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Solomon Rprc4ce Mytest Ch07-TIF
Solomon Rprc4ce Mytest Ch07-TIF
Solomon Rprc4ce Mytest Ch07-TIF
Skill: Concept
Objective: 7-3 How Marketers Classify products
13) We are more likely to purchase ________ under conditions of high involvement and
________ under conditions of low involvement.
a. durable goods; nondurable goods
b. nondurable goods; durable goods
c. staples; impulse products
d. impulse products; staples
e. emergency products; unsought products
Answer: a
Diff: 2
Type: MC
Page Reference: 225
Topic: How long do products last?
Skill: Concept
Objective: 7-3 How Marketers Classify products
14) ________ include convenience products, shopping products, specialty products, and
unsought products.
a. Specialty services
b. Consumer products
c. Line extensions
d. Industrial products
e. Component products
Answer: b
Diff: 2
Type: MC
Page Reference: 226
Topic: How do consumers buy products?
Skill: Concept
Objective: 7-3 How Marketers Classify products
15) A(n)________ is typically a nondurable good or service that consumers purchase
frequently with a minimum of comparison and effort.
a. specialty product
b. MRO product
c. shopping product
d. convenience product
e. unsought product
Answer: d
Diff: 1
Type: MC
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Answer: e
Diff: 1
Type: MC
Page Reference: 227
Topic: How do consumers buy products?
Skill: Concept
Objective: 7-3 How Marketers Classify products
22) ________ have unique characteristics that are important to buyers at almost any
price.
a. Specialty products
b. Staples
c. Impulse products
d. MRO products
e. Unsought products
Answer: a
Diff: 2
Type: MC
Page Reference: 227
Topic: How do consumers buy products?
Skill: Concept
Objective: 7-3 How Marketers Classify products
23) Customers usually know a good deal about ________ and are loyal to specific
brands.
a. specialty products
b. homogeneous products
c. impulse products
d. MRO products
e. emergency products
Answer: a
Diff: 2
Type: MC
Page Reference: 227
Topic: How do consumers buy products?
Skill: Concept
Objective: 7-3 How Marketers Classify products
24) ________ are consumer products for which a consumer either has little awareness or
interest until a need arises. These products require a lot of advertising, personal selling,
and other marketing efforts.
a. Specialty products
b. MRO products
c. Unsought products
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d. Shopping products
e. Staples
Answer: c
Diff: 1
Type: MC
Page Reference: 227
Topic: How do consumers buy products?
Skill: Concept
Objective: 7-3 How Marketers Classify products
25) ________ is the category of business-to-business products that refers to the products
an organization uses in its daily operations.
a. Raw materials
b. Component parts
c. Equipment
d. Processed materials
e. MRO products
Answer: c
Diff: 1
Type: MC
Page Reference: 228
Topic: How do businesses buy products?
Skill: Concept
Objective: 7-3 How Marketers Classify products
26) Heavy equipment, which includes items such as buildings and robotics, is also
referred to as ________.
a. component parts
b. capital equipment
c. accessory equipment
d. operating supplies
e. specialized services
Answer: b
Diff: 2
Type: MC
Page Reference: 228
Topic: How do businesses buy products?
Skill: Concept
Objective: 7-3 How Marketers Classify products
27) In terms of business-to-business products, computers and printers are examples of
________.
a. component parts
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b. capital equipment
c. accessory equipment
d. operating supplies
e. specialized services
Answer: c
Diff: 2
Type: MC
Page Reference: 228
Topic: How do businesses buy products?
Skill: Concept
Objective: 7-3 How Marketers Classify products
28) MRO products are goods that businesses use for ________.
a. management, research, and order-processing
b. marketing, relationship-building, and operation
c. maintenance, research, and organization
d. maintenance, repair, and operation
e. marketing, research, and organization
Answer: d
Diff: 1
Type: MC
Page Reference: 228
Topic: How do businesses buy products?
Skill: Concept
Objective: 7-3 How Marketers Classify products
29) For the business market, a multipurpose absorbent used to clean up any type of spills
would be an example of a(n)________.
a. repair product
b. operating supply
c. maintenance product
d. restoration product
e. consumer product
Answer: c
Diff: 2
Type: MC
Page Reference: 228
Topic: How do businesses buy products?
Skill: Application
Objective: 7-3 How Marketers Classify products
30) For a veterinarian's office, the paper used to print payment receipts is an example of
a(n)________.
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a. repair product
b. operating supply
c. maintenance product
d. component part
e. raw material
Answer: b
Diff: 2
Type: MC
Page Reference: 228
Topic: How do businesses buy products?
Skill: Application
Objective: 7-3 How Marketers Classify products
31) In the business market, products of the fishing and agricultural industries purchased
to use in a finished product are examples of ________.
a. component parts
b. accessory equipment
c. processed materials
d. MRO products
e. raw materials
Answer: e
Diff: 1
Type: MC
Page Reference: 228
Topic: How do businesses buy products?
