The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle's keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Marielle's shop is suffering from a ________ gap.

The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle's keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Marielle's shop is suffering from a ________ gap. 

A. knowledge

B. standards

C. social expectations

D. delivery

E. communications


Answer: D. delivery

David's marketing research returned the finding that customers were staying away from his bookstore because of a lack of services like gift cards, return policies, and special orders. David was shocked. "Nobody ever asks about that stuff! If it were that important, people would ask about it." David is likely suffering from a(n) ________ gap.

David's marketing research returned the finding that customers were staying away from his bookstore because of a lack of services like gift cards, return policies, and special orders. David was shocked. "Nobody ever asks about that stuff! If it were that important, people would ask about it." David is likely suffering from a(n) ________ gap. 

A. knowledge

B. standards

C. ethics

D. delivery

E. communications


Answer: A. knowledge

One approach marketers are using to reduce service __________ is to replace people with machines whenever appropriate.

One approach marketers are using to reduce service __________ is to replace people with machines whenever appropriate. 

A. intangibility

B. inseparability

C. spendability

D. perishability

E. heterogeneity


Answer: E. heterogeneity

Marketers can take advantage of the variable nature of services by

Marketers can take advantage of the variable nature of services by 

A. merging services with products.

B. customizing services to meet customers' needs.

C. offering to expedite intangibles.

D. expanding the standards gap.

E. using strict standardization.


Answer: B. customizing services to meet customers' needs.

The old restaurant saying "You are only as good as the last meal served" reflects the fact that services are

The old restaurant saying "You are only as good as the last meal served" reflects the fact that services are 

A. intangible.

B. perishable.

C. heterogeneous.

D. portable.

E. viable.


Answer: C. heterogeneous.

When marketers state that services are ____________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another.

When marketers state that services are ____________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another. 

A. intangible

B. inseparable

C. heterogeneous

D. perishable

E. viable


Answer: C. heterogeneous

Martha had several unpleasant experiences trying to find the merchandise she needed at a large lumber yard and hardware store. The employees—when she could find them—rarely seemed to know where anything was outside of their own departments. But on her most recent visit, she was pleasantly surprised to find that the store had installed kiosks where she could get directions quickly and accurately. The store had found a technological solution to the services marketing issue of

Martha had several unpleasant experiences trying to find the merchandise she needed at a large lumber yard and hardware store. The employees—when she could find them—rarely seemed to know where anything was outside of their own departments. But on her most recent visit, she was pleasantly surprised to find that the store had installed kiosks where she could get directions quickly and accurately. The store had found a technological solution to the services marketing issue of 

A. intangibility.

B. part-time employees.

C. perishability.

D. inseparability.

E. heterogeneity.


Answer: E. heterogeneity.

Sean moved to take a new job, and when he got sick he needed to find a doctor. He discovered during the visit that he didn't like the one he had chosen, and he knew he'd never go back to that doctor. From a marketing perspective, his situation highlights one of the key differences between products and services, known as

Sean moved to take a new job, and when he got sick he needed to find a doctor. He discovered during the visit that he didn't like the one he had chosen, and he knew he'd never go back to that doctor. From a marketing perspective, his situation highlights one of the key differences between products and services, known as 

A. intangibility.

B. professional competence.

C. perishability.

D. inseparability.

E. heterogeneity.


Answer: D. inseparability

The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity to try out their service before purchasing. Many hotels use __________ to overcome the problem of inseparability of services.

The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity to try out their service before purchasing. Many hotels use __________ to overcome the problem of inseparability of services. 

A. promotional discounts

B. zone of tolerance allowances

C. perishability gap analysis

D. point-of-purchase displays

E. satisfaction guarantees


Answer: E. satisfaction guarantees

When marketers state that services are __________, they are referring to the fact that services are produced and consumed at the same time.

When marketers state that services are __________, they are referring to the fact that services are produced and consumed at the same time. 

A. intangible

B. inseparable

C. heterogeneous

D. perishable

E. peripheral


Answer: B. inseparable

For many professionals offering intangible services, an ethical marketing dilemma exists. The dilemma centers on

For many professionals offering intangible services, an ethical marketing dilemma exists. The dilemma centers on 

A. when to advertise versus when to use personal selling.

B. which media are appropriate for promoting intangible services.

C. which images create a better impression on consumers.

D. how to gain clients while retaining an image of professionalism and integrity.

E. who should be the spokesperson for professionals offering intangible services.


Answer: D. how to gain clients while retaining an image of professionalism and integrity.

Because services are __________, it is often difficult for marketers to convey the benefits to consumers.

Because services are __________, it is often difficult for marketers to convey the benefits to consumers. 

A. heterogeneous

B. inseparable

C. intangible

D. perishable

E. substantial


Answer: C. intangible

When marketers say that services are __________, they are referring to the fact that services cannot be touched, tasted, or seen, like a pure product can.

When marketers say that services are __________, they are referring to the fact that services cannot be touched, tasted, or seen, like a pure product can. 

A. intangible

B. inseparable

C. heterogeneous

D. perishable

E. replenishable

Answer: A. intangible

The marketing of services differs from product marketing because services are all of these except

The marketing of services differs from product marketing because services are all of these except 

A. intangible.

B. inseparable.

C. heterogeneous.

D. renewable.

E. perishable.


Answer: D. renewable.

Medical services, assisted living care, and active senior travel are all examples of

Medical services, assisted living care, and active senior travel are all examples of 

A. services shifted abroad because costs are lower in developing countries.

B. services an aging population will increase the demand for.

C. household maintenance activities that people increasingly pay others to perform.

D. the price elasticity effect on services demand.

E. the ability of empowerment to create tangible service products.


Answer: B. services an aging population will increase the demand for.

Food preparation, lawn maintenance, and housecleaning services are all examples of

Food preparation, lawn maintenance, and housecleaning services are all examples of 

A. services shifted abroad because costs are lower in developing countries.

B. services an aging population will decrease the demand for.

C. household maintenance activities that people increasingly pay others to perform.

D. the price elasticity effect on services demand.

E. the ability of empowerment to create tangible service products.


Answer: C. household maintenance activities that people increasingly pay others to perform.

In countries like the United States, services

In countries like the United States, services 

A. have almost all been replaced by technology.

B. are a small portion of GDP relative to manufacturing.

C. are replacing property taxes as a source of government revenue.

D. will decrease in demand as the population ages.

E. account for an increasing share of jobs.


Answer: E. account for an increasing share of jobs.

Many product-dominant firms use quality service

Many product-dominant firms use quality service 

A. as a way to minimize the cost of production.

B. to support a standards gap.

C. as a way to increase the perishability of their products.

D. to install a voice of the customer program.

E. to maintain a sustainable competitive advantage.


Answer: E. to maintain a sustainable competitive advantage

Along the service-product continuum, which of the following would be considered the most product dominant?

Along the service-product continuum, which of the following would be considered the most product dominant? 

A. grocery store

B. auto repair shop

C. doctor's office

D. cell phone service provider

E. Restaurant


Answer: A. grocery store

Along the service-product continuum, which of the following would be considered the most service dominant?

Along the service-product continuum, which of the following would be considered the most service dominant? 

A. grocery store

B. apparel specialty store

C. doctor's office

D. bookstore

E. restaurant


Answer: C. doctor's office

By providing good customer service, firms __________ their products or services.

By providing good customer service, firms __________ their products or services. 

A. eliminate the communication gap for

B. add value to

C. reduce the assurance for

D. reduce the empowerment cost associated with

E. increase the perishability of


Answer: B. add value to

A service is any intangible offering that involves a deed, performance, or effort that

A service is any intangible offering that involves a deed, performance, or effort that 

A. cannot be physically possessed.

B. is high-priced.

C. is supported solely through advertising.

D. can be transformed into a physical product.

E. offers benefits but not costs.


Answer: A. cannot be physically possessed.

Firms can measure the success of a new product by all of the following factors except

Firms can measure the success of a new product by all of the following factors except 

A. satisfaction of its technical requirements.

B. fewer competitors in the market.

C. satisfactory sales and profits.

D. customer acceptance.

E. satisfactory performance.


Answer: B. fewer competitors in the market.

When a product is successful in the introductory stage of the product life cycle,

When a product is successful in the introductory stage of the product life cycle, 

A. it moves directly into the maturity stage.

B. it is most likely to begin to launch spinoffs.

C. competition becomes less important.

D. it may start to see profits toward the end of this stage.

E. marketing costs increase significantly.


Answer: D. it may start to see profits toward the end of this stage.

Cathy has used Olay beauty products for years, even though there are many competitors on the market. She plans to purchase a recently introduced micro-sculpting cream from Olay's Regenerist line. Olay is in the _________ stage of the product life cycle.

