In which stage of the new-product planning process is a consumer asked "Is the idea easy to understand?" and "Would you buy the product?"

A. Idea Generation

B. Product Screening

C. Concept Testing

D. Brainstorming

Which of these illustrates channel conflict?

A. A manufacturer granting retailers a cooperative advertising allowance

B. A manufacturer training a retailer's salespeople in proper sales techniques

C. A retailer making late payments to a vendor

D. A retailer adhering to a manufactuerer's suggested list price

While the diffusion process analyzes an individual's behavior related to a new product, the adoption process studies the behavior of different groups.

True or False

A mail-order discounter of computer software sells its products to final consumers.  The mail-order retailer has hired a marketing consultant.  The consultant questioned the firm's lack of focus on software benefits.  According to the consultant, "consumers are not buying software, they are purchasing solutions to business problems." The consultant is advocating that the retailer focus on what type of product?

A. Tangible

B. Extended

C. Generic

D. Augmented

Geographic demographics, personal demographics, and consumer lifestyles are three broad categories for segmenting consumers.

True or False

Which VALS 2 segment has the higest resources?

A. Survivors

B. Experiencers

C. Makers

D. Innovators

Which of these are major characteristics of intensive distribution?

A. The highest degree of channel control, but limited sales potential

B. Moderate market coverage and difficulty in carving out a distinctive market niche

C. Widespread market coverage and limited channel control

D. Moderate number of distribution intermediaries and good sales and profits

There are two components to a value chain: the value chain itself and the value deliverty chain.

True or False

What effect on a company's reorder pint would increasing the safety stock from 5 to 15 units have?

A. The reorder point will fall by 10 units

B. The reorder point will increase by 10 units

C. The reorder point will increase by 10 percent

D. The answer cannot be determined on the basis of the material provided

A product's placement in the convenience, shopping, and specialty product classification system is based primarily on a...

A. Consumer's degree of search

B. Product's degree of tangibility

C. Consumer's degree of innovation

D. Product's degree of fashion

For segmentation to be successful, a segment must be large enough to generate sufficient sales and cover costs. 

True or False

A firm that relies on the agumented product definition best illustrates commitment to the marketing concept.

True or False

The most difficult type of demand pattern to satisfy is clustered demand.

True or False

The early majority stage of the diffusion process corresponds to the growth stage of the product life cycle.

True or False

The market for a good or service is best defined as all of the...

A. People and/or organizations that desire a good and are willing and able to purchase it

B. People and/or organizations that desire a good but are not willing and able to purchase it

C. People that desire a good and are willing and able to purchase it

D. Organizations that desire a good and are willing and able to purchase it

A major advantage of a direct channel is..

A. Better efficiency in selling to small accounts

B. Lower investment requirements

C. Control over a firm's entire marketing efforts

D. Fewer customer transactions

A major criticism of the product life-cycle concept is the...

A. Difficult in varying a firm's strategy to meet objectives for each stage

B. Inability to manage the life-cycle concept

C. Difficulty in forecasting the cycle

D. Inevitability of maturity

A slotting allowance, in which retailers require that a manufacturer pay for the use of shelf space for new products, illustrate...

A. Channel cooperation

B. Channel conflict

C. A Pulling strategy

D. The total-cost approach

Both the convenience of store location and closeness to competing retailers is less important for specialty products than for shopping products.

True or False

Company product positioning for a wool-based carpeting manufacturer may reveal to a firm that...

A. Home improvement centers have increased their sales of wool-based carpeting products relative to specialty stores

B. Two of a firm's products have similar images

C. Consumers desire an easy-to-clean wool-based carpeting

D. The firm has lost market share to foreign competitors

Product differentiation is a form of competitive advantage.

True or False

The economic order quantity (EOQ) formula attempts to minimize inventory-holding costs.

True or False

In general, consumers are willing to accept substitutes in purchasing a convenience product.

True or False

A product mix is best defined as...

A. Only those products that are sold in the global market

B. All the different product lines a firm offers

C. Only those products that are sold through a single distribution channel

D. Only those products that appeal to a distinct market segment

Compared with shopping products, convenience products involve...

A. Lower perceived risk

B. Greater information search by customers

C. Brand insistence

D. Less consumer knowledge prior to purchase

Which product life-cycle stage corresponds with the use of price-sensitive, low-income groups as a target market?

