Question 1

Which of the following is a group of products that are closely related because they function in a similar manner or are sold to the same customer group who will use them in similar ways?
A)Product mix
B)Product cousins
C)Demographic products
D)Segmented products
E)Product line

Accepted Answer

The answer of Which of the following is a group...

Question 2

Snazzy Sodas is known for its variety of all-natural sodas as well as its efforts toward social responsibility.The company has decided to produce a new line of energy drinks,and while it does not have the resources to promote its product widely,it can make a sizeable impact with a carefully chosen market segment.The CEO favours marketing the product primarily to young males,but the VP of operations recommends targeting female professionals. Which of the following questions is least relevant to Snazzy Sodas's evaluation of the desirability of the young male market segment?
A)What is the percentage of young males in the general population?
B)What attitudes do members of this group likely have about Snazzy Sodas?
C)How does the consumption of energy drinks by young males compare to the consumption patterns of other groups?
D)Would Snazzy Sodas be likely to target young males if it were producing a different product?
E)Are young males likely to consider a company's reputation for social responsibility when they purchase energy drinks?

Accepted Answer

This question is least relevant because it pertains to Snazzy Sodas' decisions about other products, not specifically about its energy drink line.

Question 3

What is a series of stages in an item's commercial life called?
A)Commodity life cycle
B)Merchandise evolution
C)Brand stages
D)Product life cycle
E)Product progression

Accepted Answer

The term "Product life cycle" refers to the series of stages an item goes through from introduction to the market, through growth, maturity, and eventually decline.

Question 4

Penelope's Pizza,a local chain of restaurants,has made the decision to expand on a national basis.It plans to open 50 new locations in 20 cities across the country within the next two years.In order to efficiently integrate all the tools and company resources to maximize the impact on new customers,Penelope's Pizza is considering using an integrated marketing strategy to promote a coherent national brand perception.The account manager argues that an integrated marketing strategy is the way to go,but the CEO argues that each local community is different,and the needs,values,and norms of the host cities should drive the marketing campaign. Penelope's Pizza also wants to be at the forefront of current trends and changes in the practice of advertising.The account manager wants to focus on consumer generated advertising via YouTube,Twitter,Instagram and Facebook,whereas the CEO prefers to focus on mainstream media.Which of the following,if true,would support the position of the account manager?
A)The number of TV channels has skyrocketed in recent years.
B)Over the same time,the four major television networks suffered a 20 percent decrease in viewership,leading to a reduction in advertising rates.
C)The emphasis on effectiveness and accountability has lowered the production costs for a 30-second television commercial.
D)Television networks are seeking to ban the feature in recording devices that allows viewers to record television shows while deleting all commercial messages.
E)Young adults,under the age of 30,consume the largest amount of pizza per capita and are the greatest users of social media.

Accepted Answer

Young adults, under the age of 30, consume the largest amount of pizza per capita and are the greatest users of social media. This supports the account manager's position because it suggests that focusing on consumer-generated advertising via social media platforms would be an effective way to reach Penelope's Pizza's target audience.

Question 5

Penelope's Pizza,a local chain of restaurants,has made the decision to expand on a national basis.It plans to open 50 new locations in 20 cities across the country within the next two years.In order to efficiently integrate all the tools and company resources to maximize the impact on new customers,Penelope's Pizza is considering using an integrated marketing strategy to promote a coherent national brand perception.The account manager argues that an integrated marketing strategy is the way to go,but the CEO argues that each local community is different,and the needs,values,and norms of the host cities should drive the marketing campaign. After becoming a successful national brand,Penelope's Pizza has made the decision to expand overseas and enter the global market.Using a globally integrated marketing plan,Penelope's plans to enter the pizza market in Germany,Japan,and India.The CEO wants to use an adaptation plan in the new markets,and thus offer kielbasa pizza in Germany,sushi pizza in Japan,and vegetarian pizza in India.The advertising firm recommends a standardization approach as being more cost efficient and brand identifiable.Which statement,if true,supports the CEO's argument?
A)Traditionally,all three markets are slow to adapt to the idea of fast food and prefer meals with known ingredients that are familiar to them.
B)The cost of introducing new ingredients to the menu will increase the price of pizza by 15 percent.
C)Marketing surveys show that the under-30 generation in each of the three countries is increasingly eager to consume fast food as a status symbol of increasing wealth.
D)The current economic slump has decreased the volume of sales for all fast foods on a global basis.
E)Obtaining vendors for new pizza toppings would require the hiring of additional translators in each country.

Accepted Answer

The CEO's argument for an adaptation plan is supported by the fact that traditionally, all three markets are slow to adapt to fast food and prefer meals with familiar ingredients. This suggests that offering localized pizza options would be more appealing to these markets.