Skill: Application
Objective: 7-3 How Marketers Classify products
32) ________ are manufactured goods or subassemblies of finished items that
organizations need to complete their own products.
a. Component parts
b. Accessory equipment materials
c. Processed materials
d. MRO products
e. Raw materials
Answer: a
Diff: 1
Type: MC
Page Reference: 228
Topic: How do businesses buy products?
Skill: Application
Objective: 7-3 How Marketers Classify products
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33) ________ are acts, efforts, or performances exchanged from producer to user without
ownership rights.
a. Tangibles
b. Services
c. Ideas
d. Brand extensions
e. Licenses
Answer: b
Diff: 1
Type: MC
Page Reference: 229
Topic: What is a service
Skill: Concept
Objective: 7-4 Marketing what isnt there
34) Four characteristics are used to differentiate services from goods. Which of the
following is NOT one of those characteristics?
a. intangibility
b. perishability
c. variability
d. personalization
e. inseparability
Answer: d
Diff: 2
Type: MC
Page Reference: 230
Topic: Characteristics of services
Skill: Concept
Objective: 7-4 Marketing what isnt there
35) Service ________ means that customers cannot see, touch, or smell good service.
a. perishability
b. variability
c. intangibility
d. responsiveness
e. inseparability
Answer: c
Diff: 1
Type: MC
Page Reference: 230
Topic: Characteristics of services
Skill: Concept
Objective: 7-4 Marketing what isnt there
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36) A physician might deal with potential problems associated with the ________
characteristic of services by providing physical cues such as her medical diplomas
hanging on the wall of the examining room.
a. intangibility
b. perishability
c. variability
d. inseparability
e. personalization
Answer: a
Diff: 2
Type: MC
Page Reference: 230
Topic: Characteristics of services
Skill: Application
Objective: 7-4 Marketing what isnt there
37) Capacity management is one of the ways to meet potential problems related to the
________ characteristic of services.
a. intangibility
b. perishability
c. variability
d. inseparability
e. responsiveness
Answer: b
Diff: 1
Type: MC
Page Reference: 230
Topic: Characteristics of services
Skill: Concept
Objective: 7-4 Marketing what isnt there
38) Service ________ refers to the inevitable differences in a service provider's
performance from one service encounter to the next.
a. inseparability
b. variability
c. personalization
d. responsiveness
e. intangibility
Answer: b
Diff: 1
Type: MC
Page Reference: 230
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Answer: c
Diff: 2
Type: MC
Page Reference: 231
Topic: Characteristics of services
Skill: Concept
Objective: 7-4 Marketing what isnt there
42) The ________ is the interaction between the customer and the service provider.
a. supply-demand exchange
b. transaction point
c. service encounter
d. service program
e. service promotion
Answer: c
Diff: 2
Type: MC
Page Reference: 232
Topic: The service encounter
Skill: Concept
Objective: 7-4 Marketing what isnt there
43) A haircut, a manicure, and a pedicure are all examples of ________.
a. intangible services
b. tangible services
c. tangible goods
d. tangible possessions
e. intangible possessions
Answer: b
Diff: 2
Type: MC
Page Reference: 2323
Topic: How we classify services
Skill: Application
Objective: 7-4 Marketing what isnt there
44) Carpet and furniture repair are classified as ________.
a. tangible services performed on the customer
b. tangible services performed on the customer's possessions
c. tangible goods delivered to the customer
d. intangible services performed on the customer
e. intangible services performed on the customer's possessions
Answer: b
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Diff: 2
Type: MC
Page Reference: 233
Topic: How we classify services
Skill: Application
Objective: 7-4 Marketing what isnt there
45) According to the goods/services continuum, which of the following is the best
example of a pure service provider?
a. a furniture retailer
b. a magazine publisher
c. a building contractor
d. a paper manufacturer
e. a teacher
Answer: e
Diff: 2
Type: MC
Page Reference: 234
Topic: How we classify services
Skill: Application
Objective: 7-4 Marketing what isnt there
46) A hospital that spends hundreds of thousands of dollars on lifesaving monitoring
equipment demands that the seller provide in-service training on the equipment for its
personnel. The hospital also expects the seller of the equipment to quickly respond any
time the equipment needs maintenance. The monitoring equipment is an example of a(n)
________.
a. goods-dominated product
b. service-dominated good
c. equipment-based service
d. facility-based service
e. people-based service
Answer: a
Diff: 2
Type: MC
Page Reference: 233
Topic: How we classify services
Skill: Application
Objective: 7-4 Marketing what isnt there
47) Most cities have a variety of fast-food restaurant franchises . The proximity of these
restaurants to densely populated neighborhoods and high-traffic shopping areas illustrates
the importance of the ________ factor for equipment-based services.
a. operational
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b. search
c. locational
d. augmentation
e. supply
Answer: c
Diff: 2
Type: MC
Page Reference: 235
Topic: How we classify services
Skill: Application
Objective: 7-4 Marketing what isnt there
48) A service offering that differentiates a firm from its competition and provides
enhanced value is referred to as a(n)________.
