Question 1

There are four stages of the product life cycle. What does the fourth stage of the product life cycle represent?

Accepted Answer

A)  introduction
B)  maturity
C)  growth
D)  accelerated development
E)  declineF) A) and B)
G) B) and E)

Question 2

Gillette budgeted $200 million in advertising to introduce the Fusion razor to male shavers. Such expenditures are often made to stimulate primary demand, or desire for the product __________, rather than for a specific brand, when there are few competitors with the same product.

Accepted Answer

A)  class
B)  form
C)  item
D)  mix
E)  conceptF) B) and D)
G) All of the above

Question 3

Changing the place a product occupies in a consumer's mind relative to competitive products is referred to as

Accepted Answer

A)  market modification.
B)  product modification.
C)  product repositioning.
D)  product positioning.
E)  perceptual mapping.F) A) and B)
G) C) and E)

Question 4

Which of the following is a characteristic of the growth stage of the product life cycle?

Accepted Answer

A)  Advertising emphasis switches to primary demand.
B)  The proportion of initial purchasers to repeat purchasers grows.
C)  New or modified product features are added.
D)  Profit margins increase as sales increase.
E)  There are a limited number of retail outlets for greater quality control.F) A) and B)
G) A) and C)

Question 5

The 3M Co. is a master of the __________ pricing strategy. According to a 3M manager, "We hit fast, price high, and get the heck out when the me-too products pour in."

Accepted Answer

A)  penetration
B)  cost-plus
C)  ROI
D)  market-oriented
E)  skimmingF) D) and E)
G) A) and B)

Question 6

As product adopters, laggards

Accepted Answer

A)  have a fear of debt and use neighbors and friends as information sources.
B)  are skeptical and have below average social status.
C)  are deliberate and use many informal social contacts.
D)  are leaders in social settings and have a slightly above average education.
E)  are venturesome, highly educated, and use multiple information sources.F) A) and C)
G) A) and E)

Question 7

The third step in the sequential process of building brand equity is to

Accepted Answer

A)  develop positive brand awareness.
B)  establish a brand's meaning in the minds of consumers.
C)  elicit the proper consumer responses to a brand's identity and meaning.
D)  create a consumer-brand connection.
E)  reward loyal customer behavior.F) A) and B)
G) A) and C)

Question 8

When selecting a brand name, it should suggest the product benefits; be memorable, distinctive, and positive; fit the company or product image; be simple and emotional; __________; and have favorable phonetic and semantic associations in other languages.

Accepted Answer

A)  be humorous or mysterious
B)  have no legal or regulatory restrictions
C)  be easy to spell and pronounce
D)  contain no hidden meanings
E)  suggest an air of mysteryF) A) and B)
G) A) and C)

Question 9

A written statement of manufacturer liability is referred to as __________ warranty.

Accepted Answer

A)  an explicit
B)  a functional
C)  an implied
D)  a strict-liability
E)  an expressF) B) and E)
G) All of the above

Question 10

The commercial, legal name under which a company does business is referred to as a

Accepted Answer

A)  brand name.
B)  copyright.
C)  trademark.
D)  label.
E)  trade name.F) All of the above
G) A) and B)

Question 11

Product form refers to

Accepted Answer

A)  a distinctive shape of a product life cycle.
B)  similarities within the product category.
C)  variations within the product class.
D)  variations from product lines in a product mix.
E)  shared characteristics within the product class.F) C) and E)
G) A) and B)

Question 12

Market modification refers to a marketing strategy that

Accepted Answer

A)  alters a product's characteristic, such as its quality, performance, or appearance, to increase its value to customers and to increase sales.
B)  manages a product's life cycle to find new customers, increase a product's use among existing customers, or create new use situations.
C)  tries to find new customers and convince users who abandoned the product to purchase again.
D)  drops the lowest producing market segment and replaces it with an entirely new one.
E)  combines the two lowest producing market segments to achieve marketing economies of scale.F) A) and E)
G) A) and D)

Question 13

Which of the following is a characteristic of the growth stage of the product life cycle?

