Deck 10: The Product Experience: Product Strategy

Question 1

Recently, Anheuser Busch introduced a new beer called Celebrate meant to be drunk in a snifter rather than a beer mug and it is priced around $10 a bottle.

Answer 1

True

Question 2

Managers seek to understand if the sales decline in the decline stage of the PLC is a short-term problem or resulting from outside forces or a fundamental shift in the market with long-term implications.

Answer 2

True

Question 3

Chick-fil-A uses a set of testers who try the item 10 or more times before they decide to add it to the menu.

Answer 3

False

Question 4

The maturity stage of the PLC is characterized as having a few large players dominate the market followed by a number of smaller companies with specific products meeting specialized market needs.

Question 5

The introduction of New Coke was a debacle that led Coke to reinvigorate its old traditional brand.The failure is an example of the leading selling brand in the market not being able to get the market to do what the company wanted.

Question 6

Parents buying their daughter a pair of jeans would probably consider Aeropostale jeans to be just another pair of jeans; however, to the teenager, the same purchase makes an important statement about herself and her choice of clothes.

Question 7

A stock keeping unit (SKU)is a unique identification number used to track a product in the consumer's home.

Question 8

An example of a lack of conformance would be someone traveling to Europe and buying a Coca-Cola and finding that did not "fizz".

Question 9

Sometimes a company can make a product that is too reliable.An example of this would be a computer that cost a large premium over competition but would last for years.The problem is that technology changes too rapidly so better, cheaper, and faster models will come out and make the expensive long lasting model obsolete.

Question 10

Style is very difficult to assess.Firms do not use style often in as much as it is easy to copy.

Question 11

Timex should not try to build watches that cost in the $10,000's because the market does not expect nor accept a watch with that production quality from Timex.

Question 12

time it takes to decide on whether to purchase them or not.

Question 13

One of the disadvantages of using style as a discriminator is that consumer tastes change over time and what is considered stylish can quickly lose its appeal.

Question 14

Many air carriers, such as United, U.S.Airways, and Delta experienced serious financial problems, even bankruptcy, in part because they have not adequately delivered a positive core product experience to the customer.

Question 15

Despite dominating the film business for 100 years, Eastman Kodak announced it would leave the film business due to a lack of demand for picture taking.

Question 16

China now produces 16% of the world's fresh fruit.One question you face when you buy organic produce from China is whether the fruits and vegetables are really organic since China does not enforce quality control standards like the U.S.does.

Question 17

Competitors still enter the maturity stage of the product life cycle because there is still an opportunity for success of a niche product.An example of this was when Audi entered the SUV market during its maturity stage.

Question 18

If the essential benefit of a product is not met, the other items the marketer creates have little or no meaning to the customer.

Question 19

Cell phone manufacturers have put reliability features into phones that allow a technician access to its functionality and actually do minor software upgrades or repairs during a phone call.

Question 20

Sometimes a product moves through its product life cycle in a matter of months and is replaced with the next product design.

Question 21

Companies translate the essential benefit into physical, tangible elements known as the _________.

A) Augmented product
B) Core product
C) Deviated product
D) Differentiated product
E) Contrasting product

Question 22

An example of an "essential benefit" of a plane ticket is _______.

A) Get the lowest price possible by shopping BOTS
B) Get a person to buy from a particular air line
C) Get a person from one place to another
D) Get a person to think about the food, liquor and baggage handling of the air line
E) Get the person to buy based upon unessential items in the product offering

Question 23

Durable products refer to products with a longer product life and are often more expensive.Durable products can be described as ________.

A) Washers/dryers and televisions
B) Machine presses
C) IT networks and office furniture
D) Ovens
E) All of the above

Question 24

Clothes, furniture, and major appliances are called shopping goods.This category of good implies that ________.

A) Consumers do more research prior to buying
B) Purchased less frequently
C) Cost more and carry a fear of making a wrong decision
D) Have a variety of choices on prices and features
E) All of the above

Question 25

The Apple Newton, the first PDA, is a good example of a product that was _______.

A) Technically inferior to the competition
B) Priced too low to have a good image in the market
C) Technically better than competition but still unsuccessful
D) Had great connectivity to other computers
E) All of the above

Question 26

At Chick-fil-A, the company strives to not just serve food but ________.

