Exam 1 Marketing 1. What is the four step marketing process? o 1. Create something o 2. Communicating o 3. Delivery o 4. Exchange 2. What are the four marketing management philosophies? o 1. Product o 2. Price o 3. Promotion o 4. Place 3. What are Consumers' Needs, Wants, and Demands? o The Needs are Basic Physical, Individual, Social o The Wants are shaped by Perception such as special foods that are not needed but desired o Demands are when we had purchasing power that can meet our wants 4. Who is in charge of the Modern Marketing System? Consumer 5. What is the value chain? As goods go through the marketing system it becomes more valuable. 6. What is the Societal Marketing Concept? This is the most recent marketing concept of "Going Green" and "Human Welfare".7. What is Relationship Marketing? o strategy that focuses on keeping and improving relationship with current customers o customeroriented personnel o employee training programs o empowered employees giving control to employees o teamwork 8. Sales Oriented marketing: organization's focus is ______________ firm's business is ________________ product is directed to _______________ firm's primary goal is ________________ tools used are ___________________ o organization's focus is INWARD o firm's business is SALES DOLLARS o product is directed to EVERYONE o firm's primary goal is PROFIT o tools used are HARD SALES 9. Market Oriented marketing: organization's focus is ______________ firm's business is ________________ product is directed to _______________ firm's primary goal is ________________ tools used are ___________________ o organization's focus is OUTWARD o firm's business is CUSTOMER'S NEEDSo product is directed to THOSE WHO BENEFIT o firm's primary goal is CUSTOMER SATISFACTION o tools used are ALL COMPANY'S DEPARTMENTS 10. What is Ansoff's Strategic Opportunity Matrix? o Market Penetration o Market Development o Product Development o Diversification 11. What questions should a mission statement answer? o What is our business? o Who is the customer? o What do consumers value? o What should our business be? 12. Marketing objectives should be what four things? o 1. Realistic o 2. Measurable o 3. Time specific o 4. Compared to a benchmark (similar companies in the same industry) 13. A company's mission statement is similar to the company's objectives? No/False 14. Corporate Marketing Ethics Policies are called _______ or _______.Code of Conduct or Code of Ethics 15. What is the role of marketing research? o Descriptive gathering & presenting factuals statements o Diagnostic explaining data, such as determining the impact on sales of a change in the design of the package o Predictive address "what if" questions 16. What are the types of marketing research? 17. What is the sampling procedure? 18. What are the types of errors? o Measurement Error o Sampling Error o Frame Error o Random Error 19. What are some types of survey research? o InHome Interviews o Mall Intercept Interviews o Telephone Interviews o Mail Surveys o Executive Interviews o Focus GroupsChapter 9 Terms MKTG 300 1. marketing research the process of planning, collecting, and analyzing data relevant to a marketing decision 2. marketing research problem determining what information is needed and how that information can be obtained efficiently and effectively 3. marketing research objective the specific information needed to solve a marketing research problem; the objective should be to provide insightful decisionmaking information 4. management decision problem a broadbased problem that uses marketing research in order for managers to take proper actions 5. secondary data data previously collected for any purpose other than the one at hand 6. research design specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed 7. big datathe exponential growth in the volume, variety, and velocity of information and the development of complex, new tools to analyze and create meaning from such data 8. primary data information that is collected for the first time; used for solving the particular problem under investigation 9. survey research the most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes 10. mall intercept interview a survey research method that involves interviewing people in the common areas of shopping malls 11. computerassisted personal interviewing an interviewing method in which the interviewer reads questions from a computer screen and enters the respondent's data directly into the computer 12. computerassisted self interviewing an interviewing method in which a mall interviewer intercepts and directs willing respondents to nearby computers where each respondent reads questions off a computer screen and directly keys his or her answers into the computer 13. centrallocation telephone (CLT) facility a specially designed phone room used to conduct telephone interviewing 14. executive interview a type of survey that involves interviewing businesspeople at their offices concerning industrial products or services15. focus group seven to ten people who participate in a group discussion led by a moderator 16. openended question an interview question that encourages an answer phrased in the respondent's own words 17. closedended question an interview question that asks the respondent to make a selection from a limited list of responses 18. scaledresponse question a closed ended question designed to measure the intensity of a respondent's answer 19. observation research a research method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity 20. mystery shoppers researchers posing as customers who gather observational data about a store 21. behavioral targeting (BT) a form of observation marketing research that combines a consumer's online activity with psychographic and demographic profiles compiled in databases 22. social media monitoring the use of automated tools to monitor online buzz, chatter, and conversations 23. ethnographic researchthe study of human behavior in its natural context; involves observation of behavior and physical setting 24. experiment a method of gathering primary data in which the researcher alters one or more variables while observing the effects of those alterations on another variable 25. sample a subset from a larger population 26. universe the population from which a sample will be drawn 27. probability sample a sample in which every element in the population has a known statistical likelihood of being selected 28. random sample a sample arranged in such a way that every element of the population has an equal chance of being selected as part of the sample 29. nonprobability sample any sample in which little or no attempt is made to get a representative cross section of the population 30. convenience sample a form of nonprobability sample using respondents who are convenient or readily accessible to the researcher— for example, employees, friends, or relatives 31. measurement erroran error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process 32. sampling error an error that occurs when a sample somehow does not represent the target population 33. frame error an error that occurs when a sample drawn from a population differs from the target population 34. random error an error that occurs when the selected sample is an imperfect representation of the overall population 35. field service firm a firm that specializes in interviewing respondents on a subcontracted basis 36. crosstabulation a method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions 37. scannerbased research a system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy 38. BehaviorScan a scannerbased research program that tracks the purchases of 3,000 households through store scanners in each research market 39. InfoScana scannerbased salestracking service for the consumer packaged goods industry 40. neuromarketing a field of marketing that studies the body's responses to marketing stimuli 41. competitive intelligence (Cl) an intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors MKTG300 Exam3 Chpt10 Each product item in the product mix always requires a separate marketing strategy. True or False? False In some cases, however, product lines and even entire product mixes share some marketing strategy components. 1. A onebrandname strategy is useful when the marketer wants the brand to appear to be a local brand, or when regulations require localization. True or False? False Different brand names in different markets, or local brand names, are often used when translation or pronunciation problems occur, when the marketer wants the brand to appear to be a local brand, or when the regulations require localization. A onebrandname strategy is useful when the company markets mainly one product and the brand name does not have negative connotations in any local market. 2. Services and ideas are not considered products because they are intangible. True or False? False To most people, the term product means a tangible good. However, services and ideas are also products. 3. Product modification occurs even when changes are made to a product's aesthetic appearance rather than its quality or functionality. True or False? True There are three types of product modification: quality modification, functional modification, and style modification. Style modification occurs when a product undergoes aesthetic product change rather than a functional or quality change. 4. When a product name becomes generic, the product name is no longer recognized as the exclusive property of a firm. True or False? True When a product name becomes generic, the product name is no longer recognized as the exclusive property of one firm. A generic product name identifies a product by class or type and cannot be trademarked. 5. Due to the time required to scan them, the use of universal product codes (UPCs) is typically restricted to shopping products. True or False? False Universal product codes (UPCs) appear on most items in supermarkets and other highvolume outlets. Bar codes also appear on shopping products such as clothing, appliances, highend wines, and so on. The UPC is essential in supply chain management for a wide variety of products, not just shopping products. 6. Convenience products, though inexpensive, require considerable shopping effort by buyers. True or False? False A convenience product is a relatively inexpensive item that merits little shopping effort—that is, a consumer is unwilling to shop extensively for such an item. 7. Trademark protection and rights only last for five years. True or False? False Trademark protection typically lasts for 10 years; however, rights to a trademark last as long as the mark is used.8. An organization's product mix includes all of the products it sells. True or False? True An organization's product mix includes all of the products it sells. Firms widen their product mix to diversify risks or to capitalize on established reputations. 9. Bar codes are read by computerized optical scanners that match codes with brand names, package sizes, and prices. True or False? True Universal product codes are often called as bar codes because the thin numerical codes appear as a series of thick and thin vertical lines. The lines are read by computerized optical scanners that match codes with brand names, package sizes, and prices. 10. A difference between informational labeling and persuasive labeling is that informational labeling: A. focuses on a promotional theme or logo rather than consumer information. B. helps a consumer make proper product selections. C. gives the impression of environmental friendliness to a product. D. increases a consumer's cognitive dissonance after the purchase. B. helps a consumer make proper product selections.11. A difference between informational labeling and persuasive labeling is that informational labeling: A. focuses on a promotional theme or logo rather than consumer information. B. increases a consumer's cognitive dissonance after the purchase. C. helps a consumer make proper product selections. D. gives the impression of environmental friendliness to a product. C. helps a consumer make proper product selections. Informational labeling is designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase. Persuasive labeling, by contrast, focuses on a promotional theme or logo, and consumer information is secondary. 