Deck 11: Managing Products and Brands

Question 1

One of the newest types of television shows is the category called reality shows. According to the product life cycle, what was the objective of the marketers of these reality shows when they were in the introduction stage of the product life cycle?

A)to stress differentiation
B)to gain as much distribution as possible
C)to maintain brand loyalty
D)to gain awareness and stimulate trial

Answer 1

D

Question 2

The number of consumers who buy the brand they trust on sale versus a private label brand is:

A)70%
B)60%
C)75%
D)74%

Answer 2

D

Question 3

A new cleaning company offers a free trial to all consumers who are willing to try their new counter-top cleaning solution. If customers do not like the product, they will get their purchase price refunded. This marketing activity is likely found in which stage of the product life cycle?

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

Answer 3

D

Question 4

The popular "Got Milk" advertising campaign was sponsored by the National Milk Board to encourage more people to drink milk. This ad campaign stimulated ________
Demand.

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

Question 5

Scientists have discovered a new medical treatment but before they can market it, physicians and patients must be aware of its existence. In other words, its manufacturer must create demand.

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

Question 6

Canada's most trusted brands, such as Heinz and Kraft, have built consumer trust based on positive and consistent product experience as well as:

A)consumer innovation
B)product consistency
C)product innovation
D)functional innovation

Question 7

The traditional brand metrics of quality, reliability, and consistency are part of ________ trust.

A)environmental
B)national
C)functional
D)emotional

Question 8

Although the Chevy Volt is an electric car, during Chevy's advertisements they stress the importance of "Going Electric" and "Going Green", without explicitly advertising their new vehicle. The purpose of these advertisements is to stimulate ________ demand for an entire product class, rather than for a specific brand.

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

Question 9

Today, Canadian consumers trust brands on two key dimensions trust and ________ trust.

A)functional; emotional
B)community; fundamental
C)consumer connection; emotional
D)functional; environmental

Question 10

Lack of profit in the introductory stage of the product life cycle is very often the result of:

A)high taxes.
B)insufficient allocation of resources to the marketing mix.
C)poor selection of distribution channels.
D)large investment costs in product development.

Question 11

A few years ago Who Wants to Be a Millionaire premiered as the first nighttime game show in a couple of decades. The marketing for the show was intent on making television viewers aware of its existence and excited enough about the show that we
Would watch the first episode. Which of the following statements about televised game shows is true?

A)All televised programming uses a three-stage product life cycle-growth, maturity, and decline.
B)Because television has been around for many years, all programs fall naturally into the maturity stage.
C)Televised programs are either in the introduction stage or the growth stage and are discontinued when they move into the maturity stage.
D)Who Wants to Be a Millionaire was in the introduction stage of the product life cycle of televised nighttime game shows when it premiered.

Question 12

Gillette spent $35 million in advertising to introduce the Sensor razor to consumers. The main reason such expenditures are often made is to stimulate or increase desire for the product class, rather than for a specific brand, when there are no competitors with
The same product, is because of:

A)innovative sampling methods
B)additional marketing research that is needed
C)initial data gathering
D)growing primary demand

Question 13

As competitors introduce their own products, and the product progresses along its life cycle, company attention is focused on creating demand, or demand for a specific brand.

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

Question 14

Promotional expenditures at the introduction stage of the product life cycle are spent on:

A)personal endorsements.
B)creating primary demand.
C)contests and sweepstakes.
D)creating selective demand.

Question 15

A new start-up recently finished prototyping their virtual reality glasses, and they are now available at select retailers across the country. What stage of the product life cycle are these glasses in?

A)commercialization
B)introduction
C)launch
D)growth

Question 16

Canadian shoppers have brands they trust as well as the retailer they buy from. All of the following are trusted retailers EXCEPT:

A)Tim Hortons
B)Shoppers Drug Mart
C)The Brick Furniture Warehouse
D)Mark's Work Wearhouse

Question 17

Dove, a health and beauty brand, has built its brand trust on quality perceptions and effectiveness along with a connection to:

A)community
B)a product line
C)?social media
D)?real beauty

Question 18

A product in the introduction stage of the product life cycle should have which of the following marketing objectives?

A)to maintain brand loyalty
B)to stress differentiation
C)to gain as much distribution as possible
D)to gain awareness and stimulate trial

Question 19

A computer manufacturer runs a print ad that has a 'them versus us' feel. They place their two products side-by-side, while highlighting the advantages of theirs versus the competition. The purpose of this is to drive demand for their product.