Question 6

Snazzy Sodas is known for its variety of all-natural sodas as well as its efforts toward social responsibility.The company has decided to produce a new line of energy drinks,and while it does not have the resources to promote its product widely,it can make a sizeable impact with a carefully chosen market segment.The CEO favours marketing the product primarily to young males,but the VP of operations recommends targeting female professionals. Which of the following,if true,would weaken the VP of operation's position?
A)Success in the energy drink market was an important goal mentioned in the company's annual report.
B)Young males have demonstrated low awareness of many soda brands.
C)Professionals tend to have more disposable income than nonprofessionals.
D)Concern over social responsibility is rising across a wide variety of market segments.
E)Professionals are more likely than nonprofessionals to be concerned about the long-term health effects of energy drinks.

Accepted Answer

This weakens the VP of operations' position because the target market of female professionals may be more concerned about the potential health risks associated with energy drinks, which could make them less likely to purchase them.

Question 7

Penelope's Pizza,a local chain of restaurants,has made the decision to expand on a national basis.It plans to open 50 new locations in 20 cities across the country within the next two years.In order to efficiently integrate all the tools and company resources to maximize the impact on new customers,Penelope's Pizza is considering using an integrated marketing strategy to promote a coherent national brand perception.The account manager argues that an integrated marketing strategy is the way to go,but the CEO argues that each local community is different,and the needs,values,and norms of the host cities should drive the marketing campaign. Which of the following practices would support the CEO's argument?
A)Penelope's Pizza decides to pursue a co-branding partnership with either Pepsi or Coke.
B)Penelope's Pizza employees all must wear the same uniform.
C)Penelope's corporate website has links to individual stores for ordering pizza online.
D)All Penelope's Pizza restaurants have an art deco interior design.
E)Penelope's Pizza encourages individual stores to create their own menu options and pricing structure.

Accepted Answer

Allowing individual stores to create their own menu options and pricing structure supports the CEO's argument by catering to the unique needs and preferences of each local community.

Question 8

What is an inexpensive good or service purchased and consumed rapidly and regularly called?
A)Convenience good
B)Impulse good
C)Shopping good
D)Bargain good
E)Instinct good

Accepted Answer

Convenience goods are inexpensive items that consumers purchase frequently and with minimal effort, such as groceries or household items.

Question 9

Snazzy Sodas is known for its variety of all-natural sodas as well as its efforts toward social responsibility.The company has decided to produce a new line of energy drinks,and while it does not have the resources to promote its product widely,it can make a sizeable impact with a carefully chosen market segment.The CEO favours marketing the product primarily to young males,but the VP of operations recommends targeting female professionals. Which of the following,if true,would support the CEO's position?
A)Snazzy decided that producing a line of energy drinks would be more profitable than attempting to penetrate international markets.
B)Young males,as a group,consume more energy drinks than any other market segment.
C)Energy drinks cost more per ounce than other popular beverages.
D)Energy drink manufacturers have recently tried to associate their product with positive social causes.
E)Different companies define "young" differently.

Accepted Answer

This answer directly supports the CEO's position by providing evidence that young males consume more energy drinks than any other market segment, indicating that they may be a profitable target market for the new line of energy drinks.

Question 10

Macmoo Real Estate is beginning to use data-driven processes to determine the value that it gets from different marketing activities.Macmoo's website lists available properties and allows customers to request information.Macmoo tends to advertise in local newspapers and specialized real estate periodicals.The marketing director believes that Macmoo's traditional spring advertising campaign,which runs during the month of March,is an effective use of advertising resources.When pressed for evidence,the marketing director points out that revenues in March have consistently been higher than revenues in February. Which of the following,if true about the real estate industry in general,would weaken the marketing director's argument?
A)The demand for houses is higher than it was last year.
B)The supply of houses for sale is lower than it was last year.
C)Sales are generally higher in March than in February.
D)Sales are generally higher in April than in March.
E)In February,home loan interest rates dropped.

Accepted Answer

C indicates that the observed increase in sales during March is a general trend in the real estate industry, not necessarily a result of Macmoo's advertising campaign.

Question 11

What are no-frills products sold under the general category name rather than a specific company name called?
A)National brands
B)Private brands
C)Manufacturer brands
D)Generic brands
E)Category brands

Accepted Answer

Generic brands are no-frills products sold under a general category name rather than a specific company name.

Question 12

Which of the following is marketing that relies on word of mouth to spread information about a particular product or idea?
A)Viral marketing
B)Rumour marketing
C)Social marketing
D)Gossip marketing
E)Buzz marketing

Accepted Answer

The answer of Which of the following is marketing that...

Question 13

What is the added value a name provides to a product beyond its basic functional benefits called?
A)Logo equity
B)Reputation equity
C)Brand equity
D)Label equity
E)Trademark equity

Accepted Answer

Brand equity refers to the value a brand adds to a product beyond its functional benefits, often through consumer perception, recognition, and loyalty.

