Question 1

Which of the following is an example of trading down?

Accepted Answer

A)  Whirlpool develops a full-size clothes washer that uses only 17 to 28 gallons per load rather than 25 to 45 gallons. 
B)  Burpee creates a Web site where gardeners can go to find out what will grow best in their region of the country. 
C)  Alka-Seltzer reintroduces a trade character that it used in the 1960s. 
D)  The growers of California avocados run a full-page ad in a cooking magazine. 
E)  A manufacturer of $200+ all-leather handbags begins marketing a line of bags that look like leather but . are actually made of relatively inexpensive plastic.

Question 2

During the _____ stage of the product life cycle, both sales and profits rise, numerous competitors enter the market, and sellers use promotional programs to stimulate demand for their brands.

Accepted Answer

A)  introduction 
B)  stability 
C)  adoption 
D)  pioneering 
E)  growth

Question 3

The Holiday Inn chain of motels added luxury hotels to its product line when it introduced Crowne Plaza hotels. This addition of a luxury hotel to the medium-priced Holiday Inns is an example of:

Accepted Answer

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

Question 4

Sumptuous Cakes is the name of a Georgia company that bakes and sells cakes through the mail. The company markets five kinds of cakes: old-fashioned pound cake, amaretto cream, lemon crisp, poppy seed, and chocolate delight. These cakes are all the company markets. These five types of cakes are the company's:

Accepted Answer

A)  product mix. 
B)  market position. 
C)  target product. 
D)  product line. 
E)  strategic mission.

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.
-Apple juice, apple sauce, apple cider vinegar, and apple butter, cinnamon apples, and spiced apple rings are the company's:

Accepted Answer

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

Question 6

The _____ of a company's product mix is measured by the number of product lines it carries.

Accepted Answer

The answer of The _____ of a company's product mix...

Question 7

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

Accepted Answer

A)  immaturity 
B)  market-acceptance 
C)  ripening 
D)  market-fulfillment 
E)  product augmentation

Question 8

The _____ refers to the introduction, rise, popular culmination, and decline of a market's acceptance of a style.

Accepted Answer

A)  product life cycle 
B)  diffusion process 
C)  market cycle 
D)  fashion cycle 
E)  profit-and-loss statement

Question 9

One of the most expensive windows that can be bought is crafted by Andersen Windows. The company makes its windows according to the highest standards and pays attention to the smallest detail. From this information, you know that Andersen Window uses product positioning:

Accepted Answer

A)  in relation to geographical location. 
B)  by price and quality. 
C)  in relation to stage of the product life cycle. 
D)  on the basis of space available. 
E)  in relation to planned obsolescence.

Question 10

When the adoption of a particular fashion flows downward through several socioeconomic classes, the process is called:

Accepted Answer

A)  horizontal diffusion. 
B)  trickle-down. 
C)  trickle-across. 
D)  the decline stage of the product life cycle. 
E)  trading-down.

Question 11

Kofola is a Czech cola that was created during the communist era. Its sales collapsed after the fall of communism. Consumers perceived Coca-Cola to be "glamorously capitalistic." During the first decade of this century, the cola has made a strong comeback by using an appeal to nostalgia and through the use of heartwarming scenarios in its advertising. This is an example of positioning:

Accepted Answer

A)  on the basis of product life cycle. 
B)  by price and quality. 
C)  by product attribute. 
D)  on the basis of space availability. 
E)  in relation to none of the above.

Question 12

Competition in the men's underwear industry is intense; sales are slow; and many manufacturers of men's underwear are using intensive distribution strategies and promotion strategies to increase brand loyalty. This statement indicates men's underwear is in the _____ stage of the product life cycle.

Accepted Answer

A)  introduction 
B)  abandonment 
C)  market development 
D)  maturity 
E)  growth

Question 13

People have been eating Hormel chili for years. Its ads suggest you can use Hormel chili to make burritos and tacos. This type of ad campaign indicates Hormel foods thinks chili is in the _____ stage of its product life cycle.