a. core service
b. augmented service
c. environmental factor
d. operational factor
e. disintermediator
Answer: b
Diff: 1
Type: MC
Page Reference: 235
Topic: How we classify services
Skill: Concept
Objective: 7-4 Marketing what isnt there
49) Facility exteriors and interiors are part of ________.
a. the servicescape
b. disintermediation
c. the core service
d. the intangibles in a service exchange
e. place marketing
Answer: a
Diff: 2
Type: MC
Page Reference: 236
Topic: Physical elements of service encounter
Skill: Concept
Objective: 7-4 Marketing what isnt there
50) Experience qualities are product attributes that customers can identify ________.
a. prior to consumption
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53) Two successful service firms, American Express and Ritz-Carlton, have developed
written service quality goals. This step was taken in an attempt to deal with any gap
between ________.
a. consumer expectations and management perceptions
b. management perceptions and quality standards set by the firm
c. service quality standards and consumer expectations
d. service quality standards and consumer perceptions
e. expected services and needed services
Answer: b
Diff: 3
Type: MC
Page Reference: 238-240
Topic: Gap Analysis
Skill: Concept
Objective: 7-4 Marketing what isnt there
54) Which of the following is a service industry in Canada that is likely to see growth due
primarily to demographic changes?
a. living assistance for seniors
b. babysitting services for baby boomers
c. health services for medical tourists
d. technology consulting for businesses
e. database services for businesses
Answer: a
Diff: 3
Type: MC
Page Reference: 242
Topic: The future of services
Skill: Concept
Objective: 7-4 Marketing what isnt there
55) The Federal Trade Commission says that a product must be entirely new or changed
significantly to be called new and that a product may be called new for only ________
months.
a. two
b. three
c. six
d. ten
e. twelve
Answer: c
Diff: 2
Type: MC
Page Reference: 244
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Diff: 1
Type: MC
Page Reference: 247
Topic: New product development
Skill: Concept
Objective: 7-6 New product development
65) In the ________ of the new-product development phase, marketers estimate the
technical and the commercial success of an idea for a new product.
a. problem recognition
b. product concept development and screening
c. idea generation
d. commercialization
e. technical development
Answer: b
Diff: 2
Type: MC
Page Reference: 247
Topic: New product development
Skill: Concept
Objective: 7-6 New product development
66) In the new-product development process, a description of the features a product will
have and the benefits those features will provide a customer is called a ________.
a. product idea
b. product concept
c. product image
d. product proposal
e. product movement
Answer: b
Diff: 2
Type: MC
Page Reference: 247
Topic: New product development
Skill: Concept
Objective: 7-6 New product development
67) Burger King developed a new french fry to compete with McDonald's fry--considered
the world's best. Burger King's specifications included that the crunch would last for
seven or more chews. The product failed because consumers did not like the fry as much
as McDonald's fry. Burger King did not ________ the idea for both technical and
commercial value.
a. test market
b. advertise
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c. screen
d. promote
e. style
Answer: c
Diff: 2
Type: MC
Page Reference: 247
Topic: New product development
Skill: Concept
Objective: 7-6 New product development
68) Once managers of The Grecian Urn have decided on their product concept and
marketing strategy, they can evaluate the business attractiveness of the proposal in the
________ stage of the new-product development process.
a. business feasibility
b. feasibility study
c. business analysis
d. product acceptance
e. technical development
Answer: c
Diff: 2
Type: MC
Page Reference: 248
Topic: New product development
Skill: Concept
Objective: 7-6 New product development
69) The business analysis for a new product begins with ________.
a. idea generation
b. problem recognition
c. assessing how the new product will fit into a firm's total product mix
d. perceptual mapping
e. identifying the distribution channel for the product
Answer: c
Diff: 2
Type: MC
Page Reference: 250
Topic: New product development
Skill: Concept
Objective: 7-6 New product development
70) Once a new product or service passes the business analysis phase, it moves into what
phase?
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a. concept development
b. technical development
c. market testing
d. strategy development
e. product proposal
Answer: b
Diff: 2
Type: MC
Page Reference: 250
Topic: New product development
Skill: Concept
Objective: 7-6 New product development
71) During the technical development phase of the new product development process, a
physical version of the product is developed; it is called a ________.
a. test market
b. focus group
c. business analysis
d. product concept
e. prototype
Answer: e
Diff: 2
Type: MC
Page Reference: 250
Topic: New product development
Skill: Concept
Objective: 7-6 New product development
72) New_Layout_MCSS
73) One of the advantages of test marketing is ________.
a. the low cost
b. the ability to keep information from falling into competitors' hands
c. the opportunity to survey prospective customers
d. the ability to evaluate a product and its marketing program before commercialization
e. the opportunity to sell existing products to a core customer base
Answer: d
Diff: 2
Type: MC
Page Reference: 251
Topic: New product development
Skill: Concept
Objective: 7-6 New product development
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74) Bonneville Communications is concerned about test marketing its new device. Which
of the following is NOT a disadvantage of test marketing that would likely concern
Bonneville Communications?
a. Test marketing costs can be high.
b. Test markets give competitors a peek at the company's promotional strategy.
c. Test marketing allows time for competitors to gain advantages.
d. People who are surveyed tend to tell less than the truth.
e. Test marketing does not guarantee success.
