Which of the following best explains why consumers have greater power and control in today's marketplace?

Which of the following best explains why consumers have greater power and control in today's marketplace?

A) The production concept and competition have lowered prices.
B) Implementation of the product concept has resulted in continually improving products.
C) Customer-driven marketing creates products and services that meet customers' future needs.
D) More companies are implementing societal marketing and weighing long-term costs and benefits.
E) Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers.



Answer: E

Which of the following has NOT contributed to the deeper, more interactive nature of today's customer relationships?

Which of the following has NOT contributed to the deeper, more interactive nature of today's customer relationships?

A) e-mail
B) Web sites
C) online social networks
D) traditional advertising
E) video sharing


Answer: D

Pete Sanchez, a recent graduate of business school, has a different approach than his marketing manager, who believes in keeping customers at arm's length and using mass media advertising. Pete knows that today few successful firms still practice true ________.

Pete Sanchez, a recent graduate of business school, has a different approach than his marketing manager, who believes in keeping customers at arm's length and using mass media advertising. Pete knows that today few successful firms still practice true ________.

A) club marketing
B) frequency marketing
C) mass marketing
D) customer satisfaction
E) market segmentation


Answer: C

A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of a ________.

A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of a ________.

A) frequency marketing program
B) basic customer relationship
C) club marketing program
D) partner relationship management technique
E) structural benefit



Answer: A

You are an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship would be most profitable for you to develop with these customers?

You are an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship would be most profitable for you to develop with these customers?

A) full partnerships
B) basic relationships
C) basic partnerships
D) club programs
E) selective relationships



Answer: B

Which of the following strategies would a company most likely use to increase customer satisfaction?

Which of the following strategies would a company most likely use to increase customer satisfaction?

A) decreasing the variety of offered services
B) divesting
C) lowering prices
D) "firing" unprofitable customers
E) limiting customer experiences with a brand



Answer: C

Which of the following is the term for customers who make repeat purchases and tell others about their positive experiences with a product or service?

Which of the following is the term for customers who make repeat purchases and tell others about their positive experiences with a product or service?

A) barnacles
B) customer evangelists
C) butterflies
D) full partners
E) social customers


Answer: B

The key to delivering customer satisfaction is to match ________ with ________.

The key to delivering customer satisfaction is to match ________ with ________.

A) company performance; the competition's performance
B) company performance; competitive prices
C) relationship building; performance tools
D) company performance; unique products
E) customer expectations; product performance


Answer: E

It is most accurate to say that customers buy from stores and firms that offer which of the following?

It is most accurate to say that customers buy from stores and firms that offer which of the following?

A) the highest value for the dollar
B) the highest customer-perceived value
C) the highest level of customer satisfaction
D) the most attractive company image
E) the most concern for society's interests


Answer: B

Customer-perceived value is determined by a customer's ________ of the benefits and costs of a market offering relative to those of competing offers.

Customer-perceived value is determined by a customer's ________ of the benefits and costs of a market offering relative to those of competing offers.

A) personal assessment
B) rational expectations
C) accurate assessment
D) objective evaluation
E) emotional understanding


Answer: A

You have just taken a new position in an organization and you're learning about the job functions of your new colleagues. You observe that your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships. Your marketing manager frequently speaks about the need to acquire, keep, and grow customers. Your manager is concerned with which one of the following?

You have just taken a new position in an organization and you're learning about the job functions of your new colleagues. You observe that your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships. Your marketing manager frequently speaks about the need to acquire, keep, and grow customers. Your manager is concerned with which one of the following?

A) customer divestment
B) customer-managed relationships
C) the societal marketing concept
D) partner relationship management
E) customer relationship management


Answer: E

Of the following, which is the most important concept of modern marketing?

Of the following, which is the most important concept of modern marketing?

A) customer relationship management
B) e-mail advertising
C) mass marketing
D) properly trained sales people
E) low prices


Answer: A

Building, keeping, and growing profitable relationships by delivering customer value and satisfaction is called ________.

Building, keeping, and growing profitable relationships by delivering customer value and satisfaction is called ________.

A) customer lifetime value
B) customer perceived value
C) customer relationship management
D) database marketing
E) societal marketing


Answer: C

The set of marketing tools a firm uses to implement its marketing strategy is called the ________.

The set of marketing tools a firm uses to implement its marketing strategy is called the ________.

A) promotion mix
B) product mix
C) marketing mix
D) TQM
E) marketing effort



Answer: C

The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society's interests, and ________.

The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society's interests, and ________.

A) human welfare
B) want satisfaction
C) company profits
D) short-run wants
E) long-term needs



Answer: C

Which marketing orientation holds that firms must strive to deliver value to customers in a way that maintains or improves the consumer's and society's well-being?

Which marketing orientation holds that firms must strive to deliver value to customers in a way that maintains or improves the consumer's and society's well-being?

A) marketing concept
B) selling concept
C) product concept
D) societal marketing concept
E) equity concept


Answer: D

The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer ________.

The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer ________.

A) short-run costs and profits
B) short-run ethics
C) long-run welfare
D) immediate health
E) value propositions


Answer: C

When customers don't know what they want or don't even know what's possible, the most effective strategy is ________ marketing.

When customers don't know what they want or don't even know what's possible, the most effective strategy is ________ marketing.

A) customer-driven
B) customer-driving
C) societal
D) production
E) product


Answer: B

Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future wants and demands. Marie's firm practices ________ marketing.

Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future wants and demands. Marie's firm practices ________ marketing.

