CHAPTER 1: Marketing's Value to Consumers, Firms, & Society

1. Which of the following statements about nonprofit organizations is false?

A. The marketing concept is as important for nonprofit organizations as it is for business
firms.
B. The marketing concept provides focus in both business firms and nonprofit organizations.
C. Marketing is being more widely accepted by nonprofit organizations.
D. In nonprofit organizations, support often comes directly from those who receive the
benefits the organization produces.
E. A nonprofit organization does not measure profit in the same way as a business firm does.
D.
2. Which of the following represents the basic goal of the marketing concept?
A. making a profit at whatever cost
B. satisfying customers at a profit
C. aligning with government goals
D. producing the largest assortment of goods
E. getting customers to buy whatever a firm decides to produce
B.
3. Which of the following best describes marketing?
A. Marketing is most effective when it takes over other company activities, such as
production.
B. Marketing should guide production, accounting, and financial activities.
C. Marketing is limited to the acts of selling and advertising.
D. Marketing's main focus is on completing individual transactions.
E. Marketing should follow the lead of production, which determines which goods are
produced.
B.

4. As part of its plans for long-term success, a company that manufactures frozen
dinners focuses specifically on making a profit while using sustainably farmed
ingredients and compostable packaging that both employees and customers can
feel good about. Which of the following best describes the guidelines this company
is using to measure its long-term success?
A. a production quota
B. production orientation
C. a triple bottom line
D. customer utilization
E. government regulations
C.
5. Which of the following activities is part of the production process?
A. making goods or performing services
B. determining how many people will want to purchase goods or services
C. deciding whether to sell goods directly to consumers or through retailers
D. identifying competing companies
E. estimating the prices potential customers are willing to pay
A
6. Which of the following terms can be defined as the extent to which a firm fulfills a
customer's needs, desires, and expectations?
A. customer satisfaction
B. social responsibility
C. organizational viability
D. customer equity
E. customer value
A.
7. Which of the following statements is true of marketing-oriented firms?
A. Marketing-oriented firms think of customers as primarily existing to buy the firm's output.
B. Marketing-oriented firms focus on making and selling whatever products are easy to
produce.
C. In marketing-oriented firms, the total system's effort is guided by what individual
departments would like to do instead of what customers want.
D. In a marketing-oriented firm, every department's activities are guided by what customers
need and what the firm can deliver at a profit.
E. In marketing-oriented firms, there is a lack of a central focus, as managers tend to build
"fences" around their own departments.
D.
8. Which of the following statements best explains the "marketing concept"?
A. A firm should always attempt to give customers what they need, regardless of the cost
involved.
B. A firm's main emphasis should be on the efficient utilization of its resources.
C. Firms today should spend more money on marketing than they have in the past.
D. All of a firm's activities and resources should be focused on fulfilling the needs of its
customers while making a profit.
E. A company's chief executive should have prior experience as a marketing manager.
D.
9. Which of the following statements about marketing is true?
A. Marketing should begin with the production process followed by potential customer needs.
B. Marketing only occurs when two or more parties are willing to exchange one thing for
another thing.
C. A marketing exchange focuses on making a single transaction.
D. Marketing activities are limited to selling and advertising.
E. Marketing only applies to for-profit (not nonprofit) organizations.
B.
10. Which of the following is not a reason why a restaurant may have low customer
value?
A. The restaurant's customers perceive the prices to be too high.
B. The cost of the dining experience is less than its perceived value.
C. The food is not flavorful.
D. The dining experience is not worth the long wait for a table.
E. The restaurant has an unfavorable location.
B.
11. Macro-marketing
A. is concerned with the flow of need-satisfying goods and services from producer to
consumer.
B. is not concerned with how marketing affects society.
C. places emphasis on the activities of individual organizations.
D. applies to only nonprofit organizations—not profit organizations.
E. seeks to match homogeneous supply capabilities with homogeneous demands for goods and
services.
A.

