Question 1

Which of the following is most likely the goal of a company that eliminates a product line?

Accepted Answer

A)  to get rid of low- or no-profit products 
B)  to increase the depth of the product mix 
C)  to adapt strategies as necessary during the growth stage in the product life cycle 
D)  to engage in product differentiation 
E)  to enter new markets 
A)  to get rid of low- or no-profit products 
B)  to increase the depth of the product mix 
C)  to adapt strategies as necessary during the growth stage in the product life cycle 
D)  to engage in product differentiation 
E)  to enter new markets

Question 2

A product's positioning:

Accepted Answer

A)  is the image projected by the product, exclusive of its price. 
B)  is the image the product projects in relation to competitive products as well as to other products marketed by the same company. 
C)  is the product's physical characteristics. 
D)  is how the product is perceived by its competitors. 
E)  prevents the product's producer from engaging in market segmentation. 
A)  is the image projected by the product, exclusive of its price. 
B)  is the image the product projects in relation to competitive products as well as to other products marketed by the same company. 
C)  is the product's physical characteristics. 
D)  is how the product is perceived by its competitors. 
E)  prevents the product's producer from engaging in market segmentation.

Question 3

Trading down m

Accepted Answer

A)  the process in which consumers stop buying overpriced products and become more price conscious. 
B)  serving the lower and lower-middle classes exclusively. 
C)  adding a lower-priced item to a line of products. 
D)  lowering the price of every product in the product line. 
E)  none of the above. 
A)  the process in which consumers stop buying overpriced products and become more price conscious. 
B)  serving the lower and lower-middle classes exclusively. 
C)  adding a lower-priced item to a line of products. 
D)  lowering the price of every product in the product line. 
E)  none of the above.

Question 4

Which of the following products is most likely to be affected by style obsolescence?

Accepted Answer

A)  atlases 
B)  eye makeup 
C)  laundry detergent 
D)  audio tapes 
E)  file cabinets 
A)  atlases 
B)  eye makeup 
C)  laundry detergent 
D)  audio tapes 
E)  file cabinets

Question 5

In March of 1908, Board, Armstrong & Company opened a plant in Alexandria, Virginia to make apple cider vinegar. It decided to use the brand name White House because it was located across the river from the Presidential mansion. In 1913, the company changed its name to National Fruit Product Company, and that is its name today. National Fruit is one of the largest apple growers in the United States. In its factory, it produces apple juice, apple sauce, apple cider vinegar, and apple butter, cinnamon apples, and spiced apple rings for consumers and companies in the food service industry.
-National Fruit makes several different kinds of apple sauce including apple sauce in a microwavable bowl, natural apple sauce that is sweetened with apple juice instead of sugar, and flavored apple sauce blends. These are part of the company's:

Accepted Answer

A)  product style. 
B)  product mix. 
C)  marketing mix. 
D)  product line. 
E)  strategic position. 
A)  product style. 
B)  product mix. 
C)  marketing mix. 
D)  product line. 
E)  strategic position.

Question 6

When the manufacturer of Benadryl allergy medication introduced Benadryl Allergy Chewables in grape flavor, it was an example of:

Accepted Answer

A)  a change in strategic marketing strategy. 
B)  a mix extension. 
C)  a change in organizational goals. 
D)  a line extension. 
E)  organizational restructuring. 
A)  a change in strategic marketing strategy. 
B)  a mix extension. 
C)  a change in organizational goals. 
D)  a line extension. 
E)  organizational restructuring.

Question 7

Technological obsolescence is generally considered to be:

Accepted Answer

A)  psychologically desirable. 
B)  environmentally unsound. 
C)  a poor return on investment. 
D)  a poor use of resources. 
E)  economically and socially desirable. 
A)  psychologically desirable. 
B)  environmentally unsound. 
C)  a poor return on investment. 
D)  a poor use of resources. 
E)  economically and socially desirable.

Question 8

When Fruit of the Loom, the manufacturer of men's and boy's underwear, introduced sweatshirts, turtlenecks, and shorts, it exemplified a:

Accepted Answer

A)  change in strategic marketing strategy. 
B)  mix extension. 
C)  change in organizational goals. 
D)  line extension. 
E)  strategy of managing on the rise. 
A)  change in strategic marketing strategy. 
B)  mix extension. 
C)  change in organizational goals. 
D)  line extension. 
E)  strategy of managing on the rise.

Question 9

Nonconformity is the source of all fashion.

Accepted Answer

A) True 
 B)False

Question 10

An ad for California almonds, which describes the nuts as cholesterol free, indicates a positioning strategy based on product class.

Accepted Answer

A) True 
 B)False

Question 11

The effects of trading down can be achieved through advertising, without introducing new, lower-priced products.