12. A number of yogurts are marketed under the Duncen brand, including Duncen All Natural, Duncen Fruit on the Bottom, Duncen Light & Fit, DunActive, and Dunonino. The large variety of yogurts under the Duncen brand is an example of a: A. product line B. product mix C. brand equity D. product item A. product line The large variety of yogurts under the Duncen brand is an example of a product line and each variety of yogurt is a product item. A product line is a group of closely related product items.13. Which of the following is true of product lines? A. They mandate a separate marketing strategy for each line. B. They provide economies of scale in advertising. C. They involve greater transportation and warehousing costs than product items. D. They help distinguish each version of a product from the others offered by a company. B. They provide economies of scale in advertising. Product lines provide economies of scale in advertising. Several products can be advertised under the umbrella of a line. For example, Campbell's can talk about its soups being “M'm, M'm, Good!" and promote the entire line. 14. When deciding on distribution plans for specialty products, companies generally ensure that the items are: A. always marketed as unsought products. B. made directly available to a consumer through a salesperson, direct mail, or direct response advertising. C. relatively inexpensive and merit little shopping effort. D. distributed to only a few stores in a geographic area. D. distributed to only a few stores in a geographic area. When deciding on distribution plans for specialty products, companies generally ensure that the items are distributed to only a few stores in a geographic area. Marketers often use selective, statusconscious advertising to maintain a specialty product's exclusive image. 15. Which of the following is true of an express warranty? A. It contains an unwritten guarantee about the performance of a product. B. It ranges from simple statements to extensive documentswritten in technical language. C. It gives the impression of environmental friendliness to a product. D. It prohibits other firms from using a brand or part of a brand without permission. B. It ranges from simple statements to extensive documents written in technical language. An express warranty is a written guarantee. It ranges from simple statements— such as “100percent cotton" and “complete satisfaction guaranteed"—to extensive documents written in technical language. 16. Which of the following is true of an implied warranty? A. It ranges from simple statements to extensive documents written in technical language. B. It prohibits other firms from using a brand or part of a brand without permission. C. It identifies the brand of a part that makes up the product. D. It comes with the sale of every product under the Uniform Commercial Code. D. It comes with the sale of every product under the Uniform Commercial Code. All sales have an implied warranty under the Uniform Commercial Code. An implied warranty is an unwritten guarantee that the good or service is fit for the purpose for which it was sold. 17. Which of the following is considered an advantage of decreasing a product's quality? A. It enhances the ease of coordinating promotion from market to market.B. It motivates customers to replace worn out products. C. It gives manufacturers greater ability to raise prices for the product. D. It allows manufacturers to appeal to target markets unable to afford the original product. D. It allows manufacturers to appeal to target markets unable to afford the original product. Reducing a product's quality may let the manufacturer lower the price and appeal to target markets unable to afford the original product. Conversely, increasing quality can help the firm compete with rival firms. 18. Which of the following is true of a specialty product? A. It is marketed using selective, statusconscious advertising that maintains its exclusive image. B. It is widely distributed in a geographic area in order to sell sufficient quantities to meet profit goals. C. It is sold using aggressive personal selling as consumers do not seek out this type of product. D. It is bought only after comparing several brands or stores on style, practicality, price, and lifestyle compatibility. A. It is marketed using selective, statusconscious advertising that maintains its exclusive image. Marketers of specialty products often use selective, statusconscious advertising to maintain a specialty product's exclusive image. Specialty products are searched for extensively, and substitutes are not acceptable. These products may be quite expensive, and often distribution is limited. 19. Compared to convenience products, shopping products are:A. sold through aggressive personal selling and highly persuasive advertising. B. purchased without significant planning. C. usually more expensive and are found in fewer stores. D. available everywhere, including department stores, gas stations, and vending machines. C. usually more expensive and are found in fewer stores. Compared to convenience products, shopping products are usually more expensive and are found in fewer stores. Consumers usually buy a shopping product only after comparing several brands or stores. 20. A mobile phone manufacturing company is said to functionally modify one of its products if it: A. releases a software update to fix the mobile phone's heating problem. B. reduces the price of the mobile phone ahead of a sale. C. introduces a sleek and stylish version of the mobile phone with the same specifications. D. introduces stylish headphones for the mobile phone. A. releases a software update to fix the mobile phone's heating problem. Releasing a software update to fix the mobile phone's heating problem is an example of functional modification. Functional modification refers to a change in a product's versatility, effectiveness, convenience, or safety. By fixing the heating problem, the effectiveness and convenience of using the mobile phone is increased. 21. Which of the following statements is true about the naming strategies for products sold in the global market? A. An advantage of using different brand names in different markets is greater identification of the product from marketto market. B. A onebrandname strategy is useful when a company markets mainly one product. C. A onebrandname strategy reduces the ease of coordinating promotion from market to market. D. A disadvantage of using different brand names in different markets is that it does not support localization. B. A onebrandname strategy is useful when a company markets mainly one product. A onebrandname strategy is useful when a company markets mainly one product and the brand name does not have negative connotations in any local market. The advantages of a onebrandname strategy are greater identification of the product from market to market and ease of coordinating promotion from market to market. See 106: Global Issues in Branding and Packaging 22. Which of the following is a difference between individual branding and family branding? A. Individual branding uses different brand names for different products, while family branding markets several different products under the same brand name. B. Individual branding identifies the brand of a part that makes up the product, while family branding identifies the entire product. C. Individual branding is used when products do not vary in use or performance, while family branding is used when products vary greatly in use or performance. D. Individual branding is used when two brands receive equal treatment, while family branding is used when two brands borrow from each other's brand equity.A. Individual branding uses different brand names for different products, while family branding markets several different products under the same brand name. Many companies use different brand names for different products, a practice referred to as individual branding. In contrast, a company that markets several different products under the same brand name is practicing family branding. 23. Why are many retailers creating and promoting their own captive brands? A. Captive brands allow retailers to gain greater profits by marketing cheaper products under a brand name owned by them. B. Captive brands allow retailers to ask a price similar or equal to manufacturers' brands. C. Captive brands carry evidence of a store's affiliation and are available everywhere. D. Captive brands help to increase a company's presence in markets where it has little room to differentiate itself. B. Captive brands allow retailers to ask a price similar or equal to manufacturers' brands. Instead of marketing private brands as cheaper and inferior to manufacturer brands, many retailers are creating and promoting their own captive brands. This strategy allows the retailer to ask a price similar or equal to manufacturers' brands. 24. Which of the following is true of an unsought product? A. Consumers usually buy an unsought product only after comparing several brands or stores on style, practicality, price, and lifestyle compatibility. B. Consumers buy unsought products regularly, usually without much planning.C. New products are categorized as unsought products until advertising and distribution increase consumer awareness of them. D. Marketers of unsought products often use selective, statusconscious advertising to maintain the product's exclusive image. C. New products are categorized as unsought products until advertising and distribution increase consumer awareness of them. New products fall into the category of unsought products until advertising and distribution increase consumer awareness of them. A product unknown to the potential buyer or a known product that the buyer does not actively seek is referred to as an unsought product. 25. Daily Fresh is a multinational food and beverage company. One of the new products that Dairy Rich intends to introduce includes fiber added to chocolate. The packages will include data that each chocolate bar contains five grams of fiber and the various health benefits of including more fiber in one's diet. In this case, Daily Fresh intends to use__________. informational labeling Daily Fresh intends to use informational labeling, which is designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase. Persuasive labelling is the other form of labelling. 26. Frieda was disappointed to notice that her new phone had several scratches on its screen. If she had known about the clear protective films that were available to protect the phone display from scratches, she could have avoided this problem. For Frieda, the protective films were__________.unsought products For Frieda, protective films were unsought products as she was not aware of them. A product unknown to the potential buyer or a known product that the buyer does not actively seek is referred to as an unsought product. 27. Amy spends very little time to shop for bath soaps and beauty creams as she uses only the products offered by Eve's Aura, a manufacturer of bath and beauty products. As Eve's has a wide distribution network, its products are available in almost every retail outlet in Amy's locality. In this scenario, the bath and beauty products from Eve's Aura are examples of__________products. convenience The bath and beauty products from Eve's Aura are an example of convenience products. Convenience products are usually relatively inexpensive items that require little shopping effort. Though consumers buy convenience products regularly without much planning, they do remember the brand names of popular convenience products. 28. A(n)__________strategy is not possible when the brand name has a negative or vulgar connotation in the local language. onebrandname A onebrandname strategy is not possible when the brand name has a negative or vulgar connotation in the local language, when the brand is owned by someone else, or when the name cannot be pronounced in the local language. 29. Zing is a soft drink which is available everywhere, including gas stations, department stores, and vending machines. Zing is an example of a(n)__________.convenience product Zing is an example of a convenience product. A convenience product is a relatively inexpensive item that merits little shopping effort. Convenience products normally require wide distribution in order to sell sufficient quantities to meet profit goals. 30. Ecstasy Inc. is a Canadabased food and beverage company. The company has decided to market and sell its products in all European countries under the same brand name. In this scenario, Ecstasy Inc. has decided to use the__________. onebrandname strategy Ecstasy Inc. has decided to use the onebrandname strategy as it has decided to market its products in all European countries under the same brand name. This strategy is useful when a company markets mainly one product and the brand name does not have negative connotations in any local market. 31. __________is when a product or company attempts to give the impression of environmental friendliness whether or not it is environmentally friendly. Greenwashing Greenwashing is when a product or company attempts to give the impression of environmental friendliness whether or not it is environmentally friendly. There are numerous products in every product category that use greenwashing to try and sell products. 