12. From the perspective of macro-marketing, the discrepancy between the small
quantity of a product that individual consumers need and the large quantity that
firms produce exists because
A. society has evolved past a subsistence economy.
B. it is necessary to achieve customer satisfaction.
C. businesses prefer to store products for long periods.
D. firms seek to benefit from economies of scale.
E. businesses can satisfy customers better when they have large inventory surpluses.
D.
13. With regard to the universal functions of marketing, the transporting function
involves
A. promoting the product.
B. sorting products according to size and quality.
C. holding goods until customers need them.
D. bearing the uncertainties that are part of the marketing process.
E. moving goods from one place to another.
E.
14. When a firm manufactures a product and is uncertain about whether customers
will want to buy its products, that firm is experiencing the ______ function of
marketing.
A. market information
B. risk-taking
C. grading
D. intermediary
E. selling
B.
15. In the context of the universal functions of marketing, the _____ function of
marketing involves holding goods until customers need them.
A. storing
B. transporting
C. buying
D. standardizing and grading
E. selling
A.
16. Firms that facilitate or provide one or more of the marketing functions other than
buying are known as
A. suppliers.
B. collaborators.
C. complementors.
D. intermediaries.
E. advisors.
B.
17. A firm lists its products on Amazon.com, enabling customers to make their
purchases online. This is an example of
A. storing.
B. risk taking.
C. production.
D. e-commerce.
E. standardization and grading.
D.
18. Which of the following functions of marketing involves sorting products
according to their size and quality, helping to reduce their need for inspection,
and sampling?
A. the buying function
B. the market information function
C. the storing function
D. the risk-taking function
E. the standardization and grading function
E.
19. In a command economy,
A. consumers make society's production decisions through the choices that they make in the
marketplace.
B. the prices set by government planners tend to be very flexible and change according to
supply and demand.
C. producers get to decide what and how much is to be produced and distributed.
D. producers have little choice about what goods and services to produce.
E. activities such as market research, branding, and advertising are performed frequently.
D.
20. Government planning in a command economy is least likely to work well when
A. the economy is simple.
B. the economy is complex.
C. the variety of goods and services is limited.
D. there is political instability.
E. there is drought.
B.