Accepted Answer

A)  acceptance 
B)  pioneering 
C)  diffusion 
D)  maturity 
E)  growth

Question 14

During which stage of the product life cycle are marketing costs typically the lowest?

Accepted Answer

A)  introduction 
B)  acceleration 
C)  decline 
D)  early adopters 
E)  growth

Question 15

_____ means adding a higher-priced, prestige product to a line to attract a higher-income market.

Accepted Answer

A)  Trading up 
B)  Revamping 
C)  Product line augmentation 
D)  Repositioning 
E)  Trading down

Question 16

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.
-The addition of apple sauce and apple juice to the company's original line of White House apple cider vinegar was an example of a(n):

Accepted Answer

A)  change in mission statement. 
B)  mix extension. 
C)  change in organizational goals. 
D)  line extension. 
E)  product life cycle alteration.

Question 17

Trading up m

Accepted Answer

A)  consumers stop patronizing lower-priced stores and start patronizing higher-priced, more exclusive shops. 
B)  serving the upper and upper-middle classes exclusively. 
C)  raising the price of every product in the product line. 
D)  consumers stop buying lower-priced products and buy higher-priced ones. 
E)  adding a higher-priced, prestige product to a line to attract a higher-income market.

Question 18

Estman Trading Company sells authentic Civil War memorabilia priced from $200 to $30,000. If Estman Trading Company were to introduce a line of facsimiles of some of the harder-to-find denominations of Confederate bills and sell these facsimiles at $25 each, it would be an example of:

Accepted Answer

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

Question 19

Which of the following is an example of a company that has expanded the depth of its product mix?

Accepted Answer

A)  L'Oreal introduces additional hair colorings for women. 
B)  Pet Food Company purchases Old El Paso brand salsa. 
C)  H&R Block introduces America to Compuserve. 
D)  Sears purchases a national real estate agency. 
E)  None of the above is an example of a company that has expanded the depth of its product mix.

Question 20

General Mills's introduction of the Swiss white chocolate flavor to collection of International Coffees is an example of a product mix expansion.

Accepted Answer

A) True 
 B)False

Exam 9: Product-Mix Strategies

Which of the following is an example of trading down?

During the _____ stage of the product life cycle, both sales and profits rise, numerous competitors enter the market, and sellers use promotional programs to stimulate demand for their brands.

The Holiday Inn chain of motels added luxury hotels to its product line when it introduced Crowne Plaza hotels. This addition of a luxury hotel to the medium-priced Holiday Inns is an example of:

The _____ of a company's product mix is measured by the number of product lines it carries.

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

The _____ refers to the introduction, rise, popular culmination, and decline of a market's acceptance of a style.

One of the most expensive windows that can be bought is crafted by Andersen Windows. The company makes its windows according to the highest standards and pays attention to the smallest detail. From this information, you know that Andersen Window uses product positioning:

When the adoption of a particular fashion flows downward through several socioeconomic classes, the process is called:

Competition in the men's underwear industry is intense; sales are slow; and many manufacturers of men's underwear are using intensive distribution strategies and promotion strategies to increase brand loyalty. This statement indicates men's underwear is in the _____ stage of the product life cycle.

People have been eating Hormel chili for years. Its ads suggest you can use Hormel chili to make burritos and tacos. This type of ad campaign indicates Hormel foods thinks chili is in the _____ stage of its product life cycle.

During which stage of the product life cycle are marketing costs typically the lowest?

_____ means adding a higher-priced, prestige product to a line to attract a higher-income market.

Trading up m

Estman Trading Company sells authentic Civil War memorabilia priced from $200 to $30,000. If Estman Trading Company were to introduce a line of facsimiles of some of the harder-to-find denominations of Confederate bills and sell these facsimiles at $25 each, it would be an example of:

Which of the following is an example of a company that has expanded the depth of its product mix?

General Mills's introduction of the Swiss white chocolate flavor to collection of International Coffees is an example of a product mix expansion.