32. Lisa goes to an electronic goods store to purchase a washing machine. After comparing the various brands of washing machines available, their functions, prices, and so on, she purchases one that is cheaper and smaller than the rest. In this case, Lisa has purchased a(n)__________.shopping product Lisa has purchased a shopping product as she has spent considerable time to compare several brands before finalizing one product. A shopping product requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores. 33. __________labeling is designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase. Informational Labeling generally takes one of two forms: persuasive or informational. Informational labeling is designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase. 34. __________is a type of cobranding that occurs when two brands receiving equal treatment borrow from each other's brand equity. Cooperative branding Cooperative branding occurs when two brands receiving equal treatment (in the context of an advertisement) borrow from each other's brand equity. Co branding entails placing two or more brand names on a product or its package. 35. __________refers to the number of product lines an organization offers. Product mix width Product mix width (or breadth) refers to the number of product lines an organization offers. Firms increase the width of their product mix to diversify risk.36. Name and briefly define the four categories of consumer products. For each category, list three specific examples of products that would most likely be classified in that category. Convenience products are relatively inexpensive items that require little shopping effort. The products are bought regularly, usually without significant planning. Convenience products may include candy, soft drinks, aspirin, small hardware items, dry cleaning, car wash services, and so on. Shopping products are usually more expensive than convenience products and are found in fewer stores. Consumers spend some effort comparing brands and stores. Shopping products may include washers, dryers, refrigerators, televisions, furniture, clothing, housing, choice of university, and so on. Specialty products are those exclusive items for which consumers are willing to search extensively. Consumers are extremely reluctant to accept substitutes for specialty products. Brand names and service quality are important. Fine watches, luxury cars, expensive stereo equipment, gourmet restaurants, and specialized medical services could all be considered specialty products. Unsought products are those that the buyer does not know about or does not actively seek to buy. These products include insurance, burial plots, and other similar items. 37. What are universal product codes (UPCs)? Explain their use in packaging. A universal product code (UPC) is a series of thick and thin vertical lines, readable by computerized optical scanners that represent numbers used to track products. Because the numerical codes appear as a series of thick and thin vertical lines, they are often called bar codes. The lines are read by computerized optical scanners that match codes with brand names, package sizes, and prices. They also print information on cash register tapes and help retailers rapidly and accurately prepare records of customer purchases, control inventories, and track sales. The UPC system and scanners are also used in scannerbased research. 38. Explain planned obsolescence with at least two examples. Discuss if planned obsolescence is ethical or unethical.Planned obsolescence is the practice of modifying products so those that have already been sold become obsolete before they actually need replacement. Examples include products such as printers, computers, and cell phones, which often become outdated before they stop working and need to be replaced. Some argue that planned obsolescence is wasteful; some claim it is unethical. Marketers respond that consumers favor style modifications because they like changes in the appearance of goods such as clothing and cars. Marketers also contend that consumers, not manufacturers and marketers, decide when styles are obsolete. 39. Explain the importance of product offering in creating a marketing mix. The product offering, the heart of an organization's marketing program, is usually the starting point in creating a marketing mix. A marketing manager cannot determine a price, design a promotion strategy, or create a distribution channel until the firm has a product to sell. Moreover, an excellent distribution channel, a persuasive promotion campaign, and a fair price have no value when the product offering is poor or inadequate. 40. Zing is a soft drink which is available everywhere, including gas stations, department stores, and vending machines. Zing is an example of a(n) _____. A. shopping product B. specialty product C. convenience product D. unsought product C. convenience product Zing is an example of a convenience product. A convenience product is a relatively inexpensive item that merits little shopping effort. Convenience products normally require wide distribution in order to sell sufficient quantities to meet profit goals.41. Amy spends very little time to shop for bath soaps and beauty creams as she uses only the products offered by Eve’s Aura, a manufacturer of bath and beauty products. As Eve’s has a wide distribution network, its products are available in almost every retail outlet in Amy’s locality. In this scenario, the bath and beauty products from Eve’s Aura are examples of _____ products. A. business B. shopping C. specialty D. convenience D. convenience The bath and beauty products from Eve’s Aura are an example of convenience products. Convenience products are usually relatively inexpensive items that require little shopping effort. Though consumers buy convenience products regularly without much planning, they do remember the brand names of popular convenience products. 42. Lisa goes to an electronic goods store to purchase a washing machine. After comparing the various brands of washing machines available, their functions, prices, and so on, she purchases one that is cheaper and smaller than the rest. In this case, Lisa has purchased a(n) _____. A. specialty product B. unsought product C. business product D. shopping product D. shopping product Lisa has purchased a shopping product as she has spent considerable time to compare several brands before finalizing one product. A shopping product requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores. 43. Frieda was disappointed to notice that her new phone had several scratches on its screen. If she had known about the clear protective films that were available to protect the phone display from scratches, she could have avoided this problem. For Frieda, the protective films were _____. A. unsought products B. shopping products C. convenience products D. specialty products A. unsought products For Frieda, protective films were unsought products as she was not aware of them. A product unknown to the potential buyer or a known product that the buyer does not actively seek is referred to as an unsought product. 44. _____ refers to the number of product lines an organization offers. A. Product mix width B. Product line assortment C. Product line depth D. Product equity A. Product mix width Product mix width (or breadth) refers to the number of product lines an organization offers. Firms increase the width of their product mix to diversify risk.45. _____ is a type of cobranding that occurs when two brands receiving equal treatment borrow from each other’s brand equity. A. Complimentary branding B. Cooperative branding C. Family branding D. Ingredient branding B. Cooperative branding Cooperative branding occurs when two brands receiving equal treatment (in the context of an advertisement) borrow from each other’s brand equity. Co branding entails placing two or more brand names on a product or its package. 46. _____ labeling is designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase. A. Informational B. Instructional C. Perspective D. Persuasive A. Informational Labeling generally takes one of two forms: persuasive or informational. Informational labeling is designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase. 47. Daily Fresh is a multinational food and beverage company. One of the new products that Dairy Rich intends to introduce includes fiber added to chocolate. The packages will include data that each chocolate bar contains five grams of fiber and the various health benefits of including more fiber in one’s diet. In this case, Daily Fresh intends to use _____. A. family branding B. individual branding C. informational labeling D. persuasive labeling C. informational labeling Daily Fresh intends to use informational labeling, which is designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase. Persuasive labelling is the other form of labelling. 48. _____ is when a product or company attempts to give the impression of environmental friendliness whether or not it is environmentally friendly. A. Astroturfing B. Green hosting C. Greenwashing D. Cooperative branding C. Greenwashing Greenwashing is when a product or company attempts to give the impression of environmental friendliness whether or not it is environmentally friendly. There are numerous products in every product category that use greenwashing to try and sell products. 49. Ecstasy Inc. is a Canadabased food and beverage company. The company has decided to market and sell its products in all European countries under the same brand name. In this scenario, Ecstasy Inc. has decided to use the _____. A. cobranding strategyB. individual branding strategy C. complimentary branding strategy D. onebrandname strategy D. onebrandname strategy Ecstasy Inc. has decided to use the onebrandname strategy as it has decided to market its products in all European countries under the same brand name. This strategy is useful when a company markets mainly one product and the brand name does not have negative connotations in any local market. 50. A(n) _____ strategy is not possible when the brand name has a negative or vulgar connotation in the local language. A. individual branding B. onebrandname C. cobranding D. repositioning B. onebrandname MKTG300 Exam3 Chpt11 CSULB 1. A low failure rate, greater competition, and wide distribution typify the introductory stage of the product life cycle. True or False? FalseA high failure rate, little competition, frequent product modification, and limited distribution typify the introductory stage of the product life cycle. The introductory stage of the product life cycle represents the fullscale launch of a new product into the market place. See 116:Product Life Cycles 2. A period during which sales decrease at an increasing rate signals the beginning of the maturity stage of the product life cycle. True or False? False A period during which sales increase at a decreasing rate signals the beginning of the maturity stage of the product life cycle. Normally, this is the longest stage of the product life cycle. See 116:Product Life Cycles 3. In the growth stage of the product life cycle, sales typically grow at an increasing rate, many competitors enter the market, and large companies may start to acquire pioneering firms. True or False? True If a product category survives the introductory stage, it then advances to the growth stage of the life cycle. In the growth stage of a product life cycle, sales typically grow at an increasing rate, many competitors enter the market, and large companies may start to acquire pioneering firms. See 116:Product Life Cycles 4. An organized effort to generate many ideas from various sources is important for any firm that wishes to produce a continuing flow of new products.True or False? True An organized effort to generate many ideas from various sources is important for any firm that wishes to produce a continuing flow of new products. Many new product ideas are necessary to produce one successful new product. See 116:Product Life Cycles 5. 