A) A complete chicken experience
B) An overall dining experience
C) A quick and complete meal
D) An alternative to beef and Mexican food
E) None of the above

Question 27

While Tide is a product, it includes things like a product size, feature or price.These are called ________.

A) Product items
B) Product tags
C) SKI's
D) Product functions
E) Product controllables

Question 28

Staples are a kind of good that people usually buy _______.

A) Weekly or monthly
B) Once a year but every year
C) When they see a sale and stock up on the item
D) Goods people buy without planning
E) All of the above

Question 29

Products that consumers purchase that are relatively low-cost, purchased frequently and lacking some amount of interest by the customer are called __________.

A) Shopping goods
B) Convenience goods
C) Specialty goods
D) Unsought goods
E) Consenting goods

Question 30

Tangibility refers to __________.

A) The service delivered with the product
B) The ability to create a combination of product and service
C) The physical aspect of a product
D) The value of the product in the market
E) None of the above

Question 31

Every aspect of the product experience is evaluated by the customer and then considered against a ____________.

A) Set of on-line marketers
B) Set of guidelines set by the industry
C) Set of store features and benefits
D) Set of expectations
E) All of the above

Question 32

When product is defined in a marketing context, it is _________.

A) The physical tangible product
B) A bundle of demand and supply issues
C) The total asset balancing between buyer and seller
D) The total product experience
E) All of the above

Question 33

When a company creates a product that extends, enhances and encourages the customer beyond delivering its core, this concept is called _______.

A) Product extension
B) Product deviation
C) Product subordination
D) Product clustering
E) Product enhancement

Question 34

When a product is wrong _________.

A) No amount of marketing communications will make it successful
B) Consumers will still buy it if marketed correctly
C) It is hard to charge a low enough price to earn acceptable profits
D) All members of the company have to work extra hard
E) None of the above

Question 35

The product experience is called the ________.

A) Tangible asset of marketing space
B) Focus of consumer attributes
C) Heart of marketing
D) Soul food of marketing
E) All of the above

Question 36

LG Electronics makes a variety of phones that compete in very competitive industry.The company's overall strategy is to ________.

A) Consider basic cell phone features secondary to the fashion
B) Have a phone in every segment of the industry
C) Have phones that out perform the competition in technology
D) Create phones that are indestructible
E) None of the above

Question 37

Different target markets will view the same product _________.

A) In always the same way
B) In completely different ways
C) In ways that are so similar it does not matter to the marketer
D) In only economic terms
E) None of the above

Question 38

There is a category of goods called unsought goods.These goods are characterized as being the kinds of things that consumers _______.

A) Want to be completely convenient to them
B) Find located everywhere with intense distribution
C) Find irrelevant to their lives
D) Would rather not purchase at all
E) None of the above

Question 39

Today many tangible products have a component that impacts the customer's satisfaction before and after the purchase.This component that compliments the tangible aspects of the product is called __________.

A) Physical aspects
B) Supply chain
C) Monetary characteristics
D) Intangible characteristics
E) Total emergence

Question 40

Specialty goods hold a unique place in the hierarchy of product classifications in that they __________.

A) Focus on price
B) Focus on total value
C) Are sought out by customers who are willing to search to find this particular kind of product
D) Stores located in peculiar places
E) None of the above

Question 41

Product life cycles enable marketing managers to be able to ________.

A) Predict the future movement of the industry
B) Assess historical trends in the industry
C) Assess each product in the industry and determine their future potential at any point in time
D) Look at the current data and determine where we are in the PLC movement
E) All of the above

Question 42

Reparability has taken on new dimensions recently with the advent of ________.

A) Having products that are disposable and not repairable
B) Using modular design to replace entire sections of a broken product with ease
C) Having diagnostics built into the product to help isolate, identify and repair products without the need for costly repairs
D) Having products that are simple to fix but hard to diagnose
E) None of the above

Question 43

More than any other discriminator, style offers the advantage to a company of _______.

A) Being a low cost differentiator
B) Being easy to do consistently over time
C) Being able to reduce quality with greater style
D) Being difficult for competition to copy
E) All of the above

Question 44

Usually marketers focus on _______ with respect to communication strategy

A) Individual products.
B) Product brands
C) Both single product items and product brand at the same time
D) Branding of the most profitable lines currently being offered.
E) None of the above

Question 45

Combining all the products offered by a company is called the ___________.