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

Question 20

When Molson launched Canadian Cider, consumers who trusted the brand were ________ to buy it first.

A)more likely than other beer drinkers
B)?not likely
C)less likely than other beer drinkers
D)just as likely as other beer drinkers

Question 21

When Apple launches a new iPhone version, the non-subsidized price (as in the price if you buy direct, without a three-year contract), is often $799 or $899, while older versions decrease in price. This initial high price is referred to as:

A)ROI pricing
B)skimming pricing
C)cost-plus pricing
D)market-oriented pricing

Question 22

Technology that allows consumers to access information on the Internet from a cell phone is in the introductory stage of its product life cycle. The industry is composed of several small firms with state-of-the-art products that are neither standardized nor compatible with one another. Moreover, these small firms have limited marketing expertise and little money to spend on marketing; their common strength is
Engineering. This industry would welcome the entry of a giant in the mobile phone industry like Nokia because:

A)Nokia's entry would help segment the market, establishing targets for the smaller firms.
B)the small companies could leapfrog beyond Nokia's products.
C)Nokia could set standards and generate primary demand.
D)Nokia could solve the remaining technological problems.

Question 23

During the introduction stage of the product life cycle, the place element of the marketing mix is highly involved with:

A)gaining distribution outlets.
B)reducing inventory costs.
C)guaranteeing there is adequate demand if a skimming pricing strategy is used.
D)building storage warehouses and distribution centers.

Question 24

A recent study of Canadian small businesses found that almost believe that branding is critical to business success.
Percent

A)15
B)85
C)55
D)35

Question 25

Reference: 11-01
Figure 11-1

The marketing strategy in the stage in the product life cycle labelled "B" in Figure 11-1 would involve:

A)informing and educating
B)minimal promotion
C)reminding users
D)stressing points of difference

Question 26

INGenius ATG introduced the microware oven-sized battery recycler in 1999. It was intended for the business market. Companies could buy the recycler and use it to restore alkaline batteries that are not normally recharged. The recycling does not let a battery live forever; but it does give it a charge of about 80 percent of the energy it originally had. Depending on the size of the battery, the recycler can hold up to 96 batteries. It takes 13 hours to recharge any battery. The recycler was introduced at
$3,000. When you consider that a pair of alkaline batteries can be purchased for $2, you should suspect that INGenius ATG was using a(n)strategy.

A)market-oriented pricing
B)ROI pricing
C)skimming pricing
D)cost-plus pricing

Question 27

A company follows a skimming strategy as part of introducing a new product to:

A)capitalize on the price sensitivity of early buyers and to postpone breakeven.
B)help recover costs of development and to capitalize on the price insensitivity of early buyers.
C)discourage competitors and build unit volume.
D)move the product into the maturity stage once primary demand has been created.

Question 28

A few years ago Who Wants to Be a Millionaire premiered as the first nighttime game show in a couple of decades. Once the show became a hit and televised several nights a week, other networks quickly created their own version of what they hoped to be a successful game show format. Greed and Twenty-One are the names of but two of the new shows that were created to compete with Who Wants to Be a Millionaire. At this point in time the nighttime televised game show entered which stage of its product life cycle?

A)growth stage
B)decline stage
C)maturity stage
D)commercialization stage

Question 29

Reference: 11-01
Figure 11-1

The stage in the product life cycle labelled "A" in Figure 11-1 is referred to as

A)introduction
B)maturity
C)diversification
D)growth

Question 30

A new cellphone service provider enters the Canadian market place with "Unlimited Everything" (text, data, voice, long distance)at $10 a month plans. This pricing strategy is referred to as:

A)market-oriented pricing.
B)penetration pricing.
C)cost-plus pricing.
D)ROI pricing.

Question 31

Which of the following statements about the introduction stage of the product life cycle is NOT true?

A)During the introduction stage, firms may choose a skimming strategy.
B)During the introduction stage, firms stress competitive differences in their promotion.
C)During the introduction stage, firms may choose a penetration pricing strategy.
D)During the introduction stage, efforts are made to increase primary demand.

