Deck 23: Marketing-Mix Measures

Question 1

The critical assumption of ASSESSOR is that preference data and purchase and repurchase decisions are valid predictors of what would actually happen in the marketplace

Answer 1

True

Question 2

All new product concepts are generated or identified as a result of uncovering unsatisfied needs or unsolved problems.

Answer 2

False

Question 3

A pre-emptive roll-out would be an appropriate alternative if there is considerable uncertainty about a product's chances of success.

Answer 3

False

Question 4

It is generally expected that a concept test will prove that a concept is sound or faulty or will demonstrate definitively how it should be altered.

Question 5

When selecting areas for test markets, efforts should be made to test market in the minimum number of areas necessary to satisfy representation and validity requirements.

Question 6

Need research is concerned with finding out how latent consumer needs can be aroused or how new needs can be created.

Question 7

Strong evidence that a product will be successful should exist before a test market is attempted.

Question 8

To test a new product concept, the researcher must obtain reactions from prospective customers.

Question 9

The results of a product test are potentially more valid and reliable than those obtained in a concept testing situation, and for this reason an organization can justify a more complete and elaborate test.

Question 10

In selecting test cities, a researcher should consider the degree to which a city is isolated from outside media.

Question 11

Merging several concept alternatives into one test is inefficient, since it confuses respondents and results in inconclusive comparisons.

Question 12

The laboratory test market includes a simulated store where respondents who have been exposed to advertising are asked to make purchases.

Question 13

In a laboratory test, market repeat purchase is estimated by asking people after they try the new brand if they want to repurchase it.

Question 14

In most cases, the dominant purpose of the concept test is a go/no-go decision based upon intention-to-buy response.

Question 15

The disadvantage of store audit data in providing accurate sales figures is that it is sensitive to inventory fluctuations.

Question 16

A CDSM controlled-distribution scanner market) provides no test of a new product's ability to gain distribution.

Question 17

ABC Incorporated feels that there is a need for a new kind of vacuum cleaner in the market.To generate new product concepts, they have decided to invite twenty to thirty consumers to discuss the problems associated with the product-use situation.ABC is using benefit structure analysis to generate new product concepts.

Question 18

In comparison to test markets, laboratory test markets are relatively expensive but they are faster and more variables can be tested.

Question 19

ABC Incorporated is test marketing a product in some midwest cities. Salespeople in that area have stepped up their sales effort to ensure the maximum possible sales.The results of the test market can reliably be projected to the entire midwest region.

Question 20

Test markets can be monitored to track competitive reactions and their impact on the market response.

Question 21

In DAR, a viewer is not recorded as recalled the ad unless he or she can recall something specific about it such as the plot or sales message.

Question 22

A forecast by geographic area might prove useful in warehouse stocking decisions or in evaluating regional forecasts.

Question 23

The information requirements for share oriented and profit oriented strategies are the same.

Question 24

DAR would not be classified as an "on-air" test.

Question 25

Sell-in test markets are cities in which the product is sold just as it would be in a national launch.

Question 26

A CDSM controlled-distribution scanner market) costs about the same as a full test market but provides much more control and the flexibility to do more experimenting.

Question 27

In the Gaber and Grainer method of pricing research, a buy response curve of different prices with the corresponding number of affirmative customer purchase intentions is produced.

Question 28

The result of the benefit structure analysis approach is the identification of benefits sought that current product do not deliver

Question 29

The laboratory test market for automobiles includes a simulated deal visit where a respondent interacted with a salesperson.

Question 30

When consumers in the market are willing to pay more for a product despite lack of knowledge regarding the product quality, then price signaling cannot be used.

Question 31

If a firm discounts its price in the other markets below its average cost, then it is said to follow a second market discounting strategy.

Question 32

In a profit oriented pricing strategy, the objective is to generate as much profit as possible in the current period.

Question 33

In a linear or straight-line trend projection model, growth is assumed to be at a constant percentage rate.