Answer: d
Diff: 2
Type: MC
Page Reference: 251
Topic: New product development
Skill: Concept
Objective: 7-6 New product development
75) The last stage in the new-product development process is ________.
a. commercialization
b. business analysis
c. idea generation
d. concept testing
e. product concept development
Answer: a
Diff: 2
Type: MC
Page Reference: 251
Topic: New product development
Skill: Concept
Objective: 7-6 New product development
76) ________ is the process by which a consumer or business customer begins to buy and
use a new good, service, or idea.
a. Commercialization
b. Product testing
c. Product adoption
d. Diffusion
e. Positioning
Answer: c
Diff: 1
Type: MC
Page Reference: 252
Topic: Adoption and diffusion of new products
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Skill: Concept
Objective: 7-7 Adoption and diffusion of new products
77) Diffusion refers to ________.
a. the promotion used to support products throughout their product life cycle
b. the second stage of the market segmentation process
c. the methodology used for evaluating new product ideas
d. the way the use of a product spreads throughout a population
e. the selection of opinion leaders to encourage product acceptance
Answer: d
Diff: 1
Type: MC
Page Reference: 252
Topic: Adoption and diffusion of new products
Skill: Concept
Objective: 7-7 Adoption and diffusion of new products
78) Change happens quickly when a process reaches the moment of critical mass, which
is called the ________.
a. adoption point
b. diffusion point
c. innovation point
d. trial point
e. tipping point
Answer: e
Diff: 1
Type: MC
Page Reference: 252
Topic: Adoption and diffusion of new products
Skill: Concept
Objective: 7-7 Adoption and diffusion of new products
79) The first step in the adoption process is ________.
a. product evaluation
b. awareness
c. problem recognition
d. evaluation
e. interest
Answer: b
Diff: 2
Type: MC
Page Reference: 253
Topic: Stages in consumer adoption of a new product
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Skill: Concept
Objective: 7-7 Adoption and diffusion of new products
80) Marketers may conduct a massive advertising campaign, called a ________, to
educate consumers about a new product.
a. media blitz
b. diffusion network
c. trial market
d. test market
e. tipping point
Answer: a
Diff: 1
Type: MC
Page Reference: 253
Topic: Stages in consumer adoption of a new product
Skill: Concept
Objective: 7-7 Adoption and diffusion of new products
81) Marketers are primarily striving to generate customer ________ when they use a
teaser advertisement created to give prospective customers just enough information about
a new product to make them curious.
a. confirmation
b. interest
c. evaluation
d. adoption
e. impulse purchasing
Answer: b
Diff: 2
Type: MC
Page Reference: 253
Topic: Stages in consumer adoption of a new product
Skill: Concept
Objective: 7-7 Adoption and diffusion of new products
82) In which stage of the consumer's adoption of a new product does the purchase
actually take place?
a. awareness
b. adoption
c. interest
d. tipping point
e. evaluation
Answer: b
Diff: 2
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Type: MC
Page Reference: 255
Topic: Stages in consumer adoption of a new product
Skill: Concept
Objective: 7-7 Adoption and diffusion of new products
83) The last stage in the product adoption process is ________.
a. awareness
b. adoption
c. interest
d. confirmation
e. evaluation
Answer: d
Diff: 2
Type: MC
Page Reference: 255
Topic: Stages in consumer adoption of a new product
Skill: Concept
Objective: 7-7 Adoption and diffusion of new products
84) Unlike innovators, early adopters ________.
a. compose the smallest of the adopter categories
b. have greater concern for social acceptance
c. have stronger physiological needs than others in the population
d. are light media users
e. are more worldly than the rest of the population
Answer: b
Diff: 2
Type: MC
Page Reference: 255
Topic: Innovator Categories
Skill: Concept
Objective: 7-7 Adoption and diffusion of new products
85) ________ are the last in the population to adopt a new product.
a. Laggards
b. Late majority adopters
c. Innovators
d. Impulse buyers
e. Dawdlers
Answer: a
Diff: 2
Type: MC
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Diff: 1
Type: MC
Page Reference: 257
Topic: Product factors that affect rate of adoption
Skill: Concept
Objective: 7-7 Adoption and diffusion of new products
89) New_Layout_MCSS
90) The ________ for a guest paying for a night's stay at a hotel is the use of a bed,
bathroom, towels, dresser, light, and closet.
a. actual product
b. core product
c. value-deliverable product
d. customized benefit
e. augmented product
Answer: a
Diff: 2
Type: MC
Page Reference: 223
Topic: Layers of the product
Skill: Application
Objective: 7-2 Layers of the product
91) Which of the following products would most consumers classify as a shopping
product?
a. a subscription to a the Wall Street Journal
b. a winter coat
c. a box of adhesive bandages
d. a can of soup
e. a pack of gum
Answer: b
Diff: 2
Type: MC
Page Reference: 227
Topic: How do consumers buy products?