A) Product combination package
B) Product mix
C) Product profile
D) Product standardization
E) Product function

Question 46

A product line is a group of products linked through usage, customer profile, price points and distribution channels.Within a product line, strategies are developed for ________.

A) One product in the line at a time
B) All the different product lines taken together
C) A single product but also for all products in the line
D) The top two products in the line and all the rest are lumped together in one campaign
E) None of the above

Question 47

The product life cycle (PLC)for a particular product has ________.

A) More than one life cycle-industry and brand life cycles
B) One life cycle for all brands combined
C) All life cycles resemble normal curves
D) An evolutionary phase that defines when to offer a new product
E) None of the above

Question 48

It is not uncommon to see ________ profits in the introductory stage of the product life cycle for an industry.

A) High
B) No (or loses)
C) Average
D) Low
E) None of the above

Question 49

When a company can show that their product's projected lifetime is high under certain operating conditions, they may be able to achieve a _________.

A) Brand image that is linked to conformance
B) Brand image that is one of strength and performance oriented
C) Brand image that is based upon form and able to get a higher price
D) Brand image focused on durability and able to get a price premium
E) Brand image based on performance and able to get a price premium

Question 50

Reliability of a product refers to the products ability to ________.

A) Work a high percentage of the time without failure or stoppage
B) Work perfectly all the time
C) Work in the most hostile environments
D) Work where they are intended to work most of the time but not all the time
E) None of the above

Question 51

Companies must balance the number of items in a product line.Too many items and customers find it difficult to see the differences between the products.Too few products and the company runs the risk of _______.

A) Having inefficiencies in production
B) Having trouble with discounters because they may have the same product as a full price store
C) Having a problem with communication to the market about the products
D) Missing important market opportunities that are not being attacked by the current product offerings.
E) None of the above

Question 52

The speed at which products within a category move through the PLC is ____________.

A) Not consistent
B) Consistent
C) Only varies by a small amount
D) Looks like a normal distribution
E) None of the above

Question 53

Companies should build products to the performance (highest-quality product)level that ___________.

A) Is better than their competitors
B) Their target audience is willing to pay for
C) Exceeds the needs of the target audience
D) Meets the global need for the highest quality
E) None of the above

Question 54

Generally speaking a new product will get ________ level of budget with respect to communication than established products.

A) A lower
B) The same
C) A mid
D) A higher
E) None of the above

Question 55

Dell prices new computer models to minimize the disruption of demand for its existing products.This implies a strategy of ________.

A) Lowering the prices of existing models to maintain separation of price between new and existing models
B) Lowering prices of all models to accommodate for increases in technology
C) Raising all prices together in order to confuse the public to thinking all the technology is at the same level
D) Raising and lowering prices of all models in order to create a mixed effect
E) None of the above

Question 56

When a company uses packaging or changes its size, shape, or color, it is said that the company is using _________ differentiation.

A) Style
B) Form
C) Feature
D) Engineering
E) None of the above

Question 57

When you eat an organic strawberry in January that you bought at Wal-Mart, one of the questions you ask yourself is, ________.

A) Is it really organic due to its source from China?
B) How does Wal-Mart sell organic strawberries so cheaply?
C) What is the definition of organic that Wal-Mart uses?
D) Who is the buyer of Wal-Mart produce?
E) All of the above

Question 58

An example of an industry that brings out items in the spring and watches its growth in the summer and fall and finally into decline by the winter.In other words, the _________ has a PLC that takes one selling season and it is over.

A) Golf industry
B) Men's dress clothes (suits) industry
C) Frozen pizza industry
D) Women's fashion industry
E) All of the above

Question 59

Companies often use features to differentiate themselves from competitors.However, a company must balance the features customers want with __________.

A) What the competition is doing
B) The ability to manufacture the feature in a timely way
C) What they will pay at a given quality level
D) The configurations that make a positive brand look stylish
E) None of the above

Question 60

An important issue for consumers is conformance, which is the product's ability _________.

A) To deliver on features and performance characteristics promised in marketing communications
B) To conform to the standards set by the federal guidelines
C) To deliver value in the form of product quality
D) Get the manufacturing aligned using quality processes
E) All of the above

Question 61

Generally speaking, the most dramatic increase in revenue occurs in the _________ stage of the PLC.

A) Introduction
B) Growth
C) Maturation
D) Saturation
E) Decline

Question 62

As models proliferate and market segmentation becomes more pronounced, companies seek __________ distribution for their products.