CHAPTER 2: Marketing Strategy Planning

1. A marketing program
A. blends all of the firm's marketing plans into one overall plan.
B. must be set before a target market can be selected.
C. is primarily concerned with all of the details of implementing a marketing plan.
D.is another name for a particular marketing mix.
E. consists of a target market and the marketing mix.
A.
2. Which of the following scenarios best describes differentiation?
A. The firm uses its resources in a way that is different from the way competitors use their
resources.
B. The firm changes to a different set of operational decisions when its marketing strategy is
not going well.
C. The firm screens out opportunities using criteria that are different from those used by other
firms.
D. The firm aims its efforts at a target market that is different from a target market that a
competitor would find attractive.
E. The firm's marketing mix is distinct from what is available from a competitor.
E.
 3. What is the purpose of a S.W.O.T. analysis?
A. to spot threats to a company's marketing strategy and devise ways to strengthen that
strategy to overcome them
B. to study the competition and determine their strengths and weaknesses
C. to identify a company's weaknesses so it can develop a plan to correct them
D. to develop screening criteria that will help a company identify what marketing strategy to
pursue
E. to generate a list of opportunities that are a good fit for a company's current marketing
strategy
D
4. Natural Essences, a company that manufactures hair products, offers "dollar-off
coupons" to adult women to get them to try its shampoos and conditioners. This is
an example of:
A. sales promotion.
B. personal selling.
C. diversification.
D. product development.
E. publicity.
A.
5. Which form of promotion involves direct spoken communication between sellers
and potential customers that may happen face-to-face, over the telephone, or via a
videoconference over the Internet?
A. personal selling
B. mass selling
C. sales promotion
D. advertising
E. publicity
A.
6. The customer is
A. the entity that selects a marketing mix.
B. a secondary component of a marketing mix.
C. the primary component of a marketing mix.
D. not related to a marketing mix.
E. the target of a marketing mix.
E.
7. With which of the four Ps of the marketing mix are retailers, wholesalers,
warehouses, and transportation firms associated?
A. people
B. promotion
C. price
D. product
E. place
E
8. Which of the following statements is true of target marketing?
A. Target marketing vaguely aims at "everyone" with the same marketing mix.
B. Target marketing applies only for small market segments.
C. Target marketing is limited to fairly homogeneous market segments.
D. Target marketing is typical of a production-oriented approach.
E. Target marketing considers everyone to be a potential customer.
C.
9. Target marketing differs from mass marketing in that target marketing
A. is tailored to fit some specific target customers while mass marketing aims at everyone with
roughly the same marketing mix.
B. is more effective than mass marketing, but is only practical for large firms with significant
resources.
C. is limited to fairly heterogeneous market segments while mass marketing is limited to fairly
homogeneous market segments.
D. is limited to large market segments while mass marketing is limited to markets that are
small and clearly defined.
E. considers everyone to be a potential customer while mass marketing considers only a
specific group or groups of people to be potential customers.
A.
10. A _____ specifies a target market and a related marketing mix.
A. market test
B. marketing survey
C. marketing report
D. marketing strategy
E. market program
D.
11. Which of the following is considered a product?
A. All of these are considered products.
B. a computer
C. a haircut
D. tax advice from a financial consultant
E. a chair
A.
12. Ford Motor Co. "loaned" new Fiestas to social trendsetters who drove the cars as
part of their Meals on Wheels responsibilities. When Ford asked them to write
about their driving experiences on Facebook and Twitter, it was emphasizing
which aspect of the "Four Ps"?
A. Promotion
B. People
C. Price
D. Place
E. Product
A.
13. When Colgate encourages its current customers to brush more often by taking
their toothbrush and toothpaste to work with them, which market opportunity is
 Colgate pursuing?
A. product development
B. diversification
C. market penetration
D. market development
C.
14. Herbal Essences tries to sell its hair shampoos and conditioners to young women
in their late teens and early 20s. These women represent Herbal Essences'
primary
A. channel of distribution.
B. marketing strategy.
C. marketing mix.
D. target market.
E. "Four Ps."
D.
15. Hewlett-Packard sells personal computers through specialty computer stores,
electronics superstores, and its own Internet site. The marketing mix variable that
is being considered here is
A. Price.
B. Product.
C. Promotion.
D. Place.
E. Personnel.
D.
16. Which of the following statements is true of the marketing management process?
A. The marketing management process is a discontinuous process because the three jobs in the
process are not interconnected.
B. The marketing management process is the process of planning marketing activities,
directing the implementation of the plans, and controlling these plans.
C. The marketing management process is the process of planning marketing activities, but not
directing or controlling the implementation of these plans.
D. Marketing management involves implementing plans that have been made by, and remain
controlled by, others.
E. Marketing managers focus only on planning for the present market because consumers'
needs, competitors, and the environment hardly ever change.
B.
17. A _____ specifies a target market and a related marketing mix.
A. market test
B. marketing strategy
C. marketing survey
D. market program
E. marketing report
B.
18. The variables that a company puts together in an attempt to satisfy a particular
set of customers that it wants to appeal to is called a
A. target market.
B. mass market.
C. sales promotion.
D. product.
E. marketing mix.
E.
19. Which of the following statements about mass marketing is true?
A. Only large firms like General Electric, Target, and Procter & Gamble can use mass
marketing.
B. Mass marketing usually generates higher profits than target marketing.
C. Mass marketing assumes that everyone is basically the same.
D. The terms "mass marketing" and "mass marketers" essentially mean the same thing.
E. Mass marketing typically aims at very specific target customers with the same marketing
mix.
C.
20. Which variable of the marketing mix may involve a physical good, a service, or a
blend of both?
A. product
B. person
C. price
D. promotion
E. place
A.