Question 32

The music industry has changed dramatically over the years. In the 1970s, consumers purchased 8-track tapes. In the 1980s, cassette tape players caused the decline of 8- track tape players. In fact, today consumers would experience difficulty in
Purchasing a new artist on 8-track tape. Now in the 2000s, MP3 players have become very popular and are being purchased by music lovers of every age and background. As sales of MP3 players continue to grow at an increasing rate, sales of CD players are weakening, the profits are declining, and the product may face a fate similar to that of 8-track tape players. Based upon this information, you can correctly conclude that CD
Players are in the
Product life cycle.
Stage, and MP3 players are in the stage of the

A)decline; maturity
B)maturity; growth
C)decline; introduction
D)decline; growth

Question 33

Imagine that Eveready has developed solar rechargeable batteries that cost only slightly more to produce than regular batteries (less than the rechargeable batteries currently available)and can be recharged by sunlight up to 5 times, after which they are meant to be discarded. Unfortunately, the production process cannot be patented,
And competitors could arrive within a few months. Eveready's marketing efforts should include all the following EXCEPT:

A)widespread distribution.
B)advertising aimed at brand name awareness.
C)high production capacity.
D)skimming.

Question 34

UPEK Provides Biometric Fingerprint Security for Personal Computers to various PC manufacturers. UPEK is experiencing slow growth and it is just recovering its research and development costs from some PC manufacturers that are selling to consumers. The biometric fingerprint industry would be in the stage of the product life cycle.

A)commercialization stage
B)decline stage
C)growth stage
D)introduction stage

Question 35

One aspect of a new company's goodwill strategy is for every shoe purchased in North America, one free shoe is donated to a child in Africa. This aspect plays a major role in product branding that is referred to as a:

A)CSR brand
B)social brand
C)social benefit brand
D)goodwill brand

Question 36

Consumers who are frequently on the Internet more than likely use either Internet Explorer or Firefox as their web browser. There is another option called Opera, which is faster and highly customizable. Opera was initially offered on the market for $29
And this includes tech support. It was hoped that this low price would build the volume
Of Opera users quickly. Opera used a(n)_ strategy.

A)market-oriented pricing
B)ROI pricing
C)cost-plus pricing
D)penetration pricing

Question 37

Reference: 11-01
Figure 11-1

The stage in the product life cycle labelled "C" in Figure 11-1 is called

A)diversification
B)introduction
C)maturity
D)growth

Question 38

For years when most consumers thought of cranberries, they thought of the Ocean Spray brand. Then Northland cranberry juice came on the market claiming that it was superior to the Ocean Spray brand. Northland was creating demand for its
Cranberry products.

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

Question 39

When Texas Instruments (TI)introduced its pocket calculator it was a tremendous product innovation, and TI set the mail order price at $495. What is the name of the pricing strategy Texas Instruments used?

A)skimming
B)opportunisti c
C)rip off
D)chiseling

Question 40

To discourage competitive entry, a company can price its new product low, using penetration pricing. This pricing strategy also helps to:

A)reduce costs.
B)build unit volume.
C)increase profits.
D)build customer loyalty.

Question 41

Your product has been suffering from steadily eroding sales and profits. You have tried a number of options to revitalize the product's sales and profits, but after seven changes in your strategy, you are yet to find success. Which of the following actions would be the LEAST appropriate next step?

A)Retain the product, but reduce its support costs.
B)Delete the product from the line.
C)Harvest the product.
D)Retain the product, but increase marketing support costs.

Question 42

The marketing objective of a firm whose product is in the maturity stage of the product life cycle is to:

A)actively reinforce competitors' marketing efforts.
B)maintain existing distributors and actively seek out new ones.
C)actively search out new first time users.
D)maintain existing buyers since new ones are hard to find.

Question 43

Soft drinks, gas-powered automobiles, and DVD players are in the their product life cycle.
Stage of

A)introduction
B)developmen t
C)maturity
D)growth

Question 44

All of the following occur during the decline stage of the product life cycle EXCEPT:

A)the firm chooses the wrong marketing strategy, which results in an inappropriate marketing program for the target market.
B)promotional support for the product becomes minimal.
C)the uncontrollable environment changes.
D)sales decrease substantially.

Question 45

During the 1990s, there was a backlash against artificial colours in food and other consumer products. As a result, a lot of companies issued products that were clear. One example was Crystal Pepsi. The product never really found a market and was ________, or dropped from the Pepsi product line soon after its introduction.

A)aggregated
B)deleted
C)diversified
D)segmented

Question 46

Hershey's chocolate bars have been marketed in North America for more than 100 years, and are still a tremendous success, with a loyal following of consumers. The company began advertising several years ago to hold its market share, and it has introduced several distinctive new products. What stage of the product life cycle are Hershey's chocolate bars competing in?

