Quiz 10-14 Product

25 July 2022
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question
Which of the following statements is true of an express warranty? a. ‚ÄčIt gives the impression of environmental friendliness to a product. b. It ranges from simple statements to extensive documents written in technical language.‚Äč c. ‚ÄčIt is an unwritten guarantee that a good or service is fit for the purpose for which it is sold. d. ‚ÄčIt prohibits other firms from using a brand or part of a brand without permission.
answer
b. It ranges from simple statements to extensive documents written in technical language.‚Äč
question
A _____ is not possible when a brand name has a negative or vulgar connotation in the local language. a. ‚Äčco-branding strategy b. ‚Äčone-brand-name strategy c. ‚Äčrepositioning strategy d. ‚Äčfamily branding strategy
answer
b. ‚Äčone-brand-name strategy
question
Which of the following statements is true of product lines? a. ‚ÄčThey require greater transportation and warehousing costs than product items. b. ‚ÄčThey limit the product choices offered to customers to one or two product items. c. ‚ÄčThey provide economies of scale in advertising. d. ‚ÄčThey increase a firm's manufacturing and inventory costs.
answer
c. ‚ÄčThey provide economies of scale in advertising.
question
Which of the following statements is true of a specialty product? a. ‚ÄčIt is marketed using selective, status-conscious advertising to maintain its exclusive image. b. ‚ÄčIt is widely distributed in a geographic area in order to sell sufficient quantities. c. ‚ÄčIt is unknown to a potential buyer or a known product that the buyer does not actively seek. d. ‚ÄčIt is easily substituted with products that have the same features.
answer
a. ‚ÄčIt is marketed using selective, status-conscious advertising to maintain its exclusive image.
question
Identify a true statement about specialty products. a. ‚ÄčThey are relatively inexpensive and merit little shopping effort. b. ‚ÄčThey are distributed to only a few outlets in a geographic area. c. ‚ÄčThey are easily substituted with other products. d. ‚ÄčThey are made directly available to a consumer through direct mail.
answer
b. ‚ÄčThey are distributed to only a few outlets in a geographic area.
question
_____ occurs when two brands receiving equal treatment borrow from each other's brand equity. a. ‚ÄčIngredient branding c. ‚ÄčComplementary branding d. ‚ÄčFamily branding
answer
c. ‚ÄčComplementary branding
question
Which of the following statements is true of an organization's product mix? a. ‚ÄčA wide product mix means that that the product line is deep. b. ‚ÄčA wide product mix decreases sales and profit-making potential. c. ‚ÄčFirms widen their product mix to capitalize on established reputations. d. ‚ÄčAll product items in a product mix follow a standard marketing strategy.
answer
c. ‚ÄčFirms widen their product mix to capitalize on established reputations.
question
Identify a true statement about global branding strategies. a. ‚ÄčA one-brand-name strategy reduces the ease of coordinating promotion from market to market. b. ‚ÄčA one-brand-name strategy is useful when a company markets mainly one product. c. ‚ÄčUsing different brand names in different markets leads to greater identification of the product from market to market. d. ‚ÄčUsing different brand names in different markets means that a company does not follow localization.
answer
b. ‚ÄčA one-brand-name strategy is useful when a company markets mainly one product.
question
Which of the following statements is true of an implied warranty? a. ‚ÄčIt prohibits other firms from using a brand or part of a brand without permission. b. ‚ÄčIt comes with the sale of every product under the Uniform Commercial Code. c. ‚ÄčIt ranges from simple statements to extensive documents written in technical language. d. ‚ÄčIt gives the impression of environmental friendliness to a product.
answer
b. ‚ÄčIt comes with the sale of every product under the Uniform Commercial Code.
question
Identify a true statement about a product. a. ‚ÄčAn excellent distribution channel can compensate for an inferior product. b. ‚ÄčIt is usually the starting point in creating a marketing mix for a market segment. c. ‚ÄčA consumer product and an industrial product is differentiated based on the price. d. ‚ÄčIt is the marketing mix that can be decided after choosing a promotion strategy.
answer
b. ‚ÄčIt is usually the starting point in creating a marketing mix for a market segment.
question
Reducing a product's quality: a. ‚Äčhelps firms cater to the upper classes effectively. b. ‚Äčresults in increased brand loyalty or new opportunities for market segmentation. c. ‚Äčlets a firm's manufacturer lower the price. d. ‚Äčprovides new opportunities for market segmentation.
answer
c. ‚Äčlets a firm's manufacturer lower the price.
question
Consumers usually buy a _____ only after comparing several brands or stores on style, practicality, price, and lifestyle compatibility. a. ‚Äčspecialty product b. ‚Äčshopping product c. ‚Äčmajor product d. ‚Äčconvenience product
answer
b. ‚Äčshopping product
question
The most obvious function of packaging is to: a. ‚Äčcontain products that are liquid, granular, or otherwise divisible. b. ‚Äčsecure the right of a company to use a brand or part of a brand. c. ‚Äčeven out seasonal sales patterns. d. ‚Äčprotect a brand name from being declared a generic product name.
