Question 1

There are several reasons a consumer would be reluctant to purchase 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) the product is not consistent with existing habits. 
D) the financial commitment is too great. 
E) it affects one's image.

Question 2

During the introduction stage of the product life cycle, the strategy that discourages competitive entry by charging a low price for a new product is referred to as __________ pricing.

Accepted Answer

A) penetration 
B) cost-plus 
C) target ROI 
D) below-market 
E) skimming

Question 3

The preference for a specific brand is called __________ demand.

Accepted Answer

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

Question 4

A branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment is referred to as

Accepted Answer

A) product differentiation branding. 
B) multibranding. 
C) mixed branding. 
D) segmentation branding. 
E) multiproduct branding.

Question 5

If a firm's marketing dashboard displays a BDI under 100 for a consumer packaged good, such as General Mills' Warm Delights Minis, 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.

Question 6

Which of the following statements regarding Gatorade's branding is most accurate?

Accepted Answer

A) Gatorade uses the same formula for all its products and simply changes the brand name when introducing new flavors. 
B) Gatorade's success can be attributed to management's decision to find and then stick with one channel of distribution. 
C) Gatorade changed its color, packaging, and size of items in the product line for the domestic market so that they would not conflict with those marketed to foreign markets. 
D) Gatorade has used the same packaging since the product debuted in 1965. 
E) Gatorade has changed its product formulation, packaging, and advertising over the years in response to changes in the marketplace.

Question 7

An aging baby boomer population has led to increased interest in developing and marketing products to satisfy the needs of this large market. As a result, moisturizing lotions and creams such as Oil of Olay are now repositioned as "age-defying" products. This is an example of which product repositioning action?

Accepted Answer

A) reaching a new market 
B) reacting to a competitor's position 
C) trading up 
D) changing the value offered 
E) product modification

Question 8

The four steps in the sequential process of building the brand equity pyramid are: (1) developing positive brand awareness; (2) establishing a brand's meaning in the minds of consumers; (3) eliciting the proper consumer responses to a brand's identity and meaning; and (4) __________.

Accepted Answer

A) easing consumers' decision making 
B) forming a brand personality 
C) creating a consumer-brand connection 
D) rewarding loyal customer behavior 
E) developing brand licensing criteria

Question 9

Electric automobiles like the Chevrolet Spark made by General Motors are in the introductory stage of the product life cycle. By comparison, smartphones such as the Apple iPhone 6 are in the _____________ of the product life cycle.

Accepted Answer

A) decline stage 
B) commercialization stage 
C) accelerated development stage 
D) growth stage 
E) introduction stage

Question 10

A brand name refers to

Accepted Answer

A) a product's identifier that only can be spoken. 
B) a product's identifier that consists of only the symbol or design that cannot be spoken. 
C) any word, device (design, sound, shape or color), or combination of these used to distinguish a seller's products or services. 
D) the commercial, legal name under which a company does business. 
E) the identification of an organization's products based upon individual SKUs.

Question 11

Four key challenges that package and label designers face are: (1) __________; (2) environmental concerns; (3) health, safety, and security issues; and (4) cost reduction.

Accepted Answer

A) governmental regulations 
B) cultural and societal issues 
C) competition from global markets 
D) connecting with customers 
E) patent and trademark issues

Question 12

In terms of the diffusion of innovation, innovators account for __________ percent of product adopters.

Accepted Answer

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

Question 13

The consumers represented in the early stage of a product life cycle are called

Accepted Answer

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

Question 14

The main difference between a trade name and a trademark is

Accepted Answer

A) trade names are licensed while trademarks are not. 
B) trade names are commercial legal names under which a company does business, while a trademark identifies that a firm has legally registered its brand name. 
C) a trade name is only the word that is spoken to distinguish a seller's products or services but a trademark consists of both the spoken and unspoken word or mark that distinguishes a seller's products or services. 
D) a trade name can cover an array of company product items while a trademark can only apply to a single SKU for a product item. 
E) brand names are protected by law but trademarks are not.

Question 15

Downsizing reduces the

Accepted Answer

A) quality of materials without changing the price. 
B) product's price along with the quality of the materials. 
C) package content without changing its size while maintaining or increasing the package price. 
D) number of product features. 
E) number of product items in a product line.

Question 16

A manufacturer of a new all-natural-ingredient shampoo and conditioner puts free samples of the product in Sunday newspapers 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 17

What agency registers the trademarks of a firm?

Accepted Answer

A) U.S. Chamber of Commerce Trademark and Servicemark Office 
B) U.S. Department of Commerce Trademark Registry 
C) United Nations Global Trademark Clearinghouse 
D) U.S. Federal Trade Commission-Trademark Division 
E) U.S. Patent and Trademark Office

Question 18

In which stage of the product life cycle do marginal competitors begin to leave the market?

Accepted Answer

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

Question 19

If a firm's marketing dashboard displays a CDI under 100 for a consumer packaged good, such as General Mills' Warm Delights Minis, this indicates which of the following?

Accepted Answer