mock quiz midterm.docx

8/9/2019 MOCK QUIZ MIDTERM.docx

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MOCK QUIZ #5

CHAPTER 6 Consumer Market and Consumer Buer Be!a"or

PART $ TRUE OR %A&'E ($5 )onts*

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. n example of a subculture would be a person!s geographic region. True

". #roups that have an indirect influence on a person!s attitude or behavior can be a part of

his$her reference groups. True

%. &embers within a social class tend to behave more alike compared to members from twodifferent social classes. True

'. &arketers don(t 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.

%a+se

*. +hereas economic circumstances can have a profound effect on consumption, occupationdoes not impact how people spend their money and what they buy. %a+se

. -elective attention is the tendency to interpret information in a way that will fit our

preconceptions. %a+se

,- -elective retention works to the advantage of strong brands. True

1. /ecause of selective retention, we are likely to forget about the good points of competing

products. True

11. 0very consumer has to pass through all five stages of the buying process when in a

buying situation. %a+se

12. he buying process starts when the buyer decides to or actually enters a store or service

provider!s facility. %a+se

13. belief is a person!s enduring favorable or unfavorable evaluation, emotional feeling,

and action tendency toward some obect or idea. %a+se

1". +ith respect to a consumer buying situation that involves variety)seeking behavior, themarket leader generally encourages variety seeking by offering lower prices or deals. %a+se


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1%. here are several tools marketing managers can use to increase cognitive dissonance,

which enhances consumers( attitude toward their brand. %a+se

PART . MU&TIP&E CHOICE' ($5 )onts*

1. is the study of how individuals, groups, and organi4ations select, buy, use, anddispose of goods, services, ideas, or experiences to satisfy their needs and wants.

1. arget marketing

2. &ind mapping

3. Consumer activism

/- Consumer 0e!a"or

%. 5roduct differentiation what the marketing research department is able to do

2. +hich of the following would be the best illustration of a subculture6

$- a re+1on

2. a group of close friends

3. your university

". a fraternity or sorority

%. your occupation data warehousing system

3. he relatively homogeneous and enduring divisions in a society, which are hierarchicallyordered and whose members share similar values, interests, and behavior constitute

.

1. a culture

2. a subculture

2- a so3a+ 3+ass

". a family

%. a group


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". person!s consist7s8 of all the groups that have a direct 7face)to)face8 or

indirect influence on his$her attitudes or behavior.

1. subculture

2. family

3. social class

/- re4eren3e 1rou)s

%. social networks

%. 9oe is a computer service technician. 5eople in his neighborhood usually depend on his

suggestions for purchasing any computer accessory or hardware, as they believe that he hasaccess to far more information on computer technology than the average consumer. he

neighbors are also aware that 9oe has the re:uired knowledge and background forunderstanding the technical properties of the products. +ithin this context, 9oe can be called

a7n8 .

1. transactional leader

.- o)non +eader

3. role model

". gate)keeper

%. international marketer

'. ;or a high)school student, im is highly concerned about environmental issues.


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*. 9ason writes a weekly column in his school!s newspaper about movies he has seen, books

he has read, and concerts he has attended. whole person> interacting with his or her environment.


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1. ttitude

2. 5ersonality

2- &4est+e

". -elf)concept

%. -ubculture

11. t the top of &aslow!s hierarchy of needs 7shown as a pyramid in the text8 are needs.

1. esteem

.- se+4a3tua+aton

3. social

". safety

%. physiological

12. is the process by which we select, organi4e, and interpret information inputs to

create a meaningful picture of the world.

1. Consumption

.- Per3e)ton

3. cculturation

". ssimilation

%. Cognitive dissonance

13. can work to the advantage of marketers with strong brands when consumers

make neutral or ambiguous brand information more positive.

1. -elective attention

.- 'e+e3t"e dstorton

3. -elective retention

". -elective choice


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%. -elective embellishment

1". is the tendency to interpret information in a way that will fit our

preconceptions.