answer
a. ‚Äčcontain products that are liquid, granular, or otherwise divisible.
question
_____ is designed to help consumers make proper product selections and lower their cognitive dissonance after a purchase. a. ‚ÄčPromotional labeling b. ‚ÄčPerspective labeling c. ‚ÄčInformational labeling d. ‚ÄčPersuasive labeling
answer
c. ‚ÄčInformational labeling
question
Product line depth refers to the number of: a. ‚Äčmarket segments a firm is willing to target or serve. b. ‚Äčproduct lines an organization offers. c. ‚Äčproduct items in a product line. d. ‚Äčcompetitors present in the market for a particular product line.
answer
c. ‚Äčproduct items in a product line.
question
Which of the following statements is true of an unsought product?‚Äč a. ‚ÄčNew products are categorized as unsought products until advertising and distribution increase consumer awareness of them. b. ‚ÄčMarketers of unsought products often use selective, status-conscious advertising to maintain the product's exclusive image. c. ‚ÄčConsumers buy unsought products regularly, usually without much planning, and at inexpensive prices. d. ‚ÄčConsumers usually buy an unsought product only after comparing several brands or stores on style, practicality, price, and lifestyle compatibility.
answer
a. ‚ÄčNew products are categorized as unsought products until advertising and distribution increase consumer awareness of them.
question
A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly in the industry. a. ‚Äčproduct line extension b. ‚Äčproduct line classification c. ‚Äčproduct line reeling d. ‚Äčproduct line contraction
answer
a. ‚Äčproduct line extension
question
In the context of adopters who participate in the diffusion process, which of the following statements is true of laggards? a. ‚ÄčThey are more likely to get their information from scientific sources and experts. b. ‚ÄčThey act as influencers and begin the viral marketing chain. c. ‚ÄčThey have the longest adoption time and the lowest socioeconomic status. d. ‚ÄčThey act as an important link in the process of diffusing ideas.
answer
c. ‚ÄčThey have the longest adoption time and the lowest socioeconomic status.
question
In which of the following ways does the product life cycle concept help marketing managers? a. ‚ÄčIt can be used to analyze a brand, a product form, or a product category. b. ‚ÄčIt informs marketers about the duration of a product in the various stages of its life cycle. c. ‚ÄčIt dictates the marketing strategy to be used for a product. d. ‚ÄčIt tells managers the length of a product's life cycle.
answer
a. ‚ÄčIt can be used to analyze a brand, a product form, or a product category.
question
The early majority is an important link in the process of diffusing new ideas because: a. ‚Äčthey are eager to try new ideas and products. b. ‚Äčthey are characterized as being venturesome. c. ‚Äčthey act as influencers and begin the viral marketing chain. d. ‚Äčthey are positioned between earlier and later adopters.
answer
d. ‚Äčthey are positioned between earlier and later adopters.
question
Which of the following statements is true of opinion leaders? a. ‚ÄčThey have the longest adoption time and the lowest socioeconomic status. b. ‚ÄčThey most likely belong to the late majority category of adopters. c. ‚ÄčThey are distinguished by demographics. d. ‚ÄčThey speed up the diffusion process through word-of-mouth communication.
answer
d. ‚ÄčThey speed up the diffusion process through word-of-mouth communication.
question
In the context of adopters who participate in the diffusion process, which of the following statements is true of the late majority? a. ‚ÄčThey are characterized as being venturesome. b. ‚ÄčThey are more worldly and more active outside their community than noninnovators. c. ‚ÄčTheir opinions heavily influence their friends and neighbors. d. ‚ÄčTheir adoption of a new product stems from pressure to conform to group norms.
answer
d. ‚ÄčTheir adoption of a new product stems from pressure to conform to group norms.
question
In the context of the new-product development process, which of the following is true of a new-product strategy? a. ‚ÄčIt is the last stage of the new-product development process. b. ‚ÄčIt refrains from adopting ideas suggested by customers and competitors. c. ‚ÄčIt involves targeting existing products at new markets. d. ‚ÄčIt must be compatible with the objectives of the marketing department, the business unit, and the corporation.
answer
d. ‚ÄčIt must be compatible with the objectives of the marketing department, the business unit, and the corporation.
question
In the context of the new-product development process, which of the following statements is true of the business analysis stage? a. ‚ÄčForecasting market share for a new entry in a new, fragmented, or relatively small niche market is easy. b. ‚ÄčThe newness of the product, the size of the market, and the nature of the competition do not affect the accuracy of revenue projections. c. ‚ÄčDepending on the nature of the product and the company, this process may be simple or complex. d. ‚ÄčCosts increase dramatically once a product idea enters the business analysis stage.
answer
c. ‚ÄčDepending on the nature of the product and the company, this process may be simple or complex.
question
Which of the following is an advantage of simultaneous product development? a. ‚ÄčIt eliminates the need for test marketing a new product. b. ‚ÄčIt eliminates the need for conducting laboratory tests on product prototypes. c. ‚ÄčIt shortens the development process and reduces costs. d. ‚ÄčIt ensures that product development occurs in highly structured stages.
