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Advertising is important for products such as Butterfinger candy bars and Dasani bottled water that are purchased frequently and at relatively low cost.Also,wide distribution in retail outlets is essential.Why?


A) They are highly sought after goods that one purchases from wholesalers.
B) They are unsought products,so advertising promotes consumers' impulse purchases.
C) They are nondurable goods and easily substitutable,so consumers need to be reminded of their existence.
D) They are shopping products and can easily go out of stock.
E) They are semidurable goods,so advertising helps to maintain steady demand.

F) A) and B)
G) A) and C)

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The four I's of services consist of


A) intangibility,inconsistency,inseparability,and innovation.
B) intangibility,inventory,inflexibility,and impression.
C) intangibility,inconsistency,inseparability,and inventory.
D) intangibility,inventory,innovation,and impression.
E) intangibility,inconsistency,innovation,and impression.

F) A) and B)
G) B) and E)

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The screening and evaluation stage of the new-product process involves


A) internal and external evaluations of new-product ideas.
B) product selection and budgeting projections.
C) business and cost analyses.
D) patent searches and environmental scanning.
E) idea selection and prototype development.

F) D) and E)
G) A) and E)

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The dimension of service quality called __________ is knowledge and courtesy of employees and their ability to convey trust and confidence.


A) assurance
B) sympathy
C) empathy
D) responsiveness
E) reliability

F) A) and E)
G) None of the above

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Which of the following is MOST LIKELY to be an example of an unsought product?


A) iPod MP3 player
B) Lexus LS 460 luxury automobile
C) flight on American Airlines to Phoenix
D) Roget's Thesaurus
E) Ivory soap

F) A) and E)
G) A) and D)

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A discontinuous innovation is a product that


A) disrupts consumer s' normal routine but does not require totally new learning.
B) requires no new learning by consumers.
C) is not purchased by innovators and early adopters.
D) initiates obsolescence of a product class.
E) requires consumers to learn entirely new patterns of behavior and product usage.

F) A) and E)
G) A) and C)

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An extremely large machine for producing sheet metal from steel ingots would be classified as which kind of business products?


A) installations
B) finished goods
C) supplies
D) industrial services
E) raw materials

F) A) and B)
G) A) and C)

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Parallel development is the simultaneous development of both


A) the product and promotion strategies.
B) production and financing tactics.
C) the product and the production process.
D) production and selling methodologies.
E) R&D and financial analysis.

F) B) and E)
G) A) and B)

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Among business products,examples of supplies are


A) paper clips,pens,and batteries.
B) trash dumpsters and smartphones.
C) warehouses and automated assembly lines.
D) lumber and engine parts.
E) security services.

F) A) and C)
G) A) and E)

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Napster was the first software that allowed an individual to easily search for and exchange MP3 music files with other individuals (in some cases illegally) .When it was introduced,Napster would have been an example of a


A) continuous innovation.
B) dynamically continuous innovation.
C) regulatory innovation.
D) discontinuous innovation.
E) disruptive improvement.

F) A) and E)
G) A) and C)

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In addition to seeking ideas from more well-known sources,organizations also get ideas from universities,inventors,and small nontraditional firms.For example,inventor Gary Schwartzberg sold his idea for __________ to Kraft Foods,Inc.


A) scones with coffee-flavored cream frosting
B) an Omega-3 enriched SKU for the Philadelphia cream cheese line
C) tube-shaped bagels filled with Philadelphia cream cheese
D) deep fried chicken skins for people who cannot eat pork
E) a crispy baked macaroni and cheese snack that can be eaten out of a bag like Cheetos

F) A) and B)
G) None of the above

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Audiences are allowed to preview actual movies (a "sneak preview") such as The Avengers and The Hunger Games so that changes might be made before they are released to the general public during which stage of the new-product process?


A) market testing
B) business analysis
C) commercialization
D) screening and evaluation
E) concept testing

F) B) and D)
G) A) and B)

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One of the six ORGANIZATION-RELATED problems that can cause new-product failures is __________.


A) poor product quality
B) not really listening to the voice of the consumer
C) poor execution of the marketing mix
D) bad timing
E) incomplete market and product protocol

F) A) and B)
G) None of the above

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What do a security guard,a plumber,and a management consultant have in common?


A) They are all tangible services.
B) They do not have problems with idle production capacity.
C) They are all equipment-based services.
D) They are all people-based services.
E) They never use off-peak pricing.

F) A) and E)
G) A) and D)

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Idea generation refers to


A) the stage of the new-product process when concepts are converted to prototypes.
B) the stage of the new-product process that develops a pool of concepts as candidates for new-products.
C) the stage of the new-product process where possible promotional campaigns and advertising themes are created.
D) the techniques used to screen and reject those ideas that have no merit.
E) the discussion and decision of which as target market segments will be selected.

F) D) and E)
G) A) and B)

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Why are inventory of services different from that of goods?


A) Time is less important to customers of services than customers of goods.
B) Only service inventory can be reduced through more efficient movement of products.
C) There are larger costs associated with the handling of service inventory.
D) Unlike goods providers,the service provider is often unavailable when there is a demand for the service.
E) Service inventory costs are related to idle production capacity rather than storage or handling.

F) B) and E)
G) B) and D)

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With respect to price and availability,shopping products are likely to be


A) relatively inexpensive and widely available.
B) relatively inexpensive but very limited availability.
C) very expensive and available at a large number of selective outlets.
D) very expensive with very limited availability.
E) fairly expensive and available at a large number of selective outlets.

F) A) and B)
G) All of the above

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A product can be classified as "new" if it __________ from existing products.


A) is functionally different
B) is different in color
C) is different in its packaging
D) is different in price
E) requires a different distribution channel

F) A) and B)
G) B) and D)

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The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given as gifts for almost every occasion imaginable.The Love Bandit Bear is designed for people to give to each other on Valentine's Day.The unique identification number that the Vermont Teddy Bear Company uses to distinguish this Teddy bear from the others in its product line for ordering and inventory purposes is called a(n)


A) stock ID code.
B) QR code.
C) NAICS stock code.
D) order quantity code.
E) stock keeping unit.

F) A) and B)
G) All of the above

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The __________ is the unique identification number that defines an item for ordering or inventory purposes.


A) unique stock mark
B) QR code
C) stock keeping unit
D) order quantity code
E) NAICS stock code

F) B) and D)
G) All of the above

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