CHAPTER 3: Focusing Marketing Strategy with Segmentation and Positioning

1. Tom and Sally Jones are preparing to purchase a new car. Tom currently has a
Toyota Camry and Sally has a Honda Accord. They now have two children under
age 5, so they plan to trade in Sally's car to purchase a minivan. Sally and Tom
decide on a Honda Odyssey because Sally is familiar with Hondas and thinks they
are very reliable. In this purchase situation, Tom and Sally's family life cycle
stage is a ________ segmenting dimension, and the benefit Sally seeks (reliability)
is a ________ segmenting dimension.
A. geographic; behavioral
B. demographic; geographic
C. behavioral; demographic
D. demographic; behavioral
E. geographic; demographic
D.
2. A target marketer who uses a single marketing mix strategy to appeal to both
office tablet computer users and home tablet computer users is applying the
A. generic market approach.
B. single target market approach.
C. combined target market approach.
D. broad market approach.
E. multiple target market approach.
C.
3. A digital camera, a computer video camera, and a computer scanner might
compete in the same
A. generic market.
B. combined target market.
C. multiple target market.
D. single target market.
E. product-market.
A.
4. When doing positioning, a marketing manager should
A. avoid targeting strategies.
B. rely on how customers think about proposed and/or existing brands in a market.
C. plan physical product changes rather than image changes.
D. focus on specific product features of all generic competitors.
E. None of these answers is correct.
B.
5. Given its interest in the broad product-market for "ready-to-eat, health-conscious
snack foods," which of the following should the Good Health Foods Co. do first?
A. develop each of the Four Ps at the same time
B. decide what low-fat product or products it will offer
C. develop a plan for getting support from intermediaries
D. determine whether to compete on a price basis
E. segment the product-market to try to identify homogeneous submarkets and select an
attractive target market
E.
6. It is sometimes hard to understand and define generic markets because
A. generic markets are characterized by very few competitors.
B. different product types may compete with each other.
C. generic markets are characterized by broadly different types of needs.
D. products in generic markets have generically-styled package designs.
E. similar product types typically compete with each other.
B.
7. Which of the following is a characteristic of a product-market?
A. It is a market with a broad set of customers who have a wide variety of needs.
B. It is a market where only tangible goods are sold.
C. It is a market with a single seller but multiple buyers.
D. It is a market in which sellers offer very similar methods of satisfying customer needs.
E. All of these choices are characteristic of a product-market.
D.
8. A generic market
A. has customers with broadly similar needs.
B. often includes consumers who will satisfy the same need in quite different ways.
C. often involves sellers who compete in different product-markets.
D. often includes sellers who offer diverse ways of satisfying a need.
E. has all of these characteristics.
E..
9. A complete product-market definition includes product type, customer needs,
customer types, and
A. resource availability.
B. segmenting dimensions.
C. advertising patterns.
D. marketing intermediaries.
E. geographic area.
E.
10. Which of the following statements is true of generic markets?
A. In a generic market, similar product types compete with each other.
B. The generic market includes only three of four aspects of the product-market definition—
customer needs, customer types, and geographic area. It does not include product type.
C. In a generic market, customers' needs differ from each other significantly.
D. A generic market description looks at markets narrowly and from a supplier's viewpoint.
E. In a generic market, sellers have to focus primarily on how one seller's product is better
than that of another producer.