answer
c. ‚ÄčIt shortens the development process and reduces costs.
question
For conducting an accurate test marketing, ----_____. a. ‚Äčtest locations should mirror the purchasing habits of the overall market b. ‚Äčthe media reach in test locations should be very high c. ‚Äčtest marketing should expose the new product and its marketing mix to competitors d. ‚Äčthe company should have limited distribution in test cities
answer
a. ‚Äčtest locations should mirror the purchasing habits of the overall market
question
_____ is the degree to which a product can be sampled on a limited basis. a. ‚ÄčTrialability b. ‚ÄčComplexity c. ‚ÄčObservability d. ‚ÄčCompatibility
answer
a. ‚ÄčTrialability
question
In the context of the product characteristics that can be used to predict and explain the rate of acceptance and diffusion, the degree of difficulty involved in understanding and using a new product is known as _____. a. ‚Äčcompatibility b. ‚Äčobservability c. ‚Äčtrialability d. ‚Äčcomplexity
answer
d. ‚Äčcomplexity
question
In the context of the new-product development process, the decision to market a product is made during _____. a. ‚Äčtest marketing b. ‚Äčthe business analysis stage c. ‚Äčcommercialization d. ‚Äčthe development stage
answer
c. ‚Äčcommercialization
question
Which of the following is the most important factor in successful new-product introduction? a. ‚ÄčThe product should not be developed using crowdsourcing. b. ‚ÄčThe features of the new product should be similar to its substitutes in the market. c. ‚ÄčThe new product should deliver a meaningful and perceivable benefit to a sizable number of people. d. ‚ÄčThe new product should be priced lower than other products in the same category.
answer
c. ‚ÄčThe new product should deliver a meaningful and perceivable benefit to a sizable number of people.
question
Which of the following statements is true of a customer innovation center? a. ‚ÄčIt is used in the business analysis stage of the new-product development process. b. ‚ÄčIt is a forum for meeting with customers and directly involving them in the innovation process. c. ‚ÄčIt is an approach to reposition a company's products. d. ‚ÄčIt promotes status-conscious advertising among customers.
answer
b. ‚ÄčIt is a forum for meeting with customers and directly involving them in the innovation process.
question
Identify a true statement about the product life cycle (PLC). a. ‚ÄčA product spends the same amount of time in the different stages of the life cycle. b. ‚ÄčThe PLC for a product form is longer than the PLC for any one brand. c. ‚ÄčChanges in a product, its uses, its image, or its positioning do not affect that product's life cycle. d. ‚ÄčThe PLC dictates the marketing strategy to be used for a product.
answer
b. ‚ÄčThe PLC for a product form is longer than the PLC for any one brand.
question
In the context of the rate of adoption, relative advantage is defined as the degree to which: a. ‚Äča new product is consistent with existing values and product knowledge, past experiences, and current needs. b. ‚Äča product can be tried on a limited basis. c. ‚Äča product is perceived as superior to existing substitutes. d. ‚Äčthe benefits of using a product can be communicated to target customers.
answer
c. ‚Äča product is perceived as superior to existing substitutes.
question
Which of the following statements is true of the development stage of the new-product development process? a. ‚ÄčIt involves evaluating a new-product idea before creating any prototype. b. ‚ÄčCosts decrease dramatically once a product idea enters the development stage. c. ‚ÄčIt involves examining the feasibility of manufacturing a product at an acceptable cost. d. ‚ÄčSimultaneous product development increases the time spent in the development process.
answer
c. ‚ÄčIt involves examining the feasibility of manufacturing a product at an acceptable cost.
question
The objective of test marketing is: a. ‚Äčto implement simultaneous product development. b. ‚Äčto create three-dimensional prototypes quickly and at a relatively low cost. c. ‚Äčto evaluate alternative marketing strategies. d. ‚Äčto shorten the development process of a product and reduce costs.
answer
c. ‚Äčto evaluate alternative marketing strategies.
question
Identify a true statement about the maturity stage of the product life cycle (PLC). a. ‚ÄčThe beginning of this stage is signaled by increased sales. b. ‚ÄčProduct design changes tend to become functional rather than stylistic. c. ‚ÄčIt is the shortest stage of the PLC. d. ‚ÄčNiche marketers that target the underserved segments of a market emerge during this stage.
answer
d. ‚ÄčNiche marketers that target the underserved segments of a market emerge during this stage.
question
Which of the following is an objective of focus group interviews? a. ‚ÄčTo eliminate ideas that are inconsistent with the organization's new-product strategy b. ‚ÄčTo get recommendations of product ideas from outside consultants c. ‚ÄčTo directly involve customers in test marketing d. ‚ÄčTo stimulate insightful comments through group interaction
answer
d. ‚ÄčTo stimulate insightful comments through group interaction
question
Which of the following statements best describes simultaneous product development? a. ‚ÄčIt is used to determine the reactions of potential customers in a market situation. b. ‚ÄčIt is a strategy that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation. c. ‚ÄčIt is a strategy that provides general guidelines for generating, screening, and evaluating new-product ideas. d. ‚ÄčIt is the process where all the involved areas work together rather than sequentially during a product's development.
