Question 1

If Procter & Gamble (P&G) were to package a Gillette Fusion ProGlide Razor with its Gillette Fusion Hydragel, P&G would be engaged in

Accepted Answer

A)  a BOGO deal. 
B)  product modification. 
C)  product bundling. 
D)  product repositioning. 
E)  product differentiation.

Question 2

Figure 11-1
-Figure 11-1 above represents the stages of the product life cycle. What does the curve labeled X represent?

Accepted Answer

A)  total variable costs 
B)  total fixed costs 
C)  total industry profit 
D)  total industry sales revenue 
E)  total research and development costs

Question 3

The desire for a product class rather than for a specific brand is called ________ demand.

Accepted Answer

A)  selective 
B)  primary 
C)  derived 
D)  generic 
E)  secondary

Question 4

Sealy, the self-proclaimed largest manufacturer of mattresses in the United States, recently set out to redefine its place in the bedrooms of America. No longer was it going to be known as simply a mattress company. Now the name Sealy was going to be known as the world's leading "sleep wellness provider." This is an example of

Accepted Answer

A)  reverse marketing. 
B)  demarketing. 
C)  repositioning. 
D)  resegmenting. 
E)  positioning.

Question 5

When a product reaches the decline stage of the product life cycle, a firm has two choices. One choice involves product deletion-dropping it from a firm's product line. The other is called ________, which retains the product in the product line but reduces marketing costs.

Accepted Answer

A)  skimming 
B)  paring 
C)  divesting 
D)  milking 
E)  harvesting

Question 6

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

Accepted Answer

A)  If a firm's product is especially good, efforts should be made to create selective demand rather than primary demand to allow the firm to distinguish itself from competitors. 
B)  During the introduction stage, it is best to avoid a skimming pricing strategy. 
C)  During the introduction stage, it is best to avoid a penetration pricing strategy. 
D)  A firm should introduce the identical product at several different price points in order to gauge customer price sensitivity. 
E)  Because of large initial investment costs, overall industry profits often are negative.

Question 7

Any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller's products or services is referred to as a

Accepted Answer

A)  brand name. 
B)  copyright. 
C)  trade name. 
D)  trademark. 
E)  label.

Question 8

Figure 11-5
-The consumers represented by Segment B in Figure 11-5 above are called

Accepted Answer

A)  early adopters. 
B)  late majority. 
C)  laggards. 
D)  early majority. 
E)  innovators.

Question 9

A manufacturer of a new sparkling water arranges to give free samples of the product at all Costco stores to

Accepted Answer

A)  stimulate laggard usage of the product. 
B)  inhibit the innovation diffusion process. 
C)  encourage product trial and adoption. 
D)  erect product adoption barriers against its competitors. 
E)  circumvent the typical adoption cycle.

Question 10

A good brand name has several characteristics, including that it should

Accepted Answer

A)  avoid the use of a humorous connotation. 
B)  be simple and emotional. 
C)  suggest but not copy entirely the leading brand. 
D)  be patented. 
E)  be easy to spell and pronounce.

Question 11

Imagine that Eveready has developed solar rechargeable batteries that cost only slightly more to produce than the rechargeable batteries currently available. These solar batteries can be recharged by sunlight up to five times, after which they must be discarded. Unfortunately, the production process cannot be patented, so competitors could enter the market within a year. Which of the following would be the least sound marketing program decision?

Accepted Answer

A)  Select a skimming pricing strategy to position the product as "premium." 
B)  Seek widespread distribution to gain a foothold in what might be a potentially huge market. 
C)  Limit production capacity until you are certain consumers will actually want the product. 
D)  Avoid a connection to the Eveready brand until the product has proven itself. 
E)  Use multiple brand names to discourage other competitors from entering the market.

Question 12

There are several reasons a consumer would be reluctant to adopt a new product. For example, a consumer might be reluctant to adopt a new product because of a psychological 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 or image problems. 
D)  the financial commitment is too great. 
E)  the product is not consistent with existing habits.

Question 13

For any product to be successful, it must be purchased by

Accepted Answer

A)  early adopters and laggards. 
B)  early majority and late majority. 
C)  late majority and laggards. 
D)  innovators and early majority. 
E)  innovators and early adopters.

Question 14

In terms of the diffusion of innovation, early majority accounts for ________ percent of product adopters.

Accepted Answer

A)  2.5 
B)  13.5 
C)  16 
D)  34 
E)  50

Question 15

Even though Liquid Paper correction fluid is in the ________ stage of its product life cycle, Sanford, its manufacturer, has not deleted it from its line because there is still a residual core of consumers who use the product.

Accepted Answer

A)  decline 
B)  introduction 
C)  growth 
D)  maturity 
E)  deceleration

Question 16

Vinyl records, cassette tapes, CDs, and music downloads (MP3 files) are all members of the same

Accepted Answer

A)  product form. 
B)  product mix. 
C)  product line. 
D)  product item. 
E)  product class.

Question 17

Footwear is an example of a ________ while men's dress shoes are an example of a

Accepted Answer

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

Question 18

Twitter uses a stylized blue or white bird with no text as its

Accepted Answer

A)  copyright. 
B)  trade name. 
C)  patent. 
D)  logo. 
E)  label.

Question 19

Figure 11-3
-The product life cycle shown in Box C in Figure 11-3 above represents a ________ product.

Accepted Answer

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

Question 20

When a company uses a product line extension, it

Accepted Answer

A)  markets a product under a new brand name so that consumers will view it as an entirely new product line. 
B)  markets a new product with the current brand name to enter a new market segment in its product class. 
C)  speeds up the movement of a product through its product life cycle. 
D)  contracts with another firm to manufacture modified versions of the original products. 
E)  applies the current brand name to enter a completely different product class.

Exam 11: Managing Successful Products, Services, and Brands