1. -elective retention

2. Cognitive dissonance

2- 'e+e3t"e dstorton

". -ubliminal perception

%. -elective embellishment

1%. here 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, postpurchasebehavior

2. need positioning, stimulus response reactions, evaluation of alternatives, purchase

decision, post)purchase behavior

3. need positioning, alternative aggregation and divestment, purchase decision,postpurchase evaluation

". information search, need positioning, evaluation of alternatives, product trial, purchasedecision, post)purchase satisfaction

5- need re3o1nton7 n4ormaton sear3!7 e"a+uaton o4 a+ternat"es7 )ur3!ase7 and

)ost)ur3!ase 0e!a"or

MOCK QUIZ #6

CHAPTER 6 Busness Market and Busness Buer Be!a"or

PART $ TRUE OR %A&'E ($5 )onts*

1. he business market consists of all the organi4ations that ac:uire goods and services used in the

production of other products or services that are sold, rented, or supplied to others. TRUE2. he business marketer normally deals with far fewer, much larger buyers than the consumer

marketer does. TRUE3. he total demand for many business goods and services is elastic (ne+ast3*? that is, it is highly

affected by or responsive to price changes. %A&'E


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a. become part of another product

b. are used to manufacture other products

3- are used 4or )ersona+ 3onsum)ton

d. facilitate the normal operations of an organi4ation

e. are ac:uired for resale

". +hich of the following is the best example of a sale that could

only take place in the business market6

a. professor is purchasing a &ac to use at homeb. music store owner is ordering the newest 0lvis Bltimate

@ive collection DGD for her mother

c. teen is purchasing ring tones to use on her phone

d. librarian is purchasing new books for the school(s library

e- A++ o4 t!ese are e8am)+es o4 0usness sa+es

%. he -olar #roup, a &etro &anila)based mailbox manufacturer,

sells mailboxes to contractors who are building mega)subdivisions, to hardware stores,and directly to new homeowners. +hat kind of products is the -olar #roup selling6

a. /usiness products only

0- Bot! 0usness and 3onsumer 1oods

c. Installations

d. Consumer Hgoods onlye. -upplies

'. -ince #0 began accepting bids via the Internet, the length of the

bidding process in #0!s lighting division has been reduced from 21 days to 1. -incere:uesting the bids is easier, purchasing agents approach more potential vendors. he

ability to locate more vendors has lowered the cost of goods by % to 1% percent. #0!s

experience illustratesEa. how using the Internet decreases competition

b. how business marketing is becoming global

3- !o9 0usness marketn1 s usn1 t!e Internet to 0e3ome

more e443ent

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

*. 0d odney works for the Department of rade and Industry )

5angasinan as business development officer.


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e. -tudents on spring break

. particular segment of the business market includes thoseindividuals and organi4ations that purchase goods and services for the purpose of making

a profit. hey achieve this goal by using purchased goods and services to make othergoods, to become part of other goods, or to facilitate the daily operations of the

organi4ation. his group is called the segment of the business market.a. institution

b. reseller

c. wholesaler

d- )rodu3er

e. government

=. +hich of the following is true for business marketers6

a. hey deal with more and larger buyers than consumer marketers.

b. hey deal with more and smaller buyers than consumer marketers.

3- T!e dea+ 9t! 4e9er and +ar1er 0uers t!an 3onsumer marketers-

d. hey deal with fewer and smaller buyers than consumer marketers.

e. hey deal with the same kind of buyers as consumer marketers.

1. +hich of the following is a challenge in which business marketers

differ from the consumer marketers6

a. understanding deep customer needs in new waysb. identifying new opportunities for organic business growth

3- 1eo1ra)!3a++ 3on3entrated 0uers

d. calculating better marketing performance and accountabilitymetrics

e. competing and growing in global markets, particularly China

11. Bltimately, the amount of steel sold to #eneral &otors depends on

the consumers! demand for #& cars and trucks. ;rom the standpoint of the steel

manufacturer, which of the following demand forms is most pertinent6

a- der"ed demand

b. inelastic demand

c. geographic demandd. relational demand

e. static demand

12. he demand for business goods is ultimately derived from the

demand for .a. raw materials

0- 3onsumer 1oods

c. servicesd. business solutions


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e. e)commerce

13. he total demand for many business goods and services is not much affected by price changes.hus, this demand is .

