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66) Titan Inc., an automobile manufacturer based in Utah, recently added two new models to its existing line of sedans in order to increase profits and satisfy dealers. This is an example of . A) line filling B) social marketing C) market diversification D) negative brand equity E) person marketing Answer: A 68) Proton Corp. is an automobile manufacturer known for producing efficient, durable, and low- priced cars. Recently, the company launched a new range of luxury cars to broaden its market appeal and to add prestige to its existing line of cars. This is an example of . A) social marketing B) product line filling C) product line stretching D) internal ma rketing E) cannibalization Answer: C 74) A well-known cosmetic company in New York City added new product lines in order to increase its business. In other words, it . A) lengthened its existing product line B) decreased its product line consistency C) widened its product mix D) engaged in market diversification E) engaged in social marketing Answer: C 94) Which of the following actions is a restaurant owner most likely to take in order to reduce problems associated with service intangibility? A) increase entree prices after 6:00 p.m. B) provide clean tablecloths and fresh napkins for each new customer C) empower employees to handle customer complaints D) offer discounted prices for appetizers ordered during happy hour E) hold regular employee workshops focusing on customer service Answer: B 95) Tristan and Juliet, a newly married couple who intend to go to Egypt for their honeymoon, bought a Europe travel package on Jizo Inc., an online travel site. As they have never seen Europe or used the services of Jizo before, they were largely dependent on other customers' feedback and signals for service quality. Which of the following characteristics of service is highlighted in this instance? A) service intangibility B) service inseparability C) service variability D) service perishability E) service distinction Answer: A 97) The customers of Parry's Hair Salon have noticed that the quality of a haircut depends on who provides it as well as when, where, and how the service is provided. Which of the following characteristics of service is evident in this instance? A) service intangibility B) service inseparability C) service perishability D) service variability E) service distinction Answer: D 99) Alex Smith rents storage space to college students who go home for the summer but do not want to haul all of their property home and back. The business is profitable during the summer months, but when the storage space is unoccupied in the off-season, Alex loses money. Which of the following characteristics of service is most likely the source of Alex's problem? A) intangibility B) perishability C) inconsistency D) variability E) inseparability Answer: B 104) Apollo Couriers, a company providing international express mail services, has a proactive customer communications team. The primary job of this team is to identify situations that led to customer dissatisfaction, and then provide quick remedies to fix the problems. To a great extent, this has helped Apollo in winning customer loyalty. In this instance, Apollo has benefitted from . A) product differentiation B) good service recovery C) multibranding D) place marketing E) co-branding Answer: B 118) BlueFin canned tuna has higher sales than its unbranded rival, even though the unbranded tuna costs $0.45 less per can than BlueFin tuna. BlueFin most likely has . A) an aggressive brand personality B) high brand equity C) no brand commitment D) negative brand equity E) low brand relevance Answer: B 119) Which of the following is one of the four consumer perception dimensions used by ad agency Young & Rubicam to measure brand strength? A) brand conformance B) brand consistency C) brand convenience D) brand extension E) brand relevance Answer: E 122) After a brief stay at a luxury hotel in Paris, Benjamin Sanders noted that the hotel had kept every promise it made when he booked the room, meeting all his needs. He added that it was a "thoroughly comfortable and opulent experience." According to Young & Rubicam's Brand Asset Valuator, this reflects brand . A) valuation B) esteem C) relevance D) differentiation E) knowledge Answer: C 123) Which of the following is true with regard to brand equity? A) Brand equity refers to how much consumers know about the brand. B) High brand equity provides a company with many competitive advantages. C) A brand has positive brand equity if consumers react less favorably to it than to an unbranded version. D) Positive brand equity derives from low brand esteem. E) The total financial value of a brand can be easily measured. Answer: B 127) Gainville Inc. manufactures Android phones. Each new Gainville phone launch advances the cause of democratizing technology. Gainville, an expert in fostering customer community, engages customers at a deep, emotional level, and has been ranked one of the Breakaway Brands by the brand consultancy Kendell Associates. Gainville is most likely positioned on . A) basic product attributes B) short-term benefits C) service variability D) self-image enhancement E) strong beliefs and values Answer: E 137) Symmonds Inc., a company manufacturing breakfast cereals, has extended its special Crispo cereal brand into a full line of breakfast cereals plus protein shakes, fruit and sandwich spreads, butter, and doughnuts. This is an example of . A) line extension B) brand extension C) licensing D) co-branding E) cannibalization Answer: B Chapter 9 3) Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) . A) new product development B) acquisition C) joint venture D) licensing contract E) divestment Answer: B 6) A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause of their failure? A) The products were priced too high. B) The products were advertised incorrectly. C) Competitors fought back harder than expected. D) Product research was too extensive. E) The product development costs were high. Answer: D 11) John's fascination for his grandmother's sherbet recipes inspired him to come up with a recipe for SherBetter, a gourmet sherbet for the American market. Which of the following stages of the new product development process does this exemplify? A) idea screening B) idea generation C) concept testing D) product development E) product manufacturing Answer: B 26) JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product . A) idea B) displacement C) image D) activation E) placement Answer: C 28) Which of the following statements is true of the new product development process? A) The purpose of the idea screening stage is to create a large number of ideas. B) Under the business analysis stage, if the new product satisfies the company's objectives, the product then moves to the product development stage. C) A product concept is the way consumers perceive an actual or potential product. D) The concept testing stage is the stage at which the product and its proposed marketing program are introduced into realistic market settings. E) Commercialization is the process of inviting broad communities of people such as customers, employees, and scientists into the new product innovation process. Answer: B 34) A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a . A) business feasibility plan B) marketing strategy development C) business analysis D) product acceptance E) business proposal Answer: C 35) Which stage of new product development requires management to estimate minimum and maximum sales to assess the range of risk in launching a new product? A) concept testing B) marketing strategy development C) business analysis D) product development E) test marketing Answer: C 36) Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the stage of the new product development process. A) business transformation B) test marketing C) business analysis D) business process reengineering E) concept testing Answer: C 37) Neutron Inc. is conducting a business analysis to determine which of the many newly developed apps should be released. To estimate sales, the company must . A) conduct surveys of competitors B) exclusively consider the government's opinions C) consider the sales history of similar products D) apply the PLC concept to industry sales E) opt for business process reengineering Answer: C 40) A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way to approach this problem proactively. They came up with an idea for a pair of blurry goggles. They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated. They developed a crude pair of blurry goggles to show prospective customers. This crude pair of goggles is known as a . A) prototype B) concept test C) product concept D) product image E) product idea Answer: A 41) Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is . A) test marketing B) focus group surveys