Deck 9: Small Business Marketing: Product and Pricing Strategies

Question 1

The total product is the most general description of a business,and the one which captures the smallest amount of what is special about a business.

Answer 1

False

Question 2

During the introduction stage a product's life cycle and from a marketing standpoint,the more innovative the product,the quicker the sales.

Answer 2

False

Question 3

While services go through the same four stages of a product life cycle,it can be somewhat easier to extend the life cycle and to virtually eliminate the decline stage of a service.

Answer 3

True

Question 4

The 4 P's of marketing are Product,Price,Promotion,and Placement.

Question 5

Marketing and new product experts believe that most of the small business failures could have been avoided by following the new product development (NPD)process.

Question 6

For me-too products,the stages of new product development are always extensively long.

Question 7

The final goal for developing and testing your value proposition is how it stacks up against and will compete against the other offering available to your customers.

Question 8

The concept of total product includes how customers describe one's good or service.

Question 9

A product can include goods,services,and ideas.

Question 10

There can be more than one target market.

Question 11

The relation of product or company capabilities to customer pains and gains is the augmented product you offer your customers.

Question 12

When coming up with a new idea in the product development process,the focus is on the pains and gains of customers.

Question 13

The purchasing process is the term applied to the schedule and the process for setting the schedule for making purchases by an individual or an organization.

Question 14

Using a single reputable source is adequate when performing secondary analysis.

Question 15

The results from primary research are extremely current,but it can often take somewhat more time and money to gather it.

Question 16

If you have started a business,or are doing a business where you do not expect to prepare a full business plan,a stand-alone marketing plan might be useful.

Question 17

Competitors of a company are not a source of business ideas.

Question 18

Services have separability of production and consumption.

Question 19

If a rapid prototyping model can be developed,the molds for manufacturing can be made inexpensively by most modern manufacturers.

Question 20

The new product development process is likely to be easier for services than for innovative goods.

Question 21

Which of the following stages of new product development typically involves specifying the details of each idea's technological feasibility,its cost,how it can be marketed,and its market potential?

A) Idea generation
B) Market introduction
C) Idea evaluation
D) Test marketing

Question 22

Which of the following statements best describes the process of idea screening in new product development?

A) It involves specifying the details of each idea's technological feasibility,its cost,how it can be marketed,and its market potential.
B) It is the process of selecting the most promising ideas to be further evaluated for feasibility.
C) It involves creating the first versions of products called prototypes which are used in further consumer testing.
D) It is the process of mass producing a new product so that consumers can avail it.

Question 23

Which of the following statements is true about me-too products?

A) For me-too products,steps in new product development process should never be skipped.
B) The vast majority of new ideas for small businesses will be me-too products.
C) Idea generation is the longest stage in the development of me-too products.
D) Testing a me-too product's differential advantage over competition is a wasted effort.

Question 24

The research and development team of Leonide Inc.has generated five different product ideas.All five ideas are being rated against each other on their characteristics such as product uniqueness,idea profitability,protectable intellectual property,and product team quality.Based on their ranking in this stage,only three ideas will make it to the immediate next step which will be the stage of _____.

A) idea generation
B) commercialization
C) feasibility study
D) market introduction

Question 25

A service typically exhibits the characteristic of _____ because if it is not used when offered,it cannot be saved for later use.

A) perishability
B) tangibility
C) absorptivity
D) homogeneity

Question 26

The first time Jena visited Blue Corals Inn,a restaurant in her neighborhood,she was delighted with the food and service quality.However,the next time she dined at the same place,the restaurant's food and service seemed to have lost its quality.This scenario best illustrates the _____ characteristic of services.

A) perishability
B) tangibility
C) heterogeneity
D) absorptivity

Question 27

Purchasing a car with a warranty is most likely to be an example of a _____.

A) pure good
B) good-dominated product
C) pure service
D) hybrid good

Question 28

Which of the following statements is true of the total product approach?

A) In marketing,there is no difference between the total product and the augmented or core products.
B) Customers describe your good or service in only one way.
C) The augmented product is the basic description of what your company does.
D) Using the total product approach can help you get inside your customers' heads.