A)growth
B)developmen t
C)introduction
D)maturity

Question 47

A technology company has just begun to make a profit on its DVD-R discs (DVD discs in a recordable format). Its promotional expenditures are aimed at trying to persuade potential customers of the merits of its DVD-R discs. Even more money is being spent to develop the firm's distribution system for its DVD-R discs. Since
Apple's iMac now comes with a DVD recorder as a standard part, a few other companies have started producing DVD-R discs for the market. What stage of the product life cycle is the DVD-R in?

A)maturity stage
B)growth stage
C)decline stage
D)commercialization stage

Question 48

Which of the following statements is a characteristic of the maturity stage of the product life cycle?

A)Industry sales revenue peaks, which is one stage after industry profit peaks.
B)During this stage companies attempt to eliminate distribution channels.
C)Often this stage is entered because of environmental or technological factors.
D)Industry profits peak because production and distribution costs are declining.

Question 49

Which of the following is a characteristic of the growth stage of the product life cycle?

A)profit margins increase as sales increase
B)product features remain unchanged
C)growing proportion of initial purchasers to repeat purchasers
D)advertising emphasis points of difference

Question 50

Reference: 11-01
Figure 11-1

The stage in the product life cycle labelled "D" in Figure 11-1 is called

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

Question 51

Hybrid automobiles are in the stage of the product life cycle.

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

Question 52

As of 2012, which brand below was NOT part of Interbrand Report on the Top Canadian Brands:

A)Thomson Reuters
B)RBC
C)TD
D)Apple

Question 53

Promotional expenses at the maturity stage of the product life cycle are often directed towards:

A)creating primary demand.
B)creating demand for the product class.
C)contests and games.
D)gaining new distributors.

Question 54

Sales and profits both exhibit a steady downward trend throughout which stage of the product life cycle?

A)maturity
B)decay
C)growth
D)decline

Question 55

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

A)there is fierce price competition among sellers.
B)there are fewer and fewer competitors in the market.
C)production costs increase the more a firm has to manufacture the same product.
D)better products are only in the growth stage.

Question 56

According to a recent study conducted by the Canadian Marketing Association, building an effective brand is critical, yet becoming increasingly difficult and complex. All of the following are trends that are impacting the ability to build effective brands, except:

A)new technology
B)changing demographics
C)social media
D)social concerns

Question 57

DVD players were introduced to the market in the 1990s. Ninety-one percent of North American homes own at least one DVD player. To maintain market share in the DVD player market and to get customers to purchase additional players, its manufacturers have continually provided for higher-quality recording capabilities and made the machines easier to watch and with different features that allowed for quicker location of recorded programs. Because the goal of DVD player manufacturers is to maintain brand loyalty and market share, the product category is in the stage of its
Product life cycle. (Hint: do not consider Blu-ray players in your answer.)

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

Question 58

All products are assumed to have a complete product life cycle. Which of the following is NOT a reason why products ultimately decline?

A)all consumers' wants and needs inevitably change
B)emergence of superior competitive products
C)non-marketing failures of firms
D)poor marketing

Question 59

An effective trademark and label can help thwart product:

A)reselling
B)competitors
C)margins
D)counterfeiti ng

Question 60

To handle products in the decline stage of the product life cycle, companies often use either:

A)deletion or diversification.
B)deletion or harvesting.
C)harvesting or contracting.
D)diversification or building.

Question 61

When a product reaches the decline stage of the product life cycle, a firm has two choices. One choice involves product deletion, where a product is dropped from a firm's product line. Another less drastic choice is to retain the product in the product line, but to reduce marketing costs. When this option called is selected,
Advertising expenditures for the product are reduced and salespeople do not devote their efforts to selling the product.

A)divestment
B)decline maintenance
C)maturity re-development
D)harvesting

Question 62

Reference: 11-02
Figure 11-2

The product life cycle (PLC)shown in "D" in Figure 11-2 is an example of a _ life cycle.

A)fad product
B)high-learning product
C)fashion product
D)low-learning product

Question 63

Implementing a harvesting strategy would mean that:

A)advertising dollars are increased, recognizing the profitability of the product
B)advertising dollars are decreased
C)growth of the product is significant, hence "harvesting" the profits
D)the product line is being expanded

Question 64

An alternative product life cycle that results from products that are easily imitated by competitors, consumers who readily understand their benefits, and for which the appropriate marketing strategy is to gain strong distributor outlets is characteristic of ________ products.

