Exam 11: Managing Successful Products Services and Brands

When Apple introduced the Apple II personal computer in 1977, industry analysts predicted that very few would be sold. However, a short time after the product was made available, consumers who were young, highly educated, adventuresome, and well-informed began buying them. While those buyers were relatively few in number, marketers such as IBM and Compaq were encouraged because other, less adventuresome consumers, like businesspeople, would likely adopt personal computers later. Based on the diffusion of innovation concept, those first buyers of personal computers were

Which of the following statements about perceptual benefits conveyed by a product's packaging and labeling is not true?

Managers often use two special indexes to help identify strong and weak market segments in order to provide direction for marketing efforts. One of these indexes is the BDI, or

A statement indicating the liability of the manufacturer for product deficiencies is referred to as a

Counterfeit products steal sales from the original manufacturer or harm the company's reputation. U.S. companies lose about __________ each year to counterfeit products.

The first step in the sequential building process of brand equity involves

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

A new exercise video contends that with one day of fasting and a one-hour period of intense cardiovascular exercise, the average individual can lose five pounds a week and be in peak health within six months of starting the program. __________ barriers could doom the new product to failure because the product's claims are not consistent with how consumers think and behave.

Explain the difference between trading up and trading down when repositioning a product.

Seventy-one percent of consumers consider __________ to be the best way to evaluate a new product.

A product life cycle for which the product experiences rapid sales on introduction and then an equally rapid decline is an example of a __________ product.

People who tried a product, were satisfied, and bought it again are called __________ purchasers.

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

Interactive television with video-on-demand capabilities changes how people watch television and how consumers access the Internet. This technology requires significant customer education for most people. What type of product life cycle curve would be associated with this product?

A branding strategy in which a firm markets some products under its own name(s) and other products under the name of a reseller because the segment attracted to the reseller is different from its own market is referred to as

IKEA sells a portable workbench called the Fahrtfull. The product has many positive features, and in German or Swedish markets, the name describes the product's features well (fahrt meaning travel). This brand name in the United States, however, may not be as effective due to

A brand name that cannot be spoken is referred to as a

Alka-Seltzer was originally made as a hangover remedy that cured a headache and settled the stomach. Today, you can purchase Original Alka-Seltzer, Extra Strength Alka-Seltzer, Alka-Seltzer Morning Relief (for morning headaches and fatigue), and Alka-Seltzer Heartburn Relief, each of which has slightly different ingredients to solve the inherent problem identified in its respective brand names. To broaden the product line to increase sales to new target market segments, the makers of Alka-Seltzer used a __________ strategy.

What are the five shapes that a product life cycle can take? For each type, describe (as an option, draw) its characteristics.

The concept of the diffusion of innovation shows how a product "diffuses" or spreads through the population over time. The consumer population is divided into five categories of product adopters based on when they adopt (i.e., first buy) a new product. Each product adopter category has a unique profile. Consumers who are venturesome, higher educated, and use multiple information sources are called __________ product adopters.