1.Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is called

A.consumer differentiation.

B.psychographics.

C.market segmentation.

D.market delineation.

E.aggregation marketing.

2.Market segmentation involves aggregating prospective buyers into groups that will respond similarly to a marketing action and

A.will pay attention to marketing messages.

B.have common needs.

C.be responsive to marketing research.

D.use the same payment methods.

E.go shopping on a regular basis.

3.Which strategy involves a firm's using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different and better than competing products?

A.dual distribution

B.market differentiation

C.product differentiation

D.market penetration

E.full coverage marketing

4.Small athletic shoe manufacturers such as Vans have targeted niche markets and made shoes designed to satisfy the needs of different specific groups of customers. This strategy is an example of

A.market segmentation.

B.mass customization.

C.just-in-time manufacturing.

D.synergy.

E.sales forecasting.

5.Chip-N-Dough Cookie Company will let you select cookies and put a photo of yourself on the tin. This is an example of

A.mass customization.

B.synergy.

C.target marketing.

D.how the 80/20 rule is implemented.

E.repositioning.

6. The first step in segmenting and targeting markets is to

A.recognize a need.

B.group potential buyers into segments.

C.create product groupings.

D.estimate size of the overall market.

E.develop a market-product grid.

7. Street & Smith publishes the same baseball magazine with exactly the same stories but with 16 different covers to appeal to baseball fans in 16 different regions of the U.S. What is the market segmentation basis Street & Smith is using?

A.psychographic segmentation

B.outlet-type segmentation

C.demographic segmentation

D.behavioral segmentation

E.geographic segmentation

8.Campbell's found that its canned nacho cheese sauce, which could be heated and poured directly onto nacho chips, was too hot for Americans in the East and not hot enough for those in the West and Southwest. Today, Campbell's plants in Texas and California produce a hotter nacho cheese sauce than that produced in the other plants. Campbell's is using __________ segmentation.

A.age

B.behavioral

C.socioeconomic

D.geographic

E.perceptual

9.More than half of all U.S. households are made up of only one or two persons, so Campbell's packages meals with only one or two servingsfrom Great Starts breakfasts to L'Orient dinners. Campbell's is using __________ to segment its market.

A.usage rates

B.usage patterns

C.buyer situations

D.demographic characteristics

E.psychographic characteristics

10.Proctor & Gamble (P&G) decided to skip a generation of consumers when it began to market Old Spice deodorant. The target market is men aged 18 to 34, who don't remember the Old Spice brand sold to their grandfathers many years ago. P&G is using which type of segmentation variable?

A.regional

B.demographic

C.lifestyle

D.geographic

E.psychographic

11.At a Hallmark store you can find several different product lines of greeting cards, likely including Fresh Ink, Nature's Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cardsall made by Hallmark for sale in its stores and intended to appeal to different target markets. The Mahogany line is designed to appeal to African-Americans. This is an example of __________ segmentation.

A.regional

B.demographic

C.lifestyle

D.geographic

E.psychographic

12.People who live active, outdoor lives are part of the target market for REI, a retail outdoor outfitter. This particular part of the REI target market suggests that REI would segment the market based on which type of customer variable?

A.psychographic

B.behavior

C.buying situation

D.socioeconomic

E.geographic

13. Segmentation based on some observable actions or attitudes by prospective customerssuch as where they buy, what benefits they seek, how frequently they buy, and why they buy is called

A.demographic segmentation.

B.psychographic segmentation.

C.geographic segmentation.

D.behavioral segmentation.

E.socioeconomic segmentation.

14. The quantity consumed or patronagestore visitsduring a specific period is called

A.trial.

B.service inventory.

C.usage rate.

D.consumption rate.

E.turnover.

15. A national car rental firm targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. Its market is likely segmented by

A.usage rate.

B.benefits offered.

C.demographics.

D.geography.

E.psychographics.

16.The 80/20 rule is a concept that suggests

A.eighty percent of a firm's inventory should be readily available, and twenty percent should be reserved for emergency demand.

B.eighty percent of a firm's first time users will become brand loyal and twenty percent of the firm's first time users will use the product only once.

C.eighty percent of a firm's sales are obtained from twenty percent of its customers.

D.eighty percent of a firm's expenditures are tax deductible and twenty percent are not.

E.eighty percent of a firm's products will ultimately be sold at the original markup price, and twenty percent will not.

17.What does the term product positioning refer to?

A.a careful analysis of cross tabulations

B.shelf locations in major chain, grocery, and department stores

C.geographic segmentation, often within major metropolitan areas

D.the place a product offering occupies in consumers' minds on important attributes relative to competitive products

E.an old and outdated concept no longer considered in marketing planning

18.A product is a good, service, or idea consisting of a __________ that satisfies consumers and is received in exchange for money or some other unit of value.

A.warranty from the seller

B.bundle of tangible and intangible attributes

C.bundle of tangible attributes

D.a tangible received in exchange for a person's time and

E.bundle of intangible attributes

19.Which of the following is the best example of a nondurable good?

A.laundry detergent

B.shoes

C.insurance

D.iPod

E.eye surgery

20. Which of the following is the best example of a durable good?

A.automobile

B.soda

C.haircut

D.gasoline

E.lawn care

21.Among consumer products, which is the best example of a nondurable good?

A.a Volvo automobile

B.Merrill-Lynch financial advice

C.Wrigley's chewing gum

D.Toro lawn mowers

E.Mayo Clinic health services

22.__________ are defined as intangible activities or benefits that an organization provides to consumers in exchange for money or something else of value.

A.Nondurable goods

B.Unsought products

C.Durable goods

D.Services

E.Semidurable goods

23.Which of the following would most likely be considered a consumer product?