3D printing is a process which is sometimes used to create three dimensional prototypes of a product quickly and at a relatively low cost. True or False? True The 3D printing is a process which is sometimes used to create three dimensional prototypes quickly and at a relatively low cost. It is used by the R&D or engineering department of a company to develop a prototype of a product. See 112:The NewProduct Development Process 6. Eliminating all nonessential marketing expenses and letting sales decline is one of the successful strategies for marketing products in the decline stage of their life cycle. True or False? True Some firms eliminate all nonessential marketing expenses and let sales decline as more and more customers discontinue purchasing products that are in the decline stage of their life cycle. It is one of the successful strategies for marketing products in the decline stage of the product life cycle. See 11 6:Product Life Cycles7. The use of concept tests during the idea screening stage of the newproduct development process reduces the efficiency of screening. True or False? False Concept tests are often used in the idea screening stage to rate concept (or product) alternatives. They are considered fairly good predictors of success for line extensions. See 112:The NewProduct Development Process 8. Increasing globalization of markets and competition provides a reason for multinational firms to consider new product development from a worldwide perspective. True or False? True Increasing globalization of markets and competition provides a reason for multinational firms to consider newproduct development from a worldwide perspective. A firm that starts with a global strategy is better able to develop products that are marketable worldwide. See 114:Global Issues in New Product Development 9. The most important factor in successful newproduct introduction is a good match between the product and market needs. True or False? True The most important factor in successful newproduct introduction is a good match between the product and market needs—as the marketing concept would predict. Successful new products deliver a meaningful and perceivable benefit to a sizeable number of people or organizations and are different in some meaningful ways from their intended substitutes. See 113:Why Some Products Succeed and Others Fail 10. A newproduct strategy describes the characteristics of products an organization wants to offer and the markets it wants to serve. True or False? True A newproduct strategy specifies the roles that new products must play in an organization's overall plan and describes the characteristics of products the organization wants to offer and the markets it wants to serve. See 112:The NewProduct Development Process 11. Compatible products diffuse more slowly than incompatible products. True or False? False Incompatible products diffuse more slowly than compatible products. Compatibility is the degree to which a new product is inconsistent with existing values and product knowledge, past experiences, and current needs. See 11 5:The Spread of New Products 12. Hakimo Corp., a multinational corporation that specializes in audio equipment, has developed a wireless speaker that sits unobtrusively on a desktop. The tiny, yet strong, twin speakers use Bluetooth to stream music directly from a PC or MP3 player. This small wireless speaker, which is radically different from anything currently on the market, can most likely be classified as a: A. repositioned product. B. discontinuous innovation. C. lowerpriced product. D. revision of an existing product. B. discontinuous innovation. The small wireless speaker developed by Hakimo Corp. is an example of a discontinuous innovation. These products create an entirely new market. Discontinuous innovations represent the smallest category of new products. See 111: The Importance of New Products 13. Which of the following is true of customer innovation centers? A. They depend largely on distributors to gather information about customer needs and expectations. B. They involve key suppliers early in the process, capitalize on their knowledge, and enable them to develop critical component parts. C. They provide a forum for meeting with customers and directly involving them in the process of developing new ideas. D. They require a grouping of employees who can brainstorm and suggest ideas for new products to meet customer needs. C. They provide a forum for meeting with customers and directly involving them in the process of developing new ideas.The idea behind customer innovation centers is to provide a forum for meeting with customers and directly involving them in the innovation process. It is one of the approaches for generating new product ideas. See 112: The New Product Development Process 14. Which of the following is true of product modification? A. It makes cosmetic or functional changes to existing products. B. It goes beyond applied research by converting applications into marketable products. C. It entails the creation of marketable new products. D. It necessitates the use of crowdsourcing to develop new ideas for a product. A. It makes cosmetic or functional changes to existing products. Product modification makes cosmetic or functional changes to existing products. It is one of the four ways in which research and development can be carried out. See 112: The NewProduct Development Process 15. Daily Farm is a manufacturer of consumer goods such as foods, beverages, cleaning agents, and personal care products. It is expected to introduce more than ten new products in the next two years. One of the products is a spicier variant of its tomato ketchup aimed at the baby boomer market. Which of the following categories of new products will the spicier ketchup represent? A. Repositioned product B. Revision of existing product C. New product line D. Addition to existing product lineD. Addition to existing product line The spicier ketchup would represent an addition to existing product line. This category includes new products that supplements a firm's established line. In this case, the spicier variant of tomato ketchup is an addition to Daily Farm's existing product line of tomato ketchups. See 111: The Importance of New Products 16. Which of the following is true of the development stage of a newproduct development process? a. It sets several tasks in motion, such as building inventories and advertising to potential customers. b. It evaluates a newproduct idea usually before any prototype has been created. c. It estimates the demand, cost, sales, and profitability of a product for the first time. d. It examines the feasibility of manufacturing a product at an acceptable cost. o d. It examines the feasibility of manufacturing a product at an acceptable cost. o The development stage of a newproduct development process examines the feasibility of manufacturing a product at an acceptable cost. The development stage can last a long time and thus be very expensive. See 112: The NewProduct Development Process 17. Why are marketing costs high in the introductory stage of the product life cycle? A. Sales increase rapidly during the introductory stage, requiring greater investment for marketing. B. Product and manufacturing costs need to be identified and corrected. C. Cutthroat competition during the introductory stage can lead to price wars.D. High dealer margins are often needed to obtain adequate distribution. D. High dealer margins are often needed to obtain adequate distribution. Marketing costs in the introductory stage are normally high for several reasons. High dealer margins are often needed to obtain adequate distribution, and incentives are needed to get consumers to try the new product. Advertising expenses are high because of the need to educate consumers about the new product's benefits. See 116: Product Life Cycles 18. Why do most firms consider test marketing essential for new products? A. The ability of test marketing to evaluate consumer preference for a new product prior to developing a prototype increases its importance. B. The high price of failure simply prohibits the widespread introduction of new products without testing. C. The speed, safeness, and reliability of test marketing is higher than that of simulated market testing. D. The decision to test a product sets several tasks in motion, such as ordering product materials, starting production, building inventories, and advertising to potential customers. B. The high price of failure simply prohibits the widespread introduction of new products without testing. The high price of failure simply prohibits the widespread introduction of new products without testing. Despite various cheaper, safer, and faster alternatives, most firms still consider test marketing essential for new products. See 112: The NewProduct Development Process19. Which of the following is a feature of the product life cycle (PLC)? A. It tells managers the length of a product's life cycle or its duration in any stage. B. It dictates the marketing strategy to be used for a product. C. It allows firms to shorten the development process of a product and reduce costs. D. It helps marketers forecast future events and suggest appropriate strategy. D. It helps marketers forecast future events and suggest appropriate strategy. The product life cycle (PLC) concept is simply a tool to help marketers forecast future events and suggest appropriate strategies. It does not tell managers the length of a product's life cycle or its duration in any stage. It does not dictate marketing strategy. See 116: Product Life Cycles 20. A difference between early majority and early adopters is that early majority are: A. more eager to try new products and ideas, almost as an obsession. B. more likely to be opinion leaders. C. less likely to extend the adoption process. D. likely to collect more information and evaluate more brands. D. likely to collect more information and evaluate more brands. A difference between early majority and early adopters is that early majority are likely to collect more information and evaluate their brands, thereby extending the adoption process. They rely on the group for information but are unlikely to be opinion leaders themselves. See 115: The Spread of New Products21. The purpose of the screening stage in a newproduct development process is to: A. refine the promotion campaign to be used with the new product. B. identify and eliminate concept tests that might lead to duplication of experiments. C. eliminate ideas that are inconsistent with an organization's newproduct strategy. D. set a limit on the number of members allowed to assess the viability of a newproduct idea. C. eliminate ideas that are inconsistent with an organization's newproduct strategy. The screening stage in a newproduct development process is used to eliminate ideas that are inconsistent with an organization's newproduct strategy or are obviously inappropriate for some other reason. See 112: The NewProduct Development Process 22. The purpose of test marketing is to: A. evaluate a newproduct idea before any prototype is created. B. shorten the development process of a product and reduce costs. C. eliminate ideas that are inconsistent with an organization's newproduct strategy. D. assess how well various aspects of the marketing mix fit together. D. assess how well various aspects of the marketing mix fit together. Test marketing allows management to evaluate alternate strategies and to assess how well various aspects of the marketing mix fit together. It is the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. See 112: The NewProduct Development Process 23. Which of the following is an advantage of simultaneous product development? A. It ensures that a development process proceeds through highly structured stages. B. It shortens a product's development process. C. It lengthens product lines to appeal additional markets. D. It eliminates the need for test marketing a new product. B. It shortens a product's development process. Simultaneous product development allows firms to shorten the development process and reduce costs. With simultaneous product development, all relevant functional areas and outside suppliers participate in all stages of the development process See 112: The NewProduct Development Process 24. Steve wanted to open a day care service facility for dogs. He estimated the costs involved in providing the services desired by dog owners. After extensive deliberation, Steve decided not to proceed with the plan as the cost of providing the services was too high compared to the rates dog owners would be willing to pay. Which of the following stages of the newproduct development process has Steve used to arrive at this decision? A. Idea screening B. Idea generation C. Business analysis D. Test marketing C. Business analysisSteve has used the business analysis stage of the newproduct development process to decide if he should open a day care service facility for dogs. In the business analysis stage, preliminary figures for demand, cost, sales, and profitability are calculated. For the first time, costs and revenues are estimated and compared. See 112: The NewProduct Development Process 25. Which of the following is true of laggards? A. They have the longest adoption time and the lowest socioeconomic status. B. They are eager to try new products and ideas, almost as an obsession. C. They are more likely to get their information from scientific sources and experts. D. They act as an important link in the process of diffusing ideas. A. They have the longest adoption time and the lowest socioeconomic status. Laggards