Question 34

Price bundling is a viable pricing option for non-substitutable, perishable kinds of products.

Question 35

When a car manufacturer sells cars at a lower price and prices the spare parts higher, it is said to follow complementary pricing strategy.

Question 36

In the McCollum/Speilman test, the pre- and post-preference measure is different for different product classes.

Question 37

The most accurate way to project trial-and-repeat purchase in a test market is by using panel data where the purchase and repurchase decisions of individual consumers can be monitored.

Question 38

Estimates of market share are generated by multiplying the trial rate projection by the repeat rate projection.

Question 39

The Starch noted score is the percentage of respondents who claim to have seen the ad.

Question 40

Consumer generated media refers to anything created by a citizen marketer, that is posted on the internet and spread by social media

Question 41

Split-cable is the most valid copy test method and is thus the most frequently used test.

Question 42

Skimming pricing is a strategy based on the concept that average unit production costs continue to go down as cumulative output increases.

Question 43

The forced-exposure, brand-preference change test measures the change in brand preference after watching an advertisement in a theater.

Question 44

Advertisers are more likely to run reduced level budget split-cable tests than increased levels because of the potential to save money.

Question 45

Time does better with the through-the-book approach than Newsweek because it tends to get more serious, thorough readership.

Question 46

In the McCollum/Speilman test, the A/C Awareness/Communication) measure is a better predictor of campaign success than the AS Attitude Shift) measure.

Question 47

The center of gravity method of simulation can be used for locating a single warehouse or retail site.

Question 48

A major problem with the audimeter is that it does not provide information as to who is viewing the set.

Question 49

In the Behavior Scan Split-Cable testing, for each member of a panel of 3,000 people in each test town, each supermarket purchase is known, in addition to what channel their TV sets were turned to at all times.

Question 50

A serious problem in field experimentation is the willingness of competitors to deliberately distort the test with a special promotion or other device.

Question 51

The more natural the exposure setting, the more valid the copy test will be.

Question 52

In the through-the-book method, a respondent is asked whether he or she looked at a copy within the past week of a weekly publication.

Question 53

Physiological measures such as GSR are used to measure emotional response.

Question 54

Eye movement machines are used to measure ad recall.

Question 55

Repeated applications of a copy test such as McCollum/Speilman would be termed a tracking study.

Question 56

A test of a commercial mock-up will always be less useful than a test of a finished commercial.

Question 57

Open-ended reactions of commercial viewers can uncover unintended associations.

Question 58

Continuous measures of liking of commercials are provided by the ASI theater test.

Question 59

In the ASI Apex test, the before-exposure brand preference measure is different from the after-exposure brand preference measure.

Question 60

Television audience size is estimated by a panel of homes that agrees to be monitored by a GSR measure.

Question 61

Try-Harder Incorporated is in the process of developing a new product.The research questions which they are trying to answer are: a) are there any major flaws in our concept, and b) is there enough interest to warrant further development? Try-Harder is in

A)the concept generation stage.
B)the concept evaluation and development stage.
C)the evaluation and development of the actual product.
D)the production "debugging" stage.
E)none of the above.

Question 62

When a company produces an inferior product and sells it at the same price as the better quality product of another firm, in the belief that consumers will equate the inferior product with high quality, then the company follows a _________ pricing strategy.

A)price signaling
B)second market discounting
C)premium
D)penetration
E)random discounting

Question 63

Which of the following is not true of test marketing?

A)It improves a manager's knowledge of potential product sales.
B)It allows companies to pretest alternative marketing plans.
C)Test marketing is a must for all products in today's competitive environment.
D)Companies may discover product faults that escaped notice in the product development stage.
E)The results of test marketing may be distorted by improper methodology.

Question 64

Which of the following research methods provides a test of recognition?

A)Burke DAR
B)Starch
C)McCollum/Speilman
D)Buy Test
E)Mapes & Ross

Question 65

The location allocation model can be used to allocate demand to each potential site/store design combination.