A.ball bearings

B.back hoe

C.printing press

D.suitcase

E.mainframe computer

24. __________ are items you purchase frequently, conveniently, and with a minimum of shopping effort.

A.Industrial products

B.Shopping products

C.Specialty products

D.Convenience products

E.Unsought products

25.You greatly admire a set of Waterford crystal serving bowls you see at a dinner party and decide to buy two, despite the price of $250 each. They are only available in your area in a Waterford shop 40 miles from campus. Into which classification of consumer products would the crystal bowls fall?

A.convenience products

B.shopping products

C.specialty products

D.unsought products

E.derived products

26.Which of the following is most likely to be an example of an unsought product?

A.A MP3 player

B.A Lexus LS 400 luxury automobile

C.A flight on American Airlines

D.Burial Insurance

E.Ivory soap

27.Very infrequent purchases and only some comparison shopping are characteristic of the purchasing behavior for a type of consumer service (such as cosmetic dentistry) that a prospective buyer may not initially want. These types of products are called

A.shopping products.

B.convenience products.

C.specialty products.

D.unsought products.

E.support products.

28.Which of the following is an example of product lines?

A.Nike's shoes and clothing

B.the Mayo Clinic's inpatient hospital care, outpatient physician services, and medical research

C.the Daniels College of Business executive programs, the MBA program, and the undergraduate program.

D.Little Remedies' gas relief drops, laxative drops, and other nonprescription medicines for infants and children

E.All of the above are examples of product lines.

29.Which of the following is the best example of a people-based service?

A.movie theaters

B.airlines

C.lawyers

D.vending machines

E.taxis

30.Intangibility of service means

A.the value of the service provided can only be determined using subjective criteria.

B.the services can't be held, seen, or touched before the purchase decision.

C.the service cannot be described, only experienced.

D.the quantity can vary.

E.the quality can vary.

31.Organizations attempt to reduce the inconsistency of service delivery through

A.higher incentives to employees for satisfactory performance.

B.pay reductions for poor performance.

C.the reduction of customer contact points in the service delivery process.

D.standardization and training.

E.all of the above.

32.In which of the following examples would a consumer have difficulty separating the deliverer of the service from the service itself?

A.a dental visit

B.a golf lesson

C.a university marketing class

D.a haircut.

E.all of the above

33.Sources of good new-product ideas include

A.customers.

B.employees.

C.research and development.

D.competitors.

E.all of the above.

34.A product refers to

a.a tangible good received in exchange for a person's time and effort.

b.intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.

c.a good that has in some way been altered, combined, or improved and sold to organizational buyers consumers.

d.is a thought that leads to an action such as a concept for a new invention.

e.a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

35.A nondurable good is defined as a/an:

a.item consumed in one or a few uses.

b.item that usually lasts over an extended number of uses.

c.item that lasts at least one year without becoming obsolete.

d.product purchased only for the use of ultimate consumers.

e.product used in the production of other products.

36.Services refer to

a.ideas that consist of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

b.intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.

c.philanthropic activities performed in without expectations of monetary remuneration.

d.any intangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own.

e.any tangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own.

37.With respect to price, which of the following type of consumer product is most likely be very expensive?

a.convenience product

b.shopping product

c.discretionary product

d.specialty product

e.unsought product

38.Unsought products are

a.any products associated with impulse buys at the supermarket checkout counter.

b.products that were once very popular but that have become obsolete because they are in the decline stage of their product life cycle.

c.items within a company's product line that do not perform as well as others in the line.

d.products that the consumer does not know about or knows about but does not initially want.

e.products that people choose to ignore because they find them offensive from a moral or ethical perspective.

39.The intangibility element of a service refers to the fact that it

a.has value that can only be determined by using subjective criteria.

b.can't be held, seen, or touched before the purchase decision.

c.requires the ability to provide the service even in times of no demand.

d.can maintain or accumulate good will with customers.

e.can be objectively evaluated.

40.To help consumers assess and compare services, marketers try to make them __________ or show the benefits of using the service.

a.tangible

b.intangible

c.consistent

d.timely

e.measurable

41.A group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same types of outlets, or fall within a given price range is referred to as a __________.

a.product class

b.product mix

c.product category

d.marketing category

e.product line

42.All of the different product lines offered by an organization are collectively referred to as a

a.product class.

b.product mix.

c.product SKUs.

d.marketing mix.

e.target mix.

43.The product life cycle refers to __________.

a.the average life span of a product

b.a concept that describes the stages a new product goes through from product concept to commercialization

c.a concept that describes the stages a product goes through in the marketplaceearly growth, accelerated development, maturity, and decline

d.a concept that describes the stages a product goes through in the marketplaceintroduction, growth, maturity, and decline

e.the amount of time it takes a product innovation to completely diffuse in the marketplace

44.What is the marketing objective for the introduction stage of the product life cycle?

a.harvesting

b.market share

c.stress differentiation

d.gain awareness

e.maintain brand loyalty

45.At which stage of the product life cycle is a company likely to have its most complete product line?

a.introduction

b.growth

c.maturity

d.decline

e.accelerated development

46.A brand name refers to __________.

a.a product's identifier that only can be spoken

b.a product's identifier that consists of only the symbol or design that cannot be spoken

c.any word, device (design, sound, shape or color), or combination of these used to distinguish a seller's goods or services

d.the commercial, legal name under which a company does business

e.the identification of an organization's products based upon individual SKUs

47.Brand personality refers to __________.

a.the personification of a brand in terms of its benefits

b.a brand name that cannot be spoken

c.a set of human characteristics associated with a brand name

d.the added value a brand name gives to a product beyond the functional benefits provided

e.the embedded association between a company spokesman or paid celebrity and the product itself