B.
11. Which of the following statements about segmenting is accurate?
A. It tries to aggregate individuals who have similar needs and characteristics.
B. It is essentially a disaggregating, or "break it down," process.
C. It assumes that each individual should be treated as a separate target market.
D. It usually results in firms aiming at heterogeneous and less profitable markets.
E. It is the process of positioning a product in the customer's mind.
A.
12. The first step in the market segmentation process involves
A. creating a positioning map.
B. combining two or more submarkets into one larger target market.
C. naming broad product-markets.
D. developing marketing mixes to meet all customer needs.
E. segmenting markets in order to select target markets.
C.
13. When segmenting a broad product-market, it is especially important that
marketers create segments
A. that are simple.
B. that are the same with respect to their responses to marketing mix variables.
C. that are small in size.
D. that are operational.
E. where the members of a given segment are as diverse as possible.
D.
14. Which of the following represents a broad product-market within the generic
market of outdoor adventures?
A. all possible customers
B. people who enjoy outdoor adventures in the United States
C. people who enjoy outdoor adventures
D. people who buy fly fishing equipment for fishing trips
E. loyal customers of Able brand fly fishing reels
D.
15. Having segmented its broad product-market, Martinez Corp. has decided to treat
its two chosen submarkets as separate target markets, with each requiring
different marketing mixes. Which of the following approaches to developing
market-oriented strategies is Martinez Corp. applying in this scenario?
A. multiple target market approach
B. general target market approach
C. separate target market approach
D. single target market approach
E. combined target market approach
A
16. Target marketers who are "combiners"
A. use one marketing mix to appeal to multiple submarkets, even though the submarkets have
some distinct differences.
B. create distinct marketing mixes that enable them to zero-in on the needs of each distinct
submarket.
C. use multiple marketing mixes to appeal to a single market segment in different ways.
D. try to fine-tune each element of their marketing mix to appeal to various submarkets.
E. look at various submarkets for differences rather than similarities.
A.
17. Which of the following statements is true of using a combined target market
approach to developing market-oriented strategies?
A. This approach is especially attractive for firms with limited resources.
B. This approach involves fine-tuning each element of the marketing mix to appeal to each of
the smaller submarkets.
C. It requires more investment than developing different marketing mixes for different
segments.
D. It results in diseconomies of scale.
E. People who follow this approach are referred to as "segmenters."
 A.
18. The balancing point that determines just how unique a marketing mix a firm can
afford to develop for a particular market segment is
A. supply.
B. opportunity cost.
C. investment.
D. demand.
E. profit.
E.
19. Segmenting and combining are two alternate approaches to developing market-
oriented strategies. Which of the following statements concerning these
approaches is true?
A. A combiner looks at various submarkets for similarities rather than differences.
B. Segmenters try to develop a marketing mix that will have general appeal to several market
segments.
C. A segmenter assumes that the whole market consists of a fairly homogeneous group of
customers.
D. Both segmenters and combiners try to satisfy few people very well rather than many people
fairly well.
E. Combiners treat each submarket as a separate target market.
A.
20. When creating a marketing strategy and engaging in market segmentation, the
______ dimensions are the dimensions that define which potential customers are
included in a segment.
A. differentiating
B. determining
C. qualifying
D. positioning
E. outlying
C.