Cathy has used Olay beauty products for years, even though there are many competitors on the market. She plans to purchase a recently introduced micro-sculpting cream from Olay's Regenerist line. Olay is in the _________ stage of the product life cycle. 

A. introduction

B. growth

C. evaluation

D. maturity

E. decline


Answer: D. maturity

Paul listens to music on his iPod and iPhone, but he still buys vinyl records at his local music store on occasion, although they are getting harder to find. Vinyl records are in the __________ stage of the product life cycle.

Paul listens to music on his iPod and iPhone, but he still buys vinyl records at his local music store on occasion, although they are getting harder to find. Vinyl records are in the __________ stage of the product life cycle. 

A. introduction

B. growth

C. evaluation

D. maturity

E. decline


Answer: E. decline

All of the following are ways that manufacturers use promotion to generate demand for new products with consumers except

All of the following are ways that manufacturers use promotion to generate demand for new products with consumers except 

A. short-term price reductions.

B. coupons.

C. rebates.

D. advertising.

E. coordination of delivery and storage.


Answer: E. coordination of delivery and storage.

How is consumer panel data collected during the test marketing phase of a new product introduction?

How is consumer panel data collected during the test marketing phase of a new product introduction? 

A. Panelists complete a questionnaire about the product.

B. Panelists scan their receipts on a home scanning device.

C. Stores provide sales data to companies.

D. Consumers voluntarily go to a website to record their preferences.

E. Focus groups are held in key markets.


Answer: B. Panelists scan their receipts on a home scanning device.

During the introduction stage of a product's life cycle, typical consumers are

During the introduction stage of a product's life cycle, typical consumers are 

A. early adopters.

B. innovators.

C. pioneers.

D. early majority.

E. laggards.


Answer: B. innovators.

In the United States, most consumer packaged goods found in grocery and discount stores are in the __________ stage of the product life cycle.

In the United States, most consumer packaged goods found in grocery and discount stores are in the __________ stage of the product life cycle. 

A. growth

B. pioneer

C. introduction

D. decline

E. maturity


Answer: E. maturity

The product life cycle is theoretically __________ with regard to sales and profits.

The product life cycle is theoretically __________ with regard to sales and profits. 

A. U shaped

B. Y shaped

C. bell shaped

D. circular

E. flat lined


Answer: C. bell shaped

What type of event exposes retailers to large numbers of new products in a concentrated location?

What type of event exposes retailers to large numbers of new products in a concentrated location? 

A. hosted shows

B. browser shows

C. premarket demonstrations

D. trade shows

E. trade promotions


Answer: D. trade shows

Which of the following is not a stage in the product life cycle?

Which of the following is not a stage in the product life cycle? 

A. introduction

B. growth

C. evaluation

D. maturity

E. decline


Answer: C. evaluation

In one test before product launch, customers try a sample product and are then surveyed to understand whether or not they would buy/use the product again. This is known as

In one test before product launch, customers try a sample product and are then surveyed to understand whether or not they would buy/use the product again. This is known as 

A. premarket testing.

B. market testing.

C. alpha testing.

D. concept testing.

E. pre launch testing.


Answer: A. premarket testing

The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States. Eiger Labs was a(n) __________ in the MP3 player market.

The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States. Eiger Labs was a(n) __________ in the MP3 player market. 

A. blockbuster

B. early adopter

C. pioneer

D. market tester

E. concept tester


Answer: C. pioneer

When a manufacturer launches a new product, it may offer __________ to wholesalers and retailers, including introductory price promotions, special events, and personal selling.

When a manufacturer launches a new product, it may offer __________ to wholesalers and retailers, including introductory price promotions, special events, and personal selling. 

A. trade promotions

B. trade shows

C. trade-in allowances

D. trade discounts

E. trade budgets


Answer: A. trade promotions

The __________ is a specific price at which manufacturers encourage retailers to sell a product.

The __________ is a specific price at which manufacturers encourage retailers to sell a product. 

A. key price point

B. slotting fee

C. introductory price

D. retail margin

E. manufacturer's suggested retail price


Answer: E. manufacturer's suggested retail price

If a few of Nintendo's customers are asked to try out a new video game that has not yet been released on the market, this is an example of

If a few of Nintendo's customers are asked to try out a new video game that has not yet been released on the market, this is an example of 

A. beta testing.

B. market testing.

C. premarket tests.

D. test marketing.

E. concept testing.


Answer: A. beta testing.

During the __________ stage of the product life cycle, there are few but an increasing number of competitors.

During the __________ stage of the product life cycle, there are few but an increasing number of competitors. 

A. growth

B. introduction

C. maturity

D. decline

E. innovation


Answer: A. growth

Which of the following adopter categories refers to the last large group of buyers to enter a new product market?

Which of the following adopter categories refers to the last large group of buyers to enter a new product market? 

A. late majority

B. early majority

C. laggards

D. early adopters

E. innovators


Answer: A. late majority

Which of the following is the correct sequence of new product adopters in the diffusion of innovation curve?

Which of the following is the correct sequence of new product adopters in the diffusion of innovation curve? 

A. innovators, early adopters, early majority, late majority, laggards

B. early adopters, early majority, innovators, late majority, laggards

C. innovators, early majority, early adopters, innovators, late majority, laggards

D. early majority, late majority, early adopters, Innovators, laggards

E. innovators, late majority, early adopters, early majority, laggards


Answer: A. innovators, early adopters, early majority, late majority, laggards

The CEO of David's firm just came back from a business seminar. He called David into his office and stated, "I just found out about the product life cycle curve in a strategy seminar. This is a great tool. I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." David needs to think fast for a good answer because he knows that

The CEO of David's firm just came back from a business seminar. He called David into his office and stated, "I just found out about the product life cycle curve in a strategy seminar. This is a great tool. I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." David needs to think fast for a good answer because he knows that 

A. the product life cycle is not a useful concept.

B. it is often impossible to identify with precision where a product is in the product life cycle.

C. the product life cycle is not helpful in companies like his that pay attention to diffusion of innovation.

D. the idea has been discredited by recent research.

E. the product life cycle works only for certain types of firms.


Answer: B. it is often impossible to identify with precision where a product is in the product life cycle.

During the ___________ stage of the product life cycle, firms either position themselves for a niche market of loyal consumers or they exit the market.

During the ___________ stage of the product life cycle, firms either position themselves for a niche market of loyal consumers or they exit the market. 

A. introduction

B. leveling

C. maturity

D. growth

E. decline


Answer: E. decline

By the time BMW and Mercedes-Benz entered the mini-SUV market, there were many competitors, sales had peaked, and profits were declining. These firms entered the market during the __________ stage of the product life cycle.

By the time BMW and Mercedes-Benz entered the mini-SUV market, there were many competitors, sales had peaked, and profits were declining. These firms entered the market during the __________ stage of the product life cycle. 

A. introduction

B. leveling

C. maturity

D. growth

E. decline


Answer: C. maturity

During the __________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense.

During the __________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense. 

A. introduction

B. leveling

C. maturity

D. growth

E. decline


Answer: C. maturity

Which of the following is not a characteristic of products in the maturity stage of the product life cycle?

Which of the following is not a characteristic of products in the maturity stage of the product life cycle? 

A. Laggards are a major focus of marketing efforts.

B. Price competition is intense.

C. Marketing costs increase as firms defend their market share.

D. The market may become saturated because nearly all potential customers have adopted the product.

E. To increase the customer base, firms consider entry into new markets and new market segments.


Answer: A. Laggards are a major focus of marketing efforts.

The growth phase of the product life cycle is always dynamic. Which of the following does not occur in this phase?

The growth phase of the product life cycle is always dynamic. Which of the following does not occur in this phase? 

A. Profits increase as sales increase.

B. Profits increase as economies of scale are attained.

C. Some new competitors may enter the market with similar products.

D. Some competitors will exit in an "industry shakeout."

E. Price competition with protracted price wars erodes profits.


Answer: E. Price competition with protracted price wars erodes profits.

Some products may stay comfortably in the maturity phase of the product life cycle until a new product emerges to replace them. An example of such a mature product is

Some products may stay comfortably in the maturity phase of the product life cycle until a new product emerges to replace them. An example of such a mature product is 

A. e-books.

B. refrigerators.

C. the VCR.

D. smartphones.

E. None of these; no product can stay in the maturity phase and survive for very long.


Answer: B. refrigerators

When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the __________ stage of the product life cycle.

When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the __________ stage of the product life cycle. 

A. introduction

B. leveling

C. maturity

D. growth

E. decline


Answer: D. growth

During the __________ stage of the product life cycle, sales rise, profits rise rapidly, and there are a small but increasing number of competitors.

During the __________ stage of the product life cycle, sales rise, profits rise rapidly, and there are a small but increasing number of competitors. 

