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Marketing Unit 3 Review [2310169]StudentClassDate

1.Which is one way businesses use computer technology to obtain information to improve their product or service mix?

A. By mailing questionnaires to customers

B. By tracking visitors to their websites

C. By compiling detailed databases

Marketing Unit 3 Review / 60

D. By preparing interactive software programs

2.Why might profits sometimes decline for the company that first introduced the product during the growth stage of a product’s life cycle?

A. Because sales decline in the growth stage

B. Because marketing strategies are adjusted


C. Because competitors have entered the market

D. Because production is more efficient

3.What is a technologically advanced method that allows businesses to produce products that are specialized for a few customers?

A. Intermittent conversion

B. Automatic


production

C. Computerized robotics

D. Mass customization

4.When a company uses its product wrapping to promote the preservation of an endangered animal species, it is engaging in which practice?

A. Political lobbying

B. Environm


ental labeling

C. Cause packaging

D. Provocative branding

5.Which is an unethical situation in product or service management?

A. Vincent Electronics discontinues production of a slow-moving solar calculator


B. Travis Manufacturing uses recycled materials for its product packaging.

C. Donna's Dress Boutique obtains deep discounts from a new clothing designer.

D. The Simpson Company embellishes the information that it


places on its product labels

6.Five years after a new product has been introduced, sales begin to level off because customers are purchasing the competitor’s brand. Which strategy would be mostappropriate to use in this situation?

A. Take the product off the market.

B. Do nothing; fluctuations in sales are common.

C. Modify the


product to renew customer interest.

D. Triple the advertising budget for the product.

7.Which activity is addressed in the product- or service-management function?

A. Setting discounts to clear products from inventory

B. Determining where


products will be offered for sale

C. Focusing promotional activities on a new product’s release

D. Eliminating products that are slow sellers

8.Which is a way that a business can extend the life cycle of an established product?


A. By promoting the product to current users

B. By finding new uses for the product

C. By restricting distribution

D. By attracting consumers who are innovators


9.Which is an example of an ethical issue that a product or service manager might face?

A. Use of color on the label

B. Use of environmentally friendly packaging

C. Use of packaging as a means of promotion

D. Use of nutrition information on a


food label

10.A business is behaving unethically if its product's label contains what component?

A. Nutritional values

B. Recyclable materials

C. Mandatory requirements

D. Misleading


information

11.Why does a company need to know the life-cycle stages of its products?

A. To prevent imitators from entering the market

B. To find new uses for the product

C. To predict the length of the life cycle


D. To adapt its marketing strategies

12.Why is the quality level of a product an important product or service management decision?

A. It identifies a product's brand.

B. It reflects the image of the business.


C. It protects the consumers.

D. It refers to the way the product works.

13.Why should a business continue to monitor an established product?

A. To determine the acceptance of a product by a limited market


B. To make sure that a marketing plan is firmly in place

C. To make changes in order to extend a product's life cycle

D. To evaluate how a product might fit the firm's product mix


14.Which technological tools help employees simultaneously access the same information about a business's products?

A. Memory card

B. Micro-portal

C. Intranet

D. Generator

15.Which is a reason that a business would make changes to its products?

A. To keep


up with changing consumer preferences

B. To spread risk over a wider area

C. To predict the success of the changed products

D. To make room for other products


16.John runs the marketing department at a well-known clothing store. He needs to solve a problem the company is having with too much inventory remaining after each sale. He gets his marketing team together and starts asking everyone to shout out possible solutions to this problem. John writes down everything on a white board for everyone to view. This is an example of what type of ideation method?

A. Starbursting

B. Mind Mapping

C. Substitute Products

D. Brainstorming

17.Our market share has declined by 5 percent in a growing market.


A. This is a symptom of a problem.

B. This is a problem.

18.What is the difference between programmed thinking and lateral thinking?

A. Programmed thinking follows a logical thinking process and lateral thinking follows an illogical thinking process.

B. Lateral thinking


follows a logical thinking process and programmed thinking follows an illogical thinking process.