have the longest adoption time and the lowest socioeconomic status. They tend to be suspicious of new products and alienated from a rapidly advancing society. See 115: The Spread of New Products 26. Which of the following is a feature of a newproduct strategy? A. It gives greater importance to highly structured development process rather than simultaneous development. B. It provides general guidelines for generating, screening, and evaluating newproduct ideas. C. It increases the time spent by a product in the introduction stage of its life cycle. D. It traces all stages of a product's acceptance, from its introduction to its decline.B. It provides general guidelines for generating, screening, and evaluating new product ideas. A newproduct strategy sharpens the focus and provides general guidelines for generating, screening, and evaluating newproduct ideas. It is part of an organization's overall marketing strategy. See 112: The NewProduct Development Process 27. The business analysis stage of a newproduct development process__________. calculates preliminary figures for demand, cost, sales, and profitability Newproduct ideas that survive the initial screening process move to the business analysis stage, where preliminary figures for demand, cost, sales, and profitability are calculated. For the first time, costs and revenues are estimated and compared. See 112: The NewProduct Development Process 28. During the__________stage of the newproduct development process, production starts, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin. commercialization During the commercialization stage of the newproduct development process, production starts, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin. Commercialization is the final stage in the newproduct development process. See 112: The NewProduct Development Process 29. In the context of the product characteristics that can be used to predict and explain the rate of acceptance and diffusion,__________represents the degree of difficulty involved in understanding and using a new product.complexity Complexity is the degree of difficulty involved in understanding and using a new product. The more complex the product, the slower is its diffusion. See 11 5: The Spread of New Products 30. The maker of Protect Your Hands hand sanitizer decided to test its consumers' reactions to one of its new products, Protect Your Hands Sanitizing Wipes. It sent out flyers advertising several of the company's products along with the new product to select customers of the target market. The flyer also asked the customers to shop in a mock store filled with real products, including the new product. In this case, the maker of Protect Your Hands has used__________. simulated market testing The maker of Protect Your Hands has used simulated (laboratory) market testing. Simulated market tests typically entail showing members of the target market advertising for a variety of products and then monitoring purchase behavior in a mock or real store. See 112: The NewProduct Development Process 31. __________are typically categorized by a sudden and unpredictable spike in sales followed by a rather abrupt decline. Fad items Fads are typically categorized by a sudden and unpredictable spike in sales followed by a rather abrupt decline. Examples of fad items are Silly Bandz, Beanie Babies, and Crocs. See 116: Product Life Cycles 32. __________have the longest product life cycles.Product categories Product categories have the longest life cycles. A product category includes all brands that satisfy a particular type of need, such as shaving products, passenger automobiles, or soft drinks. See 116: Product Life Cycles 33. Roger is always eager to own the latest cell phone model launched in the market. He makes it a point to buy new cell phones on the first day of their launch. He is also an active member of various online forums that discuss the latest technical developments. In this case, Roger is a(n)__________. innovator Roger is an innovator as he is always eager to own the latest cell phone model launched in the market. Innovators are the first 2.5 percent of all those who adopt the product. Innovators are eager to try new ideas and products, almost as an obsession. In addition to having higher incomes, they are more worldly and more active outside their community than noninnovators. See 115: The Spread of New Products 34. In the context of the product life cycle, a longrun drop in a product's sales signals the beginning of the__________. decline stage A longrun drop in sales signals the beginning of the decline stage. The rate of decline is governed by how rapidly consumer tastes change or substitute products are adopted. See 116: Product Life Cycles 35. Central Bark Doggie Day Care opened the first day care center for dogs. It currently has 31 locations, with a new Gainesville, Florida, location coming soon. The concept of day care center for dogs became so popular that other competitors begin to enter the market. With competing companies such as Camp Bow Wow and others entering the market, it can be said that the concept of day care center for dogs is moving into the__________stage of a product life cycle. growth With the opening of competition in the form of Camp Bow Wow and others, it can be said that the dog day care product is moving into the growth stage of the product life cycle. A competitor entering the market is an indicator of the growth stage in the product life cycle. See 116: Product Life Cycles 36. Jeni's Splendid Ice Creams has decided to put its new Beet Cake with Black Walnut ice cream on the market. This product has entered the__________stage of new product development process. commercialization The product has entered the commercialization stage of newproduct development process. Commercialization is the decision to market a product. It is the final stage in the newproduct development process. See 112: The New Product Development Process 37. The process where all the involved areas—R&D, marketing, engineering, production, and even suppliers— work together rather than sequentially during a product's development is called__________. simultaneous product development The product development process works best when all the involved areas (R&D, marketing, engineering, production, and even suppliers) work together rather than sequentially, a process called simultaneous product development. It is a teamoriented approach to newproduct development. See 112: The New Product Development Process 38. Nutritreat Industries Corp. is a manufacturer of food products. The company introduced chocolate cookies to the local market. After a period of initial success, the product lost its market and Nutritreat decided to withdraw chocolate cookies from the market. This scenario is an example of the__________stage of a product life cycle. decline This scenario is an example of the decline stage of the product life cycle. A longrun drop in sales signals the beginning of the decline stage. Eventually, the product is withdrawn from the market. See 116: Product Life Cycles 39. __________are the first 2.5 percent of all those who first adopt a new product. Innovators Innovators are the first 2.5 percent of all those who adopt a product. Innovators are eager to try new ideas and products, almost as an obsession. They are characterized as being venturesome. See 115: The Spread of New Products 40. Explain in detail the importance of the Internet for implementing simultaneous product development. The Internet is a useful tool for simultaneous product development. On the Web, multiple partners from a variety of location can meet regularly to assess newproduct ideas, analyze markets and demographics, and review cost information. Ideas judged to be feasible can quickly be converted into new products. The bestmanaged global firms leverage their global networks by sharing best practices, knowledge, and technology. Without the Internet, it would be impossible to conduct simultaneous product development from different parts of the world. Some firms use online brain trusts to solve technical problems. Innovative firms are also gathering a variety of R&D input from customers online. 41. Explain the differences between the maturity stage and growth stage in the product life cycle. A period during which sales increase at a decreasing rate signals the beginning of the maturity stage of a product life cycle. Normally, this is the longest period of the product life cycle. As prices and profits continue to fall, marginal competitors start dropping out of the market. Dealer margins also shrink, resulting in less shelf space for mature items, lower dealer inventories, and a general reluctance to promote the product.If a product category survives the introductory stage, it then advances to the growth stage of the life cycle. In this stage, sales typically grow at an increasing rate, many competitors enter the market, and large companies may start to acquire small pioneering firms. Profits rise rapidly in the growth stage, reach their peak, and begin declining as competition intensifies. Emphasis switches from primary demand promotion to aggressive brand advertising and communication of the differences between brands. 42. Explain in detail why a large proportion of new product introductions fail? Despite the amount of time and money spent on developing and testing new products, a large proportion of new product introductions fail. Products fail for a number of reasons. One common reason is that they simply do not offer any discernible benefit compared to existing products. Another commonly cited factor in newproduct failures is a poor match between product features and customer desires. For example, there are telephone systems in the market with more than 700 different functions, although the user is happy with just ten functions. Other reasons for failure include overestimation of marker size, incorrect targeting or positioning, a price too high or too low, inadequate distribution, poor promotion, or simply an inferior product. 43. What are the major implications of the newproduct development process and the diffusion process to marketing managers?The funnel shape of the newproduct development process indicates that many new product ideas are necessary to produce one successful new product. The newproduct development process is sometimes illustrated as a decay curve with roughly half of the ideas approved at one stage rejected at the next stage. While the actual numbers vary widely among firms and industries, the relationship between the stages can be generalized. This reinforces the notion that an organized effort to generate any ideas from various sources is important for any firm that wishes to produce a continuing flow of new products. The major implication of the diffusion process to marketing managers is that the message may need to change over time. The targeted adopter and media may need to shift based on how various categories of adopters gather product information. A message developed for and targeted toward early adopters will not be perceived similarly by late majority adopters. 44. Describe how a multinational corporation can most efficiently and effectively meet the needs of the global market. A firm that adopts a worldwide newproduct development strategy is better able to develop products with specifications that are marketable in multiple countries. Ideally, products should be developed for potential worldwide distribution, and unique multinational market requirements are incorporated into the base product whenever technically feasible. A company could also design products to meet regulations and other key requirements in its major market and then meet smaller markets' requirements on a countrybycountry basis. The main goal of the global product development process is not to develop a standard product or product line but to build adaptability into products that are expected to achieve worldwide appeal. 