Deck 10: Managing Successful Products, Services, and Brands

Question 1

-Figure 10-1 above represents the stages of the product life cycle. What does the portion of the curve labeled D represent?

A)introduction
B)deceleration
C)maturity
D)destabilization
E)decline

Answer 1

decline

Question 2

Gatorade is most likely in which stage of its product life cycle?

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

Answer 2

C

Question 3

Gatorade is classified as a(n) __________ brand.

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

Answer 3

D

Question 4

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 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.The marketing of Gatorade illustrates continuous product development and masterful brand management in a dynamic marketplace.

Question 5

Gatorade Thirst Quencher displays the letter G front and center along with the brand's iconic bolt. According to the company, "G represents the heart, hustle, and soul of athleticism and will become a badge of pride for anyone who sweats, no matter where they're active." This is an example of __________ benefits of its packaging.

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

Question 6

Since Gatorade Thirst Quencher was concocted in 1965, its marketers have introduced Gatorade Xtremo in 2002, Gatorade AM in 2007, and the Gatorade G Series in 2010, to name a few. These introductions are examples of __________.

A)brand extensions
B)subbranding
C)primary demand
D)product line extensions
E)a product class

Question 7

What is the marketing objective for the growth stage of the product life cycle?

A)minimize promotion
B)increase market share
C)stress differentiation
D)gain awareness
E)maintain brand loyalty

Question 8

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

A)retail life cycle
B)product life cycle
C)marketing mix
D)product growth cycle
E)diffusion of product innovation

Question 9

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 __________ product improvement.

A)dynamic
B)discontinuous
C)continuous
D)symbiotic
E)simultaneous

Question 10

Which of the following statements is most accurate?

A)The name Gatorade was chosen because as an energy drink it gets you out of the gate fast.
B)The name Gatorade was coined by a team who lost to the University of Florida Gators, attributing the Gator win to the aid it got from the rehydrating beverage.
C)The green color of the original lemon-lime Gatorade was based on the University of Florida's alligator mascot.
D)Gatorade was developed by PepsiCo as a cause-marketing project to provide resources for women's sports at University of Florida's as a result of the passage of Title IX in 1972.
E)Gatorade is the only sports drink marketer that doesn't use sports celebrities to endorse its products.

Question 11

What is the marketing objective for the introduction stage of the product life cycle?

A)harvesting
B)market share
C)stress differentiation
D)maintain brand loyalty
E)gain awareness

Question 12

-Figure 10-1 above represents the stages of the product life cycle. What does the portion of the curve labeled C represent?

A)introduction
B)maturity
C)growth
D)accelerated development
E)decline

Question 13

The product life cycle refers to __________.

A)the average life span of a product
B)a concept that describes the stages a new product goes through from product concept to commercialization
C)a concept that describes the stages a product goes through in the marketplace - early growth, accelerated development, maturity, and decline
D)a concept that describes the stages a product goes through in the marketplace - introduction, growth, maturity, and decline
E)the amount of time it takes a product innovation to completely diffuse in the marketplace

Question 14

-Figure 10-1 above represents the stages of the product life cycle. What does the curve labeled X represent?

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

Question 15

-Figure 10-1 above represents the stages of the product life cycle. What does the portion of the curve labeled B represent?

A)introduction
B)accelerated development
C)growth
D)maturity
E)progression

Question 16

-Figure 10-1 above represents the stages of the product life cycle. What does the portion of the curve labeled A represent?

A)introduction
B)maturity
C)growth
D)launch
E)preparation

Question 17

-Figure 10-1 above represents the stages of the product life cycle. What does the curve labeled Y represent?

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

Question 18

What is the marketing objective for the maturity stage of the product life cycle?

A)begin deletion
B)implement skimming
C)stress differentiation
D)gain awareness
E)maintain brand loyalty

Question 19

Gatorade offers a range of product offerings. The firm uses 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 20

When Gatorade introduced Gatorade AM as a morning workout beverage for those avoiding caffeine, it was using a __________ strategy.

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

Question 21

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

Question 22

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

Question 23

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)derived
C)generic
D)selective
E)secondary

Question 24

Gillette spent $200 million in advertising to introduce the Fusion razor to male shavers. Such expenditures are often made to stimulate __________, the desire for the product class, rather than for a specific brand, when there are few competitors with the same product.

A)secondary demand
B)introductory demand
C)primary demand
D)discretionary demand
E)selective demand

Question 25

When the Floral Council, a trade association of flower shop retailers, advertises that giving flowers is 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 26

Gillette spent $200 million in advertising to introduce the Fusion razor to male shavers. Such expenditures are often made to stimulate primary demand, or desire for the product __________, rather than for a specific brand, when there are few competitors with the same product.

A)class
B)form
C)item
D)mix
E)concept

Question 27

The lack of profit in the introductory stage of the product life cycle is very often the result of __________.

A)pricing the product too low in an attempt to quickly gain market share
B)targeting the wrong target market segment
C)a lack of wholesaler support
D)the large investment costs in product development
E)ineffective execution of the marketing program

Question 28

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

A)introduction
B)growth
C)maturity
D)decline
E)accelerated development

Question 29

What is the marketing objective for the decline stage of the product life cycle?

