Deck 23: Marketing-Mix Measures

Question 1

If more than one unsolved problem or unsatisfied need is uncovered during the product-concept-generation stage, marketers usually try to develop a different product to meet each of those needs.

Answer 1

False

Question 2

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.

Answer 2

False

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

If only a small number of test areas is to be used, a random sample will usually be risky, and the preferred approach is to select the areas judgmentally.

Question 7

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

Question 8

Fast-Buck Incorporated manufactures spin-off products in connection with popular events e.g., the Pope's visit, a hit movie..Their major product is T-shirts.To ensure good sales and consumer acceptance, Fast-Buck should conduct test markets before they launch each of their products nationally.

Question 9

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

Question 10

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 11

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 12

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

Question 13

For a consumer product test market which is to be projected nationally, it is generally recommended that a large number of randomly dispersed markets that cover 30-40 percent of the entire United States be selected to achieve meaningfully precise predictions.

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 a controlled test market is that it is not conducted under "ideal" conditions.

Question 16

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

Question 17

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

Question 18

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 19

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

Question 20

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 21

The function of Y = ae^bt cannot be estimated by using linear regression programs, since the independent variable, t, is an exponent.

Question 22

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 23

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

Question 24

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

Question 25

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

Question 26

The jury of executive opinion is the most widely used technique in industrial product companies and second most widely used technique in consumer product companies.

Question 27

A basic ASSESSOR test costs under $50,000.

Question 28

The number of new product introductions in 1984 was over 3,000.

Question 29

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

Question 30

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

Question 31

If a forecaster wants to take advantage of the experience and knowledge of experts, but also wants to avoid group effects, she should use the executive judgment approach.

Question 32

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 33

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

Question 34

The laboratory test market for automobiles caused Buick to decide not to replace the old model.

Question 35

Test market results were compared with laboratory test market results for 44 products.The average absolute difference between laboratory test market share prediction and actual values was between 1 and 2 market share points.

Question 36

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 37

For a lot of electronic games, it is found that the product life cycle involves an introduction stage, a rapid growth stage, and finally, a maturity stage.For such products, the most likely best-fitting equation would be of the form: Y = ae^bx, b > 1.

Question 38

Forecasts that are generated from the sales force are based upon the salesperson's knowledge of the customer, which is likely to be complete, sensitive, and current.

Question 39

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

Question 40

IRI Behavior Scan has around 3,000 panelists in their test cities who carry ID cards which are used to record their purchases at supermarkets.

Question 41

Time series studies would prove most beneficial when we want to forecast the acceptance and sales of an innovative product.

Question 42

Wheels Incorporated, a bicycle manufacturer, is developing a sales forecast for the coming year.A plot of past years' sales data is shown below: Considering the graph above, it would be advisable for Wheels to disregard all of the data before 1974 and base their forecasts on subsequent data only.

Question 43

The Bruzzone Research Company tests recall of commercial content.

Question 44

While developing a forecast of sales for 1979-80, ABC Company managers felt that events in the recent past had a much higher similarity to the expected future conditions than those in the more distant past.Assuming that this premise is correct, exponential smoothing would provide a better forecast than a simple moving average.

Question 45

Time series models assume that the future will be same as the past.

Question 46

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 47

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 48

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

Question 49

If causal factors can be identified and linked to the forecast, they can be used to help predict turning points.

Question 50

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 51

A Communicus differs from Bruzzone because it measures recall instead of recognition.

Question 52

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 53

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

Question 54

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

Question 55

One of the ways to remove seasonal effects from time series data is to consider quarterly moving averages.

Question 56

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

Question 57

If a forecaster uses an average of n data points instead of just the last data point, he is using moving averages.

Question 58

A major advantage of using causal models over time series models is that, unlike time series models, the former do not solely rely on historical data.

Question 59

In forecasting demand for a product, it may be useful to forecast initial purchases and replacement purchases separately.

Question 60

In the Bruzzone Research test, over 70% of those recognizing the commercial can correctly select the correct brand from the list of three.

Question 61

Average recognition levels will vary across product classes.

Question 62

The average DAR is under 30.

Question 63

The response to a copy test should be relevant to the campaign objectives.

Question 64

The Starch method has been used since before 1925.

Question 65

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

Question 66

An "on-air" test is conducted in a theatre where a group of viewers are exposed to a set of commercials.

Question 67

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

Question 68

Burke DAR is a customized test.

Question 69

The Chevron print ads on profitability helped to change the attitude toward Chevron.

Question 70

DAR measures have been used since before 1925.

Question 71

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 72

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

Question 73

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

Question 74

Mapes & Ross is an "on-air" test.

Question 75

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

Question 76

DAR is a particularly good measure of "feeling" commercials.

Question 77

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

Question 78

The BUY score in the Buy Test design is based upon an intention-to- buy question.

Question 79

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

Question 80

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.