Question 29

While developing a new product,in the product development stage,the first versions of products are used in further consumer testing.These first versions of products are called _____.

A) pure goods
B) prototypes
C) me-too products
D) hybrids

Question 30

Which of the following is the first stage of the new product development process?

A) Test marketing
B) Commercialization
C) Feasibility study
D) Idea generation

Question 31

A(n)_____ typically means the core product plus features that tend to differentiate the product from competition.

A) pure good
B) hybrid product
C) augmented product
D) me-too product

Question 32

An item's capability of being touched,seen,tasted,or felt is called _____.

A) tangibility
B) legitimacy
C) mutuality
D) perishability

Question 33

ZestOne Technologies has launched a series of tablet computers that are similar to a competitor's product that already exists in the market.Such products are typically termed as _____.

A) me-too products
B) prototypes
C) augmented products
D) complementary goods

Question 34

Pure goods are more _____ than pure services.

A) perishable
B) inconsistent
C) inseparable
D) homogenous

Question 35

Which of the following statements is true about products?

A) People such as political candidates and celebrities cannot be considered as products.
B) Most of the products sold today are combinations of both goods and services.
C) Products in terms of goods are generally less homogeneous than services.
D) Products in terms of goods are more inseparable from their providers than services.

Question 36

Your best and most loyal customer,that "perfect fit" customer is called your ________.

A) focus group
B) target market
C) strategic group
D) sales pitch

Question 37

Which of the following statements is true about pure services?

A) They are separable from consumption.
B) They are tangible.
C) They are heterogeneous.
D) They are nonperishable.

Question 38

The core product typically includes:

A) the basic description of what a company or a product does.
B) features of a product that differentiates it from competition.
C) what a product means to the customers.
D) value and cost benefits customers incur from a product.

Question 39

Which of the following is most likely to be an example of a good-dominated product?

A) Purchasing a sewing machine with a warranty
B) Leasing a sewing machine
C) Hiring the services of a tailor
D) Renting a sewing machine

Question 40

The entire bundle of products,services,and meanings of one's offering; including extras like service,warranty,or delivery,as well as what the product means to the customer refers to _____.

A) augmented product
B) total product
C) hybrid product
D) pure good

Question 41

A customer role describing a person or group who can make credible or recognized suggestions or recommendations to others regarding purchase choices is the _______.

A) end user
B) influencer
C) purchaser
D) decision maker

Question 42

According to the Panel Study of Entrepreneurial Dynamics (PSED),when an entrepreneur comes up with the idea themselves,the single greatest idea source is from:

A) thinking about a problem.
B) their knowledge or expertise with technology.
C) their experience in a particular industry or market.
D) developing another idea they had considered.

Question 43

As customers ourselves,we think the customer is the person who buys something.That can be true,but determining who is your customer can be far more complex.Which of the following statements is not true of customer roles?

A) When selling to organizations,you may have multiple customer roles in the organization.
B) You can use your knowledge of the customer roles to help you understand and map out the purchasing process for your product or service.
C) When purchasing a gift for someone,you are the purchaser but not the end user.
D) The only way to avoid influencers is to sell directly to individuals on the Internet.

Question 44

Which of the following is the biggest problem with simulated test markets?

A) They cannot be computer-generated.
B) They make it easy for competitors to "steal" one's ideas.
C) They do not always reflect actual buying behavior.
D) They can be used only in the commercialization stage and not in the product development stage.

Question 45

Raven has been researching for product ideas by interacting with children,young mothers,and by carefully studying the competitors' toys.This has helped her generate several ideas.Which of the following is most likely to be the next step for Raven?

A) Test marketing
B) Product development
C) Idea screening
D) Commercialization

Question 46

The sequence of steps an individual or organization goes through in making a decision to buy a product or service is called the ____________.

A) purchasing process
B) budget cycle
C) 4 P's
D) customer's job

Question 47

In new product development process,the product development stage typically involves:

A) testing the feasibility of product ideas.
B) creating a marketing plan for the final product.
C) introducing product prototypes to test markets.
D) commercializing the new product.

