Question 1

The Festina dive watch is sold in a package of water to demonstrate that the watch is indeed waterproof. This packaging relates to which of the following functions?

Accepted Answer

A)  attracting buyer attention 
B)  protecting the product 
C)  improving design or function 
D)  better serving customers needs

Question 2

During which stage of the product life cycle do sales and profits increase rapidly?

Accepted Answer

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

Question 3

All of the following are characteristics of the introduction stage of the product life cycle EXCEPT which one?

Accepted Answer

A)  low profits or even a loss 
B)  the appearance on the market of refinements or extensions of the original product 
C)  relatively few competitors 
D)  low consumer awareness and acceptance of the product

Question 4

During which stage in the development of new products is the product introduced in a limited way to determine buyers' reactions?

Accepted Answer

A)  screening 
B)  business analysis 
C)  commercialization 
D)  product development and testing

Question 5

In which order do the stages of the product life cycle occur?

Accepted Answer

A)  introduction, maturity, slowdown, decline 
B)  innovation, distribution, maturity, decline 
C)  introduction, growth, maturity, decline 
D)  introduction, growth, slowdown, decline

Question 6

Arm & Hammer launches a campaign to extend the life of its baking soda products through improved packaging and new uses in products such as toothpaste and cat litter. These new uses of products and other modifications are generally created during which phase of the product life cycle?

Accepted Answer

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

Question 7

Bottles of wine feature the pictures of a rotating cast of shelter dogs from a local animal shelter, and a portion of each sale is donated to no-kill animal shelters. What function of packaging does this demonstrate?

Accepted Answer

A)  improving design or function 
B)  attracting buyer attention 
C)  better serving customer needs 
D)  providing product information

Question 8

Customers who buy a vehicle at XYZ Automotive get free car washes for as long as they own the car. This is characterized as which of the following?

Accepted Answer

A)  a good 
B)  a service 
C)  a good and a service 
D)  neither a good nor a service

Question 9

Amazon is testing delivering packages with drones, and anticipates being able to deliver a package within 30 minutes of a customer placing an order online. This is an example of which benefit of innovation?

Accepted Answer

A)  function/quality 
B)  new experiences 
C)  beating competition 
D)  research and development

Question 10

Which of the following is NOT a function of packaging?

Accepted Answer

A)  to provide product information 
B)  to attract buyer attention 
C)  to display discounted price 
D)  to improve design or function

Question 11

Heinz ketchup comes in a variety of different sizes, including a single-serve "dip and squeeze" size that allows consumers to peel back the lid to dip items in or tear off a small piece to squeeze out the ketchup. This type of packaging functions to accomplish which of the following?

Accepted Answer

A)  attract buyer attention 
B)  improve design or function 
C)  better serve customer needs 
D)  provide product information

Question 12

A food manufacturer introduces a new yogurt blend in single-serving cups that do not need to be refrigerated, so parents can pack yogurt in their kids' lunch boxes or take a container of yogurt to work without having to worry about keeping it refrigerated. Which function of packaging does this best represent?

Accepted Answer

A)  protecting the product 
B)  attracting buyer attention 
C)  better serving customer needs 
D)  providing instructions for use

Question 13

The local delicatessen caters lunch for a company's staff meeting. How would this luncheon be classified?

Accepted Answer

A)  a good 
B)  a service 
C)  a good and a service 
D)  neither a good nor a service

Question 14

A new restaurant uses robots as servers. There are some issues still to be worked out before the restaurant can rely on the robots completely but the robots are a big hit, especially with kids. Which of the following is the benefit of innovation to the restaurant?

Accepted Answer

A)  improves function or quality 
B)  enables a lower cost 
C)  offers customers a new experience 
D)  eliminates human error

Question 15

As 3D printers enter the growth stage of the product life cycle, which of the following marketing strategies should producers of 3D printers adopt?

Accepted Answer

A)  offer new features and styles and target competitors in advertisements 
B)  promote heavily and target early adopters 
C)  build brand by advertising, dropping prices, and increasing distribution 
D)  reduce marketing and increase prices to increase profits

Question 16

Although Procter & Gamble produces multiple brands of laundry detergent, each brand is marketed separately. For example, Tide advertisements tend to focus on how well the brand cleans clothes, whereas Gain advertisements focus on the scent of the brand. This is an example of which benefit of product lines?

Accepted Answer

A)  clarity for consumers 
B)  simplifying branding 
C)  more effective management 
D)  difficult competitors

Question 17

What is the term used to describe all of the activities involved in developing and providing a container for a product?

Accepted Answer

A)  packaging 
B)  advertising 
C)  labelling 
D)  containerization

Question 18

Borden Inc. offers pasta, snacks, grocery, and dairy items as well as films, adhesives, and other non-food products. What do these products represent for the Borden company?

Accepted Answer

A)  product mix 
B)  product line 
C)  product differentiation 
D)  product life cycle

Question 19

Sales and profits grow slowly during which stage of the product life cycle?

Accepted Answer

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

Question 20

Companies often roll out new products on a small scale to determine how well they sell and are received by the market. Which phase of product development does this represent?

Accepted Answer

A)  idea generation 
B)  product development and testing 
C)  determining the marketing mix 
D)  product analysis

Exam 13: Developing and Managing Products