Deck 10: Product Decisions

Question 1

Companies ask for purchase commitments from customers after completing production under the collective customer commitment approach.

Answer 1

False

Question 2

Short product lines generally come about through many line extensions.

Answer 2

False

Question 3

Family branding reduces the impact of shelf facings in stores.

Answer 3

False

Question 4

A cross-disciplinary team is appointed to staff the gates in most companies or business units using stage-gate systems.

Question 5

Bad brand extensions occur when the name adds little or no benefit to the extension and may cause confusion.

Question 6

Function-specific teams are more efficient for innovations that are radical.

Question 7

Individual branding makes it difficult for a firm to compete via multiple entries within the same product class.

Question 8

Features refer to the intangible attributes of a product whereas benefits refer to the tangible attributes.

Question 9

Differentiating on quality can occur on any of the eight dimensions of quality for goods.

Question 10

Corporate identity flows from the communications,impressions,and personality projected by an organization.

Question 11

Most new products fail purely due to technical reasons.

Question 12

A principal goal of using the stage-gate process is to improve the speed with which a firm brings new products to market.

Question 13

Companies that adopt a true market orientation use techniques such as ethnography and empathic design to obtain a broader view of their markets than their current customers can provide.

Question 14

Stage-gate systems are used for managing new product development from idea generation to product launch.

Question 15

A product design creates impressions concerning other product attributes.

Question 16

Benefits and features mean the same thing for a marketer.

Question 17

Conjoint analysis is a tool that measures links between known customer needs and technical features.

Question 18

Manufacturing a product is the most important service component of a product.

Question 19

A field test market test seeks to obtain an estimate of the sales that will be achieved once the product is rolled out into a broader market.

Question 20

A long product line is considered desirable during the early stages of product evolution rather than during later stages.

Question 21

The product life cycle model's major weakness lies in its normative approach to prescribing strategies based on assumptions about the features or characteristics of each stage.

Question 22

Large sums of products are not required if the new product is a brand extension.

Question 23

Which of the following requires a company to provide each product or product line with a distinctive name?

A)Family branding
B)Brand extension
C)Individual branding
D)Umbrella branding

Question 24

The shakeout stage of product development is typically marked by steep price increases.

Question 25

Skimming strategy is particularly appropriate in niche markets and where consumers are relatively insensitive to price.

Question 26

Consumer goods that typically stress maximum distribution,consumer advertising,and merchandising are called _____ goods.

A)shopping
B)specialty
C)unsought
D)convenience

Question 27

Penetration pricing is not suitable if a firm is striving for quick market development.

Question 28

Branding:

A)refers to the process of creating an image of a product in customers' mind.
B)the process of dividing customers in to similar groups.
C)is an unregistered symbol representing a product class.
D)identifies and differentiates products of one seller from another.

Question 29

Products such as refrigerators and washing machines are examples of _____ goods.

A)shopping
B)unsought
C)specialty
D)staple

Question 30

Which of the following is NOT a component of brand equity?

A)Awareness
B)Brand loyalty
C)Perceived quality
D)Market share

Question 31

Consumer products that are most likely to be associated with limited distribution,high price,and strong advertising are called _____ goods.

A)specialty
B)shopping
C)convenience
D)unsought

Question 32

High levels of investments are needed during the growth stage of a product.

Question 33

Ruster Inc.is a firm that manufactures such products as beauty soaps.The firm tries to place its products in maximum number of shops and engages in heavy advertising and uses displays to popularize its products.Ruster's products are examples of _____ goods.

A)shopping
B)unsought
C)staple
D)convenience

Question 34

Unsought goods and services are usually associated with:

A)weak promotional activities.
B)high prices.
C)personal selling.
D)low levels of advertising.

Question 35

Penetration pricing refers to increasing a product's price to maximize margins.

Question 36

At the end of the growth period,just before the advent of maturity,the shakeout or competitive turbulence stage occurs.

Question 37

Prices tend to remain stable if the rate of decline is slow during the decline stage of a product.

Question 38

Which of the following is the most complete and accurate definition of a product?