CHAPTER 4: Evaluating Opportunities in the Changing Marketing Environment

1. In order to identify potential competitors, it is important to take the viewpoint of

_____ when conducting a competitor analysis.
A. futurists
B. competitive rivals
C. supply chain partners
D. target customers
D.
2. Which of the following is not an element of the external market environment?
A. technological environment
B. economic environment
C. political and legal environment
D. direct environment
E. cultural and social environment
D.
3. Which of the following is most likely to serve as a firm's mission statement?
A. Promote all brands using viral videos created in-house.
B. We aim to boost annual sales by 15 percent among women 18-35 years of age during the
next six months.
C. Create three new product lines during the next twelve months.
D. We exist to provide customers with the best shopping experience anywhere in cyberspace.
E. Green is good for the world.
D.
4. Which of the following is not an example of how the economic environment may
affect marketing strategy planning?
A. Because of exchange rates, imported bicycles are cheaper than those made in the United
States.
B. With the national income on the rise, many people in the United States have the purchasing
power to afford expensive bicycles.
C. The price of bicycles is rising because of inflation.
D. The demand for bicycles is increasing because consumers are becoming more health-
conscious.
E. Both bicycle manufacturers and bicycle retailers are adjusting marketing strategies as a
result of the recession.
D.
5. When looking for attractive opportunities, a marketing manager for a clothing
manufacturer should consider
A. the firm's financial strengths.
B. the firm's capability to produce.
C. the firm's brand awareness.
D. All the answers are correct.
E. whether the firm has good relations with established clothing retailers.
D.
 6. Which of the following is not a variable associated with the cultural and social
environment?
A. technological innovation
B. education level
C. religious belief
D. language
E. the role of women in society
A.
7. When machines operate like humans with respect to learning and decision
making it is referred to as
A. artificial intelligence.
B. anticipatory technology.
C. intelligent agency.
D. technological analytics.
E. predictive analysis.
A.
8. The Consumer Product Safety Commission
A. cannot exercise any power—it can only advise the Federal Trade Commission (FTC).
B. is concerned with protecting small businesses from large businesses, rather than protecting
consumers.
C. was created by the Pure Food and Drug Act.
D. has broad power to set safety standards and can impose penalties for violation of these
standards.
E. has no effect on marketing strategy planning until a product is on the market and proved to
be dangerous by a government agency.
D.
9. What is the purpose of free trade agreements?
A. to make it easier for workers to travel between countries
B. to eliminate the need for taxation of goods
C. to boost country GNI numbers
D. to ensure two countries trade only with each other
E. to eliminate import and export barriers between countries
E.
10. According to the continuum of environmental sensitivity, which of the following
products would be least risky to introduce in a foreign market?
A. local food delicacies
B. an industrial welding machine
C. papaya juice
D. clothing tied to unique cultural practices
E. lemon-scented dishwashing soap
B.
11. How might firms increase production flexibility?
A. developing lower-cost marketing plans
B. having brand recognition
C. building large, special-purpose facilities
D. forming good relationships with retailers
E. avoiding "in house" manufacturing
E.
12. When looking for attractive opportunities, a marketing manager for a clothing
manufacturer should consider
A. the firm's capability to produce.
B. the firm's financial strengths.
C. whether the firm has good relations with established clothing retailers.
D. the firm's brand awareness.
E. All the answers are correct.
E.
13. A firm may find itself in—or moving toward—pure competition
A. when customers do not have much information about competing suppliers.
B. when customers see the firm's product as having close substitutes.
C. because a firm with a unique product has no choice.
D. when the number of competitors is small.
E. when customers see a firm's product as being unique.
B.
14. When some consumers see the marketing mixes being offered by various firms as
being different, but other consumers consider these alternatives to be close
substitutes for each other, the competitive situation is described as
A. monopoly.
B. an oligopoly.
C. regulated competition.
D. pure competition.
E. monopolistic competition.
E.
15. To assess their progress against competitors, the maker of computer tablets
tracked their portion of the total sales of computer tablets in the United States
over the past six months as compared to all computer tablets sold in the United
States in the same time period. This is best described as
A. competitor analysis.
B. market share.
C. predictive analysis.
D. retention rate.
E. artificial intelligence.
B.
16. Which of the following is true of the economic environment?
A. It has little effect on what customers buy.
B. It refers to micro-economic factors.
C. It is only important in wealthy countries.
D. It can change rapidly.
E. It is only of concern when changes are widespread.
D.
17. Cutbacks in consumer spending and rising inflation are conditions that arise
mostly due to factors in the
A. political environment.
B. cultural and social environment.
C. competitive environment.
D. economic environment.
E. technological environment.
D.
18. Which of the following statements is true of the technological environment?
A. Technology foreshadows breakthrough opportunities.
B. It is usually clear how a technology just on the horizon might change a business.
C. Technological change shuts out new opportunities.
D. Technology does not affect core marketing processes.
E. Most technological developments come out of nowhere.
A.
19. When machines operate like humans with respect to learning and decision
making it is referred to as
A. predictive analysis.
B. anticipatory technology.
C. artificial intelligence.
D. intelligent agency.
E. technological analytics.
C.
20. Sales and marketing activity in international markets can be blocked by ______,
which emphasize a country's interests above all else.
A. technological advances
B. free trade agreements
C. unified markets
D. environmental concerns
 E. strong feelings of nationalism
E