Question 48

Mike worked as an employee in an automotive repair shop.Many of his repairs were fixing botched stereo installations.Mike learned he was very good at correctly installing car stereo systems.He also learned that the chain stores that sold the car stereo systems,and offered 'free' installation,were not good at installing their own stereos.Mike began to think about opening his own stereo installation specialty shop.He listened to his customer's complaints and decided there was a need in his area for just this type of service.This is an example of:

A) a me-too product.
B) the product development process.
C) a total product.
D) the customer development process.

Question 49

The second step of the marketing process applies the value proposition to the mechanics of making the connection of the customer and your product through the 4 P's of marketing.Which of the following is not one of the 4 P's of marketing?

A) Placement
B) Price
C) Product
D) Prototype

Question 50

A customer role that describes the person who eventually makes actual use of a product or service in their personal or work life is the ________.

A) customer's job
B) influencer
C) end user
D) retailer

Question 51

Marcie works at a public library and she is responsible for purchasing all audiobooks for the library.Marcie reads reviews of the titles from the available monthly circulars,choosing the titles she would like to add to the collection.Marcie then sends the order to the technical services department where Linda places the order.In this case Linda is playing the customer role of _________.

A) decision maker
B) purchaser
C) influencer
D) end user

Question 52

A customer role that describes a person in an organization who is responsible for choosing which product or service will be obtained is the __________.

A) decision maker
B) purchaser
C) end user
D) influencer

Question 53

_____ is best described as the process of selling prototype of a product in either a real or simulated market environment.

A) Test marketing
B) Moonlighting
C) Bootstrapping
D) Commercialization

Question 54

Marcie works at a public library and she is responsible for purchasing all audiobooks for the library.Marcie reads reviews of the titles from the available monthly circulars,choosing the titles she would like to add to the collection.Marcie then sends the order to the technical services department where Linda places the order.In this case Marcie is playing the customer role of __________.

A) influencer
B) purchaser
C) end user
D) decision maker

Question 55

Laura developed a handy kitchen tool.She replicated the tool several times over,providing gifts of the tool to all of her friends.They made great birthday or special occasion gifts.Eventually,Laura started her own successful company producing her kitchen tool idea.This is an example of:

A) a me-too product.
B) the product development process.
C) a total product.
D) the customer development process.

Question 56

From an entrepreneur's perspective,marketing is all about connecting your customer to your product or service.The first step in this process is:

A) connecting the two through price.
B) connecting the two through the value proposition.
C) connecting the two through promotion.
D) connecting the two through product placement.

Question 57

_____ is best described as the process of making a new product available to consumers.

A) Commercialization
B) Factoring
C) Pilot testing
D) Liquidation

Question 58

According to the Panel Study of Entrepreneurial Dynamics (PSED),when an entrepreneur comes up with the idea from others,the single greatest idea source is from:

A) discussions with friends and family.
B) discussions with potential or existing customers.
C) discussions with existing suppliers or distributors.
D) discussions with potential or existing investors or lenders.

Question 59

A customer role that describes an individual or institution that pays for or obtains a product or service is the ________.

A) end user
B) decision maker
C) influencer
D) purchaser

Question 60

Raven created the sample versions of her toy products and tested them in kindergartens and play parks.These sample versions of the toys are referred to as _____.

A) hybrids
B) pure goods
C) me-too products
D) prototypes

Question 61

Which of the following statements is true of marketing research?

A) Marketing research can falls into one of three categories.
B) Marketing research can verify the size of the potential market but does not tell you where potential customers are likely to shop.
C) Marketing research can tell you what customers consider a reasonable price.
D) Marketing research cannot verify the size of the potential market.

Question 62

Which of the following market research techniques is not primary research?

A) Observation
B) Focus groups
C) Googling competitors
D) Surveying

Question 63

Which of the following sections of marketing information is included in the stand-alone marketing plan and not included in the marketing section of a business plan?

