviegoers who are asked their
opinions of the movie is an example of a concept test.
169.An external evaluation that consists of preliminary testing of a new-product idea (rather than the
actual product) with consumers is called:
A. new-product strategy development.

B. idea generation.
C. alternative evaluation.
D. a concept test.
170.Concept testing is used at which stage in the new-product process?
A. new-product strategy development

B. idea generation
C. alternative evaluation
D. screening and evaluation
171.Developing the marketing strategy required to commercialize a new idea would be created in
which stage?
A. idea generation
B. commercialization
D. development
172.All of the following activities are involved in the business analysis phase of the new-product
process EXCEPT:
A. economic analysis.
B. product analysis.
C. investment of capital in human resource.
D. legal examination.
173.Factors such as total market dollars, market growth rate, gross profitability, and cash flow are a
part of which stage of the new-product process?
A. idea generation
B. market testing
D. development
174.IDEO is a company that:
A. creates products solely for the business market.

B. determines the legal standing of products engaged in the business analysis stage of the new-
product process.
C. is highly formalized and rule-bound.
D. exists to develop and design new products.
175.The use of crash test dummies for a new seatbelt design is most likely to be used in which
stage?
A. idea generation
D. development
176.Sara Burns is the owner of a company called Spice and was looking for a new product to go with
her company's line of food condiments, when a friend suggested combining spices with tea. In
the _____ stage of the new-product process, spices and tea were turned into a prototype.
A. idea generation
D. development
177.At Mattel, new product prototypes are child tested in special testing playgrounds during the
_____ stage in the new-product process.
A. new-product strategy
B. development
178.All of the following might be used in the development phase, except
A. safety testing
B. consumer testing
C. external solicitation of ideas
D. marketing plan development
179.If you watched much television, you have seen the ads that show a controlled crash of a car
containing crash dummies and the resultant vehicular damage. In the new-product process, this
test would occur during the _____ stage.
A. development
B. market testing
C. idea generation
180.In the new-product process, the stage that involves exposing actual products to prospective
customers under realistic purchase conditions to see if they will buy is called:
A. commercialization.
B. screening and evaluation.
C. market testing.
D. development.
181.When audiences are allowed to preview actual movies such as Pretty Woman and Honey, I
Shrunk the Kids before they are released to the general public, it is a part of the _____ stage of
the new-product process.
A. market testing
B. business analysis
C. commercialization
182.Some companies are using neuromarketing techniques to preview several versions of

commercials to a group of customers, to understand which ones are most effective. The use of
this technique would be commonly found in which stage?
A. commercialization
C. market testing
D. development
183.KFC is trying to understand whether they should launch the ‘Double Down' Sandwich as a
regular featured item on the menu. To understand the receptivity to the product in the first place,
KFC offers the Double Down for sale:
A. exclusively to company employees.

B. to as broad a geographic region as possible.
C. to a unidimensional target market.
D. in a defined area.
184.For David Kelley, co-founder of IDEO, product design includes both _______ and _________
elements.
A. artistic; functional
B. qualitative; quantitative
C. economic; aesthetic
D. practical; functional
185.The market testing stage of the new-product process often involves test markets or purchase
laboratories in which the variable to test is:
A. consumer attitudes.
B. price.
C. advertising.
D. sales.
186.Breyers introduced for sale a new line of ice cream flavours in elegant black containers. This was
done on a limited scale to determine consumer reactions before national distribution of the
product. Breyers' new product was in the _____ stage of the new-product process.
A. commercialization
D. market testing
187.Which of the products listed below would be the best candidate for full-scale market testing?
A. totally free checking account from The Royal Bank of Canada

B. household (not individualized) frequent flyer program from Air Canada
C. mid-priced luxury sedan made in America by Mazda
D. new iced coffee beverage from Snapple
188.Simulated test markets are the same as:
A. market test sites where organizations sell a new product via normal distribution channels and
then monitor the results.
B. forced distribution markets.
C. laboratory test markets.
D. those in which a product is offered for sale on a limited basis.
189.Because of the time, cost, and confidentiality problems of test markets, manufacturers often turn
to:
A. simulated test markets

B. trial idea generation
C. screening and evaluation
D. synthetic consumer research
190.Test marketing is:
A. almost always done, especially for consumer services.