answer
d. ‚ÄčIt is the process where all the involved areas work together rather than sequentially during a product's development.
question
Which of the following is a characteristic of products produced by multinational corporations? a. ‚ÄčProducts are not subjected to test marketing. b. ‚ÄčProducts are developed to meet unique market requirements whenever possible. c. ‚ÄčProducts are inadequately distributed in local markets. d. ‚ÄčProducts are developed to cater to local markets.
answer
b. ‚ÄčProducts are developed to meet unique market requirements whenever possible.
question
In the context of the product life cycle, a long-run drop in a product's sales signals the beginning of the _____. a. ‚Äčdecline stage b. maturity stage‚Äč c. ‚Äčgrowth stage d. ‚Äčintroductory stage
answer
a. ‚Äčdecline stage
question
Which of the following statements is true of bundled pricing?‚Äč a. ‚ÄčIt is simpler for a firm to administer than individually pricing each element. b. ‚ÄčIt is a pricing strategy that does not apply for services. c. ‚ÄčIt is preferable when consumers are willing to pay extra for every part of the service. d. ‚ÄčIt is a pricing strategy where customers pay only for the service elements they use.
answer
a. ‚ÄčIt is simpler for a firm to administer than individually pricing each element.
question
To close the gap between what a company provides and what the customer is told it provides, the company must: a. ‚Äčensure that employees have the skills and the proper tools to perform their jobs. b. ‚Äčcreate realistic customer expectations through honest, accurate communication. c. ‚Äčstay attuned to customer wishes by researching customer needs and satisfaction. d. ‚Äčencourage teamwork and train employees so that they know what the management expects.
answer
b. ‚Äčcreate realistic customer expectations through honest, accurate communication.
question
_____ refers to the inability of services to be stored, warehoused, or inventoried. a. ‚ÄčVariability b. ‚ÄčReliability c. ‚ÄčHeterogeneity d. ‚ÄčPerishability
answer
d. ‚ÄčPerishability
question
According to the gap model of service quality, the gap between what management thinks customers want and the quality specifications that management develops to provide the service results from: a. ‚Äčthe inability of management and employees to do what should be done. b. ‚Äča lack of understanding or a misrepresentation of the customers' needs, wants, or desires. c. ‚Äčmisleading or deceptive advertising campaigns that promise more than what the firm can deliver. d. ‚Äčthe inability of management to translate customers' needs into delivery systems within the firm.
answer
d. ‚Äčthe inability of management to translate customers' needs into delivery systems within the firm.
question
According to the gap model of service quality, the gap between what customers want and what management thinks customers want results from: a. ‚Äča lack of understanding or a misrepresentation of the customers' needs, wants, or desires. b. ‚Äčmisleading or deceptive advertising campaigns that promise more than what the firm can deliver. c. ‚Äčmanagement's inability to translate customers' needs into delivery systems within the firm. d. ‚Äčthe inability of management and employees to do what should be done.
answer
d. ‚Äčthe inability of management and employees to do what should be done.
question
In the context of evaluating service quality, _____ refers to the ability to provide prompt service. a. ‚Äčtangibility b. ‚Äčassurance c. ‚Äčempathy d. ‚Äčresponsiveness
answer
d. ‚Äčresponsiveness
question
Which of the following is a characteristic that distinguishes the pricing decisions of nonprofit organizations from those of profit organizations? a. ‚ÄčTheir services are paid for by people who are better off financially. b. ‚ÄčTheir services are priced higher than the costs incurred. c. ‚ÄčConsumers are charged a monetary price but instead must absorb monetary costs. d. ‚ÄčIndirect payment is not a common practice in nonprofit organizations.
answer
a. ‚ÄčTheir services are paid for by people who are better off financially.
question
Which of the following statements is true of nonprofit organizations? a. ‚ÄčThey can measure their success and failure in strictly financial terms. b. ‚ÄčThey seek to make a profit for redistribution to owners or shareholders. c. ‚ÄčThey focus on generating enough funds to cover the organization's expenses. d. ‚ÄčThey have a financial bottom line that simplifies decision-making processes for nonprofit managers.
answer
c. ‚ÄčThey focus on generating enough funds to cover the organization's expenses.
question
A _____ is an announcement that promotes a program of a federal, state, or local government or of a nonprofit organization. a. ‚Äčpublic service advertisement b. ‚Äčretail advertisement c. ‚Äčsurrogate advertisement d. ‚Äčcommercial advertisement
answer
a. ‚Äčpublic service advertisement
question
At the _____ of relationship marketing, a firm uses financial and social bonds but offers value-added services that are not readily available from other firms. a. ‚Äčcustomization level b. ‚Äčsocial level c. ‚Äčfinancial level d. ‚Äčstructural level
answer
d. ‚Äčstructural level
question
A limitation of revenue-oriented pricing is that: a. ‚Äčdetermining costs can be difficult for many services. b. ‚Äčit does not focus on maximizing the surplus of income over costs. c. ‚Äčthe profit goals of the company is not taken into account. d. ‚Äčit cannot be used by manufacturing companies.
