BUAD 332 Exam 2 Questions & Answers Solved 100% Correct!!

1. New product ideas come from ____. a. internal sources, using company R&D b. external sources, listening to distributors and suppliers c. external sources, watching and listening to customers d. Both A and C e. All of the above are source of new product ideas - Answer-e. All of the above are source of new product ideas. Frequent purchases, little planning, low customer involvement, low prices, widespread distribution, and convenient locations are characteristics of ____. a. shopping products b. convenience products c. unsought goods d. specialty products - Answer-b. convenience products 3. A product's ____ is the place the product occupies in consumers' minds relative to competing products. a. life-cycle stage b. location c. positioning d. distribution - Answer-c. positioning 4. Coors has labels on their beer bottles that turn blue when the beer is at the optimal drinking temperature. This is an example of ____. a. co-branding b. multi-branding c. line extension d. brand extensione. none of the above - Answer-e. none of the above 5. If a consumer buys a passenger van for driving his/her children to and from school, the passenger van is a(n) ____. If the same consumer buys the passenger van to operate an airport shuttle service, the passenger van is a(n) ____. a. sought good; consumer product b. unsought good; industrial product c. industrial product; consumer product d. consumer product; industrial product - Answer-d. consumer product; industrial product 6. All of the following are accurate descriptions of conditions necessary for market-skimming pricing strategy to work, except which one? a. Production and distribution costs must fall as sales volume increases. b. Competitors should not be able to enter the market easily and undercut the high price. c. The product's quality and image must support its higher price. d. Enough buyers must want the product at that high price. - Answer-a. Production and distribution costs must fall as sales volume increases. 7. During which stage of the consumer purchase decision process is a buyer most likely to experience cognitive dissonance? a. Purchase Decision b. Adoption c. Post-purchase Behavior d. Need Recognition - Answer-c. Post-purchase Behavior 8. As was discussed in class, an example of an industry that typically practices a "product quality leadership" strategy when it comes to setting prices is: a. the banking industry b. the airline industry c. the computer industry d. the pharmaceutical industry - Answer-d. the pharmaceutical industry9. Dr. Moon gave an example in class of V-8 soup. This example was to illustrate: a. line extensions b. licensed brands c. private brands d. brand extensions - Answer-d. brand extensions 10. ____ divides the market into groups based on variable such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. a. Psychographic segmentation b. Demographic segmentation c. Geographic segmentation d. Behavioral segmentation - Answer-b. Demographic segmentation