B. not usually done with services, expensive consumer products, or costly industrial products.
C. almost always done for new consumer products, including more expensive ones.
D. not usually done with most products because of the time and expense involved.
191.In the new-product process, the stage at which the product is positioned and launched in full-
scale production and sales is called:
A. commercialization.
B. screening and evaluation.
C. business analysis.
D. development.
192.The risk and uncertainty of the commercialization stage of new-product development is reflected
in each of the following EXCEPT:
A. high-quality prototypes that can't be replicated on mass-production lines.

B. costs that go far beyond original budgets.
C. buyers who can't understand the benefits of the new product.
D. market testing ensures that commercialization will be successful.
193.Heinz paid $1M to Sobeys and Metro to have their new ‘Purple EZ Squirt Ketchup’ placed at the
front of the condiments aisle in each of the respective stores. This payment is considered:
A. unethical
B. illegal
C. a slotting fee
D. unethical but legal
194.Heinz paid $1M to Sobeys and Metro to have their new ‘Purple EZ Squirt Ketchup' placed at the
front of the condiments aisle in each of the respective stores. However, sales for the Ketchup did
not reach the pre-agreed upon targets. Heinz then paid another $500,000 to both Sobeys and
Metro. This payment is considered a(n):
A. slotting fee
B. failure fee
C. unsold fee
D. compensation fee
195.Loblaws required that Birds Eye pay $15,000 to get its new frozen stir-fry vegetable mix placed in
the freezers of Loblaws supermarkets. This payment is called a _____ by Birds Eye.
A. retail goodwill fee

B. bribe
C. product support fee
D. slotting fee
196.A failure fee is a penalty payment:
A. assessed by a retailer to a manufacturer to handle new products that were returned by

customers as being defective.
B. a wholesaler makes to a retailer as compensation for sales not made while the product was on
the shelf.
C. made by a manufacturer to a retailer for "product demonstration" coupons that were not
redeemed by customers during a test market of a new product.
D. a manufacturer makes to a retailer as compensation for sales not made while the product was
on the shelf.
197.If a new grocery product does not achieve a predetermined sales target, some retailers require a
penalty payment by the manufacturer to compensate the retailer for sales its valuable shelf space
never made. What is this type of payment called?
A. a dropout charge
B. a loser fee
C. a failure fee
D. a retailer spiff
198.The ‘Lean Startup' preaches constant iteration of products. This process can be referred to as:
A. limited rollout
B. phased geographic rollouts
C. market-product expansion
D. fast prototyping
199.A new beverage by Snapple is currently being sold only in Western Canada. Over the next year,
Snapple plans to introduce the beverage sequentially into Canada from west to east. This is
called a:
A. limited rollout.
B. phased geographic rollout.
C. market-product expansion.
D. regional rollout.
200.Parallel development is the simultaneous development of both the _____ processes.
A. product and marketing

B. production and financing
C. product and production
D. production and marketing
201.Time to market has been found to be most critical in which industry?
A. high-tech products
B. insurance services
C. financial services
D. vacation services
202.One of the reasons that Ionator is unique is that:
A. it cleans services
B. does not have a health-related warning label
C. used by large companies in North America
D. it is a discontinuous innovation
203.The Ionator would be classified as what type of innovation?
A. continuous innovation
B. dynamically continuous innovation
C. discontinuous innovation
D. new-market innovation
204.What is the likely marketing strategy that management of Ionator would implement?
A. an advertisement providing a side-by-side comparison of their product versus the most

commonly used cleaner
B. radio advertisements letting consumers know that Ionator is now available in home cleaning
stores
C. going door-to-door making personal sales
D. using nationwide television advertising
205.When the University of Guelph decided to offer a totally online MBA program where you never
have to visit campus to complete your degree, this would be classified as what type of service
innovation?
A. basic service improvements