Skill: Application
Objective: 7-3 How marketers Classify products
92) Camille was standing in the checkout line at her neighborhood grocery last night
when she saw a display of Hostess Twinkies. She remembered how much she had
enjoyed Twinkies as a child, and she knew she just had to buy a package of Twinkies,
even though it was not on her shopping list. For Camille, Twinkies are an example of a(n)
________.
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a. unsought product
b. impulse product
c. staple
d. emergency product
e. MRO product
Answer: b
Diff: 2
Type: MC
Page Reference: 227
Topic: How do consumers buy products?
Skill: Application
Objective: 7-3 How marketers Classify products
93) For an amusement park, concession food trailers, the parking lot, the first-aid
building, and the building where the park's daily receipts are tallied are all examples of
________.
a. MRO products
b. specialty products
c. processed materials
d. equipment
e. convenience products
Answer: d
Diff: 3
Type: MC
Page Reference: 227
Topic: How do businesses buy products?
Skill: Application
Objective: 7-3 How marketers Classify products
94) Pepsi-Cola's development of Wild Cherry Pepsi, a cherry-flavored soda, is an
example of a ________.
a. dynamically continuous innovation
b. nonradical innovation
c. competitive innovation
d. continuous innovation
e. discontinuous innovation
Answer: d
Diff: 2
Type: MC
Page Reference: 245
Topic: Types of Innovations
Skill: Application
Objective: 7-5 Process of Innovation
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95) Even though most people in the original target market for electric toothbrushes
already knew how to brush their teeth, consumers still had some learning to do in order to
make good use of the new brushing technique. The electric toothbrush is an example of a
________.
a. dynamically continuous innovation
b. nonradical innovation
c. competitive innovation
d. knockoff
e. discontinuous innovation
Answer: a
Diff: 3
Type: MC
Page Reference: 245
Topic: Types of Innovations
Skill: Application
Objective: 7-5 Process of Innovation
96) Prior to the development of the cardiac stent, surgeons used balloons to clear
obstructed heart vessels, but there was no way to ensure the vessels would stay open. The
stent is a tiny metal scaffold that props open the formerly obstructed blood vessel and
keeps it from becoming obstructed again. Surgeons who use the stent had to engage in a
great deal of learning to understand its use and its value in patient care. There was
nothing like the stent on the market when it first appeared. The cardiac stent is an
example of a ________.
a. dynamically continuous innovation
b. nonradical innovation
c. competitive innovation
d. continuous innovation
e. discontinuous innovation
Answer: e
Diff: 3
Type: MC
Page Reference: 246
Topic: Types of Innovations
Skill: Application
Objective: 7-5 Process of Innovation
97) ________ occurred when Alton Johnson's fascination with the fruits of Brazil led him
to develop juices with new fruit flavors by Bosa Nova for the American market.
a. Idea screening
b. Idea generation
c. Concept testing
d. Product development
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e. Product manufacturing
Answer: b
Diff: 2
Type: MC
Page Reference: 247
Topic: New Product Development
Skill: Application
Objective: 7-6 New product development
98) A group of business entrepreneurs who worried about their teenage children drinking
and driving decided there must be some way to approach this problem proactively. They
came up with an idea for a pair of blurry goggles. They believed looking through the
goggles would simulate what the world looks like when someone is seriously intoxicated.
The first crude pair of blurry goggles developed by the entrepreneurs to show to
prospective customers was ________.
a. a prototype
b. a component part
c. a synergistic model
d. raw material
e. processed material
Answer: a
Diff: 3
Type: MC
Page Reference: 250
Topic: New Product Development
Skill: Application
Objective: 7-6 New product development
99) Procter & Gamble introduced its Duncan Hines ready-to-spread frosting in a small
geographic area. When General Foods became aware of the product, it rushed to market
its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product
introduction. This act illustrates ________.
a. why many companies engage in test marketing
b. one of the problems associated with test marketing
c. why prototypes are so important
d. how idea screening can make a product a commercial success
e. the variety of sources for idea generation
Answer: b
Diff: 3
Type: MC
Page Reference: 250
Topic: New Product Development
Skill: Application
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b. trial
c. interest
d. confirmation
e. adoption
Answer: c
Diff: 3
Type: MC
Page Reference: 254
Topic: Stages in consumer adoption of a new product
Skill: Application
Objective: 7-7 Adoption and diffusion of new products
103) One of the reasons given for the success of reality television shows is that the shows
appeal to a cultural bias that real-life drama is preferable to fiction. Americans desire
adventure and escapism that offered them the opportunity for participation but do not
require it. In terms of the five characteristics of innovations that affect the rate of
adoption, reality television shows have a high degree of ________ .
a. innovation
b. complexity
c. tangibility
d. divisibility
e. compatibility
Answer: e
Diff: 3
Type: MC
Page Reference: 254
Topic: Innovator categories
Skill: Application
Objective: 7-7 Adoption and diffusion of new products
104) Marketers classify products based on where and how consumers buy the products.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 225
Topic: How marketers classify products
Skill: Concept
Objective: 7-3 How marketers classify products
105) Nondurable goods are more likely than durable goods to be purchased under
conditions of high involvement.