answer
a. ‚Äčdetermining costs can be difficult for many services.
question
Which of the following statements is true of mass customization? a. ‚ÄčIt does not respond to individual customers' needs. b. ‚ÄčIt uses technology to customize the products of a firm. c. ‚ÄčIt focuses on customizing rather than standardizing products. d. ‚ÄčIt cannot cater to the needs of different customer groups.
answer
b. ‚ÄčIt uses technology to customize the products of a firm.
question
At the _____ of relationship marketing, the firm uses pricing incentives to encourage customers to continue doing business with it. a. ‚Äčcustomization level b. ‚Äčsocial level c. ‚Äčfinancial level d. ‚Äčstructural level
answer
c. ‚Äčfinancial level
question
In the context of evaluating service quality, _____ refers to the knowledge and courtesy of employees and their ability to convey trust. a. ‚ÄčScheduling b. ‚ÄčTangible cues c. ‚ÄčPrice bundling d. ‚ÄčCustomization
answer
a. ‚ÄčScheduling
question
‚ÄčIn the context of service processes, _____ takes place when the service is directed at a customer. a. ‚Äčpeople processing b. ‚Äčpossession processing c. ‚Äčmental stimulus processing d. ‚Äčinformation processing
answer
a. ‚Äčpeople processing
question
Which of the following strategies will help service organizations overcome perishability of services? a. ‚ÄčIncreasing the credence qualities of services b. ‚ÄčImproving standardization of services c. ‚ÄčProviding training for employees d. ‚ÄčFinding ways to synchronize supply and demand
answer
d. ‚ÄčFinding ways to synchronize supply and demand
question
_____ is defined as the variability of inputs and outputs of services, which makes services less standardized and uniform than goods. a. ‚ÄčHeterogeneity b. ‚ÄčPerishability c. ‚ÄčIntangibility d. ‚ÄčInseparability
answer
a. ‚ÄčHeterogeneity
question
Which of the following statements is true of a firm's distribution strategy? a. ‚ÄčHaving too many outlets to distribute products may boost costs unnecessarily. b. ‚ÄčThe location of a service does not influence the distribution strategy of a time-dependent service provider. c. ‚ÄčSince services are intangible, many service firms choose indirect distribution strategy. d. ‚ÄčThe intensity of distribution should exceed the target market's needs and preferences.
answer
a. ‚ÄčHaving too many outlets to distribute products may boost costs unnecessarily.
question
In the context of evaluating service quality, _____ refers to the knowledge and courtesy of employees and their ability to convey trust. a. ‚Äčresponsiveness b. ‚Äčheterogeneity c. ‚Äčtangibility d. ‚Äčassurance
answer
d. ‚Äčassurance
question
A(n) _____ is a characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience. a. ‚Äčexperience quality b. ‚Äčheterogeneous quality c. ‚Äčsearch quality d. ‚Äčcredence quality
answer
d. ‚Äčcredence quality
question
Which of the following statements is true of retailers?‚Äč a. They facilitate exchanges of ownership between buyers and sellers.‚Äč b. They provide time and place utility to agents and brokers.‚Äč c. ‚ÄčThey provide contact efficiency for consumers. d. They facilitate the movement of products from the manufacturer to producers and resellers.‚Äč
answer
c. ‚ÄčThey provide contact efficiency for consumers.
question
Which of the following best defines the order-to-cash cycle?‚Äč a. ‚ÄčIt is the time gap between purchase of raw materials and manufacturing of the final product. b. It is the amount of time between the cancellation of an order by a customer and the approval of cancellation.‚Äč c. It is the amount of time between order placement and receipt of the customer's payment following order shipment.‚Äč d. It is the time delay between the packaging of an order and the consumption of the product.‚Äč
answer
c. It is the amount of time between order placement and receipt of the customer's payment following order shipment.‚Äč
question
Which of the following is a disadvantage of supply chain globalization?‚Äč a. It leads to stagnation in the company's technology or knowledge.‚Äč b. It increases labor costs and materials costs for companies.‚Äč c. It exposes companies to risks associated with geopolitical conflict.‚Äč d. ‚ÄčIt restricts companies from availing trade tariff.
answer
c. It exposes companies to risks associated with geopolitical conflict.‚Äč
question
_____ refers to the elements of the composition and appearance of a product that make it desirable.‚Äč a. ‚ÄčForm utility b. Place utility‚Äč c. Exchange utility‚Äč d. Time utility‚Äč
answer
a. ‚ÄčForm utility
question
Which of the following statements is true of the supplier relationship management process?‚Äč a. It enables suppliers and business units to operate with limited or no interaction.‚Äč b. It introduces features and cost-cutting measures into final products.‚Äč c. It provides structural support for developing and maintaining relationships with suppliers.‚Äč d. ‚ÄčIt enables firms to act as leaders in protecting the natural environment.