A) distribution strategy
B) competitive plan
C) marketing budget and projections
D) R&D growth plan

Question 64

When conducting primary research and comparing various survey methods,the least expensive method is the:

A) online survey.
B) focus group.
C) direct mail survey.
D) phone survey.

Question 65

Small business owners' unique selling points (also known as benefits)that customers can expect from your goods or services,including benefits that differentiate your offering from those of the competition is known as:

A) value proposition.
B) long-term value.
C) tangibility.
D) total product.

Question 66

Which of the following statements is not true concerning marketing and marketing plans?

A) For start-ups,marketing plans help define how the firm will build its brand and relationship with customers.
B) When building your marketing plan,there is low-cost help available in several ways.
C) For established businesses,a marketing plan helps the company maintain customer relationships.
D) Not all business plans have a marketing section.

Question 67

Which of the following statements is not true of surveying questions?

A) Open-ended questions make it easier to compare groups and to statistically analyze.
B) A common closed-ended question is the scalar question.
C) Dichotomous questions offer two choices for an answer.
D) Having a set of predetermined written questions has certain advantages whether responses are oral or in writing.

Question 68

Which of the following statements is not true of creating a customer profile?

A) The process for a start-up should begin with face-to-face interviews with potential customers.
B) It should be typically applied at the decline stage of the product life cycle Analyze the results of interviews by first looking at the problems your interviewees were trying to solve.
C) The goal of these interviews is to get as many responses as possible.
D) The hardest part of preparing the interview is figuring out what the problem context is.

Question 69

Which of the following is not one of the three tests of the approach when crafting a customer-focused value proposition?

A) How many customer pains can you solve?
B) How many customer gains can you provide?
C) How closely does your product or service fit the customer's job?
D) How does your price compare to competitors' prices?

Question 70

A marketing concept that refers to the revenue (or profit)generated by one customer over their lifetime dealing with one firm is their _________.

A) long-term value
B) benefit matching
C) influencer impact
D) customer profile

Question 71

When comparing a stand-alone marketing plan to the marketing section of the business plan,evaluation and control is included in:

A) the stand-alone plan.
B) the business plan.
C) both the stand-alone and the business plan.
D) neither the stand-alone plan nor the business plan.

Question 72

While conducting research for a new product,the Kitchen Widget,Cheryl and her employees observed current customers and competitors,interviewed and surveyed potential customers.Cheryl and her employees were conducting:

A) secondary research.
B) ethnographic research.
C) the 4 P's of marketing.
D) primary research.

Question 73

An approach to researching based on the use of existing information,often from government,commercial or academic databases and research efforts is:

A) secondary research.
B) primary research.
C) ethnographic research.
D) the 4 P's of marketing.

Question 74

Which of the following is not one of the three most important numbers for a marketing plan?

A) total market size
B) long-term value
C) the typical price of a product or service like yours
D) the typical profitability of your product or service

Question 75

Systematic collection and interpretation of data to support future marketing decisions is:

A) the 4 P's of marketing.
B) a survey.
C) marketing research.
D) the product development process.

Question 76

The relation of product or company capabilities to customer pains and gains is the ________ you offer your customer.

A) value proposition
B) tangibility
C) heterogeneity
D) outstanding customer service

Question 77

Which of the following statements is true of secondary research?

A) Secondary research is not readily available.
B) Secondary data is free of bias.
C) Problems with secondary data include that the data may not be timely.
D) Websites are not the place to look for secondary data.

Question 78

Which of the following stages of a product life cycle is incorrect?

A) Decline
B) Plateau
C) Introduction
D) Growth

Question 79

Which of the following statements is true of the target market?

A) Your Total Available Market (TAM)represents the customers that you think would be interested in your particular product or service.
B) Your target market is the same as your Serviceable Obtainable Market (SOM).
C) Your Penetrated Market (PM)is your target market divided by your actual number of customers.
D) Your Serviceable Available Market (SAM)is never the same as your Total Available Market (TAM).

Question 80

A detailed description of an archetypical or hypothetical potential customer for a product or service is a(n)________.

A) customer's job
B) end user
C) influencer
D) customer profile