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a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 225
Topic: How long do products last
Skill: Concept
Objective: 7-3 How marketers classify products
106) The purchase of a shopping product typically involves habitual consumer decision
making.
a. True
b. False
Answer: b
Diff: 3
Type: TF
Page Reference: 227
Topic: How do consumers buy products
Skill: Concept
Objective: 7-3 How marketers classify products
107) The purchase of a specialty product typically involves extended problem solving for
the consumer.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 227
Topic: How do consumers buy products
Skill: Concept
Objective: 7-3 How marketers classify products
108) Services industry jobs account for over 75 percent of all employment in Canada.
a. True
b. False
Answer: a
Diff: 1
Type: TF
Page Reference: 229
Topic: What is a service
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Skill: Concept
Objective: 7-4 Marketing what isnt there
109) Ads for an airline promote its last minute fare savers program. This program is one
way to deal with the service characteristic of perishability..
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 230
Topic: What is a service
Skill: Application
Objective: 7-4 Marketing what isnt there
110) A consumer would most likely use search qualities to evaluate services such as
dancing lessons, cooking classes, and a consultation visit with a physician..
a. True
b. False
Answer: b
Diff: 3
Type: TF
Page Reference: 230
Topic: Service Quality Attributes
Skill: Application
Objective: 7-4 Marketing what isnt there
111) Gap analysis does not involve evaluating management perceptions..
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 238
Topic: Service Quality Attributes
Skill: Application
Objective: 7-4 Marketing what isnt there
112) In the product concept development and screening phase of new-product
development, successes generally occur much more frequently than failures.
a. True
b. False
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Answer: b
Diff: 2
Type: TF
Page Reference: 247
Topic: Product concept development and screening
Skill: Concept
Objective: 7-6 New product development
113) In the product concept development and screening phase of new-product
development, insights gleaned from Facebook are useful, but won't replace a formal
focus group.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 247
Topic: Product concept development and screening
Skill: Concept
Objective: 7-6 New product development
114) Business analysis for a new product begins with assessing how the new product will
fit the firm's total product mix.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 248
Topic: Business Analysis
Skill: Concept
Objective: 7-6 New product development
115) Test marketing is an inexpensive way to predict whether a new product will be a
success.
a. True
b. False
Answer: b
Diff: 3
Type: TF
Page Reference: 250
Topic: Technical Development
Skill: Concept
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Type: TF
Page Reference: 252
Topic: Stages in consumer adoption of a new product
Skill: Concept
Objective: 7-7 Adoption and diffusion of new products
120) The evaluation stage for a product is longer for an impulse purchase than it is for a
shopping product.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 254
Topic: Stages in consumer adoption of a new product
Skill: Concept
Objective: 7-7 Adoption and diffusion of new products
121) Innovators tend to be better off financially than consumers in other adopter groups.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 254
Topic: Innovator Categories
Skill: Concept
Objective: 7-7 Adoption and diffusion of new products
122) The largest adopter category is the early adopters.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 255
Topic: Innovator Categories
Skill: Concept
Objective: 7-7 Adoption and diffusion of new products
123) Laggards tend to be in a higher social class than consumers in other adopter
categories.
a. True
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b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 256
Topic: Innovator Categories
Skill: Concept
Objective: 7-7 Adoption and diffusion of new products
124) The province of Ontario is a product that can be promoted as a great place to locate
a new business.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 223
Topic: Layers of the Product
Skill: Application
Objective: 7-2 Layers of the Product
125) The development of a new television shows using the same format as an existing
series is an example of a dynamically continuous innovation.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 245
Topic: Types of Innovation
Skill: Application
Objective: 7-5 Process of innovation
126) The addition of sugar-free canned fruits to Del Monte's line of canned fruits and
vegetables is an example of a discontinuous innovation.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 245
Topic: Types of Innovation
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Skill: Application
Objective: 7-5 Process of innovation
127) Consumers' perception of relative advantage would help determine the success of a
new magazine targeted to girls between the ages of 14 and 17.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 257
Topic: Product factors that affect the rate of adoption
Skill: Concept
Objective: 7-7 Adoption and diffusion of new products
128) Consumers would perceive a ceiling fan as having greater trialability than a new
kind of snack food.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 257
Topic: Product factors that affect the rate of adoption
Skill: Concept
Objective: 7-7 Adoption and diffusion of new products
129) Explain the following statement: "A product is a bundle of attributes."
Answer:
A product is not just a thing in a package. It includes the package, the brand name, the
product benefits, and supporting features in addition to the physical good. A product is
everything a consumer receives in an exchange. This question can also be answered in
terms of the core product, the actual product, and the augmented product.
