Question 1

At which stage in the product life cycle is a product experiencing periods of rising sales and profits?

Accepted Answer

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

Question 2

Which of the following are used to encourage consumers to purchase higher-priced items and are commonly used in the car and electronics industries?

Accepted Answer

A) rebates 
B) coupons 
C) premiums 
D) samples

Question 3

What are the stages of the new product development process?

Accepted Answer

A) idea generation, idea screening, market research, development, testing, and observation research 
B) idea generation, idea screening, analysis, development, testing, and commercialization 
C) idea generation, idea screening, analysis, development, testing, and promotional planning 
D) idea generation, idea screening, market research, focus groups, intercept surveys, and observation research

Question 4

To create a special cachet for their brands,BMW,Chanel No.5,Amazon,and Volkswagen have all successfully used which of the following?

Accepted Answer

A) minimovies 
B) highly personalized direct mail 
C) advergaming 
D) humorous advertisements

Question 5

Which of the following is the most accurate statement about trends affecting promotion?

Accepted Answer

A) Changes in technology have made it important for firms to focus their promotional efforts on passive forms of entertainment. 
B) Changes in technology are creating both major threats and major new opportunities for those creating promotional messages. 
C) Promotion is likely to become much less important in the future. 
D) Promotional strategies that worked well in the past are likely to be successful in the future.

Question 6

Define "product layers." Give examples for each layer.

Accepted Answer

The answer of Define "product layers." Give examples for each...

Question 7

Marketers in a competitive environment work to extend the profitable period of a product's life cycle by doing which of the following?

Accepted Answer

A) slowing down the rate of diffusion 
B) emphasizing discontinuous innovation 
C) temporarily removing the product from the market, then reintroducing it at a later date 
D) finding new uses for the product and changing the product

Question 8

If you were choosing between broadcast TV and cable TV as an advertising media for your product or service,what would you see as the major strengths for each option? What would be their weaknesses?

Accepted Answer

The answer of If you were choosing between broadcast TV...

Question 9

The Nike brand is quite elastic.We see the Nike Swoosh on athletic shoes,as well as on an assortment of athletic apparel for almost every sport.Lately,the company has begun branching out into several entirely new product categories,such as MP3 players.This indicates that Nike has decided to pursue a strategy of which of the following?

Accepted Answer

A) line extension 
B) cobranding 
C) brand equity 
D) brand extension

Question 10

The idea behind integrated marketing communication is to do which of the following?

Accepted Answer

A) hit each potential customer with a highly personalized "package" of advertising messages 
B) channel every customer to the sales department 
C) make sure every advertising medium is used to the fullest possible extent 
D) create a unified message across multiple channels of communication

Question 11

Which term refers to the fact that many customers who buy products offering rebates never go to the trouble of redeeming the rebates?

Accepted Answer

A) cognitive dissonance 
B) breakage 
C) float 
D) slippage

Question 12

Which of the following occurs when established brands from different companies join forces in an effort to market the same product?

Accepted Answer

A) diffusion 
B) cannibalization 
C) cobranding 
D) convenience products

Question 13

The typical consumer receives approximately how many advertising messages a day?

Accepted Answer

A) 30 000 
B) 3000 
C) 2700 
D) 27 000

Question 14

A product can increase its sales at the expense of competitors only once it enters which stage of the product life cycle?

Accepted Answer

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

Question 15

In which phase of the product development process are ideas eliminated that do not meet the company's mission or that are too expensive to develop?

Accepted Answer

A) idea generation 
B) idea screening 
C) analysis 
D) development

Question 16

Which of the following integrates advertising of branded products into interactive games?

Accepted Answer

A) advergaming 
B) adactive promotion 
C) e-vertising 
D) intertising

Question 17

What are sponsorships,and how are they used as a promotional tool? Give examples of some sponsorships you have seen.What impact has it had on your impression of the company and/or its products?

Accepted Answer

The answer of What are sponsorships,and how are they used...

Question 18

Compare and contrast coupons and rebates in terms of their overall goals,when each type of consumer promotional tool is used,and for what type of product.Coupons on the whole are a riskier strategy for marketers than rebates are.Explain why this is the case.

Accepted Answer

The answer of Compare and contrast coupons and rebates in...

Question 19

In the effort to design innovative new products,several leading-edge companies-including Electronic Arts,GE,and BMW-have begun which of the following?

Accepted Answer

A) using sophisticated laboratory analysis and expert computer systems to make the development process more scientifically rigorous 
B) outsourcing their design work to companies that specialize in this type of work 
C) allowing customers to participate directly in the product development process 
D) devoting a greater share of their internal resources to their marketing departments

Question 20

Which of the following represents a key difference between shopping and specialty products?

Accepted Answer

A) With specialty products, consumers will go out of their way to purchase the "right" brand and will rarely accept a substitute; with shopping goods, consumers will spend shopping time searching for the brand that offers the best value. 
B) Shopping products are expensive but are bought very frequently, so it is worth the consumer's efforts to develop a close relationship with a provider of these goods. Specialty products are less expensive and bought only relatively rarely, so customers put less effort into shopping for them. 
C) Branding is not important in a specialty product, but it is very important in a shopping product. 
D) Shopping products are pure goods, while specialty products typically include elements of both goods and services. This enhances the perception that they offer a better deal than regular shopping goods.

Exam 11: Part 2: Product and Promotion: Creating and Communicating Value