Accepted Answer

A)  Advertising emphasis switches to selective demand.
B)  A growing proportion of trial purchases come from brand loyal users.
C)  Product features remain unchanged.
D)  Profit margins increase as sales increase.
E)  The product is sold in a narrowly selected number of retail outlets.F) D) and E)
G) B) and E)

Question 14

The launch by Gatorade of Gatorade Endurance Carb Energy Chews is evidence of

Accepted Answer

A)  dynamic development.
B)  discontinuous development.
C)  product development.
D)  symbiotic development.
E)  simultaneous development.F) B) and E)
G) A) and B)

Question 15

All of the following are true about a skimming pricing strategy when used during the introduction stage of the product life cycle except

Accepted Answer

A)  it capitalizes on the price insensitivity of early buyers.
B)  its profit margins may be high.
C)  it encourages "me too" entrants into the market.
D)  it recovers the R&D costs of the new offering.
E)  it helps build unit volume.F) A) and B)
G) A) and E)

Question 16

Warranties that specifically state the bounds of coverage and, more important, areas of noncoverage are referred to as __________ warranties.

Accepted Answer

A)  express
B)  functional
C)  explicit
D)  limited-coverage
E)  impliedF) A) and E)
G) A) and D)

Question 17

One of the most popular means to gain consumer trial is through

Accepted Answer

A)  demonstrations.
B)  free samples.
C)  press releases.
D)  celebrity endorsements.
E)  product diffusion.F) B) and D)
G) A) and B)

Question 18

A product life cycle for which significant customer education is required and there is an extended introductory period is an example of a __________ product.

Accepted Answer

A)  low-learning
B)  fashion
C)  fad
D)  high-learning
E)  generalizedF) All of the above
G) A) and D)

Question 19

For consumers, the primary benefit of branding is that

Accepted Answer

A)  products tend to be higher in quality.
B)  it helps consumers become more efficient shoppers.
C)  branded items are more readily available in retail outlets.
D)  branded items are usually more expensive because of the cost to register them with the Federal Trade Commission (FT
C)  .
E)  they are often rewarded with buyer loyalty incentives.F) B) and C)
G) A) and D)

Question 20

Describe the concept of diffusion of innovation. Identify the category and incidence in the population for each product adopter.

Accepted Answer

The diffusion of innovation is the exten...

Exam 11: Managing Successful Products Services and Brands

Market modification refers to a marketing strategy that

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of the growth stage of the product life cycle?

Correct AnswerverifiedShow Answer

A written statement of manufacturer liability is referred to as __________ warranty.

Correct AnswerverifiedShow Answer

Gillette budgeted $200 million in advertising to introduce the Fusion razor to male shavers. Such expenditures are often made to stimulate primary demand, or desire for the product __________, rather than for a specific brand, when there are few competitors with the same product.

Correct AnswerverifiedShow Answer

As product adopters, laggards

Correct AnswerverifiedShow Answer

Product form refers to

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The 3M Co. is a master of the __________ pricing strategy. According to a 3M manager, "We hit fast, price high, and get the heck out when the me-too products pour in."

Correct AnswerverifiedShow Answer

Describe the concept of diffusion of innovation. Identify the category and incidence in the population for each product adopter.

Correct AnswerverifiedThe diffusion of innovation is the exten...View AnswerShow Answer

One of the most popular means to gain consumer trial is through

Correct AnswerverifiedShow Answer

When selecting a brand name, it should suggest the product benefits; be memorable, distinctive, and positive; fit the company or product image; be simple and emotional; __________; and have favorable phonetic and semantic associations in other languages.

Correct AnswerverifiedShow Answer

Warranties that specifically state the bounds of coverage and, more important, areas of noncoverage are referred to as __________ warranties.

Correct AnswerverifiedShow Answer

All of the following are true about a skimming pricing strategy when used during the introduction stage of the product life cycle except

Correct AnswerverifiedShow Answer

The third step in the sequential process of building brand equity is to

Correct AnswerverifiedShow Answer

For consumers, the primary benefit of branding is that

Correct AnswerverifiedShow Answer

The commercial, legal name under which a company does business is referred to as a

Correct AnswerverifiedShow Answer

There are four stages of the product life cycle. What does the fourth stage of the product life cycle represent?

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of the growth stage of the product life cycle?

Correct AnswerverifiedShow Answer

Changing the place a product occupies in a consumer's mind relative to competitive products is referred to as

Correct AnswerverifiedShow Answer

A product life cycle for which significant customer education is required and there is an extended introductory period is an example of a __________ product.

Correct AnswerverifiedShow Answer

The launch by Gatorade of Gatorade Endurance Carb Energy Chews is evidence of

Correct AnswerverifiedShow Answer

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The diffusion of innovation is the exten...
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