Diff: 2
Type: ES
Page Reference: 223
Topic: Layers of the Product
Skill: Concept
Objective: 7-1 Layers of the Product
130) Explain the three layers of the product the marketer needs to understand to
adequately serve the consumer.
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Answer:
The three layers of the product are the core product, the actual product, and the
augmented product. The core product consists of all the benefits the product will provide
for the consumer or business. The actual product is the physical good or the delivered
service that supplies the desired benefit. The augmented product is the actual product plus
other supporting features such as a warranty, credit, delivery, installation, and repair
service after the sale.
Diff: 3
Type: ES
Page Reference: 223
Topic: Layers of the Product
Skill: Concept
Objective: 7-1 Layers of the Product
131) Explain durable and nondurable goods. Give an example of each.
Answer:
Durable and nondurable goods are goods that have been classified according to how long
the product lasts. Durable goods are consumer products that last many years, such as
refrigerators, computers, bedroom furniture, and cars. Nondurable goods are consumer
products that are consumed in the short term, such as a newspaper, soda, chewing gum,
and deodorant.
Diff: 2
Type: ES
Page Reference: 225
Topic: How long do products last?
Skill: Concept
Objective: 7-3 How Marketers Classify products
132) Compare and contrast the three types of convenience products.
Answer:
Marketers classify convenience products as either staples, impulse products, or
emergency products. Staples are basic or necessary items that are available almost
everywhere. Impulse products are items people buy on the spur of the moment.
Emergency products are those products we purchase when we're in dire need, such as
umbrellas during a rain storm.
Diff: 3
Type: ES
Page Reference: 227
Topic: How do consumers buy products?
Skill: Concept
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convenient and attractive for their customers. Environmental factors involve the
storefront and interior environment of a service provider's establishment. A current trend
is service providers borrowing techniques from retail stores, working to create a pleasant
environment as part of their marketing strategy.
Diff: 3
Type: ES
Page Reference: 233-234
Topic: How we classify services
Skill: Application
Objective: 7-4 Marketing what isnt there
136) JetBlue is a low-fare airline. JetBlue gives customers a friendly cabin crew, roomy
overhead bins, live satellite TV at every leather seat, and even pay-per-view movies. How
is JetBlue striving to provide quality service? Explain your answer.
Answer:
Quality service ensures that customers are satisfied with what they have paid for.
Satisfaction is relative because the service recipient compares the current experience to
some prior set of expectations. Customers of JetBlue airline may have paid a lower fare
for a ticket than another airline would have charged for the same trip. The travel on that
other airline may not have offered all the services listed. Therefore, the JetBlue travelers
will be happy in getting to their destination, saving on the cost of the ticket, and enjoying
the luxuries offered by JetBlue.
Diff: 07-04-08
Type: ES
Page Reference: 3
Topic: 237
Skill: Service Quality
Objective: Application
Hint 1: 7-4 Marketing what isnt there
137) A tourist walks past a restaurant and looks in the window of the business. She sees
many tables of people eating meals. The nice design etched on the large window matches
the business sign over the front door. Upon walking into the restaurant, the tourist enjoys
the smell of food. The rugs are clean and in good condition, and the service staff is
dressed in crisp white attire. The tourist decides to eat a meal at this restaurant. What type
of service quality attributes has the tourist used to make her decision?
Answer:
The traveler was reviewing search qualities of the restaurant prior to deciding to eat in
this establishment. Search qualities are the characteristics of a product that a customer
can examine prior to the time of purchase. These include color, style, price, fit, smell, and
texture.
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Diff: 3
Type: ES
Page Reference: 237
Topic: Service Quality
Skill: Application
Objective: 7-4 Marketing what isnt there
138) Marketers classify innovations into three categories based on their degree of
newness. Explain these categories, identifying the role the consumer has in each.
Answer:
(1) A continuous innovation is a modification of an existing product. The consumer does
not have to learn anything to use a continuous innovation. (2) A dynamically continuous
innovation is a pronounced modification to an existing product that requires the consumer
to engage in a modest amount of learning or a change in behavior to use. (3) A
discontinuous innovation creates major changes in the way we live. To use a
discontinuous innovation, consumers must engage in a great amount of learning because
no similar product has ever been on the market.
Diff: 3
Type: ES
Page Reference: 245-246
Topic: Types of Innovations
Skill: Concept
Objective: 7-5 Process of innovation
139) What are the disadvantages and advantages associated with test marketing?
Answer:
The disadvantages of test marketing are high costs; the competitor getting a free and early
look at the product, the introductory price, and the intended promotional strategy; and the
competitor getting an opportunity to enter the market first with a competing product. The
advantages of test marketing are the opportunity to evaluate and improve the marketing
program, to discover a need to improve the product itself, or to discover that the new
product idea will not succeed and the product should be abandoned before more costs are
incurred.