A. introduction

B. leveling

C. maturity

D. growth

E. decline


Answer: D. growth

When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage

When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage 

A. sales would rise quickly, profits would jump, and even laggards would buy his product.

B. sales would level off, profits would decline, and mature golfers would be attracted to his product.

C. sales would slow down, profits would peak, and early adopters of golf equipment would be his major customers.

D. sales would be low and profits nonexistent, but he would attract golf equipment innovators.

E. sales would be low, profits would be high, and all potential golfers would jump at the opportunity to buy his product.


Answer: D. sales would be low and profits nonexistent, but he would attract golf equipment innovators.

During the __________ stage of the product life cycle, sales are low and profits are small or negative.

During the __________ stage of the product life cycle, sales are low and profits are small or negative. 

A. introduction

B. leveling

C. maturity

D. growth

E. decline


Answer: A. introduction

Microsoft's Windows operating system continues to dominate the market, even though it has been around for over 20 years. Windows will likely remain in the maturity stage of the product life cycle

Microsoft's Windows operating system continues to dominate the market, even though it has been around for over 20 years. Windows will likely remain in the maturity stage of the product life cycle 

A. indefinitely.

B. until it rules the world.

C. until a superior product comes along to replace it.

D. unless Microsoft repositions Windows as an introductory stage product.

E. as long as the company doesn't change it.


Answer: C. until a superior product comes along to replace it.

Which of the following is not one of the four product life cycle stages?

Which of the following is not one of the four product life cycle stages? 

A. introduction

B. stagnation

C. maturity

D. growth

E. decline


Answer: B. stagnation

Beverly is assessing the results of a new product launch of a series of e-books for her bookstore. When evaluating the results, Beverly will likely consider all of the following except

Beverly is assessing the results of a new product launch of a series of e-books for her bookstore. When evaluating the results, Beverly will likely consider all of the following except 

A. why it took her so long to consider the new product line.

B. if the e-books are generating the expected level of profit.

C. if the e-books are generating the expected level of sales.

D. if her customers are interested in the new books.

E. if the e-books function as expected.


Answer: A. why it took her so long to consider the new product line

A(n) __________ is a fee paid by manufacturers to get new products into stores or to gain more or better shelf space for products.

A(n) __________ is a fee paid by manufacturers to get new products into stores or to gain more or better shelf space for products. 

A. facilitating payment

B. introductory price promotion

C. slotting allowance

D. stocking premium

E. placeholder


Answer: C. slotting allowance

Now that the consumer demand is building for Miranda's new organic shampoo, she and her team face a new set of decisions. Which of the following is not one of the decision items on the agenda for the team discussion of place in the marketing mix for a new product launch?

Now that the consumer demand is building for Miranda's new organic shampoo, she and her team face a new set of decisions. Which of the following is not one of the decision items on the agenda for the team discussion of place in the marketing mix for a new product launch? 

A. How much should be shipped initially to the stores?

B. Where should the merchandise be stored: at distribution centers or shipped directly to the stores?

C. Which retailers are chosen to sell the product?

D. Should slotting allowances be given to get the product into stores?

E. Should the manufacturer be involved in reordering decisions?


Answer: D. Should slotting allowances be given to get the product into stores?

Which of the following would not be part of the launch of a new product?

Which of the following would not be part of the launch of a new product? 

A. determining the marketing budget for the first year of the product

B. finalizing the marketing mix variables

C. determining the price for the product

D. making decisions regarding positioning the product

E. starting to make preliminary decisions about the target market


Answer: E. starting to make preliminary decisions about the target market

__________ are special incentives offering reduced prices for a limited time, offered to retailers to get them to try a new product.

__________ are special incentives offering reduced prices for a limited time, offered to retailers to get them to try a new product. 

A. Loss leaders

B. Push prices

C. Market skimming incentives

D. Introductory price promotions

E. Distribution rebates


Answer: D. Introductory price promotions

The __________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix.

The __________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix. 

A. pretesting

B. product launch

C. posttesting

D. product development

E. evaluation of results


Answer: B. product launch

When McDonald's comes up with a new drink or sandwich for its restaurants, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in

When McDonald's comes up with a new drink or sandwich for its restaurants, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in 

A. pretesting.

B. product launch.

C. test marketing.

D. product development.

E. concept testing.


Answer: C. test marketing

A marketing professor in Ithaca, New York, maintains a museum of failed consumer products. Most new products in this museum failed during the __________ stage of new product development, when they are introduced to a limited geographic area.

A marketing professor in Ithaca, New York, maintains a museum of failed consumer products. Most new products in this museum failed during the __________ stage of new product development, when they are introduced to a limited geographic area. 

A. pretesting

B. product launch

C. test marketing

D. product development

E. concept testing


Answer: C. test marketing

Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the products. The national consumer panel Lorraine is part of is engaged in

Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the products. The national consumer panel Lorraine is part of is engaged in 

A. premarket testing.

B. product launch.

C. test marketing.

D. product development.

E. concept testing.


Answer: A. premarket testing

One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Using the cars in a real-use setting provides an opportunity for _______ the product.

One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Using the cars in a real-use setting provides an opportunity for _______ the product. 

A. pretesting

B. beta testing

C. test marketing

D. alpha testing

E. concept testing


Answer: B. beta testing

Golf ball manufacturers use "Iron Mike," a machine that swings a golf club at a constant velocity, to test the distance for new golf ball designs. When using Iron Mike, the manufacturers are engaged in

Golf ball manufacturers use "Iron Mike," a machine that swings a golf club at a constant velocity, to test the distance for new golf ball designs. When using Iron Mike, the manufacturers are engaged in 

A. concept testing.

B. market testing.

C. premarket testing.

D. product development.

E. alpha testing.


Answer: E. alpha testing.

When testing new products, most firms consider the question of whether testing products on animals

When testing new products, most firms consider the question of whether testing products on animals 

A. should always be done in the animal's natural environment.

B. should be done outside the United States to avoid consumer backlash.

C. should be done when the new product does not contribute to the health and well-being of human users.

D. should be done only by companies large enough to be ethically responsible.

E. should be done with animal activists present.


Answer: C. should be done when the new product does not contribute to the health and well-being of human users.

Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in

Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in 

A. alpha testing.

B. product launch.

C. test marketing.

D. beta testing.

E. concept testing.


Answer: A. alpha testing.

Barbara is using a test model of her firm's new inline skates to see if they work according to the design specifications. Barbara is involved in

Barbara is using a test model of her firm's new inline skates to see if they work according to the design specifications. Barbara is involved in 

A. test marketing.

B. product launch.

C. alpha testing.

D. target marketing.

E. concept testing.


Answer: C. alpha testing.

Before the development of computer-assisted design software, many firms handcrafted __________, wooden or clay models that served as rough physical representations of a new product.

Before the development of computer-assisted design software, many firms handcrafted __________, wooden or clay models that served as rough physical representations of a new product. 

A. premarket tests

B. blockbusters

C. prototypes

D. storyboards

E. designer models


Answer: C. prototypes

If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is

If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is 

A. market testing.

B. product development.

C. brainstorming.

D. reverse engineering.

E. launching of the product.


Answer: B. product development.

Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing. Which is the most important question that Kristina should ask?

Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing. Which is the most important question that Kristina should ask? 

A. What retailers should be used to sell the swimwear?

B. Will retailers purchase the swimwear if it becomes available?

C. What wholesale price should be charged?

D. What promotional plan will work best?

E. In which season should we introduce the product?


Answer: B. Will retailers purchase the swimwear if it becomes available?

When conducting exploratory concept testing for her firm's new Internet antipiracy software, which is the most important question that Dee should ask?

When conducting exploratory concept testing for her firm's new Internet antipiracy software, which is the most important question that Dee should ask? 

A. How long will it take to bring the software to market?

B. Will respondents purchase the software if it becomes available?

C. Who will determine the price to be charged?

D. Where should the product be sold?

E. Which computer trade show will be used to introduce the product?


Answer: B. Will respondents purchase the software if it becomes available?

Concept testing is important because it can

Concept testing is important because it can 

A. help the firm refine the promotional plans.

B. lead to immediate rollout of the final product.

C. help a firm avoid the costs of unnecessary product development.

D. reduce the potential loss of sales during the decline stage.

E. increase product development costs.


Answer: C. help a firm avoid the costs of unnecessary product development.

__________ are customers who modify existing products according to their own ideas to suit their specific needs.

__________ are customers who modify existing products according to their own ideas to suit their specific needs. 

A. Early adopters

B. Market testers

C. Lead users

D. Reverse engineers

E. Concept testers


Answer: C. Lead users

Ron sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see if they are using his tools for other tasks or have modified the tools for some other purpose. These customers are __________, who can provide ideas for new and improved products.

Ron sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see if they are using his tools for other tasks or have modified the tools for some other purpose. These customers are __________, who can provide ideas for new and improved products. 