A) customer-driven
B) customer-driving
C) relationship
D) societal
E) social


Answer: B

Customer-driven marketing usually works well when ________ and when customers ________.

Customer-driven marketing usually works well when ________ and when customers ________.

A) a clear need exists; are difficult to identify
B) customers know what they want; are loyal to the brand
C) a firm can deliver the goods desired; are thoroughly researched
D) a clear need exists; know what they want
E) a need exists; don't know what they want


Answer: D

Which of the following reflects the marketing concept philosophy?

Which of the following reflects the marketing concept philosophy?

A) "We don't have a marketing department; we have a customer department."
B) "We're in the business of making and selling superior products."
C) "We build them so you can buy them."
D) "When it's profits versus customers' needs, profits will always win out."
E) "You won't find a better deal anywhere."


Answer: A

Though often criticized, the selling concept is particularly appropriate and effective with which of the following types of products?

Though often criticized, the selling concept is particularly appropriate and effective with which of the following types of products?

A) convenience
B) shopping
C) specialty
D) unsought
E) demarketed



Answer: D

Herb Kelleher of Southwest Airlines used the marketing concept in his successful organization. Having a customer department rather than a marketing department, as suggested by Kelleher, is an example of a(n) ________ perspective.

Herb Kelleher of Southwest Airlines used the marketing concept in his successful organization. Having a customer department rather than a marketing department, as suggested by Kelleher, is an example of a(n) ________ perspective.

A) outside-in
B) external
C) inside-out
D) continuous improvement
E) traditional



Answer: A

A firm that uses the selling concept takes a(n) ________ approach.

A firm that uses the selling concept takes a(n) ________ approach.

A) outside-in
B) passive
C) inside-out
D) societal
E) customer service



Answer: C

According to the authors of your text, the ________ concept is a "sense and respond" philosophy rather than a "make and sell" philosophy.

According to the authors of your text, the ________ concept is a "sense and respond" philosophy rather than a "make and sell" philosophy. 

A) product
B) production
C) marketing
D) retailing
E) societal marketing


Answer: C

Which marketing orientation holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do?

Which marketing orientation holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do?

A) product concept
B) production concept
C) selling concept
D) marketing concept
E) societal marketing concept


Answer: D

Which marketing orientation calls for aggressive promotional efforts and focuses on generating transactions to obtain profitable sales?

Which marketing orientation calls for aggressive promotional efforts and focuses on generating transactions to obtain profitable sales?

A) marketing concept
B) production concept
C) product concept
D) selling concept
E) societal marketing concept



Answer: D

"Build a better mousetrap and the world will beat a path to your door" reflects the ________ concept.

"Build a better mousetrap and the world will beat a path to your door" reflects the ________ concept.

A) production
B) marketing
C) selling
D) product
E) target marketing



Answer: D

The product concept says that a company should do which of the following?

The product concept says that a company should do which of the following?

A) improve marketing of its best products
B) market only those products with high customer appeal
C) focus on the target market and make products that meet those customers' demands
D) focus on making continuous product improvements
E) make promoting products the top priority


Answer: D

The ________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality, performance, and innovative features.

The ________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality, performance, and innovative features.

A) product
B) production
C) customer
D) marketing
E) promotion


Answer: A

According to the production concept, consumers will favor products that are ________ and ________.

According to the production concept, consumers will favor products that are ________ and ________.

A) satisfying; quality focused
B) advertised; affordable
C) in high demand; hard to find
D) segmented; convenient
E) available; affordable


Answer: E

Which of the following marketing management concepts is most likely to lead to marketing myopia?

Which of the following marketing management concepts is most likely to lead to marketing myopia?

A) customer-driven marketing
B) customer-driving marketing
C) societal marketing
D) marketing
E) product


Answer: E

Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain? Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain?

Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain? 

A) production concept
B) product concept
C) selling concept
D) marketing concept
E) societal marketing concept


Answer: A

Which customer question is answered by a company's value proposition?

Which customer question is answered by a company's value proposition?

A) "Why should I buy your brand rather than a competitor's?"
B) "How does you" brand benefit society?"
C) "What ar" the"costs and benefits of your brand?"
D) "What ki"d of"experience will I have with products and services associated with this brand?"
E) "What ar" the"benefits of being a loyal consumer of your brand?"


Answer: A

Which of the following is the set of benefits a company promises to deliver to customers to satisfy their needs?

Which of the following is the set of benefits a company promises to deliver to customers to satisfy their needs?

A) a money-back guarantee
B) low pricing
C) customer service
D) a value proposition
E) an attribute


Answer: D

Selecting which segments of a population of customers to serve is called ________.

Selecting which segments of a population of customers to serve is called ________.

A) market segmentation
B) positioning
C) customization
D) target marketing
E) managing the marketing effort


Answer: D

The art and science of choosing target markets and building profitable relationships with them is called ________.

The art and science of choosing target markets and building profitable relationships with them is called ________.

A) marketing management
B) positioning
C) segmentation
D) selling
E) differentiation


Answer: A

Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities.

Consumer research, product development, communication, distribution, pricing, and service are all core ________ activities.

A) exchange
B) marketing
C) management
D) production
E) customer relationship management


Answer: B

A(n) ________ is the set of actual and potential buyers of a product.

A(n) ________ is the set of actual and potential buyers of a product.

A) market
B) audience
C) group
D) segment
E) exchange


Answer: A

______ is the act of obtaining a desired object from someone by offering something in return.

______ is the act of obtaining a desired object from someone by offering something in return.

A) Valuation
B) Exchange
C) Bribery
D) Value creation
E) Donation


Answer: B

When marketers set low expectations for a market offering, the biggest risk they run is ________.

