Question 1

Which of the following occurs during the decline stage of the product life cycle?

Accepted Answer

A)  Sales drop. 
B)  Flanking product lines are added. 
C)  The product becomes less vulnerable to changes in the marketing environment. 
D)  Promotional support is increased. 
E)  Competition becomes intense as more competitors enter the market. 
A)  Sales drop. 
B)  Flanking product lines are added. 
C)  The product becomes less vulnerable to changes in the marketing environment. 
D)  Promotional support is increased. 
E)  Competition becomes intense as more competitors enter the market.

Question 2

If a firm's marketing dashboard displays a BDI of 80 for a consumer packaged good like Hawaiian Punch, this indicates which of the following?

Accepted Answer

A)  a weak brand position in a segment 
B)  a strong brand position in a segment 
C)  above-average product category purchases by a market segment 
D)  below-average product category purchases by a market segment 
E)  There is not enough information to make any conclusions. 
A)  a weak brand position in a segment 
B)  a strong brand position in a segment 
C)  above-average product category purchases by a market segment 
D)  below-average product category purchases by a market segment 
E)  There is not enough information to make any conclusions.

Question 3

Private branding is also referred to as private labeling or

Accepted Answer

A)  reseller branding. 
B)  generic branding. 
C)  multibranding. 
D)  co-branding. 
E)  multiproduct branding. 
A)  reseller branding. 
B)  generic branding. 
C)  multibranding. 
D)  co-branding. 
E)  multiproduct branding.

Question 4

A ________ product is a style of the times.

Accepted Answer

A)  high-learning 
B)  low-learning 
C)  fashion 
D)  fad 
E)  substitute 
A)  high-learning 
B)  low-learning 
C)  fashion 
D)  fad 
E)  substitute

Question 5

Multibranding refers to a branding strategy in which a firm

Accepted Answer

A)  gives each product a distinct name as a method to appeal to various target markets. 
B)  uses different brand names for the same product across multiple countries. 
C)  uses one name for all its products in a product class, though each is intended for a different market segment. 
D)  produces products but sells them under the brand name of a wholesaler or retailer. 
E)  contractually, and for a fee, allows other firms to use its brand name, requiring that the product be made to its specifications. 
A)  gives each product a distinct name as a method to appeal to various target markets. 
B)  uses different brand names for the same product across multiple countries. 
C)  uses one name for all its products in a product class, though each is intended for a different market segment. 
D)  produces products but sells them under the brand name of a wholesaler or retailer. 
E)  contractually, and for a fee, allows other firms to use its brand name, requiring that the product be made to its specifications.

Question 6

When a company sells a new product with the current brand name to enter a new market segment in its product class, it is using a ________ strategy.

Accepted Answer

A)  mixed branding 
B)  brand extension 
C)  co-branding 
D)  family branding 
E)  product line extension 
A)  mixed branding 
B)  brand extension 
C)  co-branding 
D)  family branding 
E)  product line extension

Question 7

Prerecorded music is an example of a product ________, and digital music downloading and streaming are an example of a product

Accepted Answer

A)  line; class. 
B)  class; form. 
C)  family; line. 
D)  brand; line. 
E)  form; class. 
A)  line; class. 
B)  class; form. 
C)  family; line. 
D)  brand; line. 
E)  form; class.

Question 8

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. 
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.

Question 9

Brand extension is the practice of

Accepted Answer

A)  manufacturing a product under a new name that consumers will view as an entirely new product line. 
B)  manufacturing a new product with the same brand name for a new market segment in the same product class. 
C)  manufacturing accessory products for the base offering, such as Barbie clothes for Barbie dolls. 
D)  licensing another firm to manufacture modified versions of the original product. 
E)  applying the current brand name to enter a completely different product class. 
A)  manufacturing a product under a new name that consumers will view as an entirely new product line. 
B)  manufacturing a new product with the same brand name for a new market segment in the same product class. 
C)  manufacturing accessory products for the base offering, such as Barbie clothes for Barbie dolls. 
D)  licensing another firm to manufacture modified versions of the original product. 
E)  applying the current brand name to enter a completely different product class.

Question 10

During the maturity stage of the product life cycle, profit declines primarily because

Accepted Answer

A)  there are fewer and fewer competitors in the market. 
B)  promotional expenditures increase. 
C)  production costs increase the more a firm has to manufacture the same product. 
D)  there is fierce price competition among sellers. 
E)  more consumers enter the market seeking bargains. 
A)  there are fewer and fewer competitors in the market. 
B)  promotional expenditures increase. 
C)  production costs increase the more a firm has to manufacture the same product. 
D)  there is fierce price competition among sellers. 
E)  more consumers enter the market seeking bargains.

Question 11

The launch by Gatorade of Gatorade chews, bars, powders, shakes, and yogurt is evidence of

Accepted Answer

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

Question 12

There are several reasons a consumer might be reluctant to adopt a new product. For example, a consumer might be reluctant to adopt a new product because of a usage barrier, which occurs when

Accepted Answer

A)  there is no incentive to change. 
B)  there are physical, economic, or social risks. 
C)  there are cultural differences. 
D)  the financial commitment is too great. 
E)  the product is not compatible with existing habits. 
A)  there is no incentive to change. 
B)  there are physical, economic, or social risks. 
C)  there are cultural differences. 
D)  the financial commitment is too great. 
E)  the product is not compatible with existing habits.

Question 13

Which of the following statements about product line extensions is most accurate?