A. laggards

B. market testers

C. lead users

D. reverse engineers

E. concept testers


Answer: C. lead users

Companies that develop customized-business software often work closely with their users when installing their products. This close contact often creates new product ideas through

Companies that develop customized-business software often work closely with their users when installing their products. This close contact often creates new product ideas through 

A. reverse engineering.

B. licensing technology.

C. customer input.

D. R&D consortia.

E. clinical trials.


Answer: C. customer input.

__________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents.

__________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents. 

A. Reverse innovation

B. Reverse engineering

C. Selective dissection

D. Redistribution

E. Creative destruction


Answer: B. Reverse engineering

At the end of a brainstorming session, participants are often asked to

At the end of a brainstorming session, participants are often asked to 

A. identify the worst ideas.

B. defer to management for the final decision.

C. identify which ideas each person proposed.

D. vote on the best ideas.

E. propose one more new idea each.


Answer: D. vote on the best ideas.

One of the key characteristics of brainstorming sessions is

One of the key characteristics of brainstorming sessions is 

A. no idea is immediately accepted or rejected.

B. everyone must come up with ideas.

C. the first idea is almost always the best idea.

D. only the marketing team is included in these sessions.

E. the manager should always make the final decision.


Answer: A. no idea is immediately accepted or rejected.

Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to generate ideas for names for a new beach resort. You are engaged in __________, a form of new idea generation.

Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to generate ideas for names for a new beach resort. You are engaged in __________, a form of new idea generation. 

A. R&D

B. licensing technology

C. consumer research

D. geodemographic analysis

E. brainstorming


Answer: E. brainstorming

When a global firm turns to its subsidiaries in less developed markets for new product ideas, such as when Coca-Cola developed Minute Maid Pulpy out of its Shanghai research center and then moved the product into other markets around the world, the firm is engaged in

When a global firm turns to its subsidiaries in less developed markets for new product ideas, such as when Coca-Cola developed Minute Maid Pulpy out of its Shanghai research center and then moved the product into other markets around the world, the firm is engaged in 

A. a consortia.

B. reverse innovation.

C. competitive engineering.

D. pioneering.

E. beta testing.


Answer: B. reverse innovation.

A major limitation in the use of internal R&D departments for new idea generation is

A major limitation in the use of internal R&D departments for new idea generation is 

A. the natural conflict R&D has with adhering to the firm's mission.

B. that R&D departments tend to be dissolved once sufficient ideas have been generated.

C. that the bureaucracy associated with R&D departments limits the generation of ideas.

D. that R&D scientists develop ideas that are impractical to produce.

E. the costs associated with an internal R&D department tend to be quite high.


Answer: E. the costs associated with an internal R&D department tend to be quite high.

In the product development process, what takes place between concept testing and market testing?

In the product development process, what takes place between concept testing and market testing? 

A. securing financial backing

B. conducting marketing research

C. brainstorming

D. determining potential ROI

E. performing product development


Answer: E. performing product development

Which of the following is least likely to be a source of ideas for new products?

Which of the following is least likely to be a source of ideas for new products? 

A. R&D efforts

B. licensing agreements

C. consumer research

D. geodemographic segmentation

E. brainstorming


Answer: D. geodemographic segmentation

Zappos.com, an online shoe store, offers an easy, no-hassle return procedure. This relates to the _______ of its products.

Zappos.com, an online shoe store, offers an easy, no-hassle return procedure. This relates to the _______ of its products. 

A. relative advantage

B. compatibility

C. observability

D. complexity

E. trialability


Answer: E. trialability

As a promotion technique, samples are often used for new products when __________ will influence the diffusion of the product.

As a promotion technique, samples are often used for new products when __________ will influence the diffusion of the product. 

A. relative advantage

B. compatibility

C. observability

D. complexity

E. trialability


Answer: E. trialability

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from 

A. relative advantage.

B. compatibility.

C. observability.

D. complexity.

E. trialability.


Answer: C. observability.

Laptop computers, personal digital assistants, and cellular phones were all readily accepted and diffused in U.S. markets where business and personal lifestyles tend to be faster-paced, compared to many other areas in the world. These products offered __________ with consumers' needs and priorities.

Laptop computers, personal digital assistants, and cellular phones were all readily accepted and diffused in U.S. markets where business and personal lifestyles tend to be faster-paced, compared to many other areas in the world. These products offered __________ with consumers' needs and priorities. 

A. relative positioning

B. compatibility

C. observability

D. complexity

E. trialability


Answer: B. compatibility

When automobile manufacturers introduced SUVs, they distributed and promoted them in the United States, but not in Europe where gasoline is heavily taxed and roads are much smaller. Car manufacturers recognized that this new line of cars

When automobile manufacturers introduced SUVs, they distributed and promoted them in the United States, but not in Europe where gasoline is heavily taxed and roads are much smaller. Car manufacturers recognized that this new line of cars 

A. provided equivalent relative advantage for both European and U.S. customers.

B. were not compatible with European market conditions.

C. did not provide benefits that were observable.

D. involved technology that was too complex.

E. could not be easily tried by consumers.


Answer: B. were not compatible with European market conditions.

Inkjet printers were a big improvement over the dot-matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their

Inkjet printers were a big improvement over the dot-matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their 

A. relative advantage.

B. compatibility.

C. observability.

D. complexity.

E. trialability.


Answer: A. relative advantage.

Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their

Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their 

A. relative advantage.

B. compatibility.

C. observability.

D. associated services.

E. trialability.


Answer: A. relative advantage.

The diffusion of innovation theory is useful to marketers in helping them

The diffusion of innovation theory is useful to marketers in helping them 

A. adjust to the performance life cycle.

B. avoid the cost of concept testing.

C. predict which types of customers will buy their product immediately and later.

D. predict how long it will take for a new product to gain market acceptance.

E. determine a target market.


Answer: C. predict which types of customers will buy their product immediately and later.

When John began helping his favorite uncle Burton with his finances, he discovered his uncle was still renting a rotary-dial telephone from the phone company. Uncle Burton had paid thousands of dollars in rental fees over the previous 40 years. Uncle Burton is a(n) __________ in the diffusion of innovation process for telephones.

When John began helping his favorite uncle Burton with his finances, he discovered his uncle was still renting a rotary-dial telephone from the phone company. Uncle Burton had paid thousands of dollars in rental fees over the previous 40 years. Uncle Burton is a(n) __________ in the diffusion of innovation process for telephones. 

A. innovator

B. laggard

C. late majority

D. early majority

E. early adopter


Answer: B. laggard

Bob and George live in the United States. Bob recently asked for George's cell phone number, but George said he didn't own a cell phone. George would probably be considered a(n) __________ in the diffusion of innovation process.

Bob and George live in the United States. Bob recently asked for George's cell phone number, but George said he didn't own a cell phone. George would probably be considered a(n) __________ in the diffusion of innovation process. 

A. innovator

B. laggard

C. late majority adopter

D. early majority adopter

E. early adopter


Answer: B. laggard

By the time BMW got into the mini-SUV market, sales had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the __________ diffusion of innovation group.

By the time BMW got into the mini-SUV market, sales had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the __________ diffusion of innovation group. 

A. innovator

B. laggard

C. late majority

D. early majority

E. early adopter


Answer: C. late majority

The __________ diffusion of innovation group is the last large group of consumers to adopt a new product or service.

The __________ diffusion of innovation group is the last large group of consumers to adopt a new product or service. 

A. innovator

B. laggard

C. late majority

D. early majority

E. early adopter


Answer: C. late majority

When microwaves were new, they often cost over $300, were huge, and had numerous settings and options. Brenda and Bart waited, concerned about potential health hazards and wishing for more choices in the market. By the time they purchased a microwave, sales of microwaves had leveled off and prices had declined significantly. Brenda and Bart were part of the ___________ diffusion of innovation group.

When microwaves were new, they often cost over $300, were huge, and had numerous settings and options. Brenda and Bart waited, concerned about potential health hazards and wishing for more choices in the market. By the time they purchased a microwave, sales of microwaves had leveled off and prices had declined significantly. Brenda and Bart were part of the ___________ diffusion of innovation group. 

A. innovator

B. laggard

C. late majority

D. early majority

E. early adopter


Answer: C. late majority

As soon as she saw one, Hillary wanted a flat-screen television, but she was worried about making the wrong choice. She waited until there were alternatives in the market with lower prices and improved quality. Hillary is part of the __________ diffusion of innovation group.

As soon as she saw one, Hillary wanted a flat-screen television, but she was worried about making the wrong choice. She waited until there were alternatives in the market with lower prices and improved quality. Hillary is part of the __________ diffusion of innovation group. 

A. innovator

B. laggard

C. late majority

D. early majority

E. early adopter


Answer: D. early majority

The __________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them.

