A survey company used a dollar value to measure the ___________ of Ben and Jerry's Ice Cream, as compared to some of its worthy competitors. Essentially, the survey firm evaluated Ben and Jerry's by measuring net value of several components that would comprise the brand's perception and image to ice cream customers.

a) brand intrigue

b) brand equity

c) time line

d) value package

Answer: B

Differentiating your product so that it will appeal to additional market segments occurs most often at which stage of the product life cycle?

a) Growth

b) Maturity

c) Decline

d) Introduction

Answer: B

Upscale retailers, such as Nordstrom, feature customer service as their significant point of difference and use that difference to compete with less expensive stores. This is known as ___________ competition.

a) target forcing

b) upscale

c) point-of-difference

d) nonprice

Answer: D

Fountain of Youth Tea Company changed their glass bottles to streamlined thermos-like, blue sports bottles that fit nicely on bicycles and in car holders. A packaging innovation such as this could actually be perceived by the buyer as a _____________.

a) new product innovation

b) change in the environmental mix

c) change in the product focus to the B2B market

d) change in the classification of the product

Answer: A

Soho Bottling was started in a kitchen in Brooklyn, New York, and makes soft drinks. After going through the various steps in the new-product development process, when the company finally entered the commercialization stage of the new product development process, they knew to succeed they would have to:

a) decide what stage of the product life cycle the product was in.

b) determine the appropriate product bundling strategy.

c) promote the product to distributors and retailers to get wide distribution.

d) do the appropriate concept and environmental testing.

Answer: C

If fixed costs are $100,000, variable cost per unit is $40, and the selling price is $60, how many units must be sold for the firm to break even?

a) 5,000

b) 2,500

c) 10,000

d) 1,000

Answer: A

The importance of the product life cycle is that:

a) all products go through the product life cycle in the same length of time.

b) in the growth stage, marketers differentiate their product from competitors.

c) most brands follow the same pattern in the product life cycle.

d) different stages in the product life cycle call for different marketing strategies.

Answer: D

The process of taking a product idea to consumers to test their reactions is known as:

a) product screening.

b) concept testing.

c) business analysis.

d) idea generation.

Answer: B

Rollerblade is working to make sure that when people refer to inline skating, they don't use the name Rollerblade to refer to the sport. Rollerblade is afraid that their brand name will become a:

a) private name.

b) generic name.

c) knockoff name.

d) trademark.

Answer: B

Which of the following would be considered a convenience good?

a) A microwave oven

b) An evening gown

c) An automobile battery

d) A candy bar

Answer: D

The purpose of the product life cycle is it serves as a(n) __________.

a) tool for measuring the forces of competition and the companies' break-even point

b) tool that tells the marketing manager if the product market seems to be changing

c) tool that indicates when the product has reached another stage in the cycle, and might require changes in the marketing mix

d) indication of whether price is still greater than expenses for a given product line

Answer: B

Old Navy jeans are sold exclusively at Old Navy stores. This is an example of a(n) _________ brand.

a) generic brand

b) custom coded brand

c) private-label or dealer brand

d) open-ended brand

Answer: C

When Nintendo reentered the video game market with the Wii, they priced the product lower than the newest Sony Playstation system in order to capture a large share of the market quickly. This strategy is called a:

a) EDLP.

b) skimming strategy.

c) high-low pricing strategy.

d) penetration strategy.

Answer: D

Sony and other makers of high-definition television sets have made the prices of these products more competitive, have increased the number and kinds of stores in which they are available, have offered a variety of choices, and are advertising extensively. These products appear to be in the ___________stage of the product life cycle.

a) growth

b) decline

c) introduction

d) maturity

Answer: A

Idea generation represents the first stage of _______________.

a) pricing analysis

b) commercialization

c) new-product development

d) government screening

Answer: C

Products that the consumer buys only after comparing value, quality, price, and style from a variety of sellers are known as ____________ goods and services.

a) convenience

b) specialty

c) unsought

d) shopping

Answer: D

Products that the consumer purchases like insurance, burial services, or emergency car-towing are known as ___________ goods and services because they are not products that consumers regularly evaluate and consider purchasing.

a) convenience

b) shopping

c) specialty

d) unsought

Answer: D

Most new-product ideas come from:

a) employees.

b) suppliers.

c) research and development.

d) competitors.

Answer: A

Priceline and Expedia are two online travel companies. Both are known to utilize ___________ of services such as airline flights and hotel stays to entice customers to purchase both at the same time, for a more reasonable price than what they would pay separately for each of these services.

a) trade marking

b) last-minute fanning

c) bundling

d) branding

Answer: C

When Panasonic considers how to price a new product, they determine what price they think their customers will pay, and then identify what profit the company needs. From there they determine the features they can offer on this product. This method of determining price is known as:

a) cost-based pricing.

b) target costing.

c) value pricing.

d) demand-oriented pricing.

Answer: B