A)A tangible benefit offered in exchange of money
B)Any object or collection of objects that one person gives to another
C)Any tangible object or collection of objects that satisfy a human relationship
D)Anything that satisfies a want or a need in terms of use,consumption,or acquisition

Question 39

Prices tend to decline during the growth period and price differences between brands decrease.

Question 40

The tangible or intangible attributes given to the product by its designers are called:

A)benefits.
B)features.
C)wants.
D)needs.

Question 41

_____ refers to brining customers or prospective customers directly into the product development process.

A)Brand extension
B)Line stretching
C)Cocreation
D)Line extension

Question 42

ZAP News Inc. ,a media company,offers a line of related products like magazines,newspapers,journals and news websites under its brand name.Which of the following branding strategies is used by ZAP News?

A)Individual branding
B)Local branding
C)Personal branding
D)Family branding

Question 43

Harper Inc.is a multinational consumer goods company that markets multiple brands.The company's brands include Sunshine tea,Goldie cookies,Arch fragrance products,and so on.Which of the following branding strategies is practiced by Harper Inc.?

A)Family branding
B)Individual branding
C)Brand extension
D)Collective branding

Question 44

Which of the following refers to an arrangement where different products work together to create barriers of competition?

A)Product penetration
B)Line extension
C)Brand extension
D)Product system

Question 45

Which of the following is a common activity in the service component of a product?

A)Procuring raw materials
B)Manufacturing body parts
C)Handling inquiries promptly
D)Assembling product components

Question 46

A short product line:

A)is less profitable given the economies of scale.
B)simplifies the inventories of both the company and its channel members.
C)establishes a series of line extensions and family brands.
D)is desirable during the later stages of developing a new product or service.

Question 47

Which of the following serves the functions of protecting,facilitating use of,and promoting the product,as well as providing information about the product and its use?

A)Assembling
B)Packaging
C)Fabrication
D)Manufacturing

Question 48

Petunia Inc. ,a multinational firm,owns brands like Blue Eyes fragrance products,Buttons leather goods,Degree Interiorz,and so on.Which of the following branding strategies is followed by the marketers of Petunia Inc.?

A)Family branding
B)Collective branding
C)Brand extension
D)Individual branding

Question 49

Swoosh Inc.provides customers online tools to design their own sneakers,wallets and bags.The company later manufactures products based on the designs made by customers.This type of manufacturing is an example of:

A)cocreation.
B)line stretching.
C)brand extension.
D)line extension.

Question 50

Explorer Group started business by manufacturing electronic appliances branded as Fortune appliances.The company later launched other brands such as Fortune apparels and Fortune optical.This is an example of:

A)co-branding.
B)individual branding.
C)brand extension.
D)joint venturing.

Question 51

The more service-sensitive the market,the:

A)greater the number products that firms will sell.
B)lesser the opportunity for profits.
C)lesser product prices will be.
D)greater the opportunity for profits.

Question 52

Which of the following is true of family branding?

A)It requires the company to provide each product or product line with a distinctive name.
B)It enables a firm to compete via multiple entries within the same product class.
C)It reduces the impact of shelf facings in stores and is not feasible for the promotion of a product line comprising many low-volume items.
D)It is associated with reduced costs and transfer of customer satisfaction from one product to another.

Question 53

Which of the following branding strategies uses the same brand name to cover a group of products or product lines?

A)Family branding
B)Individual branding
C)Corporate branding
D)Personal branding

Question 54

Developing additional products to serve more narrowly targeted,or different,market segments is known as:

A)line extension.
B)cobranding.
C)individual branding.
D)line stretch.

Question 55

Which of the following is a branding strategy in which it is easier to launch product modifications such as new package sizes and types,or new products?

A)Personal branding
B)Individual branding
C)Family branding
D)Independent branding

Question 56

One of the biggest causes for the failure of new products introduced into the market place is the lack of:

A)advertising.
B)technical features.
C)technical expertise.
D)consumer interest.