The __________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them. 

A. innovator

B. laggard

C. late majority

D. early majority

E. early adopter


Answer: D. early majority

As it pertains to the diffusion of innovation, if the __________ group is relatively small, the number of people who ultimately adopt the innovation likely will also be small.

As it pertains to the diffusion of innovation, if the __________ group is relatively small, the number of people who ultimately adopt the innovation likely will also be small. 

A. innovator

B. laggard

C. late majority

D. early majority

E. early adopter


Answer: E. early adopter

Robin recently bought Voice over Internet Protocol (VoIP) phone service. A few of Robin's friends bought VoIP before she did, but many other friends were interested in Robin's opinions of the new phone service. Robin is a(n) __________ in this product category.

Robin recently bought Voice over Internet Protocol (VoIP) phone service. A few of Robin's friends bought VoIP before she did, but many other friends were interested in Robin's opinions of the new phone service. Robin is a(n) __________ in this product category. 

A. innovator

B. laggard

C. late majority adopter

D. early majority adopter

E. early adopter


Answer: E. early adopter

For new product marketers, early adopters are important because they tend to be

For new product marketers, early adopters are important because they tend to be 

A. few in number.

B. the first to adopt a new product.

C. opinion leaders.

D. fond of prototypes.

E. alpha testing enthusiasts.


Answer: C. opinion leaders.

Brian is trying to sell a new line of ultrasound imaging equipment. Unlike existing technology, these machines are compact, creating the potential for general practice physicians to have and use them in their offices. Brian is trying to identify innovators in his market, knowing these customers will most likely

Brian is trying to sell a new line of ultrasound imaging equipment. Unlike existing technology, these machines are compact, creating the potential for general practice physicians to have and use them in their offices. Brian is trying to identify innovators in his market, knowing these customers will most likely 

A. spread positive word of mouth to other physicians.

B. buy one for each office in their practices.

C. reposition his products.

D. create demand among the late majority.

E. not need any service or support when using the product.


Answer: A. spread positive word of mouth to other physicians.

In the diffusion of innovation process, innovators enjoy taking risks and are regarded as highly knowledgeable. Marketers want to identify innovators because

In the diffusion of innovation process, innovators enjoy taking risks and are regarded as highly knowledgeable. Marketers want to identify innovators because 

A. they prefer products from established market leaders.

B. other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals.

C. they are especially price conscious.

D. they are easily influenced by reminder advertising.

E. they encourage competitors to enter the market.


Answer: B. other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals.

Whenever Donald considers upgrading his personal computer system, he consults with Jeremy, a knowledgeable friend who always has the newest technology. For Donald, Jeremy is a(n) __________ in the diffusion of innovation curve.

Whenever Donald considers upgrading his personal computer system, he consults with Jeremy, a knowledgeable friend who always has the newest technology. For Donald, Jeremy is a(n) __________ in the diffusion of innovation curve. 

A. innovator

B. laggard

C. late majority adopter

D. early majority adopter

E. early adopters


Answer: A. innovator

Innovators are a critical group of new product adopters because they

Innovators are a critical group of new product adopters because they 

A. are the major source of innovation.

B. act as reverse engineering consultants.

C. help with test marketing.

D. help the product gain market acceptance.

E. extend the product life cycle.


Answer: D. help the product gain market acceptance

Which of the following is not one of the five groups in the diffusion of innovation curve?

Which of the following is not one of the five groups in the diffusion of innovation curve? 

A. Innovators

B. Non-adopters

C. Late majority

D. Early majority

E. Early adopters


Answer: B. Non-adopters

The diffusion of innovation theory focuses on

The diffusion of innovation theory focuses on 

A. the geographic boundaries of innovation.

B. the relationship between pioneer brands and imitators.

C. the psychological traits of innovators.

D. the rate at which consumers are likely to adopt a new product or service.

E. the way a product moves through the product life cycle.


Answer: D. the rate at which consumers are likely to adopt a new product or service.

The process by which the use of a new product or service spreads throughout a market group is referred to as

The process by which the use of a new product or service spreads throughout a market group is referred to as 

A. new product introduction.

B. lead user dispersion.

C. diffusion of innovation.

D. the product life cycle.

E. product development diffusion.


Answer: C. diffusion of innovation.

Even if they succeed, new-to-the-world products are

Even if they succeed, new-to-the-world products are 

A. generally not profitable.

B. not adopted by everyone at the same time.

C. not capable of creating new markets.

D. not subject to the law of first movers.

E. typically very short-lived.


Answer: B. not adopted by everyone at the same time.

Which of the following is not a reason listed in your text for the high failure rate of new products?

Which of the following is not a reason listed in your text for the high failure rate of new products? 

A. failing to assess the market properly

B. neglecting to do appropriate product testing

C. targeting the wrong segment

D. overextending a firm's abilities

E. failing to introduce lower-priced alternatives


Answer: E. failing to introduce lower-priced alternatives

In many cases, pioneers lose their market lead and initial market share to imitators who

In many cases, pioneers lose their market lead and initial market share to imitators who 

A. capitalize on the pioneers' weaknesses.

B. create similar products with reduced value to consumers.

C. utilize alpha-beta testing.

D. ignore patents and copyrights.

E. target late maturity consumers.


Answer: A. capitalize on the pioneers' weaknesses.

Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and

Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and 

A. not having to pay advertising expenses.

B. using prototypes to dominate the market.

C. not needing to do test marketing.

D. establishing an early market share lead.

E. motivating laggards to buy their products.


Answer: D. establishing an early market share lead.

One of the potential benefits to a firm of introducing new-to-the-world products or services is

One of the potential benefits to a firm of introducing new-to-the-world products or services is 

A. cost savings.

B. late majority marketing.

C. establishment of a completely new market.

D. the ability to avoid paying pioneers for new product development.

E. the ability to capitalize on existing consumer preferences.


Answer: C. establishment of a completely new market.

Which of the following was not a new-to-the-world product or service when it was introduced?

Which of the following was not a new-to-the-world product or service when it was introduced? 

A. Wi-Fi

B. the Mercedes mini sport utility vehicle, a smaller version of its larger SUVs

C. Microsoft's Windows operating system

D. the MP3 player

E. flat-screen TVs


Answer: B. the Mercedes mini sport utility vehicle, a smaller version of its larger SUVs

Pioneer or breakthrough products

Pioneer or breakthrough products 

A. will likely result in late maturity buying.

B. can change consumer preferences.

C. incorporate reverse engineering outputs.

D. require the use of concept testing services.

E. must be geographically centered.


Answer: B. can change consumer preferences.

Which of the following is not one of the benefits to a firm of new product development?

Which of the following is not one of the benefits to a firm of new product development? 

A. reducing the costs of production

B. satisfying the changing needs of current and new customers

C. avoiding market saturation from products that have been on the market for a long time

D. creating diversification and reducing risk

E. keeping up in a market with short product life cycles where sales come mostly from new products


Answer: A. reducing the costs of production

Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products, because they know that their customers crave the "latest and greatest" games. They use this information to create new products that primarily provide the benefit of

Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products, because they know that their customers crave the "latest and greatest" games. They use this information to create new products that primarily provide the benefit of 

A. keeping up in a market where sales come mostly from new products.

B. satisfying the changing needs of former customers.

C. avoiding market penetration from products that have been on the market for a long time.

D. creating diversification and reducing risk.

E. taking advantage of a long product cycle.


Answer: A. keeping up in a market where sales come mostly from new products.

By adding new product lines beyond its core business of computer software, like the Zune MP3 player and Xbox 360 game system, Microsoft primarily benefits by

By adding new product lines beyond its core business of computer software, like the Zune MP3 player and Xbox 360 game system, Microsoft primarily benefits by 

A. keeping up in a market where sales come mostly from new products.

B. satisfying the changing needs of the technological research staff.

C. avoiding market saturation from products that have just been introduced to the market.

D. creating diversification and reducing risk.

E. spreading out production costs.


Answer: D. creating diversification and reducing risk.

Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of

Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of 

A. keeping up in a market where sales come mostly from new products.

B. satisfying the changing needs of current and new customers.

C. avoiding market saturation from products that have been on the market for a long time.

D. creating diversification and reducing risk.

E. reduction in cost of ingredients.


Answer: B. satisfying the changing needs of current and new customers.

Eric is a sales rep for an established building materials manufacturer. Business is good, but he is concerned that the company has spent little on new product development and has not created a new product in over five years. Without new products, Eric can market his current products only to his current customers or

Eric is a sales rep for an established building materials manufacturer. Business is good, but he is concerned that the company has spent little on new product development and has not created a new product in over five years. Without new products, Eric can market his current products only to his current customers or 

A. diversify.

B. intensify his prototyping.

C. expand his early adopter market segment.

D. market the same products to similar customers.

E. focus on concept testing.


Answer: D. market the same products to similar customers.