a. derivedb. fluctuating

c. acceleratedd. multiple

e- ne+ast3

1". -hoe manufacturers are not going to buy much more leather if the price of leather falls, nor willthey buy much less leather if the price rises, unless they can find satisfactory substitutes. his is

an example of .

a- ne+ast3 demand

b. direct purchasingc. the acceleration effect

d. a modified rebuy

e. a straight rebuy

1%. Jenilworth Inc. is shifting from its rented four)room office to a standalone office building owned

by the company itself. his can be classified as a .

a. modified rebuyb. regular buy

c. straight rebuy

d. new rebuy

e- ne9 task

MOCK QUIZ #:

CHAPTER ; 'e1mentaton7 Tar1etn17 and Postonn1

PART $ TRUE OR %A&'E (.5 )onts*

1 market segment consists of a group of consumers who share a similar

set of needs and wants. TRUE

2 ;isher)5rice is identifying sian markets that are interested in their line of

talking toys. ;isher)5rice is engaged in the process of market segmentation. TRUE

3 ;isher)5rice developed a line of toys for infants in China. /abies make up


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the market for these products. %A&'E

" market segment is deemed to have substantiality if it contains a largenumber of potential customers. %A&'E

% segmentation plan must produce segments that are accessibleKthat is,

the firm must be able to reach members of targeted segments with customi4ed marketing

mixes. TRUE

' market segmentation study done by the Bniversity of hessaly in

#reece classified recreational skiers in terms of their gender, age, and income levels. he

study used psychographic segmentation variables. %A&'E

* Clearing -kies 5ress published a book by obert uark entitled Jeepingthe /aby live ill Aour +ife #ets


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strategy an undifferentiated targeting strategy. TRUE

1% 5rocter N #amble markets several different brands of laundry detergent,such as ide, 0, #ain, and Dreft, each targeting a different market segment. his is an

example of concentrated targeting. %A&'E

1' product(s position refers to where it is located on store shelves. %A&'E

1* 5roduct differentiation is a positioning strategy. TRUE

1 he most attractive segment is one in which entry barriers are low and exit

barriers are high. %A&'E

1= segment is attractive when there are actual or potential substitutes forthe product. %A&'E

2 segment is unattractive if the company!s suppliers are able to raise

prices or reduce :uantity supplied. TRUE

21 n attractive niche consists of customers having a distinct set of needs.

TRUE

22 he last step in the seven)step marketing segmentation process would be

to develop a marketing)mix strategy reflective of segment positioning strategies. TRUE

23 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

2" Demographic variables are popular because they are often associated with

consumer needs and wants and they are easy to measure. TRUE

2% @ife stage defines a person!s age. TRUE

PART . MU&TIP&E CHOICE' (.5 )onts*


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1 is a group of people or organi4ations that has wants and needs that can be satisfied by

particular product categories, has the ability to purchase these products, and is willing toexchange resources for the products.

a firmb buyer

3 market

d consumer

e target

2 he /elly Cast kit by 5roud /ody helps an expectant mom to make a cast of her pregnant body,decorate it and keep it for a lifetime. he primary market segment for the /elly Cast kit isE

a all parents

0 e8)e3tant moms

c recently married couplesd parents of toddlers

e collectors of unusual art

3 ;ord &otor Company produces passenger cars, commercial trucks and specialty vehicles,

performance vehicles, and race cars. ;ord uses a procedure called to divide its large

market.

a micromarketingb positioning

3 market se1mentaton

d cannibali4ation

e perceptual mapping

" market is people or organi4ations that haveE

a the ability, willingness, and power to buy

b a medium of exchange and products they desire

3 needs and 9ants and an a0+t and 9++n1ness to 0u

d unmet needs or wants and products or services that satisfy those unmet

needs or wantse communication, financial, and capital resources

% 7n8 is a subgroup of individuals or organi4ations sharing one or more characteristics that

cause them to have relatively similar product needs.a market universe

0 market se1ment

c aggregated marketd segmentation base

e population sample


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' is the process of dividing a market into meaningful groups that are relatively similar and

