1. International Drilling Company segments its foreign markets by the income levels of a country's population. This firm segments on what basis? 

political factors

legal factors

geographic factors

economic factors

cultural factors

2. The 55-year-old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n) ________. 

market segment

target market

well-defined market

differentiated market

undifferentiated market

3. A product's position is based on important attributes as perceived by ________. 

suppliers

competitors

market conditions

consumers

managers

4. At one time Miller Beer was known as the "champagne of bottled beer." Unfortunately, Miller drinkers did not drink much beer. To increase sales, Miller was repositioned to attract the members of the middle working class. This segmentation approach is ________. 

user status

usage rate

benefit

behavioral

psychographic

5. When it first opened for business, Home Depot claimed to offer better products at lower prices. This hard-to-sustain value proposition is called ________. 

more-for-the same

more-for-less

same-for-less

more-for-more

same-for-more

6. What are the two dimensions of product quality? 

performance and resistance

level and consistency

conformance and style

design and innovation

features and design

7. A basic model without any extras is the starting point; a company can create a more premium model by adding ________. 

co-brandings

features

product quality

service variability

conformance

8. A company can increase its business in four ways. Which is NOT one of these ways? 

It can add new product lines, thus widening its product mix.

It can lengthen its existing product lines.

It can add more versions of each product and thus deepen its product mix.

It can discontinue some of its lines.

It can increase the consistency of its product mix.

9. Mabel Lu is planning to buy a new washing machine. She notices that they come in numerous price ranges. She wants to make sure she gets the most for her money. This product is a(n) ________ product. 

augmented

specialty

convenience

shopping

unsought

10. An apparel marketer is planning to launch an existing brand name into a new product category. Which brand development strategy is being implemented? 

line extension

brand extension

multibranding

new brands

rebranding

11. A manufacturer with a product in the decline stage of the product life cycle might decide to ________ if it has reason to hope that competitors will leave the industry. 

harvest the product

maintain the product without change

drop the product

search for replacements

delay planning

12. Which of the following statements best explains why idea screening may be the most import step of new product development? 

It increases the number of ideas generated.

Some potentially profitable ideas may be ill perceived by the idea screeners.

Some ideas that will become market disasters may be originally viewed favorably by the idea screeners.

It gives research and development team members an opportunity to gather consumer feedback.

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.

(Both options are correct)

13. 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. 

customer-centered new-product development

sequential new-product development

team-based new-product development

innovation management system

consumer composite

14. Flurrbies, winter accessories which fell in and out of favorability with customers quickly, are an example of a ________. 

style

fashion

fad

product idea

market strategy

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

regularly reviewing sales

regularly reviewing market shares

regularly reviewing costs and profit trends

regularly reviewing management's pet projects

none of these

16. When using price steps, the seller must establish perceived ________ that support the price differences among the products in the line. 

nonprice competition

value differences

quantity levels

images

strategies

17. When amusement parks and movie theaters charge admission plus fees for food and other attractions, they are following a(n) ________ pricing strategy. 

by-product

optional-product

captive-product

skimming

penetration

18. Trade or functional discounts are offered by manufacturers to which of the following? 

channel members who perform tasks that the manufacturer would otherwise have to perform

consumers who earn a price reduction for buying in bulk

intermediaries such as financing institutions as a cost of doing business with them

manufacturers that agree to exclusive distribution contracts

the government market and other organizations that require bid proposals

19. The New Age Gallery has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________. 

time-based pricing

location pricing

customer-segment pricing

revenue management pricing

generational pricing

20. When a manufacturer offers a ________, customers buy products from manufacturers' dealers within a specified time period and the manufacturer sends the customer a check. 

cash rebate

special event price

dealer reduction

promotional pricing reward

discount allowance