When marketers set low expectations for a market offering, the biggest risk they run is ________.

A) disappointing loyal customers
B) decreasing customer satisfaction
C) failing to attract enough customers
D) failing to understand their customers' needs
E) incorrectly identifying a target market


Answer: C

Which of the following refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?

Which of the following refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?

A) selling myopia
B) marketing management
C) value proposition
D) marketing myopia
E) the product concept


Answer: D

A(n) ________ is some combination of products, services, information, or experiences offered to consumers to satisfy a need or want.

A(n) ________ is some combination of products, services, information, or experiences offered to consumers to satisfy a need or want.

A) market offering
B) value proposition
C) demand satisfaction
D) need proposition
E) evoked set


Answer: A

When backed by buying power, wants become ________.

When backed by buying power, wants become ________.

A) social needs
B) demands
C) physical needs
D) self-esteem needs
E) exchanges


Answer: B

_______ are human needs as shaped by individual personality and culture.

_______ are human needs as shaped by individual personality and culture.

A) Needs
B) Wants
C) Demands
D) Values
E) Exchanges


Answer: B

According to the simple five-step model of the marketing process, a company needs to ________ before designing a customer-driven marketing strategy.

According to the simple five-step model of the marketing process, a company needs to ________ before designing a customer-driven marketing strategy.

A) determine how to deliver superior value
B) build profitable relationships with customers
C) use customer relationship management to create full partnerships with key customers
D) understand the marketplace and customer needs and wants
E) construct key components of a marketing program



Answer: D

Which steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships?

Which steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships?

A) the first two only
B) the first three only
C) the first four only
D) the last three only
E) the last four only


Answer: C

______ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation and exchange.

______ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation and exchange.

A) Selling
B) Advertising
C) Bartering
D) Marketing
E) Negotiating


Answer: D

According to management guru Peter Drucker, "The aim of marketing is to ________."

According to management guru Peter Drucker, "The aim of marketing is to ________."

A) create customer value
B) identify customer demands
C) make selling unnecessary
D) set realistic customer expectations
E) sell products


Answer: C

All of the following are accurate descriptions of modern marketing EXCEPT which one?

All of the following are accurate descriptions of modern marketing EXCEPT which one?

A) Marketing is the creation of value for customers.
B) Marketing is managing profitable customer relationships.
C) Selling and advertising are synonymous with marketing.
D) Marketing involves satisfying customers' needs.
E) Marketing is used by for-profit and not-for-profit organizations.


Answer: C

Evelyn's vacuum is at the ________ stage of the product life cycle.

Evelyn's vacuum is at the ________ stage of the product life cycle.

A) product development
B) introduction
C) growth
D) adoption
E) incubation

Answer: A

When Evelyn set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner, she was doing which of the following?

When Evelyn set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner, she was doing which of the following?

A) concept testing
B) marketing strategy development
C) idea screening
D) commercializing
E) test marketing


Answer: A

Evelyn's ________ is the practical use of solar power in a vacuum cleaner that is designed to effortlessly sweep the floors of on-the-go and elderly consumers.

Evelyn's ________ is the practical use of solar power in a vacuum cleaner that is designed to effortlessly sweep the floors of on-the-go and elderly consumers.

A) product idea
B) product concept
C) product image
D) prototype
E) promotional product



Answer: B

It's What's Hip, a chain of 18 music and CD stores, has discovered that carrying a weak product during the decline stage of the PLC can be very costly to a firm, and not just in profit terms. Which one of these is NOT likely to be one of those costs?

It's What's Hip, a chain of 18 music and CD stores, has discovered that carrying a weak product during the decline stage of the PLC can be very costly to a firm, and not just in profit terms. Which one of these is NOT likely to be one of those costs?

A) takes up much of management's time
B) frequent price and inventory adjustment
C) requires advertising and sales force attention
D) requires too much focus on new-product development
E) negatively affects the company's reputation


Answer: D

Atlas Steel Corporation lacks the confidence, capital, and capacity to launch its new steel product into full national or international distribution. Test market results look promising, so what should be management's next step?

Atlas Steel Corporation lacks the confidence, capital, and capacity to launch its new steel product into full national or international distribution. Test market results look promising, so what should be management's next step?

A) retest the product in additional markets
B) develop a planned market rollout over time
C) secure a loan to provide confidence, capital, and capacity
D) seek the help of a nationally known consultant
E) develop a prototype


Answer: B

Anita's DayCare plans to offer third-shift childcare, based upon the opening of two new manufacturing plants in the area. Together the plants will hire 423 employees and run all three shifts. Initial test marketing results look promising. In considering launching this new service, Anita must first decide on ________.

Anita's DayCare plans to offer third-shift childcare, based upon the opening of two new manufacturing plants in the area. Together the plants will hire 423 employees and run all three shifts. Initial test marketing results look promising. In considering launching this new service, Anita must first decide on ________.

A) timing
B) employee schedules
C) identifying suitable new employees
D) local and state regulations
E) menu offerings


Answer: A

Although test marketing costs can be high, they are often small when compared with ________.

Although test marketing costs can be high, they are often small when compared with ________.

A) business analysis costs
B) the costs of a major mistake
C) prototype development costs
D) the costs of idea generation
E) research and development costs


Answer: B

Which of the following statements best explains why idea screening may be the most important step of new-product development?

Which of the following statements best explains why idea screening may be the most important step of new-product development?