answer
c. It provides structural support for developing and maintaining relationships with suppliers.‚Äč
question
_____ negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving finished goods from the manufacturer into the hands of the final consumer.‚Äč a. ‚ÄčIntermediaries b. Laggards‚Äč c. Innovators‚Äč d. Early adopters‚Äč
answer
a. ‚ÄčIntermediaries
question
Which of the following is an advantage of supply chain globalization?‚Äč a. ‚ÄčIt helps in delivering products that have highly consistent quality standards. b. It provides consistency in transportation service.‚Äč c. It lowers labor rates and material costs.‚Äč d. It reduces competition from domestic suppliers.‚Äč
answer
c. It lowers labor rates and material costs
question
Marketing channels attain economies of scale:‚Äč a. ‚Äčthrough specialization and division of labor. b. by providing form utility to producers.‚Äč c. by aiding downstream producers to consumers.‚Äč d. through minimum interaction with suppliers.‚Äč
answer
a. ‚Äčthrough specialization and division of labor.
question
The logistical function of intermediaries in marketing channels involves:‚Äč a. contacting prospective buyers to make them aware of existing products.‚Äč b. ‚Äčsorting, accumulation, consolidation of products. c. explaining about a product's features, advantages, and benefits.‚Äč d. researching about channel members and consumers‚Äč
answer
b. ‚Äčsorting, accumulation, consolidation of products.
question
A _____ enables consumers to return products to the retailer or manufacturer in the event of a product defect, or at the end of the product's useful life to the a. reverse channel‚Äč b. nontraditional channel‚Äč c. digital channel‚Äč d. ‚Äčgray marketing channel
answer
a. reverse channel‚Äč
question
Which of the following statements is true of nontraditional channels?‚Äč a. They aid upstream producers in marketing to producers.‚Äč b. ‚ÄčThey increase a brand's coverage in the market. c. They help differentiate a firm's product from the competition.‚Äč d. They lead to competition between distribution channels through cannibalization.‚Äč
answer
c. They help differentiate a firm's product from the competition.‚Äč
question
Identify a true statement about the demand management process.‚Äč a. It creates customer-focused plans of action prior to actual purchases being made.‚Äč b. It eases the pressure on the production process of a company.‚Äč c. ‚ÄčIt increases costs as it involves serving multiple types of customers who have variable wants and needs. d. It focuses on providing quick positive response to negative customer feedback.‚Äč
answer
a. It creates customer-focused plans of action prior to actual purchases being made.‚Äč
question
Unlike in the mass production era, in today's marketplace:‚Äč a. businesses focus on partnering with members of the supply chain to enhance customer value.‚Äč b. ‚Äčsupply chain management reflects a completely employee-driven management philosophy. c. standardized products are "pushed" down through marketing channels to consumers.‚Äč d. companies that focus on supply chain management commonly report high inventory costs.‚Äč
answer
a. businesses focus on partnering with members of the supply chain to enhance customer value.‚Äč
question
In the context of supply chain integration, relationship integration: a. enables companies to act as multiple individual units.‚Äč b. includes ways in which companies collaborate on activities or projects.‚Äč c. ‚Äčmakes performance assessments transparent and measurable across the borders of different firms. d. is a type of internal integration sought by firms interested in providing top-level service to customers
answer
b. includes ways in which companies collaborate on activities or projects.‚Äč
question
A _____ is a business structure of interdependent organizations that reaches from the point of production to the consumer and facilitates the downstream physical movement of goods through the supply chain.‚Äč a. ‚Äčmarket grouping b. common trade alliance‚Äč c. marketing channel‚Äč d. retailer monopoly‚Äč
answer
c. marketing channel‚Äč
question
Which of the following statements is true of multichannel marketing?‚Äč a. It unifies transportation and distribution systems of different channels.‚Äč b. It becomes difficult to find the channel responsible for discrepancies in the inventory.‚Äč c. It creates a main channel which acts as the sale and profit center.‚Äč d. ‚ÄčCustomers are offered information, goods, services, and/or support through one or more synchronized channels.
answer
d. ‚ÄčCustomers are offered information, goods, services, and/or support through one or more synchronized channels.
question
Companies that work closely with their suppliers: a. ‚Äčare free from problems such as corporate culture. b. follow an internal supply chain integration.‚Äč c. do not share responsibility with the suppliers for satisfying customer requirements.‚Äč d. encounter problems such as information hoarding and trust issues.‚Äč
answer
d. encounter problems such as information hoarding and trust issues.‚Äč
question
A _____ is defined as a system of management practices that are consistent with a systems thinking approach.‚Äč a. supply chain analytics‚Äč b. supply chain agility‚Äč c. ‚Äčsupply chain integration d. supply chain orientation‚Äč
answer
d. supply chain orientation‚Äč
question
Which of the following is an advantage of offshoring? a. It enables a company to relocate outsourced operations closer to home.‚Äč b. ‚ÄčIt reduces the fuel costs spent on transporting goods. c. ‚ÄčIt reduces supply chain risks for a company. d. It decreases labor costs incurred by a company.‚Äč
answer
d. It decreases labor costs incurred by a company.‚Äč
question
Which of the following statements is true of companies that focus on supply chain management? a. They incur large incremental expenditure on company assets.‚Äč b. ‚ÄčThey report reduced logistical flexibility. c. They have limited interactions with their suppliers.‚Äč d. They report lower warehousing costs.‚Äč
answer
d. They report lower warehousing costs.‚Äč
question
Companies are globalizing their supply chains because:‚Äč a. of a decrease in the length and risk of supply chains globally.‚Äč b. it helps reduce transportation and warehousing costs.‚Äč c. ‚Äčof increasing demand for imported products worldwide. d. it helps standardize the quality of the products produced.‚Äč
answer
c. ‚Äčof increasing demand for imported products worldwide.
