. Many product dominant firms use quality serviceA. to maintain a sustainable competitive advantage.B. as a way to increase the perishability of their products and induce replacement purchases.C. as a way to minimize the cost of production.D. to support a standards gap.2. George wants to create brand awareness for his new line of automotive tools. George needs toA. repeatedly expose his target audience to the various brand elements associated with his product line.B. conduct market research to determine existing brand loyalty.C. offer discounts to distributors.D. examine customer segmentation models to assess consumers’ positioning attitudes.3. During the _______ stage of the product life cycle, sales are low and profits are small or negative.A. maturityB. growthC. introductionD. leveling4. Marketers study _______ to see how new products are being customized or adapted and to discovernew trends in the marketplace.A. market testersB. laggardsC. lead usersD. reverse engineers5. The basic benefit of a brand is that itA. creates a basis for effective packaging.B. offers consumers promotional parity.C. provides a way for a firm to differentiate its product offerings from those of its competitors.D. allows manufacturers to ignore promotional expenditures.6. A major limitation in the use of internal R&D departments for new-idea generation is thatA. the departments tend to create too many blockbusters.B. the costs tend to be quite high.C. few scientists have practical ideas.D. the departments tend to be dissolved once sufficient ideas have been generated.7. Within each _______, there are often multiple product categories.A. primary packaging partB. SKUC. product lineD. package8. Through research, firms can close the _______ gap by matching customer expectations with actualservice.A. seniorityB. knowledgeC. standardsD. delivery9. Food preparation, lawn maintenance, and house cleaning services are all examples ofA. services shifted abroad because costs are lower in developing countries.B. services for which an aging population is gradually decreasing its demand.C. the price elasticity effect on services demand.D. household maintenance activities which people increasingly pay others to perform.10. 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 ofthe product life cycle.A. declineB. growthC. levelingD. maturity11. Brand extension is a popular marketing strategy because it allows the firm toA. avoid the problem of brand dilution.B. spend less on creating brand awareness and associations.C. separate out the cost of brand extension from brand intention.D. discontinue complementary products.12. For new-product marketers, early adopters are important because they tend to beA. specialists in reverse engineering.B. fond of prototypes.C. opinion leaders.D. few in number.13. One of the benefits to a firm of introducing new-to-the-world products or services isA. the ability to avoid having to pay pioneers for new-product development.B. cost savings.C. late-majority marketing.D. a greater market share that can be held over an extended period of time.14. Proctor & Gamble is a huge national brand manufacturer. By having leading brands like Tide andCrest, P&GA. has greater opportunity to dictate retail pricing.B. can increase brand dilution.C. can monopolize store brands.D. has greater control over marketing strategy.15. Gatorade was a new product that came out of research at the University of Florida. The drink companyused _______ to gain access to the new product idea.A. R&D effortsB. licensingC. consumer researchD. brainstorming16. Between concept testing and market testing, a firm should engage in which stage of the productdevelopment process?A. Marketing researchB. Product developmentC. Securing financial backingD. Brainstorming17. The process by which the use of a new product or service spreads throughout a market group isreferred to asA. lead-user dispersion.B. diffusion of innovation.C. test-marketing effectiveness.D. new-product introduction.18. Early personal computers cost several thousand dollars, allowing competitors toA. introduce lower-priced alternatives.B. focus on making improved versions.C. spend less on introductory advertising.D. focus on creating demand for their brand.19. _______ means allowing employees to make decisions about how service is provided to customers.A. Knowledge controlB. Standards enforcementC. Quality controlD. Empowerment20. _______ represents the systems and equipment resources that service providers need to be able toclose the delivery gap.A. Quality mechanicsB. Dynamic supportC. Instrumental supportD. Service infrastructure21. When confronted with an angry and emotional customer, the bestfirst step toward service recovery istoA. gently but firms tell the person you won’t tolerate being addressed in that tone of voice and turn away until he or she calmsdown.B. call security in case it’s necessary to escort the person from the building.C. listen carefully and with empathy until the customer feels he or she has been heard.D. match the person’s voice in intensity and volume to gain control of the confrontation.22. For a brand to be effective, it needs to beA. a catchy, tongue-twisting phrase.B. generic.C. a visual image containing human characters.D. easy for consumers to recognize and remember.23. When the management or owners of a service establishment have a different idea than the customersdo about the expectations and service standards, the firm most likelyhas a _______ gap.A. standardsB. perspectiveC. knowledgeD. delivery24. When there’s a significant difference between the service customers receive and what the firmpromotes, the firm has a _______ gap.A. knowledgeB. communicationsC. deliveryD. standards25. Proactive managers and service providers know to plan for failure to meet customer expectations. Thecourse of action that will help in the long run as well as the short run is toA. attempt to make amends and learn from the experience.B. reduce the communications gap.C. assess service standards against service fairness.End of examD. increase the zone of tolerance.
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