A) Limited
B) Selective
C) Broader
D) Maximum
E) None of the above

Question 63

Early adopters and innovators are the primary purchasers in the __________ stage of the product life cycle

A) Growth stage
B) Introductory stage
C) Maturations stage
D) Stage II
E) None of the above

Question 64

Pricing is a difficult issue in the introductory stage of the PLC.Companies can follow two distinctive routes for pricing which can be described as ________.

A) Follow the leader and skimming pricing
B) Market penetration and skimming pricing
C) Cost plus and demand driven pricing
D) Market penetration and price sensitive pricing
E) None of the above

Question 65

Informing and educating the target audience about the product's benefits, characteristics and features is part of the communication strategy in the ___________ stage of the product life cycle.

A) Introductory
B) Growth
C) Maturation
D) Decline
E) All of the above

Question 66

The first-generation of iPod was a/an ___________________.

A) Immediate success
B) Moderate success with less than a million dollars in sales
C) Huge success with millions of dollars in sales
D) Failure as a result of Rio the competitor
E) None of the above

Question 67

One way to stimulate trial in the market for a new product in the consumer goods market is to use ________.

A) Television advertising campaigns
B) Billboard campaigns
C) Coupons and contests campaigns
D) Radio campaigns
E) Magazine campaigns

Question 68

Market followers sometimes have an advantage over market leaders by ______.

A) Identifying missing product characteristics
B) Improving poorly designed features
C) Focusing on bigger target markets
D) All of the above
E) Neither a, b, or c

Question 69

Products at introduction often lack ____________ features found on later models as the market expands during the growth stage.

A) Sophisticated
B) Modified
C) Cost saving
D) Diligent
E) All of the above

Question 70

The essential marketing objective in the introductory stage of the PLC is to build ____________.

A) Trial of the product
B) Public relations for the product
C) Trial followed by loyalty
D) Awareness leading to trial purchase
E) All of the above

Question 71

In the introductory stage of the PLC ___________ stimulate primary demand, or demand for the product category rather than specific brand.

A) Market pioneers
B) Market mavens
C) Fast followers
D) Strong competitors
E) Dominant competitors

Question 72

In the introductory stage of the product life cycle (PLC)companies often use ____________ to reach customers before the product is even introduced to the market.

A) Mass advertising
B) Billboards
C) Direct communications and viral marketing
D) Text messaging
E) All of the above

Question 73

The primary type of adopters that enter the market in the growth stage can be characterized as __________.

A) Early adopters
B) Innovators
C) Majority
D) Early majority
E) All of the above

Question 74

Microsoft followed a distribution strategy for the Xbox video game system described as ________________ in the introductory stage of the PLC and it was very successful.

A) Few outlets but great product availability
B) Many outlets but limited product availability per outlet
C) Many outlets and great product availability per outlet
D) One market at a time introduced with high availability of product per outlet
E) None of the above

Question 75

The first company to introduce a new product and create a new product category is called ____________.

A) The innovator
B) The first in, first out
C) The Indian Chief
D) The Pioneer
E) None of the above

Question 76

The first phase of the maturity stage of the PLC is characterized as having _________.

A) Growth but at a rate lower than the growth stage
B) No growth
C) Loss of sales
D) Growth at an increasing rate in comparison to the growth stage
E) None of the above

Question 77

Products introduced in the growth stage tend to have __________.

A) Fewer features and better design
B) Differentiated function
C) More features and better design
D) Limited design and more features
E) None of the above

Question 78

In the growth stage of the PLC, communication strategy _______.

A) Stays the same as the introductory stage due to building primary demand for the category
B) Shifts to different media and emphasizes direct techniques like sales
C) Shifts to stimulating individual brand demand rather than primary demand for the category
D) Shifts to stimulating primary demand
E) None of the above

Question 79

In the case of on-line buyers for companies like Amazon and eBay, marketers have to make buyers feel _________.

A) Motivated
B) Like they are getting the best price
C) Secure in their purchase
D) Special that they are unique
E) None of the above

Question 80

In the growth stage of the PLC as the number of models expand, the price of the product _________.

A) Moves in two directions, up and down
B) Moves in one direction, down
C) Moves in one direction, up
D) Stays the same due to the dominant competitor controlling the market price of the product
E) None of the above