45. The business analysis stage of a newproduct development process _____. a. involves the development of a prototype of the proposed product b. calculates preliminary figures for demand, cost, sales, and profitability c. eliminates ideas that are inconsistent with an organization’s newproduct strategy d. decides on a product’s packaging, branding, labeling, and so forth o o o b. calculates preliminary figures for demand, cost, sales, and profitability 46. Newproduct ideas that survive the initial screening process move to the business analysis stage, where preliminary figures for demand, cost, sales, and profitability are calculated. For the first time, costs and revenues are estimated and compared. See 112: The New Product Development Process 47. The process where all the involved areas—R&D, marketing, engineering, production, and even suppliers— work together rather than sequentially during a product’s development is called _____. A. simulated market testing B. choice modelling C. simultaneous product development D. test marketing C. simultaneous product development The product development process works best when all the involved areas (R&D, marketing, engineering, production, and even suppliers) work together rather than sequentially, a process called simultaneous product development. It is a teamoriented approach to newproduct development. See 112: The New Product Development Process 48. The maker of Protect Your Hands hand sanitizer decided to test its consumers’ reactions to one of its new products, Protect Your Hands Sanitizing Wipes. It sent out flyers advertising several of the company’s products along with the new product to select customers of the target market. The flyer also asked the customers to shop in a mock store filled with real products, including the new product. In this case, the maker of Protect Your Hands has used _____. A. concept testing B. product simulation C. simulated market testing D. crowdsourcing C. simulated market testing The maker of Protect Your Hands has used simulated (laboratory) market testing. Simulated market tests typically entail showing members of the target market advertising for a variety of products and then monitoring purchase behavior in a mock or real store. See 112: The NewProduct Development Process 49. During the _____ stage of the newproduct development process, production starts, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin. A. test marketing B. business analysis C. commercialization D. idea generation C. commercialization During the commercialization stage of the newproduct development process, production starts, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin. Commercialization is the final stage in the newproduct development process. See 112: The NewProduct Development Process 50. Jeni’s Splendid Ice Creams has decided to put its new Beet Cake with Black Walnut ice cream on the market. This product has entered the _____ stage of newproduct development process. A. test marketing B. business analysis C. commercialization D. development C. commercialization The product has entered the commercialization stage of newproduct development process. Commercialization is the decision to market a product. It is the final stage in the newproduct development process. See 112: The New Product Development Process 51. _____ are the first 2.5 percent of all those who first adopt a new product. A. Laggards B. Early adopters C. Early majority D. Innovators D. Innovators Innovators are the first 2.5 percent of all those who adopt a product. Innovators are eager to try new ideas and products, almost as an obsession. They are characterized as being venturesome. See 115: The Spread of New Products 52. Roger is always eager to own the latest cell phone model launched in the market. He makes it a point to buy new cell phones on the first day of their launch. He is also an active member of various online forums that discuss the latest technical developments. In this case, Roger is a(n) _____. A. laggard B. late majority C. early majority D. innovator D. innovator Roger is an innovator as he is always eager to own the latest cell phone model launched in the market. Innovators are the first 2.5 percent of all those who adopt the product. Innovators are eager to try new ideas and products, almost as an obsession. In addition to having higher incomes, they are more worldly and more active outside their community than noninnovators. See 115: The Spread of New Products 53. In the context of the product characteristics that can be used to predict and explain the rate of acceptance and diffusion, _____ represents the degree of difficulty involved in understanding and using a new product. A. trialability B. observability C. complexity D. compatibility C. complexity Complexity is the degree of difficulty involved in understanding and using a new product. The more complex the product, the slower is its diffusion. See 11 5: The Spread of New Products54. _____ have the longest product life cycles. A. Individual brands B. Product items C. Product categories D. New products C. Product categories Product categories have the longest life cycles. A product category includes all brands that satisfy a particular type of need, such as shaving products, passenger automobiles, or soft drinks. See 116: Product Life Cycles 55. _____ are typically categorized by a sudden and unpredictable spike in sales followed by a rather abrupt decline. A. Fad items B. Product life cycles C. Consumer durable goods D. Product trends A. Fad items Fads are typically categorized by a sudden and unpredictable spike in sales followed by a rather abrupt decline. Examples of fad items are Silly Bandz, Beanie Babies, and Crocs. See 116: Product Life Cycles 56. Central Bark Doggie Day Care opened the first day care center for dogs. It currently has 31 locations, with a new Gainesville, Florida, location coming soon. The concept of day care center for dogs became so popular that other competitors begin to enter the market. With competing companies such as Camp Bow Wow and others entering the market, it can be said that the concept of day care center for dogs is moving into the _____ stage of a product life cycle. A. decline B. growth C. maturity D. introductory B. growth With the opening of competition in the form of Camp Bow Wow and others, it can be said that the dog day care product is moving into the growth stage of the product life cycle. A competitor entering the market is an indicator of the growth stage in the product life cycle. See 116: Product Life Cycles 57. In the context of the product life cycle, a longrun drop in a product’s sales signals the beginning of the _____. A. introductory stage B. growth stage C. maturity stage D. decline stage D. decline stage A longrun drop in sales signals the beginning of the decline stage. The rate of decline is governed by how rapidly consumer tastes change or substitute products are adopted. See 116: Product Life Cycles 58. Nutritreat Industries Corp. is a manufacturer of food products. The company introduced chocolate cookies to the local market. After a period of initial success, the product lost its market and Nutritreat decided to withdraw chocolate cookies from the market. This scenario is an example of the _____ stage of a product life cycle.A. growth B. decline C. introduction D. maturity B. decline This scenario is an example of the decline stage of the product life cycle. A longrun drop in sales signals the beginning of the decline stage. Eventually, the product is withdrawn from the market. See 116: Product Life Cycles CH 14 1. 1. In exclusive distribution, a manufacturer tries to have a product available in every outlet where potential consumers might want to buy it. True or False? False Exclusive distribution is a restrictive form of market coverage, which entails only one or a few dealers within a given area. See 142:Channel Structures 2. 2. Intensive distribution is a form of distribution aimed at minimum market coverage. True or False? False Intensive distribution is a form of distribution aimed at maximum market coverage. Here, a manufacturer tries to have a product available in every outlet where the potential customer might want to buy it. See 142:Channel Structures3. 3. Retailers are those firms in a marketing channel that sell directly to consumers as their primary function. True or False? True Retailers are those firms in a marketing channel that sell directly to consumers as their primary function. They provide contact efficiency for consumers. See 141:Marketing Channels and Channel Intermediaries 4. 4. Facial recognition technology allows multiple retailers to sell products to consumers through social media sites. True or False? False Facial recognition technology allows market researchers to record consumers' nonverbal reactions to products and advertisements, giving them more information about customer preferences. See 145:New Developments in Channel Management 5. 5. Mcommerce enables consumers using wireless mobile devices to connect to the Internet and shop. True or False? True Mcommerce enables consumers using wireless mobile devices to connect to the Internet and shop. Mcommerce goes beyond text message advertisements to allow consumers to purchase goods and services using wireless mobile devices. See 145:New Developments in Channel Management6. 6. Retailers simplify distribution by cutting the number of transactions required by consumers, making an assortment of goods available in one location. True or False? True Retailers simplify distribution by cutting the number of transactions required by consumers, making an assortment of goods available in one location. Retailers are those firms in a marketing channel that sell directly to consumers as their primary function. See 141:Marketing Channels and Channel Intermediaries 7. 7. Which of the following is true of channel conflict? A. It always has a negative effect on the members of a channel. B. It mixes elements of cooperation and competition between two partners who work together on the same initiative. C. It does not occur when multiple distribution channels are used. D. It is often caused by an unwillingness of traditional channel members to keep up with the changing times. D. It is often caused by an unwillingness of traditional channel members to keep up with the changing times. Channel conflict is often caused by an unwillingness of traditional channel members to keep up with the changing times. Inequitable channel relationships often lead to channel conflicts. See 143: Types of Channel Relationships 8. 8. The major characteristic that is used to differentiate intermediaries from one another is whether they: A. create specialization of labor.B. create economies of scale. C. raise profit margins for independent middlemen. D. take title to the products they sell. D. take title to the products they sell. The most prominent difference separating intermediaries is whether they take title to the products they sell. Taking title means they own the merchandise and control the terms of the sale—for example, price and delivery date. See 141: Marketing Channels and Channel Intermediaries 9. 9. Mezjo Inc. is a video store that sells DVDs and also sells popcorn, candy, soft drinks, and entertainment publications. It stores all of these products in separate warehouses and uses different modes of transportation to deliver them. Which of the following functions is described in this scenario? A. Financing functions B. Logistical functions C. Transactional functions D. Research functions B. Logistical functions This scenario describes logistical functions. Logistical functions include transportation and storage of assets, as well as their accumulation, consolidation, and allocation. See 141: Marketing Channels and Channel Intermediaries 10. 10. Which of the following is true of nontraditional channels? A. They detract from the profitability of the primary and secondary channels controlled by a business. B. They are used to sell stolen or counterfeited products.C. They enable a consumer to return a product when it reaches the end of its useful life. D. They help differentiate a firm's product from the competition. D. They help differentiate a firm's product from the competition. Nontraditional channels help differentiate a firm's product from the competition. Nontraditional channels include the Internet, mailorder channels, or infomercials. See 142: Channel Structures 11. 11. Which of the following is true of the facilitating function performed by intermediaries? A. It includes research and financing. B. It involves explaining a product's features, advantages, and benefits. C. It includes transportation and storage of assets. D. It involves communicating with prospective buyers to make them aware of existing products. A. It includes research and financing. Facilitating, one of the basic channel functions, includes research and financing. Research provides information about channel members and consumers by getting answers to key questions. Financing ensures that channel members have the money to keep products moving through the channel to the ultimate consumer. See 141: Marketing Channels and Channel Intermediaries 12. 