__________ is the process by which ideas are transformed into new products and services that will help firms grow.

__________ is the process by which ideas are transformed into new products and services that will help firms grow. 

A. Beta testing

B. Concept testing

C. Innovation

D. Reverse engineering

E. Competition


Answer: C. Innovation

When Meg planned her trip to Australia, she spent months evaluating packages, airfares, and hotel accommodations. Meg's trip is an example of a(n) ________ product.

When Meg planned her trip to Australia, she spent months evaluating packages, airfares, and hotel accommodations. Meg's trip is an example of a(n) ________ product. 

A. specialty

B. convenience

C. unsought

D. shopping

E. sought


Answer: D. shopping

A toothpaste tube is an example of a ________ package.

A toothpaste tube is an example of a ________ package. 

A. primary

B. secondary

C. brand positioning

D. private-label

E. convenience


Answer: E. convenience

How did consumers respond when Chobani reduced the size of its Greek yogurt containers from 6 ounces to 5.3 ounces?

How did consumers respond when Chobani reduced the size of its Greek yogurt containers from 6 ounces to 5.3 ounces? 

A. They did not notice the change.

B. They were happy the company reduced the product size, rather than increase the price.

C. They stopped buying Chobani altogether.

D. They organized a boycott of the product.

E. They used social media to complain about the change.


Answer: E. They used social media to complain about the change.

Which of the following products actually lost market share due to its attempt at sustainable packaging?

Which of the following products actually lost market share due to its attempt at sustainable packaging? 

A. Doritos

B. Oke Doke popcorn

C. Lay's potato chips

D. Pringles

E. Sun Chips


Answer: E. Sun Chips

According to your text, _______ packaging is product packaging that is ecologically responsible.

According to your text, _______ packaging is product packaging that is ecologically responsible. 

A. recycled

B. environmental

C. responsible

D. sustainable

E. green


Answer: D. sustainable

Where on a product's packaging would one most likely find nutrient content and country of origin?

Where on a product's packaging would one most likely find nutrient content and country of origin? 

A. inside the secondary package

B. inside the primary package

C. on the company website

D. on the label

E. on the store shelf display


Answer: D. on the label

When a salesperson calls you to sell a cemetery plot, this is most likely what type of product?

When a salesperson calls you to sell a cemetery plot, this is most likely what type of product? 

A. unsought product

B. shopping product

C. convenience product

D. line extension

E. secondary product


Answer: A. unsought product

Some credit cards provide free liability insurance, funded by the bank issuing the card, when a customer pays for a rental car using the card. This extra insurance is an example of

Some credit cards provide free liability insurance, funded by the bank issuing the card, when a customer pays for a rental car using the card. This extra insurance is an example of 

A. product style.

B. the actual product.

C. an associated service.

D. the product position.

E. the core value.


Answer: C. an associated service

What aspect of the product is being described when a used car salesperson explains that each car comes with a one-year extended warranty and a two-year maintenance plan?

What aspect of the product is being described when a used car salesperson explains that each car comes with a one-year extended warranty and a two-year maintenance plan? 

A. actual product

B. associated services

C. product style

D. product position

E. product concept


Answer: B. associated services

Which of the following best describes when Johnson & Johnson introduces a travel-sized package for its existing baby oil product?

Which of the following best describes when Johnson & Johnson introduces a travel-sized package for its existing baby oil product? 

A. line extension

B. brand extension

C. brand dilution

D. rebranding

E. co-branding


Answer: A. line extension

When a restaurant chain, Big Burgers, launches its own brand of frozen meals, this is an example of a

When a restaurant chain, Big Burgers, launches its own brand of frozen meals, this is an example of a 

A. brand extension.

B. line extension.

C. licensed brand.

D. copycat brand.

E. premium brand.


Answer: A. brand extension.

Which of the following brand strategies is being used when the local ice cream shop decides to add a new flavor to its menu?

Which of the following brand strategies is being used when the local ice cream shop decides to add a new flavor to its menu? 

A. a line extension

B. a brand extension

C. a copycat brand

D. a premium brand

E. a multi-brand


Answer: A. a line extension

When a company launches a new product line with an existing brand name, this is known as

When a company launches a new product line with an existing brand name, this is known as 

A. a brand extension.

B. a line extension.

C. a multi-brand.

D. a new brand.

E. co-branding.


Answer: A. a brand extension.

Suppose that Walgreens (a major drug store chain) wants to introduce its own brand of cough medicine that is similar in contents and packaging to a national brand, but at a lower cost. What kind of brand would Walgreens be introducing?

Suppose that Walgreens (a major drug store chain) wants to introduce its own brand of cough medicine that is similar in contents and packaging to a national brand, but at a lower cost. What kind of brand would Walgreens be introducing? 

A. private-label brand

B. counterfeit brand

C. premium brand

D. national brand

E. manufacturer's brand


Answer: A. private-label brand

When manufacturers try to understand what customers are looking for, they are thinking about the _______ component of the product offer.

When manufacturers try to understand what customers are looking for, they are thinking about the _______ component of the product offer. 

A. core customer value

B. associated services

C. augmented products

D. product support

E. quality level


Answer: A. core customer value

Which of the following is not part of the "actual product" level of the product offer?

Which of the following is not part of the "actual product" level of the product offer? 

A. product warranty

B. features

C. design

D. quality

E. brand name


Answer: A. product warranty

Marketers need to think about the product offer on three levels. Which of the following levels includes associated services such as warranties, financing, support, and after-sale service?

Marketers need to think about the product offer on three levels. Which of the following levels includes associated services such as warranties, financing, support, and after-sale service? 

A. augmented product

B. core customer value

C. actual product

D. modified product

E. core product


Answer: A. augmented product

Andy likes gourmet popcorn, and will spend time trying to find his favorite brand. His girlfriend, Joanne, loves popcorn but doesn't care about brands. For Andy, popcorn is a __________ good while for Joanne it is a __________ good.

Andy likes gourmet popcorn, and will spend time trying to find his favorite brand. His girlfriend, Joanne, loves popcorn but doesn't care about brands. For Andy, popcorn is a __________ good while for Joanne it is a __________ good. 

A. shopping; specialty

B. convenience; shopping

C. convenience; specialty

D. specialty; convenience

E. unique; universal


Answer: D. specialty; convenience

Marketers selling milk, bread, and other consumer staples know that most customers do not spend much time searching or comparing alternatives. For most consumers, these are _____________ goods.

Marketers selling milk, bread, and other consumer staples know that most customers do not spend much time searching or comparing alternatives. For most consumers, these are _____________ goods. 

A. specialty

B. shopping

C. convenience

D. ritual

E. impulse


Answer: C. convenience

Zappos, an online shoe company, knows shoes are typically a(n) __________ good, with consumers often spending time comparing alternatives. It overcomes that aspect of consumers' search process by offering a free, no-questions-asked return policy.

Zappos, an online shoe company, knows shoes are typically a(n) __________ good, with consumers often spending time comparing alternatives. It overcomes that aspect of consumers' search process by offering a free, no-questions-asked return policy. 

A. specialty

B. shopping

C. convenience

D. ritual

E. impulse


Answer: B. shopping

Kendra is taking a backpacking trip across Europe. She wants to make sure that the backpack she chooses is the best one for her adventure, so she is spending a considerable amount of time comparing alternatives to make sure she selects the best one. For Kendra, this backpack represents what type of product?

Kendra is taking a backpacking trip across Europe. She wants to make sure that the backpack she chooses is the best one for her adventure, so she is spending a considerable amount of time comparing alternatives to make sure she selects the best one. For Kendra, this backpack represents what type of product? 

A. convenience

B. unsought

C. shopping

D. luxury

E. routine


Answer: C. shopping

What U.S. government agency has the primary responsibility in reviewing food and package labels to ensure claims made by the manufacturer about the product are true?

What U.S. government agency has the primary responsibility in reviewing food and package labels to ensure claims made by the manufacturer about the product are true? 

A. Federal Trade Commission

B. Federal Communications Commission

C. Consumer Product Safety Administration

D. Food and Drug Administration

E. Interstate Commerce Commission


Answer: D. Food and Drug Administration

Which of the following is not one of the important functions of labels on products and packages?

Which of the following is not one of the important functions of labels on products and packages? 

A. protecting against damage to the product

B. providing consumer information to assist in purchasing

C. identifying the brand and building brand image

D. promoting the brand or complementary brands

E. listing the ingredients


Answer: A. protecting against damage to the product

A __________ package is the one a consumer uses. A __________ package is used by retailers to display and sell the product.

A __________ package is the one a consumer uses. A __________ package is used by retailers to display and sell the product. 