A)harvesting
B)add outlets
C)stress differentiation
D)gain awareness
E)maintain brand loyalty

Question 30

The preference for a specific brand is called __________ demand.

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

Question 31

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

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

Question 32

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 33

During the introduction stage of the product life cycle, the place (distribution) element of the marketing mix is highly involved with __________.

A)increasing inventory levels at warehouses and distribution centers to meet potential demand
B)gaining distribution, even though many channel intermediaries will be reluctant to carry a new product
C)using an intermodal logistics system to get the products through the marketing channel as quickly as possible
D)building storage warehouses and distribution centers to establish an efficient infrastructure for the new product
E)obtaining contracts with independent sales agents and brokers instead of using the firm's salesforce

Question 34

One type of product that is new to the market is the smart watch, capable of tracking physiological functions and communicating with other devices. According to the product life cycle framework, what marketing objective(s) should producers of smart watches primarily focus on currently?

A)stress differentiation from other available watches
B)maintain customer loyalty
C)allow viewers to purchase in alternative channels
D)gain awareness and stimulate trial
E)target those with active lifestyles

Question 35

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 demand that is stimulated is referred to as __________ demand.

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

Question 36

Over a decade ago, Survivor premiered as a nighttime reality TV show during the summer season when TV ratings are normally low and TV viewing options consisted primarily of reruns. The marketing goals for the first show included making television viewers aware of its existence and generating enough excitement about the show so that millions of viewers would watch the first episode. Based on this description, the TV show was in what stage of its product life cycle?

A)introduction
B)growth
C)maturity
D)decline
E)accelerated development

Question 37

When the Egg Farmers of Canada implemented its "Get Cracking" advertising campaign, the organization was trying to stimulate __________ demand.

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

Question 38

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

A)contests and sweepstakes to stimulate selective demand
B)product samples to create secondary demand
C)advertising to cultivate primary demand
D)personal endorsements to generate word of mouth demand
E)coupons to maintain brand loyalty or static demand

Question 39

Marketing for a product in the introduction stage of its product life cycle should focus primarily on gaining awareness and which other marketing objective?

A)stress differentiation
B)stimulate trial
C)foster brand loyalty
D)maximize distribution
E)target a marketing niche

Question 40

When the National Cattlemen's Beef Association developed the "Beef, It's What's for Dinner" advertising campaign, it was trying to stimulate __________ demand.

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

Question 41

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

A)advertising emphasis switches to selective demand
B)a growing proportion of trial purchases come from brand loyal users
C)product features remain unchanged
D)profit margins increase as sales increase
E)the product is sold in a narrowly selected number of retail outlets

Question 42

Xunrui Communications is an upstart maker of inexpensive smartphones for the Chinese market. Xunrui purchases components and uses small assembly factories in Shenzhen, in southern China. These smartphones retail for about $65 in U.S. dollars, much less than the $250 to $600 for smartphones marketed by Apple or Samsung, the top two marketers of these items. Here, Xunrui Communications most likely is using which pricing strategy?

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

Question 43

During the __________ stage of the product life cycle, product proliferation occurs as a results of each company's efforts to differentiate its product from competitors'.

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

Question 44

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

A)It is preferable stimulate selective demand rather than focus on primary demand.
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 are initially negativE.The introduction stage of the product life cycle occurs when a product is introduced to its intended target market. During this period, sales grow slowly, and profit is minimal. The lack of profit is often the result of large investment costs in product development. Advertising and promotion expenditures in the introduction stage are often made to stimulate primary demand.

Question 45

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

A)skimming pricing; penetration pricing
B)price lining; product line pricing
C)markdown pricing; quantity discount pricing
D)skimming pricing; bundle pricing
E)penetration pricing; experience curve pricing

Question 46

-All electric-powered automobiles such as the Chevy Spark shown in the photo above are in which stage of their product life cycle?

A)growth
B)maturity
C)decline
D)accelerated development
E)introduction

Question 47

People who tried a product, were satisfied, and bought it again are called __________ purchasers.

A)replicate
B)dedicated
C)recurring
D)loyal
E)repeat

Question 48

Men who tried the Gillette Fusion razor were so satisfied with it that 60 percent of them adopted the product permanently. Men who bought again are known as __________ purchasers.

A)repeat
B)preference
C)replicate
D)recurring
E)selective

Question 49

The $150 Pebble Smartwatch was one of the first smart watches released to the public in 2013 after a revolutionary crowdfunding program managed by Kickstarter.com that raised over $10 million from over 68,000 backers. Smartwatches can collect physiological data from the wearer and transmit it wirelessly to smartphones, tablets, and PCs. Samsung recently launched its Galaxy Gear smart watch and Apple is set to launch such a device in 2015. In what stage of the product life cycle is this product?

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

Question 50

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 51

Xerox pioneered the first portable fax machine. In 1980, the price was $12,700. Xerox used a(n) __________ pricing strategy to help recover its research and development costs.