CHAPTER 6: Behavioral Dimensions of the Consumer Market

CHAPTER 9: Elements of Product Planning for Goods and Services 

1. Which of the following is best defined as a product's ability to satisfy a customer's

needs or requirements?
A. experience
B. product
C. quantity
D. quality
E. equity
D.

2. A set of individual products that are closely related is called a product _____; it
usually is differentiated by bnd, level of service offered, price, or some other
characteristic.
A. portfolio.
B. line.
C. category.
D. assortment.
E. mix.
B.

3. Which of the following products has a 100 percent emphasis on service?

A. hair styling
B. steel pipe
C. restaurant meal
D. canned soup
E. a cell phone
A.

4. Which of the following statements is true of the characteristics of services?

A. Services are tangible items.
B. Services are perishable.
C. Services are physical things; they can be seen and touched.
D. Services are typically mass-produced.
E. Service quality is always consistent.
B.

5. A difference between goods and services is that

A. goods are intangible items while services are tangible items.
B. the quality of services is often more consistent than the quality of goods.
C. customers can own goods, but they cannot keep services.
D. it is often difficult to achieve economies of scale with goods, but it is easy to achieve
economies of scale with services.
E. services are typically mass-produced in factories while goods are produced in person.
C.

6. A large paint store has an app that allows customers to snap a picture of their
room and see how different paint colors would look on their walls. This is an
example of
A. technological analytics.
B. an intelligent agent.
C. digital assistance.
D. augmented reality.
E. artificial intelligence.
D.

7. Which of the following statements about a firm's use of technology to supplement

a core product offering is not accurate?
A. The use of technology can help differentiate a product offering.
B. Technology is now integrated into products that were not previously thought of as "tech"
products.
C. Software applications are used to supplement core products by offering value-adding
services.
D. Analytics help artificial intelligence and intelligent agents to predict what a customer
wants.
E. Augmented reality is used by firms to forecast customer needs.
E.

8. Max is designing a symbol for Clean Glow, a company that produces cleaning
supplies. Once it is completed, the symbol will be legally registered as the
exclusive property of Clean Glow, and the company will place the symbol on its
products and will use it in its advertising. This symbol is an example of a(n)
A. brand name.
B. quality mark.
C. service mark.
D. trademark.
E. app.
D.

9. Which of the following conditions would not be favorable to branding?

A. the existence of economies of scale in production
B. the possibility of dependable and widespread availability
C. growing demand for a product
D. easy identification of products by brand or trademark
E. fluctuations in product quality due to inevitable variations in raw materials
E

10. When Mark could not find his favorite candy bar, Pearson Salted Nut Roll, at his
neighborhood supermarket, he drove across town to find it at another store.
Mark was showing what level of brand familiarity?
A. preference
B. insistence
C. recognition
D. evaluation
E. rejection
B.

11. Pia's clothing company wants to diversify by acquiring a brand of accessories. Pia
has found a brand that is well-known and performs well year after year, and her
company is willing to pay a premium price because of this. The value of the brand
to Pia's company is its
A.brand recognition.
B. line length.
C. brand insistence.
D. brand equity.
E. product assortment.
D.
.
12. Which of the following is true of the Lanham Act?
A. It applies only to goods shipped in interstate commerce.
B. It only applies to consumer products, not raw materials sold to manufacturers.
C. It forces companies to register their trademarks and service marks.
D. It requires that foreign companies first register their marks in their home countries.
E. It specifies which types of marks can be protected.
E.