identifiable.a 5erceptual mapping

b 5ositioningc &icromarketing

d &arket sampling

e Market se1mentaton

* he purpose of market segmentation is toE

a reduce the market down to a specific si4e that the firm canhandle

b divide the market into e:ual si4e and profit regions for sales

territories

c group a large number of markets together enabling acompany to serve them simultaneously

d develop a generali4ed definition of the market as a whole

e ena0+e t!e marketer to ta+or marketn1 m8es to meet

t!e needs o4 one or morespecific groups


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1" ccording to the criterion of a selected segment must be large enough to warrant

developing and maintaining a special marketing mix. -erving the specific needs of this segment

must be commercially viable, even if the number of potential customers is small.a causality

b accountability

c responsivenessd accessibility

e su0stanta+t

1% he marketing researcher for /ubastis Cat reats has noticed an growing number of cat ownerspurchasing organic treats for their pets. he researcher thinks there is a market for organic cat

treats, but she(s not sure if the segment is substantial. In this case, substantiality means the

segmentEa has enough special stores, maga4ines, and other outlets that

it will be possible to direct advertisements at this group

0 s +ar1e enou1! to )ermt a )ro4ta0+e market e44ort

to9ard ts mem0ers

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 easilyidentifiable and measurable si4e

e will be difficult to develop a product to match this group of

buyers

1' Consumers in @ouisiana love hot sauce, and abasco and Crystal brands are particularly popular

there. Consumers in &ichigan do not like hot food, so they purchase very little hot sauce.

national chain of grocery stores would likely use segmentation when stocking condimentmerchandise.

a 1eo1ra)!3

b economic

c demographicd benefit

e geo)demographic

1* manufacturer of blankets knows heavy 1 percent wool blankets sell better in the Few0ngland area where the winters are harsh and that lighter)weight blankets sell better in the

-outheast market where mild winters re:uire fewer and lighter covers for the bed. -egmenting

the market according to climate is an example of segmentation.

a psychographicb lifestyle

c perceptual

d demographic


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e 1eo1ra)!3

1 he Coca)Cola Company has over "% brands in over 1=% countries. ccording to their web site,their products range from -amurai, an energy drink available in sia, to Gita, an frican uice

drink. Coca)Cola uses segmentation in this marketing strategy.a 1eo1ra)!3

b economicc demographic

d usage)rate

e multi)positioning

1= lmost all cell phones sold in the Bnited -tates are black or gray. lmost all cell phones sold in

0urope are colorful, and very few black phones are sold. cell phone manufacturer knowing this

information could use segmentation when selling its phones internationally.

a 1eo1ra)!3

b economic

c demographic

d benefite multi)positioning

2 &arketers use to segment markets because this information is widely available, and

factors such as age or gender are often related to consumer purchasing and consumptionbehavior.

a benefits

b psychographics

3 demo1ra)!3sd usage rates

e sociocultural attributes

21 Income, ethnic background, gender, and age are all examples of segmentation bases.a geodemographic

b organi4ational

3 demo1ra)!3

d socioeconomic

e psychographic

22 Colgate manufactures a fruit)flavored -ponge/ob -:uarepants toothpaste for kids. he age)based variable that distinguishes the market for this product is an example of a7n8

segmentation.

a geographic

0 demo1ra)!3

c psychographic


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d benefits

e usage rate

23 ;isher)5rice developed a rugged, waterproof camera for children. his product uses

segmentation. a ethnicity

b income

3 a1e

d gender

e occupation

2" bbeville 5ress published a book by rmin /rott and 9ennifer sh entitled he 0xpectant

;atherE ;acts, ips, and dvice for Dads)to)/e. It is an advice book for men whose partners are

expecting a baby. +hat demographic variables have been used to define the market for this

book6a /enefit desired and lifestyle

0 =ender and 4am+ +4e33+e sta1e

c ge, gender, and personalityd /enefit desired and gender

e Bsage)rate and lifestyle

2%


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CHAPTER , Produ3t7 'er"3e and Brandn1 'trate1

PART $ TRUE OR %A&'E (.> )onts*

1 -ebastian got a haircut this afternoon.


