CHAPTER 8
A ________ is a name, symbol, sign, term, design, or a combination of these elements used to identify a manufacturer or seller of a product or service.
A.product feature | B.package type | C.logo | D.style | E.brand
Brand
What is the first step of the new product development process?
Idea generation
Luxury outerwear brand Canada Goose sells high-quality clothing that keep customers warm in the harshest climate. The firm practices ________ which enables them to charge premium prices relative to their competition.
value-added pricing
Retailers often end a price with the number 9 to signal a bargain. For example, a product may cost $9.99 when it is on sale instead of the normal $10 price. This is an example of ________.
psychological pricing
Which of these is NOT a key function that channel members might perform to complete transactions?
Manufacturing
A form of product that consists of activities, benefits, or satisfactions offered for sale is known as a(n) ________.
A.augmented product | B.brand | C.service | D.tangible good | E.experience
Service
One recent development in generating new product ideas is for a company to invite broad communities of people long dash—such as employees, customers, and even the public at large long dash—into the innovation process. This is known as __________.
A.crowdsourcing | B.concept testing | C.test marketing | D.intrapreneurial idea generation | E.crowdfunding
crowdsourcing
Assume the price of gasoline doubles and demand does not change. In this case, the demand for gasoline is ________.
inelastic
At Six Flags and other theme parks, visitors pay a daily ticket or season pass charge plus additional fees for food and other in-park features. This two-part pricing is a form of ________ pricing.
captive-product
How many intermediary levels are there in a direct marketing channel?
Which of these is NOT one of the major brand strategy decisions?
A.Brand name selection | B.Brand equity | C.Brand sponsorship | D.Brand positioning | E.Brand development
Brand Equity
At which stage of the new product development process is crowdsourcing used?
Idea generation
Which of the following statements about price is correct?
A.Prices have no impact on a firm's bottom line. | B.Price is not an important competitive asset. | C.Customers have put increased pricing pressure on many companies. | D.Marketers do not a have lot of flexibility in setting and changing price. | E.Pricing is not a problem for marketing executives.
Customers have put increased pricing pressure on many companies.
Which of the following statements regarding initiating price increases is correct?
The company should consider ways to meet higher costs or demand without raising prices.
Target partners with CVS Health, which operates CVS pharmacies and Minute Clinics in Target stores through a store-within-a-store format. Which type of channel arrangement does this represent?
A corporate VMS
Colgate toothpastes come in numerous varieties, ranging from Colgate Total to Colgate Optic White to Colgate Kids, and more. Then each variety comes in its own special forms and formulations. The number of versions of each of these products is the ________.
A.product line length | B.product line depth | C.product mix width | D.product mix | E.product mix length
Product Line Depth
Companies should take a holistic approach to new product development. This means that the process should be __________.
customer-centered, team-based, and systematic
Assume fixed costs of $1,000, variable costs are $10 per unit, and the price is $20 per unit. What is the break-even volume?
100.0
Federal legislation on __________ states that sellers must set prices without talking to competitors.
price-fixing
Full-line forcing is a type of ________ that may be illegal if it violates the Clayton Act by lessening competition.
tying agreement
Due to increased costs and competition, service firms today face three major marketing tasks. Specifically, service marketers need to increase which of the following?
A.Service quality, service differentiation, and service variability | B.Service quality, service differentiation, and service productivity | C.Service intangibility, service differentiation, and service productivity | D.Service training, service delivery, and service quality | E.Service variability, service delivery, and service training
Service quality, service differentiation, and service productivity
When Dr. Footcare developed and launched a revolutionary new walking shoe, he knew that during the introductory stage of the product life cycle (PLC) __________.
sales would be slow and profits nonexistent
Which of the following statements is correct regarding the price-demand relationship?
If demand is elastic, sellers will consider lowering their price.
Four major U.S. airlines long dash—United, Delta, Southwest, and American long dash—agreed to pay $60 million in fines to settle a class action lawsuit, and they remain under investigation by the Justice Department for conspiring to artificially inflate airfares to "reap huge profits." These airlines are accused of ________.
price-fixing
Which of the following is a reason that producers use channel intermediaries?
Channel intermediaries create greater efficiency in making goods available to target markets.