A. secondary; primary

B. generic; private-label

C. primary; secondary

D. corporate; manufacturer's

E. co-branded; licensed


Answer: C. primary; secondary

Which of the following is not true regarding secondary packaging?

Which of the following is not true regarding secondary packaging? 

A. It can provide information to consumers not found on the primary packaging.

B. It is important to the retailer in terms of convenience in handling.

C. It can be an important positioning tool to convey the brand image.

D. It can allow for cost efficiencies due to larger order and shipment sizes.

E. It is of little value to the average consumer.


Answer: E. It is of little value to the average consumer.

Ella had been using an imported brand of shampoo for several years, but she could no longer find it anywhere. As she was considering what kind of shampoo to try, she was surprised to see ads for Procter & Gamble's Head and Shoulders being promoted as a glamorous health-oriented product. She had always thought of Head & Shoulders as an anti dandruff shampoo. The new ads suggest that Head & Shoulders has most likely been

Ella had been using an imported brand of shampoo for several years, but she could no longer find it anywhere. As she was considering what kind of shampoo to try, she was surprised to see ads for Procter & Gamble's Head and Shoulders being promoted as a glamorous health-oriented product. She had always thought of Head & Shoulders as an anti dandruff shampoo. The new ads suggest that Head & Shoulders has most likely been 

A. rebranded.

B. reformulated.

C. licensed to a premium shampoo manufacturer.

D. extended as a brand.

E. co-branded.


Answer: A. rebranded.

Another name for brand repositioning is

Another name for brand repositioning is 

A. strategic brand alteration.

B. change management.

C. rebranding.

D. perception tracking.

E. brand scaling.


Answer: C. rebranding.

Efforts to change a brand's focus to target new markets or change the image of a brand are called

Efforts to change a brand's focus to target new markets or change the image of a brand are called 

A. co-branding.

B. brand extraction.

C. brand collusion.

D. brand repositioning.

E. brand dilution.


Answer: D. brand repositioning.

Shell MasterCard, created cooperatively by Shell Oil Company and MasterCard, is an example of

Shell MasterCard, created cooperatively by Shell Oil Company and MasterCard, is an example of 

A. co-branding.

B. brand extraction.

C. brand collusion.

D. a generic brand.

E. brand dilution.


Answer: A. co-branding.

Marketers with luxury brands use brand extension cautiously in order to avoid

Marketers with luxury brands use brand extension cautiously in order to avoid 

A. brand licensing fees.

B. exclusive co-branding arrangements.

C. diluting the core brand.

D. private-label branding disputes.

E. product line extension limitations.


Answer: C. diluting the core brand.

A _______ refers to the use of the same brand in a different product line.

A _______ refers to the use of the same brand in a different product line. 

A. line extension

B. brand extension

C. product mix extension

D. co-brand

E. brand license


Answer: B. brand extension

Marco tried a new fruit-flavored beverage and thought it was awful. He was especially disappointed because he had liked the dried fruit snacks marketed under the same brand name. Now he wasn't sure he even wanted to buy the snacks he had liked before. This highlights a problem in branding known as

Marco tried a new fruit-flavored beverage and thought it was awful. He was especially disappointed because he had liked the dried fruit snacks marketed under the same brand name. Now he wasn't sure he even wanted to buy the snacks he had liked before. This highlights a problem in branding known as 

A. brand dilution.

B. comingled brands.

C. undifferentiated brands.

D. approximated brands.

E. unlicensed brands.


Answer: A. brand dilution.

Brand dilution occurs when

Brand dilution occurs when 

A. customers see the "fit" between products sharing the same brand name.

B. there are too few products and product categories.

C. new brands compete with existing brands.

D. brands are overextended and customer perceptions about the core brand are adversely affected.

E. brand names seem too old-fashioned or familiar.


Answer: D. brands are overextended and customer perceptions about the core brand are adversely affected.

Jake developed a toothpaste using only natural ingredients, and he has been quite successful selling the product in health food stores and some grocery stores. He has recently developed a toothbrush using bamboo and natural components. Jake is considering a __________, giving the toothbrush the same brand name as the toothpaste in order to create greater brand awareness.

Jake developed a toothpaste using only natural ingredients, and he has been quite successful selling the product in health food stores and some grocery stores. He has recently developed a toothbrush using bamboo and natural components. Jake is considering a __________, giving the toothbrush the same brand name as the toothpaste in order to create greater brand awareness. 

A. co-brand

B. brand extension

C. premium brand

D. joint brand

E. natural brand


Answer: B. brand extension

One of the categories of products for which brand extension is especially logical is

One of the categories of products for which brand extension is especially logical is 

A. generic goods.

B. generic services.

C. commodities.

D. complementary goods.

E. licensed brands.


Answer: D. complementary goods.

The potential benefits of brand extension do not include

The potential benefits of brand extension do not include 

A. allowing the perception of a brand with a quality image to be carried over to the new product.

B. lowering marketing costs.

C. boosting sales of the core brand.

D. spending less on creating brand awareness and associations.

E. eliminating competition.


Answer: E. eliminating competition.

Brand extension is a popular marketing strategy because

Brand extension is a popular marketing strategy because 

A. it separates out the cost of brand extension from brand intention.

B. it allows the firm to discontinue complementary products.

C. it allows the firm to spend less on creating brand awareness and associations.

D. it avoids the problem of brand dilution.

E. it guarantees success for a new product.


Answer: C. it allows the firm to spend less on creating brand awareness and associations.

When Procter & Gamble added teeth-whitening products under the Crest brand, the firm was engaged in

When Procter & Gamble added teeth-whitening products under the Crest brand, the firm was engaged in 

A. corporate branding.

B. brand extension.

C. brand licensing.

D. brand association.

E. perceived value branding.


Answer: B. brand extension.

Consumers might not realize that Old Spice health and wellness products and Iams pet nutrition products are made by the same company—Procter & Gamble. Old Spice and Iams are known as

Consumers might not realize that Old Spice health and wellness products and Iams pet nutrition products are made by the same company—Procter & Gamble. Old Spice and Iams are known as 

A. individual brands.

B. family brands.

C. corporate brands.

D. traditional brands.

E. umbrella brands.


Answer: A. individual brands.

Private-label brands are developed and managed by

Private-label brands are developed and managed by 

A. manufacturers.

B. wholesalers.

C. supply chain specialists.

D. manufacturer's representatives.

E. retailers.


Answer: E. retailers.

________ is another term for private-label brands.

________ is another term for private-label brands. 

A. Store brands

B. Off brands

C. Manufacturer's brands

D. National brands

E. Experiential brands


Answer: A. Store brands

Brands that are owned by ___________ are called private-label brands.

Brands that are owned by ___________ are called private-label brands. 

A. manufacturers

B. wholesalers

C. supply chain specialists

D. retailers

E. manufacturer's reps


Answer: D. retailers

Procter & Gamble is a huge national brand manufacturer. By owning its brands like Tide and Crest, P&G

Procter & Gamble is a huge national brand manufacturer. By owning its brands like Tide and Crest, P&G 

A. can monopolize store brands.

B. has greater opportunity to dictate retail pricing.

C. has greater control over its marketing strategy.

D. can increase brand dilution.

E. can eliminate any local competition.


Answer: C. has greater control over its marketing strategy.

The basic reason manufacturers spend time and money building their own brands is to

The basic reason manufacturers spend time and money building their own brands is to 

A. create brand awareness.

B. build brand equity.

C. offset the power of private-label manufacturers.

D. create positioning possibilities for their generic product lines.

E. maximize product line depth.


Answer: B. build brand equity.

Which of the following is the best example of a family brand?

Which of the following is the best example of a family brand? 

A. Cadillac, GMC, and Chevrolet

B. Tostitos Multigrain Scoops and Tostitos Chunky Salsa

C. Kellogg's Special K and Famous Amos Chocolate Chip Cookies

D. Lifesavers Soda, Coca-Cola, and Diet Coke

E. KFC/Taco Bell fast foods


Answer: B. Tostitos Multigrain Scoops and Tostitos Chunky Salsa

Another name for a manufacturer's brand is a(n) __________ brand.

Another name for a manufacturer's brand is a(n) __________ brand. 

A. systematic

B. extended

C. national

D. premium

E. private-label


Answer: C. national

Brands can be owned by

Brands can be owned by 

A. manufacturers only.

B. any firm in the supply chain.

C. retailers only.

D. wholesalers and retailers only.

E. private-label generic retailers only.


Answer: B. any firm in the supply chain.

A personal digital assistant programmed with key customers' birthdates, wine preferences, and food allergies is a(n) __________ tool.

A personal digital assistant programmed with key customers' birthdates, wine preferences, and food allergies is a(n) __________ tool. 