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1 Devore loves southern)style cooking and always buys #lory ;oods brand

of collard greens, black)eyed peas, and hot sauces. In fact, she refuses to purchase anyother brand because #lory ;oods products taste ust like her grandmother(s cooking.

Devore is showing intense brand loyalty. %A&'E

11 Jellogg(s,


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PART . MU&TIP&E CHOICE' (.> )onts*

1 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 e:uity

b :uality

c warrantyd transaction

e )rodu3t

2 he is the starting point in creating a marketing mix.a price

0 )rodu3t

c distribution channeld promotional media

e production line

3 ll of the following are examples of products 0OC05E

a carton of milk

b contact lensesc haircut

d pair of shoes

e A++ o4 t!e a0o"e are )rodu3ts-

" +hich of the following is F an example of a product!s tangible feature6

a Brand e?ut

b 5ackaging

c Color

d +eight

e -i4e

% +hen a greenhouse plant grower sells plants to nursery retailers, is selling

products.

a specialtyb consumer

c convenience


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d 0usness

e unsought

' ock)enn produces cardboard cartons to be used by companies in the

food industry. ock)enn is selling products.a specialty

b consumer

3 0usness

d convenience

e unsought

* products are purchased with little shopping effort. hese products

typically are purchased regularly, usually with little planning, and re:uire wide

distribution.

a Con"enen3e

b -pecialty

c /randed shopping

d Bnbranded shoppinge #eneric

he convenience product marketing strategy includesE

a 9de dstr0uton o4 t!e )rodu3t

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

= my stopped by the grocery store to pick up a gallon of milk. s she was

waiting to check out she noticed that 5eople &aga4ine had an interesting cover story

about -carlett 9ohansson. s my is a huge fan -carlett, she had to buy a copy. In thisexample, the 5eople &aga4ine is an example of a7n8 product.

a specialty

0 3on"enen3e

c business

d shopping

e unsought

1 Compared to the other classifications of consumer products, shopping

products areE

a widely available so they need little or no promotionb usually less expensive than convenience products

c purchased without significant planning


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d usua++ more e8)ens"e t!an 3on"enen3e )rodu3ts and are

4ound n 4e9er stores

e purchased immediately after the consumer reali4es he or she needsthem

11 Jathy is driving Cha4, her young son, home from soccer practice when

Cha4 say, H&om, I(m thirsty.L Jathy immediately pulls the -BG into the nearest gasstation and buys Cha4 a Coke. ;or Jathy, the Coke is best described as an example of

buying a product.

a homogeneous shoppingb heterogeneous shopping

3 3on"enen3e

d specialtye component

12 +hich of the following is the best example of a convenience product6

a Concert tickets

0 C!e9n1 1um

c 9eans

d Chemical for the swimming pool

e birthday present

13


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d re:uire little or no decision making by the buyer

e 3onsumers dont kno9 a0out or dont a3t"e+ +ook 4or

1' /randing is .

a all about creating unanimity between productsb the process of performing market research and selling products or services to customers

3 endo9n1 )rodu3ts and ser"3es 9t! t!e )o9er o4 a 0rand

d the process of comparing competing brands available in the market

e use of online interactive media to promote products and brands

1* /rand is the added value endowed to products and services.a loyalty

0 e?ut

c preference

d identitye licensing

1 dam wants to buy a washing machine and is looking for something thatis not too expensive. +hen he goes to make the purchase, he finds there are two options

that meet his re:uirements. ne is an I;/ /osch product, while the other is a newly

imported -outh Jorean brand. dam is not very familiar with the latter and does not

hesitate in choosing /osch. his example implies that .a the imported brand will not survive the competition from /osch

0 Bos3! !as a )ost"e 3ustomer 0rand e?ut

c the -outh Jorean company has a low advertising budget

d the imported brand is unreliablee the /osch washing machine has better features than the imported brand

1= +hich type of consumer product re:uires comparison shopping because it

is usually more expensive than a convenience product and is found in fewer stores6a n unsought product

b secondary product

c uni:ue product

d A s!o))n1 )rodu3t

e selective product

2 +hy is creation of a product the starting point for the marketing mix6a he production department must know what to produce first.

b 5roduction strategy is the first of the four 5s listed in the marketing

mix.


