Deck 11: Managing Successful Products, Services, and Brands

Question 1

The marketing objective for a product in the _________ stage of the product life cycle is to create consumer awareness and gain trial.

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

Answer 1

A

Question 2

The range of Gatorade offerings from the traditional Gatorade Thirst Quencher to newly enhanced beverages conveying the attitude of a tough-love coach or personal trainer through in-your-face names on the label and nutrition benefits inside are all examples of a company's commitment to

A)dynamically continuous innovation.
B)discontinuous innovation.
C)continuous innovation.
D)symbiotic innovation.
E)Simultaneous innovation.

Answer 2

C

Question 3

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

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

Answer 3

B

Question 4

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

A)insufficient allocation of resources to the marketing mix.
B)poor selection of distribution channels.
C)lack of consumer interest in the product.
D)large investment costs in product development.
E)ineffective execution of the marketing program.

Question 5

One type of television show 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)gain awareness and stimulate the target market to watch
B)stress differentiation from other forms of entertainment
C)gain as much distribution as possible to local TV stations
D)reveal a marketing niche for that particular show
E)maintain loyalty of the viewers

Question 6

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

A)Gain as much distribution as possible.
B)Gain awareness and stimulate trial.
C)Reveal a marketing niche.
D)Stress differentiation.
E)Maintain brand loyalty.

Question 7

Gillette spent $200 million in advertising to introduce the Fusion shaving system to male shavers.Such expenditures are often made to stimulate _________, or desire for the product class, rather than for a specific brand, when there are no competitors with the same product.

A)secondary demand
B)introductory demand
C)primary demand
D)discretionary demand
E)repeat purchase

Question 8

The _________ stage of the product life cycle occurs when a product is launched to its intended target market.

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

Question 9

Product life cycle refers to

A)the average life span or usage rate of a product when used according to the manufacturer's instructions.
B)a concept that describes the stages a new product goes through from product concept to commercialization.
C)a normal fluctuation in sales, often following a ten-year cycle reflecting a typical demographic generation.
D)a concept that describes the stages a new product goes through in the marketplace-introduction, growth, maturity, and decline.
E)the average amount of times a customer will try a product alternative before becoming brand loyal to one product over another.

Question 10

Gatorade is classified as a _________ brand.

A)domestic
B)regional
C)international
D)global
E)nationwide

Question 11

When Gatorade introduced Gatorade AM as a morning beverage when you didn't want coffee, it was using

A)product modification.
B)brand modification.
C)market modification.
D)market-product extension.
E)diversification.

Question 12

Gatorades offers a range of product offerings.They use one name for all its products in a product class.Gatorade is using a _________ strategy.

A)multibranding
B)family branding
C)co-branding
D)dual branding
E)mixed branding

Question 13

"Gatorade Thirst Quencher displays the letter G front and center along with the brand's iconic bolt.For Gatorade, G represents the heart, hustle, and soul of athleticism and will become a badge of pride for anyone who sweats, no matter they are active".This is an example of

A)functional benefits.
B)communications benefits.
C)perceptual benefits.
D)physical benefits.
E)tangible benefits.

Question 14

A concept that describes the stages a new product goes through in the marketplace-introduction, growth, maturity, and decline is referred to as

A)the retail life cycle.
B)the product life cycle.
C)the marketing mix.
D)the product growth cycle.
E)product commercialization.

Question 15

A few years ago Who Wants to Be a Millionaire premiered as the first nighttime game show in several decades.The marketing for the show was intent on making television viewers aware of its existence and excited enough about the show that they would watch the first episode.Based on this description, in which stage of the product life cycle would this show be?

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

Question 16

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

A)Gatorade uses the same formula for all its products and simply changes their brand name.
B)Gatorade's success can be attributed to their decision to find one channel of distribution and to stay with it.
C)Gatorade changed its color, packaging, and size choices in the domestic market so they would not have to enter the global market.
D)Gatorade produces many variations of its products under different brands; it only uses the Gatorade name on its beverages.
E)Gatorade has changed its product, its product packaging, its market, and its advertising to keep the product and company profitable.