question
Which of the following statements is true of public-private partnerships?‚Äč a. They are critical to the satisfaction of both company and societal interests.‚Äč b. ‚ÄčThey increase the negative impacts of potentially hazardous supply chain situations. c. They lack power to solve future national and global supply chain problems.‚Äč d. They are formed when the magnitude of a supply chain dilemma is of little importance to a company.‚Äč
answer
a. They are critical to the satisfaction of both company and societal interests.‚Äč
question
Which of the following statements is true of supply chain oriented firms?‚Äč a. They are not better off financially in the long run.‚Äč b. ‚ÄčThey lack the support of top managers. c. They work against their partners when seeking to achieve goals.‚Äč d. They are willing to accept short-term risks on behalf of others.
answer
d. They are willing to accept short-term risks on behalf of others.
question
Identify a true statement about agile companies. a. They spend less time than their competitors on activities that create direct customer benefits.‚Äč b. They use a "pull" strategy instead of a "push" strategy to market their products.‚Äč c. They partner closely with suppliers and service providers to reduce customer wait times for products.‚Äč d. ‚ÄčThey increase the complexity of the supply chain.
answer
c. They partner closely with suppliers and service providers to reduce customer wait times for products.‚Äč
question
Which of the following statements is true of a retailer channel?‚Äč a. It is commonly used for low-cost items that are frequently purchased, such as candy, cigarettes, and magazines.‚Äč b. It involves passing ownership directly from the producer to the ultimate consumer.‚Äč c. ‚ÄčIt is most common when the retailer is large and can buy in large quantities directly from the manufacturer. d. It uses agents and brokers to procure products from manufacturers.‚Äč
answer
c. ‚ÄčIt is most common when the retailer is large and can buy in large quantities directly from the manufacturer.
question
_____ is a form of distribution aimed at maximum market coverage.‚Äč a. ‚ÄčNarrow distribution b. Selective distribution‚Äč c. Exclusive distribution‚Äč d. Intensive distribution‚Äč
answer
d. Intensive distribution‚Äč
question
Under the _____ philosophy, functional areas in a company such as marketing, sales, or research/development communicate frequently and are synchronized with purchasing, manufacturing, and logistics.‚Äč a. supply chain agility‚Äč b. ‚Äčdemand chain orientation c. supply chain analytics‚Äč d. demand-supply integration‚Äč
answer
d. demand-supply integration‚Äč
question
Outsourcing enables companies to:‚Äč a. lengthen the order-to-cash cycle.‚Äč b. ‚Äčlocate stocks at fewer plants and distribution centers. c. focus investment on their logistical functions rather than on core business.‚Äč d. eliminate the need of using a third-party logistics company.‚Äč
answer
b. ‚Äčlocate stocks at fewer plants and distribution centers.
question
The most prominent difference separating intermediaries is whether they: a. ‚Äčtake title to the products they sell. b. lower average production costs.‚Äč c. ‚Äčuse "push" strategy. d. ‚Äčraise profit margins for independent middlemen.
answer
a. ‚Äčtake title to the products they sell.
question
Identify a true statement about supply chain management.‚Äč a. It enables supply chain managers to respond quickly to sudden changes in supply or demand.‚Äč b. ‚ÄčIt reflects a completely employee-driven management philosophy. c. It gives assembly line employees total control of materials, processes, money, and finished products.‚Äč d. It enables supply chain managers to focus on pushing products down the marketing channels to consumers.‚Äč
answer
a. It enables supply chain managers to respond quickly to sudden changes in supply or demand.‚Äč
question
The best order fulfillment processes:‚Äč a. reduce coordination between multiple companies.‚Äč b. reduce the time between order and customer receipt.‚Äč c. increase inventory levels of the firm.‚Äč d. ‚Äčmanage volumes of returned product efficiently.
answer
b. reduce the time between order and customer receipt.‚Äč
question
Which of the following statements is true of three-dimensional printing (3DP)?‚Äč a. It cannot be used in industries such as auto parts, biomedical, and fast food.‚Äč b. It will eliminate the need for transportation of finished goods to distribution centers and retailers.‚Äč c. It will lead to mass production of standardized goods than custom products.‚Äč d. ‚ÄčIt is expected to have a negative impact on businesses' carbon footprints and the environment at large.