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3 @etermnaton o4 t!e )r3e7 )romotona+ 3am)a1n7 and

dstr0uton net9ork 3annot 0e1n unt+ t!e )rodu3t !as 0een s)e34ed-

d 5roduct development takes the longest amount of time to complete.e ctually, the product does not have to be the starting point))

promotional strategies are often the starting point.

MOCK QUIZ #9CHAPTER 10 New-Product Dee!o"e$t %$d Product &'(e C)c!e *tr%te+'e,

PART 1 TRUE OR A&*E ./0 "o'$t,

1 One advantage for being first on the market with a new product isincreased product loyalty.TRUE

2 The development of Coke Zero by Coca-Cola would not be considered anew product since the company was already making soft drinks. t would simply becalled a line e!tension. A&*E

" #ery few firms follow a formal new-product development process. TRUE

$ % firm&s new-product strategy links the new-product development processwith the ob'ectives of the marketing departments( the business unit( and the corporation.

TRUE

) *or a firm that adheres to the product concept( the logical place to startgenerating new-product ideas is with the customers of the firm.TRUE

+ %ndersen ,lectronics is currently engrossed in its first estimations ofcosts and revenues for a new amusement park video skill game. This firm is engaged ina new-product business analysis. TRUE

ithout the nternet( it would be impossible to conduct simultaneousproduct development from different parts of the world.TRUE

/ % test market is one e!ample of a focus group where consumers areencouraged to try a new product and provide feedback to the manufacturer. TRUE

0 One benefit of test marketing is that the marketing activity is shieldedfrom competitors. A&*E

1 The nternet offers a fast( cost-effective way to conduct testmarketing.TRUE


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11 The decision to market a product is called commercialiation. TRUE

12 ncreasing globaliation of markets and of competition provides a reasonfor multinational firms to consider new-product development from a worldwideperspective.TRUE

1" 3rocter 4 5amble is introducing a new fabric softener dispenser thatconsumers stick to the inside of the dryer drum and plans to send consumers freesamples in the mail. This strategy will likely increase the rate of adoption of the newproduct. TRUE

1$ 6artina loves her new 7indle and has tweeted to her followers severaltimes about how great the product is. This is an e!ample of communication directly fromthe marketer to potential adopters. A&*E

1) The product life cycle is a biological metaphor that traces the stages of aproduct8s acceptance( from its introduction 9birth: to its decline 9death:. TRUE

1+ The growth stage is the first stage of the product life cycle. A&*E

1 ncreasing competition( aggressive brand advertising( and healthy profitsare all characteristics found in the introductory stage of the product life cycle. A&*E

1/ 3rofits typically reach their peak during the growth stage of the productlife cycle.TRUE

10 % C; player is a good e!ample of a product in the maturity stage of theproduct life cycle. A&*E

2 The product life cycle concept encourages marketing managers to act

reactively. A&*E

PART / MU&TIP&E CHOICE* ./ "o'$t,

1

a increased revenues2 'ed'%te "ro('t,c sustained growthd increased product loyaltye greater market responsiveness

2 hich of the following would be considered a new product?a % new product lineb % new-to-the-world productc %n addition to an e!isting product lined %n improvement or revision of an e!isting producte A!! o( t3e,e c3o'ce,

" 6arketers consider all of the following e!amples of new products


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,=C,3T>% % /014 ode! )e%r %utoo2'!e w't3 t3e ,%e ,t)!e5 "%rt,5 %$d co!or %, t3e /016ode!b the addition of a management consultant service to a company that once specialied in

investment managementc a new design for @each brand toothbrushesd a new flavor of Aen 4 Berry8s brand ice cream

e the development of a less-painful procedure for the treatment of varicose veins

$ hen 345 began marketing Tide *ree 4 5entle( which is dye- andperfurme-free( this represented which new product category?

a @epositioning strategyb


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e revision to e!isting products