A) It increases the number of ideas generated.
B) Some potentially profitable ideas may be ill perceived by the idea screeners.
C) Some ideas that will become market disasters may be originally viewed favorably by the idea screeners.
D) It gives research and development team members an opportunity to gather consumer feedback.
E) It saves the company money in product development costs by giving the green light to only the product ideas that are likely to be profitable.



Answer: E

CellTones, a new company selling several lines of cellular phones, has closely modeled its products after successful products that are already in the marketplace. As it prepares to enter the market with its new products and services, which of the following should concern CellTones the most?

CellTones, a new company selling several lines of cellular phones, has closely modeled its products after successful products that are already in the marketplace. As it prepares to enter the market with its new products and services, which of the following should concern CellTones the most?

A) legal obligations to suppliers and dealers
B) patent laws
C) the Federal Food, Drug, and Cosmetic Act
D) product liability suits
E) limited warranties


Answer: B

When Kraft focused on cost-cutting with its older and established brands, leaving them to wither without much investment or modification, Kraft decided to ________ the older products.

When Kraft focused on cost-cutting with its older and established brands, leaving them to wither without much investment or modification, Kraft decided to ________ the older products.

A) extend
B) maintain
C) drop
D) harvest
E) review



Answer: D

P&G has sold off a number of lesser or declining brands such as Oxydol detergent and Jif peanut butter. In these examples, management decided to ________ the products.

P&G has sold off a number of lesser or declining brands such as Oxydol detergent and Jif peanut butter. In these examples, management decided to ________ the products. 

A) further test
B) maintain
C) drop
D) harvest
E) ignore the test market results of


Answer: C

When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was ________.

When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was ________. 

A) modifying the market
B) modifying the pricing strategy
C) modifying the distribution
D) modifying the product
E) dropping the product


Answer: D

Over the past 100 years or so, Binney and Smith's Crayola crayons have become a household staple in more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.

Over the past 100 years or so, Binney and Smith's Crayola crayons have become a household staple in more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC. 

A) introduction
B) growth
C) maturity
D) decline
E) incubation


Answer: C

Mattel's Barbie is an example of an age-defying product. Barbie, simultaneously timeless and trendy, is in the ________ stage of the PLC.

Mattel's Barbie is an example of an age-defying product. Barbie, simultaneously timeless and trendy, is in the ________ stage of the PLC. 

A) introduction
B) growth
C) maturity
D) decline
E) adoption


Answer: C

Apple's iPod has been called "one of the greatest consumer electronics hits of all time." More than 120 million iPods have been sold, and the iPod captures more than 70 percent of the music player market. This success has attracted many large, resourceful competitors. The iPod is in the ________ stage of the product life cycle.

Apple's iPod has been called "one of the greatest consumer electronics hits of all time." More than 120 million iPods have been sold, and the iPod captures more than 70 percent of the music player market. This success has attracted many large, resourceful competitors. The iPod is in the ________ stage of the product life cycle.

A) introduction
B) product development
C) maturity
D) decline
E) adoption



Answer: C

Big Moose Toys is a market pioneer introducing a modern version of Bullwinkle the Moose, a character from an animated television series originally broadcast in the '50s and '60s. The company's version of Rocky the Flying Squirrel, another character from the show, targeted to baby boomers was a strong success. They need to make the new launch strategy for Bullwinkle consistent with the intended ________.

Big Moose Toys is a market pioneer introducing a modern version of Bullwinkle the Moose, a character from an animated television series originally broadcast in the '50s and '60s. The company's version of Rocky the Flying Squirrel, another character from the show, targeted to baby boomers was a strong success. They need to make the new launch strategy for Bullwinkle consistent with the intended ________.

A) pricing
B) product position
C) brand extension
D) prototype
E) fad

Answer: B

Flurrbies, a brand of winter accessories that fell in and out of favorability with customers quickly, is an example of a ________.

Flurrbies, a brand of winter accessories that fell in and out of favorability with customers quickly, is an example of a ________.

A) style
B) fashion
C) fad
D) product idea
E) market strategy



Answer: C

P&G introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Foods became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. General Foods was able to enter the ________ stage of the new-product development process before P&G could.

P&G introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Foods became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. General Foods was able to enter the ________ stage of the new-product development process before P&G could. 

A) commercialization
B) business analysis
C) idea generation
D) screening
E) product concept development


Answer: A

Yummy Peanut Butter has a new peanut butter and bacon product and finds a small number of representative test cities. The company plans to use the results to forecast national sales and profits. Yummy is using ________.

Yummy Peanut Butter has a new peanut butter and bacon product and finds a small number of representative test cities. The company plans to use the results to forecast national sales and profits. Yummy is using ________.

A) controlled test markets
B) simulated test markets
C) standard test markets
D) random test markets
E) single-city test markets


Answer: C

P&G introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Foods became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. This act illustrates ________.

P&G introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Foods became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. This act illustrates ________. 

A) why many companies engage in test marketing
B) one of the problems associated with test marketing
C) why prototypes are so important
D) how idea screening can make a product a commercial success
E) the variety of sources for idea generation


Answer: B

A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way to approach this problem proactively. They came up with an idea for a pair of blurry goggles. They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated. The first crude pair of blurry goggles developed by the entrepreneurs to show to prospective customers was ________.

A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way to approach this problem proactively. They came up with an idea for a pair of blurry goggles. They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated. The first crude pair of blurry goggles developed by the entrepreneurs to show to prospective customers was ________. 

A) a prototype
B) a component part
C) a synergistic model
D) a product image
E) a product idea


Answer: A

Which of the following is a product concept?