Accepted Answer

A) True 
 B)False

Question 12

Up until 1930, all the Planters Nut Company sold was roasted peanuts. Then it added cashews, walnuts, pecans and related products using nuts to its product line. Later, by adding Cheez balls cheese-flavored snacks to the products it offered to consumers, the Planters Company modified its:

Accepted Answer

A)  undifferentiated marketing strategy. 
B)  product mix. 
C)  market segmentation strategy. 
D)  position in the growth stage of the product life cycle. 
E)  planned obsolescence. 
A)  undifferentiated marketing strategy. 
B)  product mix. 
C)  market segmentation strategy. 
D)  position in the growth stage of the product life cycle. 
E)  planned obsolescence.

Question 13

According to the breakdown approach to fashion adoption, fashion cycles flow downward through several socioeconomic levels.

Accepted Answer

A) True 
 B)False

Question 14

During the _____ stage of the product life cycle, sales continue to increase but at a decreasing rate, marginal competitors are forced to drop out of the market, and trade-in sales become significant.

Accepted Answer

A)  introduction 
B)  market-acceptance 
C)  decline 
D)  maturity 
E)  growth 
A)  introduction 
B)  market-acceptance 
C)  decline 
D)  maturity 
E)  growth

Question 15

The manufacturers of women's apparel, home decorating items, and holiday decorations rely on planned obsolescence.

Accepted Answer

A) True 
 B)False

Question 16

Initially, only people in upper socioeconomic classes could afford home decorators, but now with the service being offered free at home improvement centers like The Home Depot, nearly all homeowners can have personalized decorating advice. This illustrates the _____ concept.

Accepted Answer

A)  trickle-up 
B)  trickle-down 
C)  trickle-across 
D)  trading-up 
E)  trading-down 
A)  trickle-up 
B)  trickle-down 
C)  trickle-across 
D)  trading-up 
E)  trading-down

Question 17

Another name for the introductory stage of the product life cycle is the _____ stage.

Accepted Answer

A)  immature 
B)  pioneering 
C)  untapped 
D)  undeveloped 
E)  incipient 
A)  immature 
B)  pioneering 
C)  untapped 
D)  undeveloped 
E)  incipient

Question 18

The overall marketing strategy during the introduction stage of the product life cycle hinges on product differentiation.

Accepted Answer

A) True 
 B)False

Question 19

A company is said to be _____ when it adds a lower-priced item to its line of products.

Accepted Answer

A)  trading up 
B)  revamping 
C)  product augmenting 
D)  repositioning 
E)  trading down 
A)  trading up 
B)  revamping 
C)  product augmenting 
D)  repositioning 
E)  trading down

Question 20

In 1990s, Gekkeikan introduced sake in self-heating cans to the Japanese market. It was the first product of its type for Japanese consumers. Gekkeikan had a:

Accepted Answer

A)  market penetration advantage. 
B)  product development feature. 
C)  diversification advantage. 
D)  first-mover advantage. 
E)  market development benefit. 
A)  market penetration advantage. 
B)  product development feature. 
C)  diversification advantage. 
D)  first-mover advantage. 
E)  market development benefit.

Exam 9: Product-Mix Strategies

Which of the following is most likely the goal of a company that eliminates a product line?

A product's positioning:

Trading down m

Which of the following products is most likely to be affected by style obsolescence?

When the manufacturer of Benadryl allergy medication introduced Benadryl Allergy Chewables in grape flavor, it was an example of:

Technological obsolescence is generally considered to be:

When Fruit of the Loom, the manufacturer of men's and boy's underwear, introduced sweatshirts, turtlenecks, and shorts, it exemplified a:

Nonconformity is the source of all fashion.

An ad for California almonds, which describes the nuts as cholesterol free, indicates a positioning strategy based on product class.

The effects of trading down can be achieved through advertising, without introducing new, lower-priced products.

Up until 1930, all the Planters Nut Company sold was roasted peanuts. Then it added cashews, walnuts, pecans and related products using nuts to its product line. Later, by adding Cheez balls cheese-flavored snacks to the products it offered to consumers, the Planters Company modified its:

According to the breakdown approach to fashion adoption, fashion cycles flow downward through several socioeconomic levels.

During the _____ stage of the product life cycle, sales continue to increase but at a decreasing rate, marginal competitors are forced to drop out of the market, and trade-in sales become significant.

The manufacturers of women's apparel, home decorating items, and holiday decorations rely on planned obsolescence.

Initially, only people in upper socioeconomic classes could afford home decorators, but now with the service being offered free at home improvement centers like The Home Depot, nearly all homeowners can have personalized decorating advice. This illustrates the _____ concept.

Another name for the introductory stage of the product life cycle is the _____ stage.

The overall marketing strategy during the introduction stage of the product life cycle hinges on product differentiation.

A company is said to be _____ when it adds a lower-priced item to its line of products.

In 1990s, Gekkeikan introduced sake in self-heating cans to the Japanese market. It was the first product of its type for Japanese consumers. Gekkeikan had a:

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