Response to the following multiple choice questions:
1. What are the two ways that a company can obtain new products?
a. New-product development and acquisition
b. Line extension and brand management
c. Market mix modifi cation and research and development
d. Service development and product extension
e. Internal development and brand management
2. Your fi rm added three new products earlier this year to increase variety for customers. Two of them failed to reach even minimal sales. Which of the following is LEAST likely to have been the cause of their failure?
a. Competitors fought back harder than expected.
b. The products were priced too high.
c. The product launch was ill-timed.
d. The products were advertised incorrectly.
e. Research was too extensive.
3. Your fi rm asks you to consult external sources for new-product ideas. All of the following are common external sources EXCEPT ________.
a. trade shows and magazines
b. suppliers
c. competitors
d. customers
e. the fi rm's executives
4. A ________ is the way consumers perceive an actual or potential product.
a. concept test
b. test market
c. product concept
d. product image
e. product idea
5. A review of the sales, costs and profi t projections for a new product to fi nd out whether they satisfy the company's objectives is called a ________.
a. proposal
b. product acceptance
c. marketing strategy development
d. business analysis
e. business feasibility plan
6. In order to get their new products to market more quickly, many companies are adopting a faster, team-oriented approach called ________.
a. sequential product development
b. phased-in new-product development
c. team-based new-product development
d. simulated new-product development
e. market development
7. Some products that have entered the decline stage have been cycled back to the growth stage through ________.
a. customer-centered product development
b. promotion or repositioning
c. concept testing
d. business analysis
e. innovation management
8. In which stage of the PLC will promotional expenditures be high in an attempt to respond to increasing competition?
a. Adoption
b. Decline
c. Maturity
d. Product development
e. Growth
9. Most products in the marketplace are in the ________ stage of the product life cycle.
a. growth
b. introduction
c. development
d. decline
e. maturity
10. Although test marketing costs can be high, they are often small when compared with ________.
a. the costs of a major mistake
b. the costs of idea generation
c. business analysis costs
d. research and development costs
e. prototype development costs
11. ________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing.
a. Variable cost
b. Product image
c. Price elasticity
d. Customer value-based pricing
e. Cost-based pricing
12. Costs that do not vary with production or sales level are referred to as ________.
a. variable costs
b. fi xed costs
c. unit costs
d. total costs
e. target costs
13. Rent, electricity and executive salaries are examples of ________.
a. variable costs
b. marketing costs
c. accumulated costs
d. total costs
e. fi xed costs
14. Costs that vary directly with the level of production are referred to as ________.
a. target costs
b. unit costs
c. fi xed costs
d. variable costs
e. total costs
15. Break-even pricing, or a variation called ________, is when the fi rm tries to determine the price at which it will break even or make the profi t it is seeking.
a. value-based pricing
b. customer-based pricing
c. target return pricing
d. competition-based pricing
e. fi xed cost pricing
16. Which of the following involves setting prices based on competitors' strategies, costs, prices and market offerings?
a. Competition-based pricing
b. Market-based pricing
c. Target return pricing
d. Added-value pricing
e. Good-value pricing
17. If demand changes greatly with a small change in price, we say the demand is ________.
a. variable
b. inelastic
c. elastic
d. fi xed
e. value-based
18. By defi nition, ________ is used when a fi rm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost.
a. variable pricing
b. reference pricing
c. cost-plus pricing
d. segmented pricing
e. fl exible pricing
19. The Sherman, Clayton and Robinson-Patman Acts are all federal laws that were enacted to curb the formation of ________.
a. monopolies
b. oligopolies
c. competitive markets
d. limited partnerships
e. international markets
20. The Robinson-Patman Act seeks to prevent unfair ________ by ensuring that sellers offer the same price terms to customers at a given price level.
a. treatment of small retailers
b. price discrimination
c. dynamic pricing
d. price collusion
e. marketing
21. A corporate VMS has the advantage of controlling the entire distribution chain through________.
a. contracts among separate members
b. mass distribution
c. franchise agreements
d. a profi t-maximizing strategic plan
e. single ownership
22. In a ________, two or more companies at one level join together to develop a new marketing opportunity.
a. franchise
b. horizontal marketing system
c. corporate VMS
d. conventional distribution channel
e. multichannel distribution system
23. Which type of distribution is used when the producer wants more than one, but fewer than all,of the intermediaries who are willing to carry its products?
a. Corporate
b. Intensive
c. Selective
d. Exclusive
e. Administered
24. Steve's Physco Skates sells its products to Walmart, who then sells them to the consumer. This is an example of a(n) ________.
a. direct marketing channel
b. indirect marketing channel
c. retailer channel
d. corporate vertical marketing system
e. producer channel
25. Which product will most likely be exclusively distributed?
a. BMW cars
b. Levi's blue jeans
c. Bazooka bubble gum
d. Coca-Cola
e. Prairie Farms yogurt