Final Exam Review Marketing 3650: Foundations of Marketing-Test is covering Topics :8,10,11,12,13... TOPIC 81. Management is in the _____________ stage of the new-product development process when it estimates market demand and prepares cost estimates for the new product.a. Business analysis2. A firm that wants to sustain its revenues should engage in new product development because:a. Products inevitably pass through a life cycle that culminates in the demise of the product.3. The first four steps in the new product development process are particularly critical because:a. These stages deal with ideas or 'concepts on paper' and are the least expensive steps.4. Last week Janet purchased her first bottle of Excedrin Migraine. She wanted to see if the product s pain-relieving benefits were any better than the brand she was using. Janet is most likely in the ___________ stage of the new product adoption process.a. Trial.5. In which of the adopter categories will opinion leaders most likelybe found?a. Early adopters.6. Hismanal is a drug that will eliminate all of your seasonal allergy complaints without making you drowsy. In terms of currently available allergy remedies that do make many people drowsy, Hismanal has greater ______ for allergy sufferers, which should speed its diffusion rate.a. Relative Advantage.7. Frito Lay test marketed a new flavored potato chip fundamentally identical to Procter & Gamble's Pringles line of chips. Sales were dissappointing as revenues were not even highenough to cover the product's costs. Frito Lay decided not to commercialize the product primarily because the were afraid the product would be a(n) _______________ ?a. Absolute failure.8. Sony Corporation conducted a series of consumer use tests in the 1990's in which consumers were given samples of its experimental digital camera. Participants were instructed to use the camera for all their picture-taking for the next 30 days. At the end of that time, participants were asked to a focus group session in which they were encouraged to elaborate on their usage experiences. Sony hoped that ideas for productFinal Exam Review Marketing 3650: Foundations of Marketingmodifications would emerge from the focus group that could be incorporated into the camera's final design. Sony was most likelyemploying which new product idea generation technique?a. Problem analysis.9. Product usage tests are commonly employed during new productdevelopment because they provide knowledge concerning (select all that apply):a. Ability of the product to deliver the benefits envisioned by the maker.b. The basic functionality of the product -- will it work as envisioned?c. How the product can be abused.10. Normally geographic roll-out for a new product begins in geographic areas removed from the product's original test market locations in case further test marketing may be required for fine-tuning the markting mix as commercialization progresses.a. False11. Al works as a cement finisher for a parking lot repaving company. He is suspicious of innovation and innovators. He was one of the very last people in the small Western city in which he lives to buy a microwave oven. When it comes to the adoption of microwave ovens, Al is in the _____ category.a. laggards.12. The _____ of a new product is the process by which an innovation is spread through a social system over time.a. Diffusion.13. The gasoline-electric vehicle marketed by Honda apparently is viewed negatively by many Texans because it doesn't fit their expectations of power and performance. Apparently, the new Honda may be slow to diffuse in the market because:a. It lacks value compatibility.14. Check sheets' and weighted point evaluation models are most likely to be employed in which stage of the new product development process?a. Idea screening.15. Being too quick to criticize new product ideas is consideredto be one the biggest pitfalls of _______________ .a. Brainstorming.TOPIC 1116. Ceramics Distributing Co. wants to keep its inventory low. Which of the following would be MOST likely to encourage customers to take over more responsibility for the storage function?Final Exam Review Marketing 3650: Foundations of Marketinga. offering a noncumulative quantity discount17. _____ are reductions from the list price offered to middlemen in payment for marketing functions they will perform.a. Trade or functional discounts.18. For featuring Erector Sets prominently in its store window, Child's Heaven, a store that carries educational toys, received a free motorized Ferris wheel kit, valued at $50. This is an exampleof a:a. Promotional allowance.19. Noncumulative quantity discounts are primarily offered by a seller in order to:a. Encourage larger individual orders.20. Yesterday Phoenix Press in Arizona shipped 112 books to aretailer in Tennessee, 54 books to a retailer in Florida, and 9 books to a customer in Alaska, yet Phoenix Press paid no freight charges. Which geographic pricing strategy did Phoenix use?a. FOB plant pricing.21. A retailer might expect a stocking allowance:a. to offset the handling costs for a new product.22. A reduction from list price given to middlemen to get shelf space for a product is a:a. Slotting allowance.23. Cash discount terms of 2/10, net 60 on an invoice would--ineffect-- amount to borrowing at an annual interest rate of about ________ percent if the buyer did not pay the invoice within the 10days allowed.a. 1424. On May 15, Ann's Café received a $265 invoice for restaurant supplies. The invoice offered the following terms, "3/14, n/30." If Ann pays the invoice by May 25, she should makeher check out for: (Round to the nearest penny. Include the dollar sign.)Ha. Since the bill was paid within 10 days, Ann can deduct 3% of the invoiced amount from her bill. She will pay $265 - $7.95 = $257.05.25. With which geographic pricing strategy is the seller likely to have the lowest freight charge?a. FOB mill pricing.26. Manufacturers offer _____, deductions from a seller's list price, to encourage customers to buy in larger amounts or to make most of their purchases from that seller.a. Quantity discounts.27. For which of the following products would a manufacturer be most likely to offer a seasonal discount?a. Ski parkas.Final Exam Review Marketing 3650: Foundations of Marketing28. In order to offset the competitive disadvantage of FOB mill pricing, Tate Marble Company in Georgia could use _____ pricing to ship its products to building contractors and