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

Question 52

A company may choose a skimming strategy during the introduction stage of its product to help recover costs of development and to __________.

A)capitalize on the price insensitivity of early buyers
B)discourage competition from other manufacturers
C)ease the product into its maturity stage
D)gain the largest unit sales possible
E)gain more distribution outlets

Question 53

During the introduction stage of the product life cycle, a(n) __________ pricing strategy may be used. This pricing strategy charges a high initial price to recoup the costs of product development.

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

Question 54

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.

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

Question 55

Imagine that Eveready has developed solar rechargeable batteries that cost only slightly more to produce than the rechargeable batteries currently available. These solar batteries can be recharged by sunlight up to 5 times, after which they must be discarded. Unfortunately, the production process cannot be patented, so competitors could enter the market within a year. Which of the following would be the LEAST sound marketing program decision?

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

Question 56

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

A)maturity
B)decline
C)growth
D)accelerated development
E)introduction

Question 57

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

A)introduction
B)growth
C)maturity
D)decline
E)accelerated development

Question 58

All of the following are true about a skimming pricing strategy when used during the introduction stage of the product life cycle EXCEPT:

A)it capitalizes on the price insensitivity of early buyers.
B)its profit margins may be high.
C)it encourages competitive entrants into the market.
D)it recovers the R&D costs of the new offering.
E)it helps build unit volumE.A high initial price in the introduction stage may be used as part of a skimming strategy to help the company recover the costs of development as well as to capitalize on the price insensitivity of early buyers. High prices tend to attract competitors eager to enter the market because they see the opportunity for profit.

Question 59

The __________ stage of the product life cycle is characterized by the appearance of competitors.

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

Question 60

LED (light-emitting diode) light bulbs have been available for only a few years in low lighting levels (lumens). LEDs are designed to replace incandescent and even compact fluorescent light bulbs, in part because of a federal law that phases out incandescent light bulbs in favor of more energy efficient ones. LED bulbs, which today can cost about $10 to $15 for a 60-watt bulb, will last up to 20 years. In what stage of the product life cycle is this product?

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

Question 61

-Consider the Amazon Kindle photo above. According to the textbook, in what stage of the product life cycle are e-book readers like the Kindle?

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

Question 62

Apple launched its iPad in 2010 and it, along with its companion iPad mini, have become the world's bestselling tablet devices with their multitouch user interfaces and the availability of hundreds of thousands of apps. The product class has experienced tremendous growth in terms of sales and the addition of formidable competitors such as Samsung Galaxy, Google Nexus, Sony Xperia, etc. - all vying for market share. In which stage of the product life cycle are the iPad and other tablets?

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

Question 63

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

A)introduction
B)growth
C)maturity
D)decline
E)accelerated development

Question 64

At which stage of the product life cycle are microwave ovens?

A)introduction
B)growth
C)maturity
D)decline
E)accelerated development

Question 65

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

A)tablet devices
B)electric cars
C)fax machines
D)soft drinks
E)analog TVs

Question 66

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

A)Technological forces often push a product from the introduction stage to the maturity stage.
B)During the maturity stage, companies add more distribution outlets to maximize target market coverage.
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 67

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

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

Question 68

The __________ stage of the product life cycle is characterized by the slowing of total industry sales or product class revenue, causing marginal competitors to begin leaving the market.

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

Question 69

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

A)there are fewer and fewer competitors in the market
B)promotional expenditures increase
C)production costs increase the more a firm has to manufacture the same product
D)there is fierce price competition among sellers
E)more consumers enter the market seeking bargains

Question 70

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

A)pocket video cameras
B)hybrid vehicles
C)3D HDTVs
D)soft drinks
E)tablet devices

Question 71

When most consumers who would buy a product are either repeat purchasers of the item or have tried and abandoned it, in what stage of the product life cycle is the product?

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

Question 72

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

A)convince those who have abandoned the brand to try it again
B)maintain market share
C)create a sense of nostalgia
D)attract more price conscious consumers
E)thwart the growing number of competitors that have entered the market

Question 73

Apple launched its iPhone in 2007, the first smartphone that used a multi-touch user interface. iPhone unit sales then skyrocketed for several years. Recently, growth in smartphone sales have slowed and profits have declined due to fierce competition from Samsung, Motorola, Nokia and others. In which stage of the product life cycle are smartphones like the iPhone?

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

Question 74

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

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

Question 75

Changes in a company's product characteristically are made in the __________ stage of the product life cycle.

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

Question 76

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

A)advertising emphasis switches to primary demand
B)a growing proportion of repeat purchasers to initial purchasers
C)the number of distribution outlets shrinks due to growing inefficiencies
D)profit margins increase as sales increase
E)no new product features are added to maximize profits

Question 77

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

A)Marketing emphasis is directed towards generating more consumer awareness.
B)Marketing emphasis switches to finding more channel intermediaries to carry the product.
C)Marketing emphasis aims at stimulating primary 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 less time to selling the product.

Question 78

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)decelerated implementation

Question 79

In which stage of the product life cycle is it important to broaden distribution of the product?

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

Question 80

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

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