Question 1: Guarantees are most effective in two situations. The first is when the company or products are not well known. The second is when the product's quality is ________ to competition.

A) superior

B) inferior

C) equivalent

D) different

E) not known

Question 2: Competition for luxury brands must be defined narrowly.

True

False

Question 3: Customer training and customer consulting are two areas for service differentiation that manufacturers can use with their products.

True

False

Question 4: A product is anything that can be offered to a market to satisfy a want or need.

True

False

Question 5: In increasingly fast-paced markets, price and technology are not enough. ________ is the factor that will often give a company its competitive edge and is defined as the totality of features that affect how a product looks, feels, and functions in terms of customer requirements.

A) Reliability

B) Conformance

C) Design

D) Performance

E) Style

Question 6: The product hierarchy stretches from basic needs to particular items that satisfy those needs.

True

False

Question 7: Companies normally develop product lines rather than a single product and introduce price steps such as a low-, average-, and high-priced computer system.

True

False

Question 8: The brand promise for ________ is "the product you buy is of highest esteem, based on its timeliness, elegant design and the high quality, which is derived from the excellence of our craftsmen."

A) Patrón

B) Montblanc

C) Armani

D) Hermés

E) Sub-zero Refrigerators

Question 9: Sales-wave research can be implemented quickly and carried out without final packaging and advertising.

True

False

Question 10: Which of the following methodologies takes the list of desired customer attributes (CAs) generated by market research and turns them into a list of engineering attributes (EAs) that engineers can use?

A) control system formation

B) quality function deployment

C) quality control processes

D) marketing control

E) rapid prototyping

Question 11: A team formed at Intercom Inc. to generate ideas for new products conducts frequent meetings and engages in activities such as mind mapping and brainstorming. Most of the meetings are conducted at informal locations away from office. These workplaces are called ________.

A) contextual bases

B) skunkworks

C) research centers

D) idea funnels

E) stage-gate systems

Question 12: _______ teams are cross-functional groups charged with developing a specific product or business.

A) Fundamental

B) Virtual

C) Venture

D) Transitory

E) Elemental

Question 13: ________ is the effect one person has on another's attitude or purchase probability.

A) Sharing power

B) Collaborative power

C) Personal influence

D) Brand power

E) Market influence

Question 14: Armordo is a famous vacuum cleaner brand in Africa. Clara has heard of Armordo and she knows that the product is a success. She has started considering whether or not to buy the vacuum cleaner. What stage of the consumer-adoption process is Clara in?

A) awareness

B) adoption

C) interest

D) trial

E) evaluation

Question 15: Some firms might delay a new product launch until after the competitor has borne the cost of educating the market and its product may reveal flaws the late entrant can avoid. This can be classified as a parallel entry.

True

False

Question 16: A group of college graduates decides to start a business. Though they are knowledgeable in various business domains, they are unable to arrive at a valuable business idea. They decide to search for ideas in a structured manner. They meet and start discussing everyone's ideas. Each idea is recorded and then the thoughts that come up in relation to the ideas are written down and discussed. This process helps them to finalize a business plan. What technique is used here?

A) morphological analysis

B) forced relationship analysis

C) attribute listing

D) reverse assumption analysis

E) mind mapping

Question 17: Survival-age distribution refers to the number of customers that the product has in year one, two, three, and so on.

True

False

Question 18: When PepsiCo sold its cola syrup to Russia for rubles and agreed to buy Russian vodka at a certain rate for sale in the United States, it was engaged in the form of countertrade known as an offset.

True

False

Question 19: _______ pricing takes into account a host of inputs, such as the buyer's image of the product performance, the channel deliverables, the warranty quality, customer support, and attributes such as the supplier's reputation, trustworthiness, and esteem.

A) Going-rate

B) Value

C) Auction-type

D) Perceived-value

E) Markup

Question 20: The airline and hospitality industries use ________, by which they offer discounted but limited early purchases, higher-priced late purchases, and the lowest rates on unsold inventory just before it expires.

A) special-customer pricing

B) location pricing

C) yield pricing

D) cash rebates

E) customer-segment pricing

Question 21: When hotels drop their rates on the weekends, this form of price discrimination is known as ________ pricing.

A) image

B) channel

C) location

D) product-form

E) time

Question 22: Today, consumers are price takers and accept prices at face value or as given.

True

False

Question 23: In markets that are characterized by products that are highly homogeneous, how should a firm react to a competitor's reduction in price?

A) substitute expensive materials or ingredients

B) augment the product

C) reduce product services

D) reduce product features

E) shrink the amount of the product available

Question 24: Companies that aim to ________ strive to be affordable luxuries.

A) maximize their market share

B) be product-quality leaders

C) pursue value pricing

D) survive in the market

E) partially recover their costs

Question 25: In second-degree price discrimination, the seller charges ________.

A) different prices for the same product depending on the channel through which it is sold

B) different prices depending on the season, day, or hour

C) less to buyers of larger volumes

D) different prices for different versions of the same product

E) a separate price to each customer depending on the intensity of his or her demand.