Question 66

When a computer manufacturer sells its products with all the available options, it is said to follow an)

A)complementary pricing strategy.
B)price bundling strategy.
C)options pricing strategy.
D)substitution pricing strategy.
E)none of the above.

Question 67

A major tennis manufacturer, after analysis of life style and demographic data, believes that by 1996, 60 percent of the women in America will be actively involved in sports.It has, therefore, started to develop a whole new line of sports equipment for women.The tennis manufacturer has identified a new need by

A)using perceptual maps.
B)studying social and environmental trends.
C)benefit structure analysis.
D)analysis of relevant portions of consumer diaries.
E)conducting focus group interviews.

Question 68

Total Quality Management is a business philosophy that tends to use quality improvement as a competitive advantage.

Question 69

Which of the following research methods provides a test of purchase behavior?

A)Burke DAR
B)Starch
C)McCollum/Speilman
D)Behavior Scan
E)Mapes & Ross

Question 70

If a company decides to price its products at a point at which the profits are the greatest until the changes in the market conditions or supply costs dictate a price change, then the company follows a

A)share oriented strategy.
B)profit oriented strategy.
C)product oriented strategy.
D)market oriented strategy.
E)none of the above.

Question 71

Which of the following statements about ASSESSOR is true?

A)It provides results faster and less expensively than a test market.
B)It offers a good deal of flexibility in the selection of the marketing variables to be studied.
C)It assumes that preference data and purchase and repurchase decisions are valid predictors of what would actually happen in
The marketplace.
D)It is a laboratory test market method.
E)All of these are true.

Question 72

Which of the following lists all the stages of the new product research process?

A)Generation of new product concepts, evaluation and development of actual products, testing the marketing program.
B)Generation of new product concepts, development and evaluation of new product concepts, development and evaluation of actual
Products, testing the marketing program.
C)Development and evaluation of new product concepts, development and evaluation of actual products, testing the marketing program,
Launching the product nationally.
D)Generation of new product concepts, evaluation and development of new product concepts, evaluation and development of actual
Products, launching the product nationally after a test market.
E)None of the above.

Question 73

Which of the following is not always a required stage in the new product research process?

A)Generation of new product concepts
B)Evaluation and development of new product concepts
C)Evaluation and development of actual products
D)Test marketing the newly developed product
E)All of these are required stages

Question 74

XYZ Incorporated is in the process of developing a new product.They currently have a verbal description and a rough idea of the brand name, packaging, and advertising approach.The next stage in the process would be

A)generation of a tangible product concept.
B)evaluation and development of the new product concept.
C)evaluation and development of the actual product.
D)pilot production and test marketing.
E)test marketing.

Question 75

Parker Foods has just developed a new product.What factors should Parker Foods consider in deciding whether to use a test market for the product?

A)How disruptive actions by competitors might be to the completion of a valid and reliable test.
B)How easily the new product could be copied by competitors.
C)How expensive a test market would be compared to immediate commercialization.
D)All of these.
E)None of the above.

Question 76

Which of the following are possible measurements for evaluating consumer product test markets?

A)Warehouse withdrawals
B)Store audits
C)Shipments
D)Trial purchase
E)All of these

Question 77

Competitive benchmarking is comparing the company's processes, practices, and products against the world's best companies, including those from other industries.

Question 78

It is felt that exposing people to a concept is necessary in the evaluation and development stage.Which of the following is not one of the important research questions that need to be answered at this stage?

A)How should the concepts be exposed?
B)To whom should the concepts be exposed?
C)What level of sales will we need to break even?
D)To what are the new concepts compared?
E)All of these are important research questions that need to be answered at this stage.

Question 79

The analogous location method involves generating a relationship between store turnover and population characteristics.

Question 80

Total Quality Management is restricted to the quality assurance and quality control departments in an organization.