C. Both methods follow a logical thinking process.

D. Both methods follow an illogical thinking process

19.The economy affects our business negatively.




20.A high school cafeteria identified a problem with students wasting food. The principal called the school improvement team together for a problem-solving session. The team began listing food items that students might like better than the ones they were throwing away in the trash. This method of ideation is using what method?

A. Mind mapping

B. Braindrawing

C. Substitute products


D. Attribute listing

21. A major shopping mall management company wanted to create a new idea for a shopping mall in a rural community. Terrance, the marketing manager, called in the marketing team members to a conference room that had an easel with chart paper and colored markers. Terrance drew a picture of the outline of a shopping mall. He then handed the marker to a marketing team member and asked her to draw something that could be in a rural shopping mall. He directed each team member to add to the drawing until a complete shopping mall design was created. This method of lateral thinking is called:

A. Braindrawing

B. Mind mapping

C. Programmed thinking


D. Forced association

22.We aren’t running our business in the correct manner.



23.What is the difference between braindrawing and mind mapping?

A. Braindrawing is a


programmed thinking method and mind mapping is a lateral thinking method.

B. In the braindrawing method you draw diagrams and pictures, and in the mind mapping method you write down words and draw lines to related words.

C. Both methods are programmed thinking methods. One uses diagrams and the other uses words.


D. Both methods are lateral thinking methods and both use only diagrams to represent new ideas.

24. Delores couldn’t get her team of marketing experts to come up with any good new product ideas using programmed thinking methods so she decided to try a lateral thinking method to get some more creativity. Delores wrote down one of their products in the middle of the white board. She then drew a six pointed star around the product name and wrote the questions who, what, when, where, how and why on each point of the star and asked her team to come up with questions starting with each word on each point of the star and later the group answered the questions with a group discussion. What method did Delores use to generate new ideas?

A. Attribute listing

B. Braindrawing


C. Forced association

D. Starbursting

25.The questions on each point of the starbursting star are:

A. who, when, why, how much, how many, and where.

B. who, what, when, where, how, and why.


C. what, how much, price, product, promotion, place.

D. promotion, selling, pricing, MIM, PSM, and distribution.

26.XYZ Corporation is trying to come up with an idea for a new product to add to its snack food product line. The marketing manager brings his marketing team together in a conference room and they begin to list as many features of one of their snack food items as possible. A marketing research assistant looks at the list of features and asks if they can possibly modify one of the features listed to come up with a new snack food item. This is an example of what type of ideation method?

A. Brainstorming

B. Lateral thinking


C. Trend seeking


27.A major food service company was trying to come up with a new idea for a candy item. The marketing manager brought her team together for an ideation session. Mandy laid all the company’s candy items on a table, in a row, and started matching up candies that did not typically belong together. By doing this activity, the team came up with a mixture of three candy items that, combined, made a new candy item addition to their product line. This method of lateral thinking is called:

A. Synectics

B. Mind mapping


C. Morphological analysis


28.Our competitor has doubled production.



29.Our customers are not brand loyal to our products.




30.Our brand image has a negative perception by our customers.




31.Profits have declined by 25 percent from one year ago.



32.Why would a business use a broad product mix?

A. To assure that the product lines are related

B. To promote one-stop shopping


C. To decrease legal liabilities

D. To relate the products to the target market

33.The direction in which a market or industry is moving is called a:

A. trend.

B. movement.


C. circle.

D. brainstorm.

34.Costs have increased by 10 percent over last year.




35.Sales have dropped for a particular product 10 percent from last month.



36.Unemployment rose by 2 percent last month.




37.Why do companies use brands for their products?

A. To differentiate their products

B. To charge higher prices

C. To encourage materialism

D. To demonstrate creativity


38.In which stage of brand loyalty do people become aware of the brand?

A. Recognition

B. Satisfaction

C. Insistence

D. Preference


39.A business that says it tries harder because its product is not number one, is using product positioning to achieve which goal?

A. Motivate

B. Organize

C. Upgrade

D. Compete

40.Brand or trade names are used primarily to identify which component?

