Penn Foster 080604RR Value Capture and Value Delivery Exam BUS213 Business Law 1

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1. A firm’s product line breadth is its

A. number of product lines.
B. number of categories that are mutually exclusive.
C. number of SKUs per product line.
D. depth divided by its profitability

2. Successful first movers create a market or a product category and benefit from being readily recognizable to consumers and

A. not needing to do test marketing.
B. using prototypes to dominate the market.
C. not having to pay advertising expenses.
D. establishing an early market share lead.

3. The basic benefit of a brand is that it

A. creates a basis for effective packaging.
B. provides a way for a firm to differentiate its product offerings from those of its competitors.
C. offers consumers promotional parity.
D. allows manufacturers to ignore promotional expenditures.

4. Between concept testing and market testing, a firm should engage in which stage of the product development process?

A. Product development
B. Brainstorming
C. Securing financial backing
D. Marketing research

5. George wants to create brand awareness for his new line of automotive tools. George needs to

A. conduct market research to determine existing brand loyalty.
B. examine customer segmentation models to assess consumers’ positioning attitudes.
C. repeatedly expose his target audience to the various brand elements associated with his product line.
D. offer discounts to distributors.

6. Brand extension is a popular marketing strategy because it allows the firm to

A. separate out the cost of brand extension from brand intention.
B. discontinue complementary products.
C. avoid the problem of brand dilution.
D. spend less on creating brand awareness and associations.

7. When the management or owners of a service establishment have a different idea than the customers do about the expectations and service standards, the firm most likely has a _______ gap.

A. delivery
B. perspective
C. knowledge
D. standards

8. A major limitation in the use of internal R&D departments for new-idea generation is that

A. the departments tend to create too many blockbusters.
B. few scientists have practical ideas.
C. the departments tend to be dissolved once sufficient ideas have been generated.
D. the costs tend to be quite high.

9. Colgate-Palmolive’s _______ includes Oral Care, Personal Care, Household Care, Fabric Care, and Pet Nutrition product lines.

A. primary packaging parts
B. product personality
C. product assortment
D. perceived generic cobrands

10. The process by which the use of a new product or service spreads throughout a market group is referred to as

A. lead-user dispersion.
B. test-marketing effectiveness.
C. new-product introduction.
D. diffusion of innovation.

11. For new-product marketers, early adopters are important because they tend to be

A. opinion leaders.
B. specialists in reverse engineering.
C. few in number.
D. fond of prototypes.

12. Through research, firms can close the _______ gap by matching customer expectations with actual service.

A. seniority
B. standards
C. delivery
D. knowledge

13. For a brand to be effective, it needs to be

A. a visual image containing human characters.
B. easy for consumers to recognize and remember.
C. generic.
D. a catchy, tongue-twisting phrase.

14. Private-label brands like Gap and Victoria’s Secret have increased in importance along with the increased power of _______ in the supply chain.

A. manufacturers
B. retailers
C. supply chain specialists
D. wholesalers

15. Many hotels use _______ to overcome the problem of inseparability of services.

A. promotional discounts
B. satisfaction guarantees
C. point-of-purchase displays
D. perishability gap analysis

16. When confronted with an angry and emotional customer, the best first step toward service recovery is to

A. match the person’s voice in intensity and volume to gain control of the confrontation.
B. listen carefully and with empathy until the customer feels he or she has been heard.
C. gently but firms tell the person you won’t tolerate being addressed in that tone of voice and turn away until he or she calms down.
D. call security in case it’s necessary to escort the person from the building.

17. The _______ diffusion-of-innovation group is crucial because few new products can be profitable until this large group buys them.

A. late majority
B. innovator
C. early majority
D. early adopter

18. _______ is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service.

A. National branding
B. Brand positioning
C. Brand licensing
D. Brand equity

19. Marketers study _______ to see how new products are being customized or adapted and to discover new trends in the marketplace.

A. market testers
B. laggards
C. reverse engineers
D. lead users

20. Choosing a name for a brand

A. is serious business, and humorous names have been shown to detract from the brand.
B. is easy once a company does the research.
C. may depend on the usage and performance of the product.
D. may be complicated by the legal restrictions in several states that require the corporate name to be included.

21. By the time BMW and Mercedes Benz entered the mini-SUV market, there were many competitors, sales had peaked, and profits were declining. These firms entered the market during the _______ stage of the product life cycle.

A. decline
B. maturity
C. leveling
D. growth

22. During the _______ stage of the product life cycle, sales are low and profits are small or negative.

A. leveling
B. maturity
C. growth
D. introduction

23. When marketers need to address changing market conditions or when strategies evolve or refocus, one option they should consider is

A. adding new sources to capitalize on the existing marketing mix.
B. controlling the market conditions.
C. deleting product lines or categories.
D. investing in a completely different product until the market stabilizes.

24. During the _______ stage of the product life cycle, sales rise, profits rise rapidly, and there are a few but increasing number of competitors.

A. growth
B. maturity
C. decline
D. introduction

25. Because services like airline flights and hotel beds are _______, many marketers attempt to match demand with supply using pricing strategies.

A. perishable
B. inseparable
C. variable
D. intangible

Course: BUS213 Business Law 1
School: Penn Foster College

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  • 25/07/2017
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