12. Which of the following is a difference between a retailer channel and a wholesaler channel? A. A retailer channel must be organized and managed as a group, while a wholesaler channel must be managed individually. B. A retailer channel enables a retailer to use another manufacturer's alreadyestablished product, while a wholesaler channel does not. C. A retailer channel is most common when the retailer is large and can buy in large quantities, while a wholesaler channel is commonly used for lowcost items that are frequently purchased. D. A retailer channel helps differentiate a firm's final product from the competition, while a wholesaler channel does not. C. A retailer channel is most common when the retailer is large and can buy in large quantities, while a wholesaler channel is commonly used for lowcost items that are frequently purchased. A retailer channel is most common when the retailer is large and can buy in large quantities, while a marketing channel is commonly used for lowcost items that are frequently purchased. Walmart, Sears, and car dealers are examples of retailers that often bypass a wholesaler. Cigarettes and magazines are examples of goods purchased through a wholesaler channel. See 142: Channel Structures 13. 13. Which of the following is a difference between vertical conflict and horizontal conflict? A. Vertical conflict occurs when a wholesaler chooses to bypass a producer, while horizontal conflict occurs when a producer chooses to bypass a wholesaler. B. Vertical conflict occurs between different levels in a marketing channel, while horizontal conflict occurs among channel members on the same level. C. Vertical conflict is found when manufacturers practice multiple distribution strategies, while horizontal conflict is found when manufacturers practice a single distribution strategy.D. Vertical conflict is primarily characterized by lying and breaking contractual agreements, while horizontal conflict is primarily characterized by hiding and withholding information. B. Vertical conflict occurs between different levels in a marketing channel, while horizontal conflict occurs among channel members on the same level. Vertical conflict occurs between different levels in a marketing channel, most typically between a manufacturer and wholesaler or a manufacturer and retailer. Horizontal conflict occurs among channel members on the same level, such as two or more different wholesalers or two or more different retailers that handle the same manufacturer's brands. See 143: Types of Channel Relationships 14. 14. Phoenix Automated Retail Services specializes in DVD rentals via automated retail kiosks. If consumers want a particular DVD, they can rent it from Phoenix instead of searching for it in various production studios. Phoenix therefore provides__________for both consumers and the production studios. contact efficiency In this scenario, Phoenix provides contact efficiency for both consumers and the production studios. Retailers provide contact efficiency by reducing the number of stores customers must shop in to complete their purchases. See 141: Marketing Channels and Channel Intermediaries 15. 15. __________negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving a product from the manufacturer into the hands of the final consumer.Channel members Channel members negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving a product from the manufacturer into the hands of the final consumer. As products move to the final consumer, channel members facilitate the distribution process by providing specialization and division of labor. See 141: Marketing Channels and Channel Intermediaries 16. 16. A__________channel enables a consumer to return a product when it reaches the end of its useful life. reverse A reverse channel enables a consumer to return a product when it reaches the end of its useful life. The retailer or manufacturer can then recycle the product and use components to manufacture new products or refurbish and resell the same product in a secondary market. See 142: Channel Structures 17. 17. Red Chilly Productions, a production studio based in the United States, decides to make a major change in its distribution strategy. It withdraws contracts from its retail partners and begins to operate its own rental store. This results in its retail partners filing several lawsuits against the company. This scenario is an example of__________. horizontal conflict This scenario is an example of horizontal conflict. Horizontal conflict occurs among channel members on the same level, such as two or more different wholesalers or two or more different retailers that handle the same manufacturer's brands. See 143: Types of Channel Relationships 18. 18. __________occurs when a firm refuses to meet specific obligations or fails to change when new situations arise.Passive opportunism Passive opportunism occurs when a firm refuses to meet specific obligations or fails to change when new situations arise. Passive opportunism involves behaviors like hiding information, not notifying other firms of problems, or simply not doing what was agreed upon by two firms. See 143: Types of Channel Relationships 19. 19. Roubov Inc. is a chain of American department stores that sells clothing, furniture, home appliances, and toys. It buys its goods in large quantities directly from a manufacturer. Based on this information, Roubov Inc. most likely makes use of a(n)__________. retailer channel Roubov Inc. makes use of a retailer channel. A retailer channel is most common when the retailer is large and can buy in large quantities directly from the manufacturer. See 142: Channel Structures 20. 20. Indigo Blue Inc. is a distributor of equipment, component parts, and supplies in the United States. It has an ownership title to all its products. These products are stocked in both national and regional warehouses to guarantee product availability and quick service to the many manufacturers who are its customers. Based on this information, Indigo Blue Inc. is an example of a(n)__________. merchant wholesaler Indigo Blue Inc. is an example of a merchant wholesaler. Merchant wholesalers are organizations that facilitate the movement of products and services from a manufacturer to producers, resellers, governments, institutions, and retailers. See 141: Marketing Channels and Channel Intermediaries21. 21. Retailers play a role in making distribution simpler by reducing the number of transactions required by consumers to make a purchase and by making an assortment of goods available in one location. This is called__________. contact efficiency Retailers provide contact efficiency by reducing the number of stores customers must shop in to complete their purchases. Retailers are those firms in a marketing channel that sell directly to consumers as their primary function. See 141: Marketing Channels and Channel Intermediaries 22. 22. 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. marketing channel A marketing channel 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. Channels represent the “place" or “distribution" element of the marketing mix. See 141: Marketing Channels and Channel Intermediaries 23. 23. Why have many companies begun employing multichannel marketing strategies? Many companies have begun employing multichannel marketing strategies because channel preferences change throughout the different stages of the shopping cycle. Customers are therefore offered information, goods, services, and/or support through one or more synchronized channels. Customers who use multiple channels when shopping are more engaged and spend more than those who do not.24. 24. Why are many companies transitioning to omnichannel distribution operations? Many companies are transitioning to omnichannel distribution operations that support their multichannel retail operations and unify their retail interfaces. With omnichannel operations, every customer receives equally efficient service. Retailers like The Gap and Burberry have been quick to embrace omnichannel distribution. Today, these companies allow customers to reserve items online for pickup at nearby stores, offer a Webbased findinstore feature that displays realtime stock information and prevents unnecessary trips to the store, and provide instore computer terminals that customers can use to search company Web sites for products that local stores may not carry. 25. 25. 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. A. marketing channel B. retailer monopoly C. market grouping D. common trade alliance A. marketing channel A marketing channel 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. Channels represent the “place” or “distribution” element of the marketing mix.See 141: Marketing Channels and Channel Intermediaries 26. 26. _____ negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving a product from themanufacturer into the hands of the final consumer. A. LaggardsB. Channel members C. Early adopters D. Millennials B. Channel members Channel members negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving a product from themanufacturer into the hands of the final consumer. As products move to the final consumer, channel members facilitate the distribution process by providing specialization and division of labor. See 141: Marketing Channels and Channel Intermediaries 27. 27. Retailers play a role in making distribution simpler by reducing the number of transactions required by consumersto make a purchase and by making an assortment of goods available in one location. Thisis called _____. A. forward integration B. sorting C. contact efficiency D. reciprocity C. contact efficiency Retailersprovidecontactefficiencybyreducingthenumberofstorescustomersmusts hopintocompletetheirpurchases. Retailers are those firms in a marketing channel that sell directly to consumers as their primary function.See 141: Marketing Channels and Channel Intermediaries 28. 28. Phoenix Automated Retail Servicesspecializes in DVD rentals via automated retail kiosks. If consumers want a particular DVD, they can rent it from Phoenix instead of searching for itinvariousproduction studios. Phoenixtherefore provides _____ for both consumers and the production studios. A. forward integration B. reciprocity C. contact efficiency D. synergy C. contact efficiency In this scenario, Phoenixprovides contact efficiency for both consumers and the production studios.Retailers provide contact efficiency by reducing the number of stores customers must shop in to complete their purchases.See 141: Marketing Channels and Channel Intermediaries 29. 29. Indigo Blue Inc. is a distributor of equipment, component parts, and supplies in the United States. It has an ownership title to all its products.These products are stocked in both national and regional warehouses to guarantee product availability and quick service to the many manufacturers who are its customers. Based on this information, Indigo Blue Inc. is an example of a(n) _____. A. merchant wholesaler B. agent C. retailer D. government buyer A. merchant wholesaler Indigo Blue Inc. is an example of a merchant wholesaler. Merchant wholesalers are organizations that facilitate the movement of products and services from a manufacturer to producers, resellers, governments, institutions, and retailers. See 141: Marketing Channels and Channel Intermediaries 30. 30. Roubov Inc. is a chain of American department stores that sells clothing, furniture, home appliances, and toys.It buys its goods in large quantities directly from a manufacturer. Based on this information, Roubov Inc. most likely makes use of a(n) _____. A. retailer channel B. agent channel C. wholesaler channel D. directchannel A. retailer channel Roubov Inc.makes use of a retailer channel. A retailer channel is most common when the retailer is large and can buy in large quantities directly from the manufacturer.See 142: Channel Structures 31. 31. A _____ channel enables a consumer to return a product when it reaches the end of its useful life. A. traditional B. nontraditional C. gray marketing D. reverse D. reverse A reverse channel enables a consumer to return a product when it reaches the end of its useful life. The retailer or manufacturer can then recycle the product and use components to manufacture new products or refurbish and resell the same product in a secondary market. See 142: Channel Structures 32. 32. Red Chilly Productions, a production studio based in the United States, decides to make a major change in its distribution strategy. It withdraws contracts from its retail partners and beginsto operate its own rental store. This results in its retail partners filing several lawsuits against the company. This scenario is an example of _____.A. retailer monopoly B. dual distribution C. horizontal conflict D. bilateral monopoly C. horizontal conflict This scenario is an example of horizontal conflict. Horizontal conflict occurs among channel members on the same level, such as two or more different wholesalers or two or more different retailers that handle the same manufacturer’s brands. See 143: Types of channel relationships MKTG300 Exam3 Chpt15 CSULB Card Set InformationAuthor: jsfreaky ID: 317991 Filename: MKTG300 Exam3 Chpt15 CSULB Updated: 20160328 18:17:01 Tags: CHPT15 MKTG300 CSULB EXAM3 Folders: MKTG300 Description: Exam3 Chpt15 MKTG300 CSULB Show Answers:
What are Consumers' Needs, Wants, and Demands?