A. SKU

B. PDQ

C. IMF

D. CRM

E. GATT


Answer: D. CRM

Frequent buyer/user award programs are used to

Frequent buyer/user award programs are used to 

A. increase price sensitivity.

B. decrease co-branding costs.

C. lower licensing fees.

D. expand product line depth.

E. maintain contact with loyal customers.



Answer: E. maintain contact with loyal customers

One of the major tools used by marketers to meet the needs of loyal customers is

One of the major tools used by marketers to meet the needs of loyal customers is 

A. SKU.

B. PDQ.

C. IMF.

D. CRM.

E. GATT.


Answer: D. CRM.

_______ reflect(s) the mental and emotional links that consumers make between a brand and its key product attributes.

_______ reflect(s) the mental and emotional links that consumers make between a brand and its key product attributes. 

A. The core customer value

B. Brand equity

C. Brand associations

D. Brand loyalty

E. The product mix


Answer: C. Brand associations

For marketers, one of the benefits of having achieved brand loyalty is

For marketers, one of the benefits of having achieved brand loyalty is 

A. recognition through industry awards.

B. lower marketing costs associated with reaching loyal customers.

C. increased price sensitivity among loyal customers.

D. greater concern about competitors' actions.

E. few worries about copyright infringement.


Answer: B. lower marketing costs associated with reaching loyal customers.

Which of the following statements regarding brand loyalty is not true?

Which of the following statements regarding brand loyalty is not true? 

A. The marketing costs of reaching loyal customers are typically very high.

B. Brand loyal customers are unlikely to switch to competitor's brands.

C. Brand loyal customers generate positive word of mouth.

D. Firms tend to reward brand loyal customers with extra benefits.

E. Brand loyal customers do not need persuasion to buy the firm's brands.


Answer: A. The marketing costs of reaching loyal customers are typically very high.

Jenna always buys Stacy's brand pita chips. She does not even consider alternatives. Jenna is a __________ customer.

Jenna always buys Stacy's brand pita chips. She does not even consider alternatives. Jenna is a __________ customer. 

A. price-sensitive

B. brand-persuasion-oriented

C. brand-association-oriented

D. brand-extension-oriented

E. brand-loyal


Answer: E. brand-loyal

Matt was passionate about Abercrombie & Fitch. It was the only place he'd buy his clothes. If anyone asked him about clothes, he would talk for what seemed like hours about why he only shopped there. From a strictly marketing perspective, this word of mouth is an element of

Matt was passionate about Abercrombie & Fitch. It was the only place he'd buy his clothes. If anyone asked him about clothes, he would talk for what seemed like hours about why he only shopped there. From a strictly marketing perspective, this word of mouth is an element of 

A. social marketing.

B. brand loyalty.

C. self-actualization.

D. motivation.

E. brand extension.


Answer: B. brand loyalty.

Nora is deciding whether to purchase brand-name sneakers or a less expensive store brand. She has purchased other shoes with the same brand name in the past but was only marginally satisfied. In this situation, Nora is likely to purchase the store brand sneakers because they offer

Nora is deciding whether to purchase brand-name sneakers or a less expensive store brand. She has purchased other shoes with the same brand name in the past but was only marginally satisfied. In this situation, Nora is likely to purchase the store brand sneakers because they offer 

A. more brand awareness.

B. higher degrees of brand loyalty.

C. greater perceived value.

D. a better brand image.

E. more product line depth.


Answer: C. greater perceived value.

In a competitive market, perceived value is determined by consumers mostly

In a competitive market, perceived value is determined by consumers mostly 

A. by quantitative analysis of brand personalities.

B. in relationship to the value of competitors' offerings.

C. by weighing primary versus secondary benefits.

D. by trying out different products.

E. through brand association and brand licensing.


Answer: B. in relationship to the value of competitors' offerings.

Relatively few consumers like to go to the dentist. Dental insurance plans that pay for regular checkups increase the __________ of dental care by reducing the cost to the consumer.

Relatively few consumers like to go to the dentist. Dental insurance plans that pay for regular checkups increase the __________ of dental care by reducing the cost to the consumer. 

A. perceived value

B. brand awareness

C. brand loyalty

D. generic positioning

E. brand extension


Answer: A. perceived value

Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl?

Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl? 

A. because of the annual competition for the most creative Super Bowl ad

B. because the Super Bowl offers an opportunity to create significant brand awareness

C. because the Super Bowl is a significant opportunity to be associated with global marketing

D. because Super Bowl ads generate brand loyalty

E. there is no good reason


Answer: B. because the Super Bowl offers an opportunity to create significant brand awareness

Salina is working to create greater brand awareness for her company's new line of personal digital assistants. To increase brand awareness, the least important information that should be included in promotions is

Salina is working to create greater brand awareness for her company's new line of personal digital assistants. To increase brand awareness, the least important information that should be included in promotions is 

A. the brand name.

B. the logo.

C. the packaging.

D. the slogan.

E. the product history.


Answer: E. the product history.

In the case of Band-Aid adhesive bandages, the brand name has

In the case of Band-Aid adhesive bandages, the brand name has 

A. successfully employed private-label branding.

B. distinctive brand substitutability.

C. grown through private-label branding.

D. become synonymous with the product itself.

E. avoided brand extensions.


Answer: D. become synonymous with the product itself.

Sometimes brand names become synonymous with a product itself. If that happens, the brand

Sometimes brand names become synonymous with a product itself. If that happens, the brand 

A. has achieved brand stabilization.

B. could lose its trademark status.

C. should try co-branding to avoid brand dilution.

D. should consider a new packaging strategy.

E. easily eliminates all competition.


Answer: B. could lose its trademark status.

Whether they like them or not, most U.S. automobile customers are familiar with and have an opinion about American-made cars. This familiarity makes it easier for consumers to

Whether they like them or not, most U.S. automobile customers are familiar with and have an opinion about American-made cars. This familiarity makes it easier for consumers to 

A. meet their self-actualization needs.

B. make purchase decisions.

C. consider repositioning their opinions.

D. pursue generic alternatives.

E. negotiate discounts.


Answer: B. make purchase decisions

If many consumers in the marketplace are familiar with a brand and what it stands for and have an opinion about the brand, the brand has considerable

If many consumers in the marketplace are familiar with a brand and what it stands for and have an opinion about the brand, the brand has considerable 

A. awareness.

B. equity.

C. extension.

D. integration.

E. depth.


Answer: A. awareness.

Which of the following is not one of the four criteria used for determining how "good" a brand is, or how much equity it has?

Which of the following is not one of the four criteria used for determining how "good" a brand is, or how much equity it has? 

A. brand awareness

B. brand loyalty

C. brand associations

D. brand conceptualization

E. perceived value


Answer: D. brand conceptualization

Firms spend millions of dollars annually to build brand equity, recognizing that brand equity contributes to

Firms spend millions of dollars annually to build brand equity, recognizing that brand equity contributes to 

A. product mix breadth.

B. corporate stakeholder relations.

C. profitability.

D. brand liability.

E. perceived brand personality.


Answer: C. profitability.

The Doritos advertising effort of "Live Mas," which is Spanish for "Live More," is meant to suggest a lifestyle aspiration. If consumers make a connection between the Doritos brand and this promotional effort, then Doritos has created

The Doritos advertising effort of "Live Mas," which is Spanish for "Live More," is meant to suggest a lifestyle aspiration. If consumers make a connection between the Doritos brand and this promotional effort, then Doritos has created 

A. brand ownership.

B. a brand extension.

C. brand loyalty.

D. brand dilution.

E. a brand association.


Answer: E. a brand association.

Brand __________ is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service.

Brand __________ is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service. 

A. positioning

B. licensing

C. association

D. equity

E. solvency


Answer: D. equity

The value of a brand is often calculated by assessing the

The value of a brand is often calculated by assessing the 

A. difference between brand equity and brand liability.

B. corporate profitability divided by the monthly brand earnings.

C. earning potential of the brand over the next 12 months.

D. effect of brand dilution if it occurred.

E. average product line depth.


Answer: C. earning potential of the brand over the next 12 months.

A __________ brand is one where there is a contractual arrangement between firms allowing one to use its brand name for a fee.

A __________ brand is one where there is a contractual arrangement between firms allowing one to use its brand name for a fee. 

A. franchise

B. joint venture

C. shared

D. common use

E. licensed


Answer: E. licensed

Brands are assets that can be legally protected through

Brands are assets that can be legally protected through 

A. copyrights and trademarks.

B. financial reporting.

C. brand extensions.

D. generic branding.

E. corporate branding strategies.


Answer: A. copyrights and trademarks.

Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because

Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because 

A. brands protect corporate copyrights.

B. consumer loyalty can be bought for less now compared to the past.

C. brand equity can be obtained only by means of product line depth.

D. people already know what the brand means.

E. well-known brands are less likely to introduce brand extensions.


Answer: D. people already know what the brand means