answer
b. It will eliminate the need for transportation of finished goods to distribution centers and retailers.‚Äč
question
Which of the following statements is true of channel members?‚Äč a. ‚ÄčThey provide contact efficiency. b. Merchant wholesalers create form utility.‚Äč c. Agents and brokers take ownership of goods in the marketing channel.‚Äč d. They provide generalization of labor.‚Äč
answer
a. ‚ÄčThey provide contact efficiency.
question
Which of the following statements is true of specialty stores?‚Äč a. ‚ÄčThey have the widest product assortment among other retail establishments. b. They offer virtually no service to customers.‚Äč c. They carry narrow product lines that are considerably deep.‚Äč d. They use low prices and discounts to lure shoppers
answer
c. They carry narrow product lines that are considerably deep
question
Which of the following is true of retail channel omnification?‚Äč a. ‚ÄčIt creates separate distribution systems for different distribution channels. b. It involves treating each distribution channel as an entirely different business.‚Äč c. It combines different distribution channels into a single, unified system for saving costs.‚Äč d. It makes each distribution channel accountable for its own dedicated inventory.‚Äč
answer
c. It combines different distribution channels into a single, unified system for saving costs.‚Äč
question
Which of the following is an advantage of retail channel omnification?‚Äč a. It benefits retailers as customers must enter their stores in order to claim their purchases.‚Äč b. ‚ÄčIt allows customers to order products online and pick their orders from stores. c. It benefits customers as they can shop from the comfort of their homes.‚Äč d. It enables retailers to offer competitive prices across their various outlets.‚Äč
answer
d. It enables retailers to offer competitive prices across their various outlets.‚Äč
question
Which of the following is a disadvantage of a freestanding store location?‚Äč a. It may be hard to attract customers to a freestanding location.‚Äč b. It has high site cost and rent and a lot of nearby competitors.‚Äč c. ‚ÄčIt has reduced visibility. d. It faces stiff competition from retailers.‚Äč
answer
a. It may be hard to attract customers to a freestanding location.‚Äč
question
_____ is a selling technique that seeks to broaden customers' original purchases with related items.‚Äč a. Benefit selling‚Äč b. ‚ÄčSuggestion selling c. Co-marketing‚Äč d. Shopper marketing‚Äč
answer
b. ‚ÄčSuggestion selling
question
_____ is a form of nonstore retailing that entails the use of machines to offer goods for sale.‚Äč a. Automatic vending‚Äč b. Telemarketing‚Äč c. E-tailing‚Äč d. ‚ÄčDirect retailin
answer
a. Automatic vending‚Äč
question
Choosing the right distribution channel for a service would:‚Äč a. ‚ÄčProduct development b. Retailing‚Äč c. Production‚Äč d. Manufacturing‚Äč
answer
b. Retailing‚Äč
question
Which of the following statements is true of service failures?‚Äč a. ‚ÄčThey can be eliminated by successful market segmentation. b. If handled effectively, they will result in customer loyalty.‚Äč c. Retailers cannot recover from service failures.‚Äč d. They can be solved by cancelling return policies.
answer
b. If handled effectively, they will result in customer loyalty.‚Äč
question
_____ is the technique used to sift through data collected by point-of-purchase scanning equipment and help retailers find ideal locations for each product.‚Äč a. Shopper marketing‚Äč b. ‚ÄčBig data analysis c. Shopper analytics‚Äč d. Market-basket analysis‚Äč
answer
d. Market-basket analysis‚Äč
question
Which of the following is true of click-and-collect? a. It enables consumers to make their purchases online and pick up their orders from physical stores.‚Äč b. It employs outbound and inbound telephone contacts to sell directly to customers.‚Äč c. It allows customers to shop over the Internet and have items delivered directly to their door.‚Äč d. ‚ÄčIt requires representatives to sell products door-to-door, in offices, or at in-home sales parties.
answer
a. It enables consumers to make their purchases online and pick up their orders from physical stores.‚Äč
question
The goal of tactical retailing is to:‚Äč a. ‚Äčeliminate the need of segmenting a market. b. increase overhead costs.‚Äč c. eliminate the need of new advertising campaigns.‚Äč d. increase the sales of a specific item.‚Äč
answer
d. increase the sales of a specific item.‚Äč
question
_____ is an emerging trend that employs market data to best serve customers as they prepare to make a purchase.‚Äč a. Cloud computing‚Äč b. ‚ÄčRetail channel omnification c. Click-and-collect‚Äč d. Shopper marketing‚Äč
answer
d. Shopper marketing‚Äč
question
A _____ is the originator of a trade name, product, methods of operation, and the like that grants operating rights to another party to sell its product.‚Äč a. wholesaler‚Äč b. consumer‚Äč c. ‚Äčbroker d. franchiso
answer
d. franchiso
question
Strategic retailing goals typically focus on:‚Äč a. increasing the cost of goods sold.‚Äč b. reducing return on assets or equity.‚Äč c. not using a retailing mix.‚Äč d. ‚Äčreducing costs of goods sold.
answer
d. ‚Äčreducing costs of goods sold.