What are the four marketing management philosophies?

What is the four step marketing process?

We also discuss several other topics like unf meaning
If you want to learn more check out todd palmer uf
We also discuss several other topics like emu psychology major
We also discuss several other topics like fren 3200 study guide
Don't forget about the age old question of stat 100a ucr
If you want to learn more check out chem1001 study guide
1. 1. Strategic retailing goals typically focus on increasing costs of goods sold. True or False? False Strategic retailing goals typically focus on increasing total sales, reducing costs of goods sold, and improving financial ratios such as return on assets or equity. See 155:Executing a Retail Marketing Strategy 2. 2. Determining a target market is not a prerequisite to creating the retailing mix. True or False? False Determining a target market is a prerequisite to creating the retailing mix. For example, Target's merchandising approach for sporting goods is to match its product assortment to the demographics of the local store and region. See 15 5:Executing a Retail Marketing Strategy 3. 3. Valuebased pricing focuses on the cost of a product to the supplier more than the value of a product to the customer. True or False? False Valuebased pricing focuses on the value of a product to the customer more than the cost of a product to the supplier. See 155:Executing a Retail Marketing Strategy4. 4. Successful retailing has always been based on knowing the customer. True or False? True Successful retailing has always been based on knowing the customer. Sometimes retailing chains flounder when management loses sight of the customers the stores should be serving. See 155:Executing a Retail Marketing Strategy 5. 5. To manage service capacity, service firms must turn down some prospective customers if they do not have the capacity to meet demands. True or False? True If service firms do not have the capacity to meet demands, they must either turn down some prospective customers, let service levels slip, or expand capacity. See 156:Retailing Decisions for Services 6. 6. Developing a product offering is essentially a question of the width and depth of the product assortment. True or False? True The first element in the retailing mix is the product offering, also called the product assortment or merchandising mix. Developing a product offering is essentially a question of the width and depth of the product assortment. See 15 5:Executing a Retail Marketing Strategy7. 7. At the store level, tactical retailing goals include decrease in store traffic and lower sales of specific items. True or False? False At the store level, tactical retailing goals include increased store traffic, higher sales of a specific item, developing a more upscale image, and creating heightened public awareness of the retail operation and its products or services. See 155:Executing a Retail Marketing Strategy 8. 8. Maximizing the amount of time customers wait in line is a key factor in maintaining the quality of service. True or False? False Minimizing the amount of time customers wait in line is a key factor in maintaining the quality of service. See 156:Retailing Decisions for Services 9. 9. A freestanding store can become successful by: A. reducing the number of salespeople. B. attracting customers from nearby competitors. C. becoming a destination store. D. moving to an isolated location. C. becoming a destination store. A freestanding store can become successful by becoming a destination store. It may be hard to attract customers to a freestanding location, which is often isolated. See 155: Executing a Retail Marketing Strategy10. 10. Delta Company recruits and trains college students to sell educational reference books, software, and children's books doortodoor. This form of retailing is called: A. direct retailing. B. online retailing. C. offprice retailing. D. instore retailing. A. direct retailing. This form of nonstore retailing is called direct retailing. Direct retailing is the selling of products by representatives who work doortodoor, officetooffice, or at home sales parties. See 153: The Rise of Nonstore Retailing 11. 11. Which of the following is a difference between online retailing and the clickandcollect process? A. Online retailing enables customers to have items directly delivered to their doors; whereas in the clickandcollect process, customers travel to a physical store location to take delivery of the merchandise. B. Online retailing ensures greater speed of delivery, while the clickandcollect process takes longer to deliver a product. C. Online retailing resells preowned items bought back from customers, while the clickandcollect process sells only new items. D. Online retailing does not allow customers to provide themselves with products without the intervention of a service employee, while the clickandcollect process allows customers to provide themselves with products.A. Online retailing enables customers to have items directly delivered to their doors; whereas in the clickandcollect process, customers travel to a physical store location to take delivery of the merchandise. Online retailing allows customers to shop over the Internet and have items delivered directly to their doors. In contrast, clickandcollect enables customers to buy items online and drive to a physical store location to take delivery of the merchandise. See 158: Retailer and Retail Customer Trends and Advancements 12. 12. Which of the following is true of specialty stores? A. They offer consumers very limited service and carry a vast assortment of wellknown, nationally branded goods such as toys, housewares, and clothing. B. They price products lower than specialty discount stores. C. They carry a wide range of products and specialty goods, including apparel, cosmetics, housewares, electronics, and sometimes furniture. D. They carry a deeper but narrower assortment of merchandise within a single category of interest. D. They carry a deeper but narrower assortment of merchandise within a single category of interest. Specialty stores carry a deeper but narrower assortment of merchandise within a single category of interest. The specialized knowledge of their salesclerks allows for more attentive customer service. See 152: Types of Retailers and Retail Operations 13. 13. Which of the following is true of clickand collect? A. It enables consumers to make their purchases online and pick up their orders from physical stores. B. It requires representatives to sell products doortodoor, in offices, or at inhome sales parties. C. It employs outbound and inbound telephone contacts to sell directly to customers. D. It allows customers to shop over the Internet and have items delivered directly to their door. A. It enables consumers to make their purchases online and pick up their orders from physical stores. Clickandcollect is the practice of buying something online and then traveling to a physical store location to take delivery of the merchandise. When retailers use the clickandcollect strategy, customers benefit from greater speed of delivery. See 158: Retailer and Retail Customer Trends and Advancements 14. 14. Which of the following is a difference between offprice retailers and specialty shops? A. Offprice retailers employ a hybrid retail operating model, while specialty shops employ a mass merchandising retail operating model. B. Offprice retailers adopt a highservice approach, while specialty shops deemphasize customer service and product selection. C. Offprice retailers replenish inventory items that are sold, while specialty shops never replenish inventory items that are sold. D. Offprice retailers focus on lean inventory management, while specialty shops are supported by an agile approach to inventory. D. Offprice retailers focus on lean inventory management, while specialty shops are supported by an agile approach to inventory. Offprice retailers deemphasize customer service and product selection in favor of lower prices, which are achieved through a greater focus on lean inventory management. Specialty shops generally adopt a highservice approach that is supported by an agile approach to inventory. See 154: Retail Operations Models 15. 15. Which of the following is true of a franchise? A. It sells products under the brand name of a larger supporting organizational structure. B. It is an agreement where two parties agree to share the ownership of a business. C. It is owned by a person or a group with singular stores being operated within a local community. D. It is a group of brand names owned and operated by a single organization. A. It sells products under the brand name of a larger supporting organizational structure. A franchise is a business where the operator is granted a license to operate and sell a product under a larger supporting organization. A franchisor originates the trade name, product, methods of operation, and so on. See 152: Types of Retailers and Retail Operations 16. 16. Which of the following is true of retail channel omnification? A. It focuses on understanding how a brand's target consumers behave in different channels. B. It determines which product to stock and at what price. C. It allows retailers to offer competitive prices across various outlets. D. It increases redundancies in inventory and transportation.C. It allows retailers to offer competitive prices across various outlets. Retail channel omnification avoids redundancies in inventory and transportation, saves costs, and allows retailers to offer competitive prices across their various outlets. See 158: Retailer and Retail Customer Trends and Advancements 17. 17. Strategic retailing goals typically focus on: A. increasing costs of goods sold. B. increasing total sales. C. decreasing store traffic. D. decreasing returns on equity. B. increasing total sales. Strategic retailing goals typically focus on increasing total sales, reducing costs of goods sold, and improving financial ratios such as return on assets or equity. At the store level, tactical retailing goals include increased store traffic and higher sales of a specific item. See 155: Executing a Retail Marketing Strategy 18. 18. Which of the following is a difference between direct retailing and direct marketing? A. Direct retailing shoppers are less bound by traditional shopping situations, while direct marketing shoppers are bound by traditional shopping situations. B. Direct retailing allows customers to shop over the Internet, while direct marketing does not allow customers to shop over the Internet. C. Direct retailing employs inbound telephone contacts to sell directly to consumers, while direct marketing employs outbound telephone contacts to sell to consumers. D. Direct retailing representatives sell products doortodoor, while direct marketing allows consumers to shop from home. D. Direct retailing representatives sell products doortodoor, while direct marketing allows consumers to shop from home. Direct retailing representatives sell products doortodoor, in offices, or at in home sales parties. Direct marketing includes techniques used to elicit purchases from consumers' homes, offices, and other convenient locations. See 153: The Rise of Nonstore Retailing 19. 19. Choosing the right distribution channel for a service: A. adds to customer convenience. B. maximizes the time customers wait in a line. C. decreases the time that the service is available. D. increases the costs of providing the service. A. adds to customer convenience. Choosing the right distribution channel increases the time that services are made available and adds to customer convenience. 156: Retailing Decisions for Services 20. 20. The technique used to sift through data collected by pointofpurchase scanning equipment is called__________. marketbasket analysis Many technologically advanced retailers are using marketbasket analysis to sift through data collected by their pointofpurchase scanning equipment. Marketbasket analysis looks for products that are commonly purchased together to help retailers find ideal locations for each product. See 155: Executing a Retail Marketing Strategy