Question 57

_____ uses the same brand name to cover a group of products or product lines.

A)Individual branding
B)Family branding
C)Personal branding
D)Global branding

Question 58

_____ involves the use of a family brand name established in one product class as a vehicle to enter another product class.

A)Local branding
B)Brand extension
C)Line extension
D)Individual branding

Question 59

Emma's choice shop is has five retail outlets in New York.The company sells products of various manufacturers and it also sells products that are branded as Emma's products in its outlets.Emma's is an example of a(n)_____ brand.

A)personal
B)individual
C)national
D)store

Question 60

Which of the following is a branding strategy that uses multiple brand names with a single product or service offering?

A)cobranding
B)family branding
C)brand extension
D)global branding

Question 61

Keith and Andrew owns a software consulting firm.They wanted to create a new software product.They got a number of ideas from the employees of the firm.After analyzing all the ideas,they chose one particular product idea.Next,they assessed the new product's potential market,growth rate,and likely competitive strength.Further,resources were invested in research and product prototypes were developed to support these research effects.Keith and Andrew's firm has completed the stage of:

A)postdevelopment review decisions.
B)commercialization decisions.
C)making decisions on the business case.
D)business analysis review.

Question 62

Briefly explain each stage of the product life cycle.

Question 63

How can a well-developed positioning statement or value proposition play an important role in designing products?

Question 64

Which of the following stages of product lifecycle is typically characterized by narrow product line and skimming or penetration pricing?

A)Introduction
B)Shakeout
C)Growth
D)Maturity

Question 65

The advent of the shakeout stage of product lifecycle is signaled by:

A)sharp increase in the product's sales.
B)a drop in the overall growth rate.
C)the existence of narrow product lines.
D)substantial increase in product prices.

Question 66

The _____ stage of product lifecycle starts with a sharp increase in sales and important product improvements continue in the stage at a slower rate.

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

Question 67

Identify the major categories of consumer products,provide an example of each,and describe what might be considered the key marketing variable associated with that type product.

Question 68

Which of the following occurs at the end of the growth period,just before maturity,in product life cycle?

A)Introduction
B)Pioneering maturity
C)Competitive turbulence
D)Sales decline

Question 69

Which of the following statements is true of the strategic importance of product life cycle?

A)The need for substantial investments reduces as a product moves into the growth stage.
B)The most important strategic objective of the growth stage is to accelerate overall market growth through awareness,trial,and product availability.
C)The firm with the largest share during the introductory and growth stages should have the lowest per-unit costs due to scale and learning effects.
D)The product life cycle model's major strength lies in its normative approach to prescribing strategies based on assumptions about the features or characteristics of each stage.

Question 70

For line extensions and product improvements,where the degree of innovation is minor,relatively _____ procedures appear to be better at getting products to market quickly.

A)bureaucratic
B)participative
C)radical
D)consultative

Question 71

Explain some of the different types of branding strategies.

Question 72

Briefly explain the customer-driven approaches applied to spur innovation.

Question 73

Sashes and Ribbons Inc.produces footwear,stoles,and sweaters based on ideas from their customers.The company also takes purchase commitments from the customers before manufacturing the products.This is an example of using the _____ approach.

A)internal manufacturing
B)line stretching
C)passive consumer
D)collective customer commitment

Question 74

Penetration pricing enables a firm to:

A)provide high levels of product differentiation.
B)strive for quick market development.
C)charge a premium for new products.
D)obtain as much margin per unit as possible.

Question 75

Once a product is launched by a firm,the firm's goal should be to move it through the _____ stage as quickly as possible.

A)expansionary
B)maturity
C)growth
D)introductory

Question 76

In laboratory test markets,the procedure by which a consumer adopts a new product includes the steps of awareness,trial and:

A)special testing.
B)repeat buying.
C)field test marketing.
D)termination.

Question 77

Name and explain the five gates in the stage-gate system.

Question 78

Explain the benefits of packaging.

Question 79

List some of the common activities that are included under the service component of a product.

Question 80

What are the three principles of the stage-gate system that improve the speed with which a firm brings new products to market?