B. major process innovation
D. major service innovation
206.When CIBC Canada decided to offer telephone and Internet banking, this would be classified as
what type of service innovation?
A. basic service improvements

B. major process innovation
D. process-line extensions
207.All of the following were challenges that Activeion faced, except:
A. defining "clean"
B. assessing new technology risk
C. defining a new product category
D. defining "chemical-free cleaning solution"
208.What is the limitation behind doing virtual reality market testing?
A. It is not the real thing.

B. It is more expensive than other methods of market testing.
C. It is not as flexible as other methods of market testing.
D. It is only used in retail.
209.Walt Disney Imagineering, through its Epcot Innoventions Pavilion, is developing virtual reality
application for its guests to enjoy and get feedback on products. When it comes to developing
new products this would be an example of:
A. development
B. commercialization
C. simulated test marketing
D. virtual reality test marketing
210.TB Figure 1 is a representative sample of 3M's:

TB Figure 1
A. product class.
B. product mix.
C. marketing mix.
D. target mix.
211.Classify the type of innovation that Activeion's product, the Ionator, would be considered, and 1.)
Provide reasons for your choice and 2.) Describe an effective marketing plan for the product.
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2. Apple's inventions were revolutionary in all of the following industries, except:

A. the success of a business

7. Nike's __________ are shoes and clothing.

A. distinct stock sizes

A. distinct stock size.

A. product tangibility; product unit

A. purchased by the ultimate consumer.

A. user; product tangibility

20. Why would a cash register be considered a business good?

A. It is a product or services used to make the consumer's task easier.

A. Ford buying paint for its automobiles

26. Which of the following is the best example of a nondurable good?

27. Which of the following is the best example of a nondurable good?

30. Cat food is to a nondurable good, as _________ is to a durable good.

31. Which of the following is considered a durable good?

32. Which of the following is considered a durable good?

36. Gasoline would be considered a:

37. Convenience goods are:

A. products purchased by organizations.

A. she will make a special effort to seek out and buy.

44. Shopping goods are items:

A. shopping good; specialty good

46. Which of the following is the best example of a shopping good?

54. Which of the following is most likely to be an example of an unsought good?

58. With respect to distribution, convenience goods are available:

A. at relatively few outlets.

A. it is often less expensive

A. relatively inexpensive and widely available.

A. alignment with firm's mission and vision

A. consumer usability analysis

A. consumer usability analysis

73. Poor product quality is often the result of poor:

A. specialty good; shopping good

A. wasted dollars for R&D

A. derived demand; prestige good

84. The two main classifications of business goods are:

A. durable and nondurable.

A. that are used to construct a manufacturing facility

88. Legal counsel for a business would be considered a(n):

89. Support goods are:

A. products purchased by the ultimate consumer.

A. supplies and services.

91. Support goods include all of the following EXCEPT:

A. are similar to consumer convenience goods.

A. KPMG audit services

A. are similar to consumer convenience goods.

100.Printer paper would be classified as which type of support goods?

105.Which of the following is NOT an attribute of a new product?

A. The product is less than 6 months old.

106.Industry Canada considers a product new only:

A. for a period of six months.

A. for the first twelve months that it was regularly available.

A. seen as a discontinuous innovation.

109.The terms continuous innovation, dynamically continuous innovation, and discontinuous

A. home security system

A. The PalmPilot personal assistant

113.The addition of Sparkling Apple-Scented, Invigorating Breeze-Scented, and Summer Citrus-

A. compact disc player

A. advertising to generate awareness.

126.According to Figure 10-2, column "B" represents a

127.According to Figure 10-2, column "C" represents a

A. generate awareness among consumers and obtain widespread distribution.