A. The market


B. The standard

C. The product

D. The trend

41.A company that makes ink pens claims no other pen on the market uses a type of ink that changes color when exposed to light. The company is positioning its product according to which strategy?

A. Price and quality


B. Features and benefits

C. Unique characteristics

D. Relation to other products in a line

42.A drawback of brands as compared to unbranded products is that which action happens?

A. Differentiation of products


B. Sell of products at higher prices

C. Creation of brand loyalty

D. Requirement of trademark registration

43.A company advertises that its products are durable and lightweight, and come in a variety of colors. Which strategy is the company using to position its products?

A. Price and quality


B. Features and benefits

C. Unique characteristics

D. Relationship to other products

44.Charging premium prices for lumber to hurricane victims because supply is limited is a practice of which behavior?

A. Unethical and illegal


B. Unethical and legal

C. Ethical and legal

D. Ethical and illegal

45.The Standard Oil Company's price-fixing tactics and monopolistic control over oil refining and distribution in the late 1800's was a major contributing factor in the enactment of which piece of legislation?

A. Sherman Antitrust Act


B. Clayton Act

C. Robinson-Patman Act

D. Federal Trade Commission Act

46.Which is the advantage to a business of using bar-code pricing?

A. Easier for customers to read


B. Reduces required business security

C. Easier to change prices

D. Reduces number of employees needed for sales

47.Which is an example of an unethical pricing practice?

A. A company set prices for its


products low in an attempt to drive its competitors out of business.

B. A business increases its prices when the cost of the materials to make the products increases.

C. A firm sets a business objective to increase its profit margins over the next five


years.

D. A business prices a new product line to reflect high quality and status.

48.A business charges a small company a higher price for a product than it charges a large company for the same product. What does this activity represent?

A. Price discrimination

B. Controlled


pricing

C. Price competition

D. Regulated pricing

49.Which is an external factor that affects the price that a business charges for its products?

A. Operating costs

B. Variable expenses


C. Economic conditions

D. Employee benefits

50.Why do some new companies set their selling prices as low as they can?

A. To eliminate all possible competition

B. To get market share as fast as


possible

C. To earn a high return on investment

D. To quickly make a large profit

51.Which is an example of an ethical issue as it relates to predatory pricing?

A. An international book publisher sells similar products


to similar customers at different prices.

B. A tire producer introduces a new item to its product line and sets the initial price very low.

C. A salesperson encourages a customer to purchase an extended vehicle warranty for a new car.


D. A local ice-cream shop prices menu items below cost in an effort to eliminate its competition.

52.One way that many businesses use technology to reduce the costs associated with marking prices on products is by using which option?

A. Electronic scanning devices

B. Automate


d inventory systems

C. Preprinted gummed labels

D. Computer-generated tags

53.Technology allows manufacturers to preprint product packaging with Universal Product Codes (UPCs). Which information would be available?

A. Pricing


B. Sampling

C. Operating

D. Selling

54.Wal-Mart and Sears attract two different types of customers because of their pricing strategies. They have established prices based on which decisions?

A. Promotional

B. Customer


C. Place

D. Profit

55.What might happen if a business’s customers feel that they are not getting the most value for their money?

A. Sales will remain the same.

B. Sales will increase.

C. Customers will spend money


elsewhere.

D. Customers will purchase more.

56.What would be the most appropriate pricing strategy for a business in a small town where unemployment has skyrocketed and the economy is in a downturn?

A. Below-cost pricing

B. High-level pricing


C. Odd-cents pricing

D. Flexible pricing

57.Which costs do businesses usually include in the prices of their products?

A. Regulations

B. Inflation

C. Transportation


D. Orientation

58.Which pricing tactic might be considered questionable by some businesses?

A. Matching the prices of a competitor

B. Developing a complex pricing structure

C. Marking up prices


to earn a profit

D. Providing a reference price

59.Companies A, B, and C sell similar products. Together, they recently decided to sell their products for the same price. The businesses are engaging in which unethical activity?

A. Bait and switch

B. Price-fixing

C. Loss-


leader pricing

D. Gray markets


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