MKTG 350 EXAM 5 QUESTIONS AND
ANSWERS ALL CORRECT
When technical departments in firms form ties with universities, government units,
private research centers, and even competitors to access what they need, it is referred
to as _____.
A. strategic alliances
B. cartel arrangements
C. usury agreements
D. portfolio networks - Answer- A. strategic alliances
TRUE OR FALSE
The cash-to-cash metric shows the time between the initial cash investment and the
time of payment for a finished product. - Answer- TRUE
The trial phase in the adoption of a new product:
A. involves large scale usage of the product.
B. occurs before the awareness phase.
C. permits customers to verify claims about the product.
D. involves no cost for both the firm and the customers. - Answer- C. permits customers
to verify claims about the product.
Which of the following promotional launch tactics is most likely to be used by a firm if
product advantages must be learned through usage and experience?
A. Advertising
B. Sampling
C. Skimming pricing
D. Publicity - Answer- B. Sampling
TRUE OR FALSE
Market testing and test marketing are synonymous. - Answer- FALSE
TRUE OR FALSE
, Pseudo sale is a more vigorous method of market testing than the controlled sale, and
much more revealing. - Answer- FALSE
TRUE OR FALSE
Speculative sale method for market testing can be used in situations where industrial
firms have very close downstream relationships with key buyers. - Answer- TRUE
In the new products process, market testing should typically be carried out:
A. in the concept stage as the idea needs to be tested for practicality.
B. before the project evaluation stage begins.
C. as soon as techniques that will tell us what we need to know are found.
D. once the ideation phase begins. - Answer- C. as soon as techniques that will tell us
what we need to know are found.
Which of the following causes for new product failure does concept testing cover?
A. If there is a lack of need for the product
B. If the product does not meet the consumer needs
C. If the product is marketed poorly
D. If existing infrastructure cannot be used to produce the product - Answer- B. If the
product does not meet the consumer needs
Under which of the following situations will market testing be quick, if at all it takes
place?
A. When competitors can take retaliatory action that will hurt a company launching a
new product
B. When a new product requires huge capital investments
C. When a company is planning to enter into an entirely new industry by launching a
new product
D. When the success of a company's sales promotion plan relies heavily on perfect
execution - Answer- A. When competitors can take retaliatory action that will hurt a
company launching a new product
ANSWERS ALL CORRECT
When technical departments in firms form ties with universities, government units,
private research centers, and even competitors to access what they need, it is referred
to as _____.
A. strategic alliances
B. cartel arrangements
C. usury agreements
D. portfolio networks - Answer- A. strategic alliances
TRUE OR FALSE
The cash-to-cash metric shows the time between the initial cash investment and the
time of payment for a finished product. - Answer- TRUE
The trial phase in the adoption of a new product:
A. involves large scale usage of the product.
B. occurs before the awareness phase.
C. permits customers to verify claims about the product.
D. involves no cost for both the firm and the customers. - Answer- C. permits customers
to verify claims about the product.
Which of the following promotional launch tactics is most likely to be used by a firm if
product advantages must be learned through usage and experience?
A. Advertising
B. Sampling
C. Skimming pricing
D. Publicity - Answer- B. Sampling
TRUE OR FALSE
Market testing and test marketing are synonymous. - Answer- FALSE
TRUE OR FALSE
, Pseudo sale is a more vigorous method of market testing than the controlled sale, and
much more revealing. - Answer- FALSE
TRUE OR FALSE
Speculative sale method for market testing can be used in situations where industrial
firms have very close downstream relationships with key buyers. - Answer- TRUE
In the new products process, market testing should typically be carried out:
A. in the concept stage as the idea needs to be tested for practicality.
B. before the project evaluation stage begins.
C. as soon as techniques that will tell us what we need to know are found.
D. once the ideation phase begins. - Answer- C. as soon as techniques that will tell us
what we need to know are found.
Which of the following causes for new product failure does concept testing cover?
A. If there is a lack of need for the product
B. If the product does not meet the consumer needs
C. If the product is marketed poorly
D. If existing infrastructure cannot be used to produce the product - Answer- B. If the
product does not meet the consumer needs
Under which of the following situations will market testing be quick, if at all it takes
place?
A. When competitors can take retaliatory action that will hurt a company launching a
new product
B. When a new product requires huge capital investments
C. When a company is planning to enter into an entirely new industry by launching a
new product
D. When the success of a company's sales promotion plan relies heavily on perfect
execution - Answer- A. When competitors can take retaliatory action that will hurt a
company launching a new product