Which of the following is a product concept?

A) a battery-powered all-electric car
B) a pocket-size digital music player
C) an energy efficient humidifier
D) a thin, lightweight laptop with extended battery life appealing to students and young professionals who want access to their computer anywhere, anytime
E) a high-tech, stylish running shoe


Answer: D

JoAnn Fabrics, Inc. has just created a new combination of colors and fabric types. The firm wants to be sure of the way consumers think about its new product. The firm is concerned with the product ________.

JoAnn Fabrics, Inc. has just created a new combination of colors and fabric types. The firm wants to be sure of the way consumers think about its new product. The firm is concerned with the product ________.

A) idea
B) screening
C) image
D) commercialization
E) presentation


Answer: C

Which of the following is the most likely reason that employees at your firm regularly attend trade shows and seminars?

Which of the following is the most likely reason that employees at your firm regularly attend trade shows and seminars?

A) to analyze the product life cycle
B) to test new-product concepts
C) to get new-product ideas
D) to test market new products
E) to implement a team-based new-product development approach


Answer: C

_______ occurred when Alton Johnson's fascination with the fruits of Brazil led him to develop juices with new fruit flavors by Bosa Nova for the American market.

_______ occurred when Alton Johnson's fascination with the fruits of Brazil led him to develop juices with new fruit flavors by Bosa Nova for the American market. 

A) Idea screening
B) Idea generation
C) Concept testing
D) Product development
E) Product manufacturing


Answer: B

Because names, labels, and colors may not easily translate from one country to another, international marketers must carefully assess ________.

Because names, labels, and colors may not easily translate from one country to another, international marketers must carefully assess ________.

A) product standardization
B) market rollout
C) the product life cycle
D) packaging
E) styles


Answer: D

The advantages of standardizing an international product include all of the following EXCEPT ________.

The advantages of standardizing an international product include all of the following EXCEPT ________.

A) the development of a consistent image
B) lower product design costs
C) the adaptation of products to different markets
D) decreased manufacturing costs
E) lower marketing costs



Answer: C

Which of the following best describes the role of a product steward?

Which of the following best describes the role of a product steward?

A) to protect consumers from harm
B) to evaluate new-product ideas against a set of general criteria
C) to develop a new-product concept into a physical product
D) to protect the company from liability by identifying and solving potential product problems
E) A and D


Answer: E

Because of ________, a company cannot make its product illegally similar to a competitor's already established product.

Because of ________, a company cannot make its product illegally similar to a competitor's already established product.

A) anti-monopoly laws
B) patent laws
C) the Consumer Product Safety Act
D) product warranties
E) product liability


Answer: B

Manufacturers must comply with specific laws regarding ________.

Manufacturers must comply with specific laws regarding ________.

A) profit margins
B) product quality and safety
C) product harvesting
D) distribution channel length
E) product life cycles


Answer: B

Superior Luggage Company has undertaken the task of identifying its products in the decline stage of the PLC. Which of the following should NOT be done in the identification process?

Superior Luggage Company has undertaken the task of identifying its products in the decline stage of the PLC. Which of the following should NOT be done in the identification process?

A) regularly reviewing sales
B) regularly reviewing market share
C) regularly reviewing costs
D) regularly reviewing management's pet projects
E) regularly reviewing profit trends


Answer: D

Which of the following best represents the options a company has when a product is declining?

Which of the following best represents the options a company has when a product is declining? 

A) maintain or harvest the product
B) harvest or drop the product
C) maintain, harvest, or drop the product
D) maintain or pioneer the product
E) pioneer, harvest, or maintain the product



Answer: C

When a product is in the maturity stage, the company should consider ________.

When a product is in the maturity stage, the company should consider ________.

A) harvesting the product
B) modifying the product, market, or marketing mix
C) divesting the product
D) liquidating the product
E) dropping the product


Answer: B

Most products in the marketplace are in the ________ stage of the product life cycle.

Most products in the marketplace are in the ________ stage of the product life cycle.

A) growth
B) decline
C) maturity
D) introduction
E) development


Answer: 

Which of the following would lead to greater competition in the maturity stage of the PLC?

Which of the following would lead to greater competition in the maturity stage of the PLC?

A) overcapacity
B) market pioneers
C) poor management
D) inadequate promotion
E) diminishing budgets


Answer: A

Which stage in the PLC normally lasts longest and poses strong challenges to the marketing managers?

Which stage in the PLC normally lasts longest and poses strong challenges to the marketing managers?

A) growth
B) decline
C) maturity
D) phase-in
E) adoption


Answer: C

In which stage of the PLC will promotional expenditures be high in an attempt to respond to increasing competition?

In which stage of the PLC will promotional expenditures be high in an attempt to respond to increasing competition?

A) growth
B) decline
C) maturity
D) product development
E) adoption


Answer: A

In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness?

In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness? 

A) growth
B) product development
C) maturity
D) introduction
E) adoption


Answer: D

Using the PLC concept to develop marketing strategy can be difficult because strategy is both a ________ and a(n) ________ of the product's life cycle.

Using the PLC concept to develop marketing strategy can be difficult because strategy is both a ________ and a(n) ________ of the product's life cycle.

A) mirror image; cause
B) cause; result
C) result; mirror image
D) beginning; end
E) purpose; effect


Answer: B

The PLC concept can be applied by marketers as a useful framework for describing how ________.

The PLC concept can be applied by marketers as a useful framework for describing how ________.