Question 17

Gillette spent $200 million in advertising to introduce the Fusion shaving system to male shavers.Such expenditures are often made to stimulate primary demand, or desire for _________, rather than for a specific brand, when there are no competitors with the same product.

A)the product class
B)innovative sampling
C)secondary demand
D)a well-known brand
E)repeat purchase

Question 18

Which of the following statements is most accurate?

A)The name Gatorade was chosen because as an energy drink it "got you out the gate-fast."
B)The name Gatorade was coined by a team who lost to the FL Gators, attributing the Gator win to the "aid" it got from the rehydrating beverage.
C)The green color of the original lemon-lime Gatorade conjured up a fast and strong alligator in the water.
D)The first five letters in Gatorade are the initials of the product's inventors, with "ade" at the end representing the product's fruity taste.
E)With the exception of the "ade" at the end of the word (alluding to the citrus taste), the "gator" was the result of randomly selecting 5 letters from a Scrabble $\rarr$ board.

Question 19

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

A)If a firm's product is especially good, efforts should be made to create selective demand rather than primary demand in order 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, industry profits often must go from negative to positive.

Question 20

The initial purchase of a product by a consumer is referred to as a(n)

A)product sampling.
B)product assessment.
C)examination period.
D)first buy.
E)trial.

Question 21

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

A)contests and sweepstakes.
B)creating selective demand.
C)creating primary demand.
D)personal endorsements.
E)maintaining brand loyalty.

Question 22

When the National Cattlemen's Beef Association advertises "Beef, It's What's for Dinner" it is trying to stimulate _________ demand.

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

Question 23

During the introduction stage of the product life cycle, promotional expenditures are made to stimulate consumer desire for an entire product class rather than for a specific brand.The consumer desire that is stimulated is referred to as _________ demand.

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

Question 24

FIGURE 11-1
The stage in the product life cycle labeled "D" in Figure 11-1 above is called

A)introduction.
B)maturity.
C)growth.
D)diversification.
E)decline.

Question 25

FIGURE 11-1
The stage in the product life cycle labeled "C" in Figure 11-1 above is called

A)introduction.
B)maturity.
C)growth.
D)diversification.
E)decline.

Question 26

FIGURE 11-1
The stage in the product life cycle labeled "B" in Figure 11-1 above is called

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

Question 27

3M is a master of _________ strategy.According to a 3M manager, "we hit fast, price high, and get the heck out when the me-too-products pour in."

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

Question 28

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

Question 29

A company may choose a skimming strategy in the introduction stage of their new product in order to help recover costs of development and/or to

A)capitalize on the price insensitivity of early buyers.
B)encourage competition from other manufacturers.
C)move the product into the maturity stage more gradually.
D)gain the largest unit sales possible.
E)intensify the flow of the product to the market.

Question 30

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

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

Question 31

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

A)building storage warehouses and distribution centers.
B)obtaining contracts with major wholesalers.
C)using an intermodal logistics system.
D)gaining distribution outlets.
E)increasing inventory.

Question 32

The preference for a specific brand is called ________ demand.

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

Question 33

When the Egg Framers of Canada advertises "Get Cracking" it is trying to stimulate _________ demand.

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

Question 34

Figure 11-2 above represents the stages of the product life cycle.What does the curve labeled "B" represent in this graphic?

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

Question 35

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.Which of the following would be the least sound marketing decision?

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

Question 36

During the introduction stage of the product life cycle, a(n) _________ strategy may be used.This pricing strategy charges a high price to recoup the costs of product development as well as capitalize on the price insensitivity of early buyers.

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

Question 37

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

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

Question 38

Figure 11-2 above represents the stages of the product life cycle.What does the curve labeled "A" represent in this graphic?