Accepted Answer

A)  A product line extension strategy typically leads to increased advertising costs. 
B)  There are no risks associated with a product line extension strategy. 
C)  When the Clorox Co. joins with Kroger supermarkets to advertise Clorox products in a local newspaper, it is engaged in a product line extension. 
D)  A product line extension is a form of multiproduct branding. 
E)  A product line extension is a form of multibranding. 
A)  A product line extension strategy typically leads to increased advertising costs. 
B)  There are no risks associated with a product line extension strategy. 
C)  When the Clorox Co. joins with Kroger supermarkets to advertise Clorox products in a local newspaper, it is engaged in a product line extension. 
D)  A product line extension is a form of multiproduct branding. 
E)  A product line extension is a form of multibranding.

Question 14

Which of the following statements about the decline stage of the product life cycle is most accurate?

Accepted Answer

A)  Somewhat paradoxically, in the decline stage, sales decline even though profits increase. 
B)  A product always enters the decline stage as the result of a major product flaw or marketing misstep. 
C)  A major reason that a firm's product enters the decline stage is as a result of changes in the environment. 
D)  The only real step that can be taken to avoid the decline stage and ultimately extinction is to increase marketing expenditures as soon as the product enters its maturity stage. 
E)  Service industries are exempt from the decline stage because of their intangible nature. 
A)  Somewhat paradoxically, in the decline stage, sales decline even though profits increase. 
B)  A product always enters the decline stage as the result of a major product flaw or marketing misstep. 
C)  A major reason that a firm's product enters the decline stage is as a result of changes in the environment. 
D)  The only real step that can be taken to avoid the decline stage and ultimately extinction is to increase marketing expenditures as soon as the product enters its maturity stage. 
E)  Service industries are exempt from the decline stage because of their intangible nature.

Question 15

Products tend to consume a disproportionate share of management and financial resources relative to their future worth throughout which stage of the product life cycle?

Accepted Answer

A)  innovation 
B)  growth 
C)  maturity 
D)  decline 
E)  harvest 
A)  innovation 
B)  growth 
C)  maturity 
D)  decline 
E)  harvest

Question 16

As product adopters in the diffusion of innovation, members of the early majority

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, higher educated, and use multiple information sources. 
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, higher educated, and use multiple information sources.

Question 17

Identify and describe the stages of the generalized product life cycle. For each stage, specify the marketing objective a firm should attempt to achieve.

Accepted Answer

There are four stages of the generalized

Question 18

If a firm's marketing dashboard displays a CDI of 120 for a consumer packaged good like Hawaiian Punch, this indicates which of the following?

Accepted Answer

A)  a weak brand position in a segment 
B)  a strong brand position in a segment 
C)  above-average product category purchases by a market segment 
D)  below-average product category purchases by a market segment 
E)  There is not enough information to make any conclusions. 
A)  a weak brand position in a segment 
B)  a strong brand position in a segment 
C)  above-average product category purchases by a market segment 
D)  below-average product category purchases by a market segment 
E)  There is not enough information to make any conclusions.

Question 19

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

Question 20

Consumer advocates believe the practice of downsizing by consumer products firms has resulted in

Accepted Answer

A)  lower product prices for consumers because of lower labor, raw material, and packaging costs. 
B)  a greener environment due to the reduction in packaging, thereby reducing the amount of waste entering landfills. 
C)  fewer product choices for consumers that led to rising prices. 
D)  low prices in response to the psychological barriers consumers have for change. 
E)  a subtle, deceptive, yet legal practice of disguising a price increase. 
A)  lower product prices for consumers because of lower labor, raw material, and packaging costs. 
B)  a greener environment due to the reduction in packaging, thereby reducing the amount of waste entering landfills. 
C)  fewer product choices for consumers that led to rising prices. 
D)  low prices in response to the psychological barriers consumers have for change. 
E)  a subtle, deceptive, yet legal practice of disguising a price increase.

Exam 11: Managing Successful Products, Services, and Brands

Which of the following occurs during the decline stage of the product life cycle?

If a firm's marketing dashboard displays a BDI of 80 for a consumer packaged good like Hawaiian Punch, this indicates which of the following?

Private branding is also referred to as private labeling or

A ________ product is a style of the times.

Multibranding refers to a branding strategy in which a firm

When a company sells a new product with the current brand name to enter a new market segment in its product class, it is using a ________ strategy.

Prerecorded music is an example of a product ________, and digital music downloading and streaming are an example of a product

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

Brand extension is the practice of

During the maturity stage of the product life cycle, profit declines primarily because

The launch by Gatorade of Gatorade chews, bars, powders, shakes, and yogurt is evidence of

There are several reasons a consumer might be reluctant to adopt a new product. For example, a consumer might be reluctant to adopt a new product because of a usage barrier, which occurs when

Which of the following statements about product line extensions is most accurate?

Which of the following statements about the decline stage of the product life cycle is most accurate?

Products tend to consume a disproportionate share of management and financial resources relative to their future worth throughout which stage of the product life cycle?

As product adopters in the diffusion of innovation, members of the early majority

Identify and describe the stages of the generalized product life cycle. For each stage, specify the marketing objective a firm should attempt to achieve.

If a firm's marketing dashboard displays a CDI of 120 for a consumer packaged good like Hawaiian Punch, this indicates which of the following?

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

Consumer advocates believe the practice of downsizing by consumer products firms has resulted in

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Services Marketing

Building the Price Foundation

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multi-Channel Marketing

Pulling It All Together: the Strategic Marketing Proces

Building an Effective Marketing Plan

Financial Aspects of Marketing

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