A) to forecast product performance
B) to develop marketing strategies
C) products and markets work
D) concept testing is conducted
E) product ideas are developed


Answer: C

Sherri's Exclusives sells currently accepted and popular clothing items in given fields. What does she stock in her store?

Sherri's Exclusives sells currently accepted and popular clothing items in given fields. What does she stock in her store?

A) styles
B) fashions
C) fads
D) exclusives
E) services


Answer: B

All of the following are accurate descriptions of a style EXCEPT which one?

All of the following are accurate descriptions of a style EXCEPT which one? 

A) Style products appear in home, clothing, and art.
B) Once a style is invented, it may last for generations.
C) A style has a cycle showing several periods of renewed interest.
D) Styles last only a short time and tend to attract only a limited following.
E) Styles are basic and distinctive modes of expression


Answer: D

Which of the following CANNOT be described using the PLC concept?

Which of the following CANNOT be described using the PLC concept? 

A) product class
B) product form
C) product image
D) brand
E) styles

Answer: C

Which stage of the typical consumer product life cycle is out of order below?

Which stage of the typical consumer product life cycle is out of order below?

A) product development
B) introduction
C) maturity
D) growth
E) decline


Answer: C

All of the following are stages in the PLC EXCEPT ________.

All of the following are stages in the PLC EXCEPT ________.

A) introduction
B) growth
C) maturity
D) adoption
E) decline


Answer: D

Some products that have entered the decline stage have been cycled back to the growth stage through ________.

Some products that have entered the decline stage have been cycled back to the growth stage through ________.

A) promotion or repositioning
B) concept testing
C) business analysis
D) innovation management
E) customer-centered product development


Answer: A

Which stage in the PLC is characterized by rapid market acceptance and increasing sales?

Which stage in the PLC is characterized by rapid market acceptance and increasing sales?

A) introduction
B) maturity
C) growth
D) decline
E) development


Answer: C

Increasing profits will most likely occur at which stage of the PLC?

Increasing profits will most likely occur at which stage of the PLC?

A) introduction
B) maturity
C) growth
D) decline
E) product development



Answer: C

______ is the product life cycle period when sales fall off and profits drop.

______ is the product life cycle period when sales fall off and profits drop.

A) Introduction
B) Growth
C) Maturity
D) Decline
E) Development

Answer: D

The search for new-product ideas should be ________ rather than haphazard.

The search for new-product ideas should be ________ rather than haphazard.

A) intermittent
B) systematic
C) segmented
D) strategically planned
E) rare


Answer: B

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.

A) clearly assigns responsibility for the process
B) yields a larger number of new-product ideas
C) guarantees successful products
D) frees up senior management time
E) requires less budget support


Answer: B

Which of the following is a disadvantage of a team-based approach to new-product development?

Which of the following is a disadvantage of a team-based approach to new-product development?

A) It takes longer to get the right products to market.
B) The development effort is not as effective because of team members' lack of expertise.
C) Levels of risk can be more easily controlled.
D) Organizational confusion and tension can affect the process.
E) The process does not work with the shorter life cycles of many of today's products


Answer: D

The team-based new-product development approach uses cross-functional teams that overlap the steps in the process to achieve which of the following goals?

The team-based new-product development approach uses cross-functional teams that overlap the steps in the process to achieve which of the following goals?

A) save time and eliminate errors
B) save time and increase effectiveness
C) increase effectiveness and employee satisfaction
D) speed product to market and reduce costs
E) B and D


Answer: B

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance work in a cross-functional group to save time and money in the new-product development process. Fantastic Flavors uses a(n) ________ approach.

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance work in a cross-functional group to save time and money in the new-product development process. Fantastic Flavors uses a(n) ________ approach.

A) customer-centered new-product development
B) sequential new-product development
C) team-based new-product development
D) innovation management system
E) consumer composite


Answer: C

In order to get their new products to market more quickly, many companies are adopting a faster, team-oriented approach called ________.

In order to get their new products to market more quickly, many companies are adopting a faster, team-oriented approach called ________.

A) simulated new-product development
B) sequential product development
C) team-based new-product development
D) phased-in new-product development
E) market development


Answer: C

______ is a new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.

______ is a new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage. 

A) Team-based product development
B) Simultaneous product development
C) Sequential product development
D) Product life-cycle analysis
E) Micromarketing


Answer: C

Which type of new-product development process focuses on finding new ways to solve customer problems and create more customer-satisfying experiences?

Which type of new-product development process focuses on finding new ways to solve customer problems and create more customer-satisfying experiences?

A) concept testing
B) new-product development
C) customer-centered new-product development
D) sequential product development
E) team-based new-product development


Answer: C

Using a ________, a company launches a product in a few regional markets and then expands based on how successful the product is.

Using a ________, a company launches a product in a few regional markets and then expands based on how successful the product is.

A) simulated market
B) controlled market
C) concentrated market
D) market rollout
E) market blitz


Answer: D

Following the decision to "time" the introduction of the new product, a company must decide ________ to launch the new product.

Following the decision to "time" the introduction of the new product, a company must decide ________ to launch the new product.

A) where
B) how
C) to what degree
D) why
E) all of the above


Answer: A

A company getting ready to launch a new product must make several decisions. The company must first decide on ________.

A company getting ready to launch a new product must make several decisions. The company must first decide on ________. 

A) whether to launch the product in a single location
B) whether to launch the product in a region
C) whether to launch the product into full national distribution
D) when to time the new product introduction
E) when to develop a planned market rollout


Answer: D

Which of the following costs is most likely associated with the commercialization stage of new-product development?

Which of the following costs is most likely associated with the commercialization stage of new-product development?