Question 14

Snazzy Sodas is known for its variety of all-natural sodas as well as its efforts toward social responsibility.The company has decided to produce a new line of energy drinks,and while it does not have the resources to promote its product widely,it can make a sizeable impact with a carefully chosen market segment.The CEO favours marketing the product primarily to young males,but the VP of operations recommends targeting female professionals. Which of the following,if true,would weaken the CEO's position?
A)Young males have shown strong brand loyalty to the current market leader in energy drinks.
B)Young males are especially likely to be opinion leaders on many lifestyle issues.
C)Clothing companies typically segment more precisely than beverage companies.
D)Even effective targeting does not guarantee success when it is followed by ineffective positioning.
E)As compared to other groups,young males spend a high percentage of their income on discretionary purchases.

Accepted Answer

The fact that young males already have a strong brand loyalty to a current market leader in energy drinks weakens the CEO's position in favor of marketing primarily to young males. It indicates that it may be difficult for Snazzy Sodas to attract these consumers away from their preferred brand.

Question 15

Macmoo Real Estate is beginning to use data-driven processes to determine the value that it gets from different marketing activities.Macmoo's website lists available properties and allows customers to request information.Macmoo tends to advertise in local newspapers and specialized real estate periodicals.The marketing director believes that Macmoo's traditional spring advertising campaign,which runs during the month of March,is an effective use of advertising resources.When pressed for evidence,the marketing director points out that revenues in March have consistently been higher than revenues in February. During 2018,Macmoo completed fewer real estate transactions than it did during any similar time period during the last five years.Still,the marketing director claims that its marketing efforts led to very positive financial results for Macmoo.Which of the following,if true,would resolve this seeming discrepancy?
A)In 2018,Macmoo spent more on advertising than it did in 2017.
B)In 2018,Macmoo diverted marketing efforts to support several corporate social responsibility initiatives.
C)Sales projections completed in 2015 predicted even lower sales volume in 2016.
D)In 2018,marketing efforts focused on sales of very expensive properties.
E)In 2018,Macmoo's principal competitors cut back on their marketing expenditures.

Accepted Answer

In 2018, marketing efforts focused on sales of very expensive properties, which could lead to higher revenues despite fewer transactions.

Question 16

The part of a product's packaging that identifies the product's name,its contents and sometimes its benefits is the
A)label.
B)logo.
C)brand.
D)trade name.
E)packaging.

Accepted Answer

The label is the part of a product's packaging that identifies the product's name, its contents, and sometimes its benefits.

Question 17

Snazzy Sodas is known for its variety of all-natural sodas as well as its efforts toward social responsibility.The company has decided to produce a new line of energy drinks,and while it does not have the resources to promote its product widely,it can make a sizeable impact with a carefully chosen market segment.The CEO favours marketing the product primarily to young males,but the VP of operations recommends targeting female professionals. Which of the following,if true,would most strongly support the VP of operation's position?
A)Industry-leading companies tend to target as wide a market as possible.
B)Female professionals are more likely to stay with a known brand for expensive items such as cars.
C)Female professionals tend to have a strongly positive opinion of Snazzy's current products.
D)Young females consume more energy drinks per person than the general population.
E)Male professionals often report a lack of energy while at work.

Accepted Answer

The recommendation to target female professionals is most strongly supported if they already have a positive opinion of Snazzy's current products. This suggests that they are more likely to try the new energy drink line and become loyal customers. The other answer choices do not provide as strong of a justification for targeting female professionals over young males.

Question 18

What is a moderately expensive,infrequently purchased good or service called?
A)Impulse good
B)Convenience good
C)Occasional good
D)Shopping good
E)Luxury good

Accepted Answer

A shopping good is a moderately expensive, infrequently purchased good or service that consumers spend time comparing quality, price, and style before making a purchase decision.

Question 19

Which of the following is an organizational market consisting of such non-governmental buyers of goods and services as hospitals,religious organizations,museums,and charitable organizations?
A)Charity market
B)Institutional market
C)Industrial market
D)Corporate market
E)Nonprofit market

Accepted Answer

The institutional market consists of non-governmental organizations such as hospitals, religious organizations, museums, and charitable organizations that purchase goods and services.

Question 20

A process of using symbols to communicate the qualities of a product made by a particular producer is
A)labelling.
B)promoting.
C)publicizing.
D)branding.
E)advertising.

Accepted Answer

Branding involves using symbols, names, or designs to identify and differentiate a product from those of other producers.

Quiz 12: Understanding Marketing Principles and Developing Products

Which of the following is a group of products that are closely related because they function in a similar manner or are sold to the same customer group who will use them in similar ways?

What is a series of stages in an item's commercial life called?

What is an inexpensive good or service purchased and consumed rapidly and regularly called?

What are no-frills products sold under the general category name rather than a specific company name called?

Which of the following is marketing that relies on word of mouth to spread information about a particular product or idea?

What is the added value a name provides to a product beyond its basic functional benefits called?

The part of a product's packaging that identifies the product's name,its contents and sometimes its benefits is the

What is a moderately expensive,infrequently purchased good or service called?

Which of the following is an organizational market consisting of such non-governmental buyers of goods and services as hospitals,religious organizations,museums,and charitable organizations?

A process of using symbols to communicate the qualities of a product made by a particular producer is