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

Question 39

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

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

Question 40

When the Floral Council advertises giving flowers as a thoughtful and appreciated gift for any occasion it is trying to stimulate _________ demand.

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

Question 41

In what stage of the product life cycle is it important to gain as much distribution of the product?

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

Question 42

Hybrid automobiles and 3D television (3D high definition TV) are in which stage of the product life cycle?

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

Question 43

FIGURE 11-3
According to the text, the electric automobiles made by General Motors (see Figure 11-3 above) are in which stage of the product life cycle?

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

Question 44

Which of the following is an example of a product in the growth stage of the product life cycle?

A)digital cameras
B)electric vehicles
C)HDTV
D)soft drinks
E)3D HDTVs

Question 45

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

A)advertising emphasis switches to stimulate primary demand
B)growing proportion of initial purchasers to repeat purchasers
C)addition of new or modified product features
D)profit margins increase as sales increase
E)limited number of outlets for greater quality control

Question 46

To help differentiate a company's brand from competitors, an improved version or new features are added to the original design, and product proliferation occurs in the _________ stage of the product life cycle.

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

Question 47

The _________ stage of the product life cycle is characterized by rapid increases in sales.

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

Question 48

Changes appearing in the product, characteristically take place in the _________ stage of the product life cycle.

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

Question 49

Which stage in the product life cycle is characterized by a rapid increase in sales and the appearance of competitors?

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

Question 50

The two most common pricing alternatives for products in the introduction stage of the product life cycle are _________ and _________.

A)skimming; penetration
B)competitive pricing; price matching
C)one-line pricing; quantity discount pricing
D)skimming; one-line pricing
E)penetration; quantity discount pricing

Question 51

At which stage in the product life cycle do industry profits usually peak?

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

Question 52

FIGURE 11-4
According to the text, the Olympus digital camera (see Figure 11-4 above), is most likely in what stage of the product life cycle?

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

Question 53

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 genre entered which stage of its product life cycle?

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

Question 54

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

A)advertising shifts emphasis to stimulate selective demand
B)growing proportion of trial purchasers
C)product features remain unchanged
D)profit margins increase as sales increase
E)products are in the maximum number of outlets

Question 55

Which stage in the product life cycle is characterized by a slowing of total industry sales or product class revenue?

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

Question 56

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

A)advertising emphasis switches to stimulate primary demand
B)profit margins increase as sales increase
C)product features remain unchanged
D)growing proportion of repeat purchasers to initial purchases
E)the elimination of non-essential product features

Question 57

Xerox pioneered the first portable fax machine.In 1980 the price was $12,700.Xerox was using a(n) _________ strategy to help cover the high cost of its research and development.

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

Question 58

Ford and Toyota both have hybrid vehicles in their respective product lines.Sales have been slow to rise over the past year, and profit is likely yet to be achieved.In what stage of the product life cycle is this product category?

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

Question 59

People who tried the product, were satisfied, and bought again are called __________.

A)replicate purchasers
B)recurring purchasers
C)reiterate purchasers
D)die hard purchasers
E)repeat purchasers

Question 60

The Dell EC 280 is a small desktop computer that uses less electrical power, has a Celeron processor, and is targeted to the less affluent, very large, Chinese market that has never owned a computer.It was introduced at a price of $340 for a basic setup.Dell is using which pricing strategy in this example?

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

Question 61

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

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

Question 62

Promotional expenses at the maturity stage of the product life cycle are often designed to

A)renew interest in the product class.
B)further product differentiation.
C)create a sense of nostalgia.
D)attract more price conscious consumers.
E)"piggyback" on competitors' advertising, letting them do most of the work.

Question 63

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

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

Question 64

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

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

Question 65

In the 1960s, television westerns were extremely popular.The shows were adventure shows with settings and costumes that were very unlike what really existed.There was Bonanza, Wagon Train, The Virginian, Laramie, etc.When viewers gradually stopped watching this category of programs, production companies found the networks no longer wanted to televise such shows.The television western as a product category entered the _________ stage.