CHAPTER 10: Product Management and New Product Development

1. Which of the following is not one of the stages of the product life cycle?
A. economic competition
B. market maturity
C. sales decline
D. market introduction
E. market growth
A.
2. Which of the following statements is true of the market introduction stage of the
product life cycle?
A. Customers actively seek out the new product in this stage.
B. In this stage, there is a need for informative promotion.
C. In this stage, profits are at their highest.
D. It is during this stage that sales decline and then rise.
E. Competition is greatest during this stage.
B.
3. Which of the following statements regarding the market growth stage of the
product life cycle is false?
A. Many competitors enter the market during this stage resulting in great product variety.
B. Innovators still earn profits, but this stage is less profitable for them than the previous stage.
C. Monopolistic competition is typical of this stage.
D. Toward the end of the this stage, competition and consumer price sensitivity increase.
E. The sales of the total industry rise fairly rapidly during this stage as more and more
customers buy.
B.
4. An industry with tough competition faces falling profits, and its sales growth is
slow. Demand for individual brands has become quite elastic—as consumers see
competing products as almost homogeneous. Several firms have dropped out.
Which of the following stages of the product life cycle does this indicate?
A. sales decline
B. market growth
C. market introduction
D. market maturity
E. product renewal
D.
5. Which of the following statements is true of a second-mover?
A. A second-mover is always at a disadvantage when compared to a pioneer.
B. A second-mover is the first to market with a new product idea.
C. A second-mover is one that quickly follows a pioneer.
D. A second-mover has a weak customer focus.
E. A second-mover is always less profitable over the long-run.
C.
\

6. Which of the following statements about fashion-related products is false?

A. Fashion products are often seasonal.
B. Fashion products are usually marked by innovation and creativity.
C. Fashion products are often the hottest selling products in the short term.
D. Fashion products have long life cycles.
E. Fashion products require marketing managers to make frequent product changes.
D.
7. Which of the following strategies is not used to rejuvenate the sales of a product
that is heading toward the sales decline stage of the product life cycle?
A. adding a successful innovation to the original product idea
B. adding appealing services or sales promotions that target loyal customers
C. selling the product in geographic regions where the product is not in the final stage of the
life cycle
D. finding new uses for the product
E. devising a phase-out strategy
E.
8. Which of the following is true of the types of new product categories?
A. Dynamically continuous innovations do not require changes in customer behavior.
B. Discontinuous innovations require that customers adopting the innovation significantly
change their behavior.
C. Continuous innovations result in completely new product-markets and new product life
cycles.
D. Continuous innovations require customers to learn new behaviors.
E. Discontinuous innovations entail minor variations on existing products.
B..
9. Whirlpool introduced a new high gloss white finish to its refrigerators. This
innovation would be classified as a ______ innovation.
A. dynamic
B. continuous
C. dynamically continuous
D. simple
E. discontinuous
B.
10. A new product that requires only minor changes in customer behavior
A. is not subject to time limits for the use of the word "new" as imposed by the FTC.
B. is called a dynamically continuous innovation.
C. is called a discontinuous innovation.
D. does not require concept testing.
E. is called a reverse prototype.
B.
11. Which of the following is true of patents?
A. They are almost impossible to enforce, leading to piracy of new technology.
B. They are indefinite, protecting the new technology for as long as the firm wishes.
C. They give firms a short-term monopoly on their new technology.
D. They apply only to technology in new industries.
E. They protect the rights of a producer of creative work.
C.
12. Maria's company makes televisions. The Clarity, a 4K television featuring
wireless capabilities, is their best selling model, and the company plans to release
 a new version in a month. However, next year Maria's company plans to release a
television featuring brand new technology that offers even better picture quality
than the Clarity. This is an example of
A. planned obsolescence.
B. dynamic innovation.
C. discontinuous innovation.
D. patent holdback.
E. patent piggybacking.
A.