0 Companies that are most likely to succeed in the development andintroduction of new products typically are characteried by all of the following ,=C,3T>

a establish an environment conducive to achieving new-productob'ectives

b make the long-term commitment needed to support innovationand new-product development

c capitalie on e!perience to achieve and maintain competitiveadvantage

d use a company-specific approach that is driven by corporateob'ectives and strategies with a well-defined new-product strategy at its core

e introduce ten new products every year

1 %9n: GGGGG links the new-product development process with theob'ectives of the marketing department( business unit( and corporation.

a product-review committeeb concept test

c episodic innovationd $ew-"roduct ,tr%te+)e product strategy bridge

11 % new-product strategy>a links the new-product development process with the ob'ectives of

the marketing department( the business unit( and the corporationb is part of an organiation&s overall marketing strategyc specifies the roles new products play in the organiation&s overall

plansd describes the characteristics of products the organiation wants to

offer and the markets it wants to serve

e ', %ccur%te!) de,cr'2ed 2) %!! o( t3e,e

12 hich of the following is the D,%ET likely source for new-product ideas?a % company8s distributorsb ts customersc ts employeesd It, ('$%$c'%! !e$der,e ts competitors

1" The process of converting applications for new technologies intomarketable products is called>

a basic researchb product modificationc marketing developmentd "roduct dee!o"e$te correlation analysis

1$ hich of the following Fuestions is


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business analysis stage?a hat is the likely demand for the product?2 83'c3 ce!e2r't) ,"oe,"er,o$ c%$ we 3're to "roote t3e

"roduct:c ould current customers benefit from the product?d hat is the risk of failure?

e hat new facilities would be needed?

1) n the GGGGG stage of new-product development( the technical feasibilityof manufacturing the new product is e!amined as a prototype is produced.

a screening2 dee!o"e$tc market testingd concept testinge business analysis

1+ GGGGG is a limited introduction of a product and a marketing program todetermine the reactions of potential customers in a market situation.

a Hse testing2 Te,t %ret'$+c Concept testingd Daboratory testinge ;iscontinuous innovation

1 hen selecting a test market city( a researcher should look for a city>% w3ere t3e deo+r%"3'c, %$d "urc3%,'$+ 3%2't, 'rror t3e

oer%!! %ret (or t3e "roductb that has media spillover from other cities to increase media

alternativesc that is as large as possible

d that has limited distributione where there is no competition

1/ The maker of 3urell hand sanitier tested consumers& reactions to its3urell Eanitiing ipes by getting consumers to look through a newspaper with grocerystore ads( make out a grocery list( and then IshopI in a mock store filled with realproducts( including the new product. This is an e!ample of a9n:>

a adoption-rate test2 ,'u!%ted .!%2or%tor) %ret te,tc concept testd use teste 'uried consumer test

10 The final stage in the new-product development process is>a product testingb market testingc coerc'%!';%t'o$d product prototypinge simulated marketing


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2 Beni8s Eplendid ce Creams has decided to put its new Aeet Cake withAlack alnut ice cream on the market. This product has entered the GGGGG stage ofnew-product development.

a business analysisb developmentc test marketing

d coerc'%!';%t'o$e research and development

21 ;uring the GGGGG 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.

% coerc'%!';%t'o$b product testingc market analysisd product prototypinge simulated marketing

22 %ll of the following are reasons products fail ,=C,3T>a overestimation of market sieb poor match between product features and customer desiresc a price too high or too lowd direct distributione not offering any discernible benefit compared to e!isting products

2" The 6OET important factor in successful new-product introduction is>% % +ood %tc3 2etwee$ t3e "roduct %$d %ret $eed,b strong company leadershipc an obsession with Fuantity rather than Fualityd a pro'ect-based team approach to new-product development

e a history of carefully listening to customers

2$ % brand of iced tea( called 5old 3eak( has high marketing costs as wellas high production costs. 3romotions for the product are aimed at gaining distributionand informing consumers that this premium product tastes like it8s home-brewed. nwhich stage of the product life cycle is 5old 3eak iced tea?

% '$troductor)b growthc maturityd declinee saturation

2) The phase of the product life cycle in which healthy profits usually beginto appear is the GGGGG stage.

% +rowt3b declinec introductoryd maturitye commercialiation


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