A)decay
B)diversification
C)decline
D)maturity
E)harvesting

Question 66

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

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

Question 67

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

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

Question 68

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

A)Ironically, in the decline stage, sales decline even though profits remain the same.
B)A product almost always enters the decline stage as the result of one major product flaw or marketing misstep.
C)A major reason that companies enter the decline stage is as a result of an environmental change.
D)The only real step that can be taken to avoid extinction is to increasing marketing expenditures as soon as the product enters its decline stage.
E)Service industries are exempt from the decline stage since the product cannot become obsolete.

Question 69

A strategy of dropping a product from the product line, usually in the decline stage of the product life cycle, is referred to as _________.

A)diversification
B)aggregation
C)paring down
D)deletion
E)harvesting

Question 70

Which of the following statements regarding the maturity stage of the product life cycle is most accurate?

A)Marketing emphasis is directed towards creating more consumer awareness.
B)Marketing emphasis switches to finding more channel intermediaries to carry the product.
C)Marketing emphasis aims at stimulating selective demand for the product.
D)Marketing attention is directed toward holding market share through further product differentiation and finding new buyers.
E)Marketing emphasis is directed towards having salespeople allocate more time in selling the product.

Question 71

In the 1960s, television westerns were extremely popular.The shows were adventure shows with settings and costumes that were very unlike what really existed.There was Bonanza, Wagon Train, The Virginian, Laramie, etc.When viewers gradually stopped watching this category of programs, production companies found the networks no longer wanted to televise such shows.The production companies used a _________ strategy and stopped production on all television westerns when the networks stopped showing them.

A)diversification
B)aggregation
C)segmentation
D)deletion
E)harvesting

Question 72

Which of the following is an example of a product in the maturity stage of the product life cycle?

A)digital cameras
B)hybrid vehicles
C)3D HDTV
D)soft drinks
E)digital music players

Question 73

Which of the following occurs during the decline stage of the product life cycle?

A)sales decrease substantially
B)supplemental product lines are added
C)the product becomes less vulnerable to environmental changes
D)promotional support is increased
E)competition becomes intense as more and more competitors leave the playing field

Question 74

At which stage of the product life cycle is a company most likely to have its fullest product line?

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

Question 75

Industry analysts estimate that the number of e-mail mailboxes worldwide will grow to _________ in 2012.

A)2.0 billion
B)2.5 billion
C)3.0 billion
D)3.5 billion
E)4.0 billion

Question 76

Most consumers who would buy the product are either repeat purchasers of the item or have tried and abandoned it are characteristically in which stage of the product life cycle?

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

Question 77

In terms of its effect on faxing, e-mail has

A)led to a significant number of improvements in fax machines technology in order to keep the product class competitive.
B)led to a significant decrease in fax machine sales because e-mail better suits the needs of the business community.
C)led to a significant increase in fax machine purchases due to distrust of e-mail security.
D)a minimal impact since the two technologies do not directly compete.
E)launched an active campaign to draw consumers away from customers who rely heavily on faxing for business purposes.

Question 78

Which of the following statements regarding the maturity stage of the product life cycle is most accurate?

A)Often this stage is entered because of environmental or technological factors.
B)During this stage companies attempt to pare down or eliminate distribution channels.
C)Sales increase at a decreasing rate as fewer new buyers enter the market.
D)Industry profits peak because production and distribution costs are declining.
E)Total industry profits exceed total industry sales.

Question 79

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 have yet to find success.Which of the following actions would be the least appropriate next step?

A)Delete the product from the line.
B)Retain the product, but reduce its support costs.
C)Stimulate primary demand.
D)Reduce the production of the product.
E)Reduce the marketing of the product.

Question 80

Profits tend to consume a disproportionate share of management and financial resources relative to their worth throughout which stage of the product life cycle?

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