A. Decline

B. Bust

C. Fad

D. Maturity

A mail-order discounter of computer software sells its products to final consumers.  The mail-order discounter of computer supplies currently sells its products on the basis of price.  There is no technical service supplied, and handling and shipping charges are added to each order.  The firm is marketing...

A. Extended products

B. Tangible products

C. Generic products

D. Augmented products

A firm could earn a profit yet still characterize a product as an absolute product failure.

True or False

Which target market strategy most closely resembles a niche strategy?

A. Mass marketing

B. Differentiated marketing

C. Undifferentiated marketing

D. Concentrated marketing

A firm can map its products in terms of consumer perceptions and desires, competition, other company products, and environmental changes through...

A. The semantic differential

B. Product portfolio analysis

C. Product positioning

D. The product life cycle

The first step in undertaking a target market strategy is to...

A. Analyze consumer demand

B. Develop a target market strategy

C. Establish possible bases of segmentation

D. Target the market

Which consumer product is generally purchased with the LEAST degree of information search?

A. Convenience products

B. Shopping products

C. Tangible products

D. Generic products

The highest degree of channel control is possible with __ distribution...

A. Intensive

B. Dual

C. Selective

D. Exclusive

Which of these is an example of the use of the diffusion process concept for a notebook computer manufacturer?

A. Twenty percent of the surveyed consumers feel that a notebook computer offers meaningful advantages over desktop units

B. Eighty percent of current notebook owners use their notebook computers at least once a month

C. Only 15 percent of the households earning $50,000 or more currently own a notebook computer

D. Sixty percent of notebook owners would consider the purchase of a new notebook if a five-pound version were developed and sold for $700 or less

In a differentiated marketing strategy, a firm can appeal to both a mass market and a niche market.

True or False

The diffusion process describes the procedure an individual goes through in learning about and purchasing a new product.

True or False

The decline stage of the product life cycle is characterized by the...

A. Development and sale of substitutes for a product

B. Highest level of product competition

C. Beginning of discounting by a firm and its competitors

D. Expansion of distribution

The new-product planning process involves a series of steps from...

A. introduction to decline

B. introduction to commercialization

C. idea generation to commercialization

D. product screening to commercialization

The most appropriate distribution strategy to be used along with undifferentiated marketing is selling through...

A. few outlets, so that customer service can be maintained

B. a moderate number of outlets, so that price competition would be lessened

C. a large number of outlets, however, choosing outlets that are not in direct competition with one another

D. all possible outlets, so that sales are maximized

With a self-fulfilling prophecy, a firm incorrectly...

A. seeks out the largest, but most competitive, market segment

B. assesses its ability to reverse a downward sales pattern

C. removes marketing support from a product that requries additional support to grow

D. seeks out an incorrect international market

A product can be both an absolute and a relative product failure.

True or False

A leading manufacturer of automobile tires is reevaluating its channel strategy. The tire manufacturer wishes to minimize retail price competition among retailers.  It should utilize ___ distribution.

A. dual channels of

B. intensive

C. selective

D. exclusive

In comparison with homogeneous demand, diffused demand...

A. is better served by concentrated marketing

B. is more susceptible to benefit segmentation

C. requires a more complex marketing plan

D. is better served by undifferentiated marketing

Which of these is NOT a means by which retailers can develop channel power?

A. Centralizing purchasing

B. Developing large chains

C. Developing popular dealer brands

D. Providing high levels of customer service

Just-in-time (JIT) inventory systems typical work in conjunction with a(n)...

A. economic order quantity approach to inventory management

B. electronic data interchange system

C. quick response inventory system

D. railroad form of transportation

Which stage of the product life cycle most closely corresponds to the commercialization stage of the new-product planning process?

A. Introduction

B. Decline

C. Growth

D. Maturity

The broadest product definition (in terms of scope) is the ___ product.

A. extended

B. generic

C. tangible

D. augmented

Which statement about the heavy-half theory is NOT correct?

A. Less than 20 percent of a market can account for 80 percent or more of a product's purchases

B. The heavy-half theory does not apply to organizational consumers

C. The heavy-half segment may have greater competition than light-usage segments

D. The heavy-half segment may require different product attributes than regular or light-usage segments

The transportation form with the lowest per-mile cost may have the highest total costs (according to the total-cost approach) because of the slowness of shipments.

True or False

In product positioning, a product's ideal points represent...

A. products that have met both sales and profit objectives

B. products that have similar images

C. products that can be expanded from the firm's current offerings

D. the attributes consumers would like products to have