A)fashion
B)high-learnin g
C)fad
D)low-learnin g

Question 65

Some social benefit brands are sometimes referred to as environmental sustainability.
, if they focus on

A)eco brands
B)environmental brands
C)sustainable brands
D)green brands

Question 66

A strategy of harvesting may be employed in the decline stage of a product life to:

A)maintain the ability to meet customers' requests.
B)eliminate production and distribution costs.
C)get as many new customers as possible.
D)maintain primary demand for a product category.

Question 67

The Campbell Soup company advertises more heavily in warm months to encourage consumers to think of soup as more than a cold-weather food. As Campbell Soup is trying to increase use they are using a _ cycle.
Strategy in managing the product life

A)market modification
B)market repositioning
C)product repositioning
D)product modification

Question 68

Which of the following products is the best example of a product that might experience an introduction, a decline, and a reintroduction as part of its normal product life cycle?

A)cat food
B)veterinarian services
C)fishnet hose
D)cake mixes

Question 69

Reference: 11-02
Figure 11-2

The product life cycle (PLC)shown in "A" in Figure 11-2 is an example of a _ life cycle.

A)fad product
B)fashion product
C)high-learning product
D)low-learning product

Question 70

Bow ties, hemmed skirts, and tie-clips are most likely what type of products?

A)fad
B)high-learnin g
C)fashion
D)low-learnin g

Question 71

Reference: 11-02
Figure 11-2

The product life cycle (PLC)shown in "C" in Figure 11-2 is an example of a life cycle.

A)high-learning product
B)fad product
C)fashion product
D)low-learning product

Question 72

Generally, the average length of time it takes for a product category to move from the introduction stage of its product life cycle to the decline stage is:

A)5-10 years.
B)20 years.
C)18 months.
D)unpredictab le.

Question 73

Interbrand cites several factors that differentiate the Top Global and Canadian brands compared to their peers. All of the following are factors, except:

A)they are highly profitable and focus on consistent revenue growth
B)they listen to consumers, employees, and investors
C)they are sensitive to the needs and desires of informed and discerning customers
D)they are in touch with their own humanity

Question 74

With virtually no marketing support, Sanford continues to sell its Liquid Paper correction fluid for use in typewriters, even in the era of word-processing equipment. This is an example of during the decline stage of the product life cycle.

A)harvesting
B)profiting
C)deletion
D)skimming

Question 75

There is no exact time that a product takes to move through its life cycle. As a rule:

A)fad products have the longest life cycle.
B)installations have a shorter life cycle than consumer products.
C)consumer products have shorter life cycles than business products.
D)packaged goods have a shorter life cycle than fads.

Question 76

An extended introduction stage of the product life cycle occurs for which type of product?

A)fashion
B)high-learnin g
C)fad
D)low-learnin g

Question 77

Coca-Cola has realized that the market for their first diet cola, Tab, has been significantly diminished, yet Coca-Cola still sells the product, without any major advertising to its niche market. Coca-Cola is engaging in product:

A)Harvesting
B)Profiting
C)Skimming
D)Deletion

Question 78

A new social media product comes onto the market. Which person's description below is most likely to adopt the product first?

A)Matt: money is tight, as he is working contract-to-contract
B)Lindsey: a doctor, usually likes to wait until something is proven first, just like in medicine
C)Jo: spends her time as a blogger for a local technology site
D)Brady: a lawyer, who is always skeptical of these things, hence why she is a lawyer!

Question 79

Imagine Eveready has developed solar rechargeable batteries that cost only slightly more to produce than regular batteries (less than the rechargeable batteries currently available)and can be recharged by sunlight up to 5 times, after which they are meant to be discarded. Unfortunately, the production process cannot be patented, and competitors could arrive within a few months. Which of the following is the best description of the product life cycle of this product?

A)high introductory sales, with rapid decline
B)moderately slow introduction, followed by modest growth, gradually levelling off
C)long, level beginning, and rapid ascent
D)rapid growth followed by rapid decline

Question 80

Reference: 11-02
Figure 11-2

The product life cycle (PLC)shown in "B" in Figure 11-2 is an example of a life cycle.

A)fashion product
B)high-learning product
C)low-learning product
D)fad product