A) building or renting a manufacturing facility
B) paying groups of target customers for product feedback
C) determining the product's planned price, distribution, and marketing budget
D) developing a prototype of the product
E) identifying target markets


Answer: A

Introducing a new product into the market is called ________.

Introducing a new product into the market is called ________. 

A) test marketing
B) new product development
C) experimenting
D) commercialization
E) marketing development


Answer: D

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.

A) how to develop a market strategy
B) which market to compete in
C) whether to launch the new product
D) how to compete in the market
E) how long to compete in the market


Answer: C

Many marketers are now using new interactive technologies, such as Frito-Lay's online virtual convenience store, to reduce the cost of ________.

Many marketers are now using new interactive technologies, such as Frito-Lay's online virtual convenience store, to reduce the cost of ________.

A) concept development
B) concept testing
C) commercialization
D) product development
E) test marketing


Answer: E

Under what circumstances might it be wise for a company to do little or no test marketing?

Under what circumstances might it be wise for a company to do little or no test marketing?

A) when a new product requires a major investment
B) when management is not sure of the product
C) when management is not sure of the marketing program
D) when the product has no substitutes and is new in its category
E) when the costs of developing and introducing the product are low


Answer: E

Bonneville Communications is concerned about test marketing its new device. Which of the following is NOT a disadvantage of test marketing that would likely concern Bonneville Communications?

Bonneville Communications is concerned about test marketing its new device. Which of the following is NOT a disadvantage of test marketing that would likely concern Bonneville Communications?

A) Test marketing costs can be high.
B) It can take a lot of time to test market.
C) Test marketing allows time for competitors to spy and gain advantages.
D) People who are surveyed tend to tell less than the truth.
E) Test marketing does not guarantee success.


Answer: D

Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.

Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.

A) test marketing
B) focus group surveys
C) commercialization
D) post-testing
E) business analysis


Answer: A

In a ________, new products and marketing tactics are tested online in a virtual shopping environment.

In a ________, new products and marketing tactics are tested online in a virtual shopping environment.

A) controlled test market
B) simulated test market
C) standard test market
D) random test market
E) single-city test market



Answer: B

In a ________, new products and marketing tactics are tested among specifically identified groups of customers and stores.

In a ________, new products and marketing tactics are tested among specifically identified groups of customers and stores.

A) controlled test market
B) simulated test market
C) standard test market
D) random test market
E) single-city test market


Answer: A

In the ________ stage of new-product development, products undergo rigorous tests to make sure that they perform safely and effectively or that consumers will find value in them.

In the ________ stage of new-product development, products undergo rigorous tests to make sure that they perform safely and effectively or that consumers will find value in them. 

A) business analysis
B) idea generation
C) concept development and testing
D) product development
E) marketing mix



Answer: D

Once the product or service passes the business analysis test, it moves into what stage?

Once the product or service passes the business analysis test, it moves into what stage?

A) concept development
B) product development
C) market testing
D) strategy development
E) product proposal


Answer: B

New World Releases is conducting a business analysis to determine which of the many new songs available to management should be released. Sales must be estimated before costs can be estimated. Which of the following did your text recommend for forecasting sales?

New World Releases is conducting a business analysis to determine which of the many new songs available to management should be released. Sales must be estimated before costs can be estimated. Which of the following did your text recommend for forecasting sales?

A) conducting surveys of competitors
B) considering the history of market opinions
C) considering the sales history of similar products and conducting surveys of market opinions
D) applying the PLC concept
E) none of the above


Answer: C

Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new-product development process.

Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new-product development process.

A) business feasibility
B) feasibility study
C) business analysis
D) product acceptance
E) concept testing



Answer: C

During which stage of new-product development will management most likely estimate minimum and maximum sales to assess the range of risk in launching a new product?

During which stage of new-product development will management most likely estimate minimum and maximum sales to assess the range of risk in launching a new product?

A) concept testing
B) marketing strategy development
C) business analysis
D) product development
E) test marketing


Answer: C

A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________.

A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________.

A) business feasibility plan
B) marketing strategy development
C) business analysis
D) product acceptance
E) proposal


Answer: C

The third part of the marketing strategy statement includes all of the following EXCEPT ________.

The third part of the marketing strategy statement includes all of the following EXCEPT ________.

A) long-run sales
B) profit goals
C) marketing mix strategies
D) short-run sales
E) A and C


Answer: D

The second part of the marketing strategy statement outlines the product's planned price, distribution, and ________ for the first year.

The second part of the marketing strategy statement outlines the product's planned price, distribution, and ________ for the first year.

A) advertising
B) promotional mix
C) marketing budget
D) positioning
E) target market


Answer: C

The first part of the marketing strategy statement describes the target market; the planned product positioning; and goals for sales, profits, and ________.

The first part of the marketing strategy statement describes the target market; the planned product positioning; and goals for sales, profits, and ________.

A) market share
B) product longevity
C) secondary markets
D) promotional mixes
E) life-cycle duration



Answer: A

After concept testing, a firm would engage in which stage in developing and marketing a new product?

After concept testing, a firm would engage in which stage in developing and marketing a new product?

A) idea screening
B) marketing strategy development
C) business analysis
D) product development
E) test marketing



Answer: B

For some ________, a simple description consisting of a word or picture might be sufficient.

For some ________, a simple description consisting of a word or picture might be sufficient.

A) concept tests
B) test markets
C) marketing strategies
D) product developments
E) business analyses


Answer: A

With what groups do firms conduct concept testing for new products?

With what groups do firms conduct concept testing for new products?