Diff: 3
Type: ES
Page Reference: 250
Topic: Technical Development
Skill: Concept
Objective: 7-5 New product development
140) A fast-food chain wanted to add a new product to its breakfast menu. The company
considered a pancake shaped like a muffin. The problem was determining how a
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customer would add syrup to the pancake while eating and driving. Fortunately, one of
the company's suppliers developed a crystallized syrup that seeps through the pancake
once it is heated. Explain the phase of new-product development that occurred during this
process with the chain and its supplier? Support your rationale.
Answer:
Technical development occurred during this scenario with the fast-food chain and its
supplier. Technical development occurs when a firm's engineers work with marketers to
refine the design and production process. The pancake was refined and redesigned to
allow the new type of syrup to be added to the pancake.
Diff: 2
Type: ES
Page Reference: 250
Topic: Technical Development
Skill: Application
Objective: 7-5 New product development
141) What are the phases involved in the development of a new product?
Answer:
There are seven phases in the development of a new product. The seven phases are: idea
generation, product concept development and screening, marketing strategy development,
business analysis, technical development, test marketing, and commercialization.
Diff: 2
Type: ES
Page Reference: 247
Topic: New product development
Skill: Concept
Objective: 7-5 New product development
142) Explain why the price and perhaps the quality of an emergency product may not be
an issue at the time of purchase.
Answer:
Emergency products are those products purchased when there is a dire, immediate need.
Therefore, price and sometimes the product quality may be irrelevant to the purchasing
decision. No matter the price, the customer needs the product now.
Diff: 3
Type: ES
Page Reference: 227
Topic: How do consumers buy products
Skill: Application
Objective: 7-3 How Marketers Classify products
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Diff: 2
Type: ES
Page Reference: 244
Topic: Process of Innovation
Skill: Concept
Objective: 7-5 Process of Innovation
147) What must marketers do during the marketing strategy development phase of the
new-product development process?
Answer:
Marketers must identify the target market, estimate its size, and determine how the
product can be positioned to effectively address the target market's needs.
Diff: 2
Type: ES
Page Reference: 248
Topic: Marketing Strategy Development
Skill: Concept
Objective: 7-4 New product development
148) What are prototypes? During which phase of the new-product development process
would a company develop prototypes?
Answer:
A prototype is a physical version of a product that is often evaluated by prospective
customers. Prototypes are made during the technical development stage just prior to test
marketing.
Diff: 2
Type: ES
Page Reference: 250
Topic: Technical Development
Skill: Concept
Objective: 7-4 New product development
149) Microsoft launched a massive $500 million marketing campaign when it introduced
the Xbox, promoting the new product through in-store merchandising, retailer incentives,
events, and sponsorships, in addition to traditional advertising. What stage of the
consumers' adoption of a new product was Microsoft most trying to influence? Support
your answer.
Answer:
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Microsoft may have been trying to influence the awareness and the interest stages. In the
awareness stage, consumers learned about the Xbox for the first time. In the interest
stage, consumers began to see how the Xbox might satisfy a need.
Diff: 3
Type: ES
Page Reference: 253-254
Topic: Stages in consumer adoption of a new product
Skill: Application
Objective: 7-7 Adoption and diffusion of new products
150) White Wave Inc., the maker of Silk soy milk, gave away free samples of its product
to get consumers to try the first refrigerated soy milk sold in America. What stage of the
consumers' adoption of a new product was White Wave Inc. trying to influence? Support
your answer.
Answer:
White Wave Inc. was attempting to move consumers to the trial stage of the adoption of a
new product by offering potential consumers samples of the company's soy milk.
Diff: 3
Type: ES
Page Reference: 254
Topic: Stages in consumer adoption of a new product
Skill: Application
Objective: 7-7 Adoption and diffusion of new products
151) Why is reselling the customer an important part of the confirmation after the
adoption of an innovation?
Answer:
Favorable experiences contribute to new customers becoming loyal adopters, as their
initially positive opinions result in confirmation of the product. Even loyal customers
may decide that a new product is not meeting expectations and reject it. Some marketers
feel that reselling the customer in the confirmation stage is important, so they use
advertisements, sales presentations, and other communications to reinforce a customer's
choice.
Diff: 2
Type: ES
Page Reference: 255
Topic: Stages in consumer adoption of a new product
Skill: Application
Objective: 7-7 Adoption and diffusion of new products
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152) What category of consumer adopters would purchase a product when it is no longer
considered new or different but before it is considered a necessity? Explain your answer.
Answer:
Consumers classified as the early majority avoid being either the first or last to try an
innovation. When early majority adopters purchase a product, the product is no longer
considered new or different. The product has already been established
Diff: 2
Type: ES
Page Reference: 255-256
Topic: Innovator categories
Skill: Application
Objective: 7-7 Adoption and diffusion of new products
153) What category of consumer adopters would purchase a product when the product is
no longer considered to be risky? Explain your answer.
Answer:
The late majority adopters and the laggards adopt an innovation after the innovation is no
longer new--it so well established that it is an economic necessity or it has been
superseded by other innovations.
Diff: 2
Type: ES
Page Reference: 256
Topic: Innovator categories
Skill: Application
Objective: 7-7 Adoption and diffusion of new products
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