A) suppliers
B) employees
C) target customers
D) manufacturers
E) competitors


Answer: C

In the concept testing stage of new-product development, a product concept in ________ form is presented to groups of target consumers.

In the concept testing stage of new-product development, a product concept in ________ form is presented to groups of target consumers.

A) physical or symbolic
B) experiential
C) final
D) market-tested
E) commercial


Answer: A

______ calls for testing new-product concepts with groups of target consumers.

______ calls for testing new-product concepts with groups of target consumers. 

A) Concept development
B) Concept testing
C) Idea generation
D) Idea screening
E) Test marketing

Answer: B

An attractive idea must be developed into a ________.

An attractive idea must be developed into a ________.

A) product idea
B) product concept
C) screened product
D) test market
E) product strategy



Answer: B

A ________ is the way consumers perceive an actual or potential product.

A ________ is the way consumers perceive an actual or potential product.

A) product idea
B) product concept
C) product image
D) test market
E) concept test

Answer: C

A detailed version of a new idea stated in meaningful customer terms is called a ________.

A detailed version of a new idea stated in meaningful customer terms is called a ________.

A) product idea
B) product concept
C) product image
D) product proposal
E) product movement



Answer: B

Which of the following is most likely to be included in an executive's write up of a new-product idea to be presented to a new-product committee?

Which of the following is most likely to be included in an executive's write up of a new-product idea to be presented to a new-product committee?

A) the proposed customer value proposition
B) the product image
C) the marketing strategy
D) the business analysis
E) the planned market rollout


Answer: A

The owners of GrayBerry Gifts have just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs. The owners will begin the first idea-reducing stage, called ________, to arrive at a realistic number to adopt.

The owners of GrayBerry Gifts have just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs. The owners will begin the first idea-reducing stage, called ________, to arrive at a realistic number to adopt.

A) business analysis
B) idea generation
C) concept testing
D) idea screening
E) concept development


Answer: D

The purpose of idea generation is to create a ________ number of ideas. The purpose of succeeding stages is to ________ that number.

The purpose of idea generation is to create a ________ number of ideas. The purpose of succeeding stages is to ________ that number.

A) small number; reduce
B) small number; increase
C) large number; increase
D) large number; reduce
E) limited number; sustain



Answer: D

Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new-product innovation process?

Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new-product innovation process?

A) brainstorming
B) idea screening
C) crowdsourcing
D) outsourcing
E) concept testing


Answer: C

Your firm asks you to consult external sources for new-product ideas. All of the following are common external sources EXCEPT ________.

Your firm asks you to consult external sources for new-product ideas. All of the following are common external sources EXCEPT ________.

A) customers
B) suppliers
C) competitors
D) trade shows and magazines
E) the firm's executives



Answer: E

Which of the following is NOT a recommended method for companies to tap into their customers as sources for new-product ideas?

Which of the following is NOT a recommended method for companies to tap into their customers as sources for new-product ideas?

A) analyzing customer complaints and questions
B) relying heavily on customers to know what types of technical products they need
C) working alongside customers to get ideas and suggestions
D) turning customers into cocreators
E) putting customer-created products on the market



Answer: B

Your company decides to use only internal sources for developing new-product ideas. Which of the following would NOT be consulted?

Your company decides to use only internal sources for developing new-product ideas. Which of the following would NOT be consulted?

A) executives and professionals
B) company records and data
C) intrapreneurial programs
D) suppliers
E) salespeople



Answer: D

Executives, manufacturing employees, and salespeople are all examples of ________.

Executives, manufacturing employees, and salespeople are all examples of ________.

A) external sources for new-product ideas
B) internal sources for new-product ideas
C) core members of innovation management systems
D) research and development team members
E) test marketers


Answer: B

New-product development starts with ________.

New-product development starts with ________.

A) idea generation
B) idea screening
C) concept development
D) concept testing
E) test marketing



Answer: A

Your firm added three new products earlier this year to increase variety for customers. Two of them failed to reach even minimal sales. Which of the following is LEAST likely to have been the cause of their failure?

Your firm added three new products earlier this year to increase variety for customers. Two of them failed to reach even minimal sales. Which of the following is LEAST likely to have been the cause of their failure?

A) The products were priced too high.
B) The products were advertised incorrectly.
C) Competitors fought back harder than expected.
D) Research was too extensive.
E) The product launch was ill-timed.


Answer: D

Which of the following is NOT a potential reason for a new product to fail?

Which of the following is NOT a potential reason for a new product to fail?

A) an underestimated market size
B) a poorly designed product
C) an incorrectly positioned product
D) higher than anticipated costs of product development
E) ineffective advertising



Answer: A

Product improvements, product modifications, and original products can all be classified as ________.

Product improvements, product modifications, and original products can all be classified as ________.

A) pioneer products
B) new products
C) product strategies
D) product extensions
E) test products

Answer: B

What are the two ways that a company can obtain new products?

What are the two ways that a company can obtain new products? 

A) line extension and brand management
B) internal development and brand management
C) new-product development and acquisition
D) service development and product extension
E) market mix modification and research and development


Answer: C

Which of the following is NOT a challenge presented by the product life cycle that a firm must face?

Which of the following is NOT a challenge presented by the product life cycle that a firm must face?

A) All products eventually decline.
B) Changing tastes, technologies, and competition affect the marketing of the product as it passes through life-cycle stages.
C) A firm must be good at developing new products to replace aging ones.
D) A firm must be good at adapting its marketing strategies.
E) It is difficult to plot the stages as a product goes through them.


Answer: E