Deck 11: Managing Successful Products, Services, and Brands

Question 1

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

Answer 1

B

Question 2

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

Answer 2

C

Question 3

Gatorade Thirst Quencher was concocted in 1965, but more recently its marketers introduced Gatorade Zero, a sugar-free drink, in 2018. This introduction is an example of a

A) brand extension.
B) co-branding.
C) primary demand.
D) product line extension.
E) product class.

Answer 3

D

Question 4

Figure 11-1

-Figure 11-1 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 5

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

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

Question 6

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 7

The product life cycle is

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 8

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

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

Question 9

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 10

Figure 11-1

-Figure 11-1 above represents the stages of the product life cycle. What does section of the graph labeled C represent?

A) consolidation
B) maturity
C) growth
D) stabilization
E) decline

Question 11

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 12

The launch by Gatorade of Gatorade chews, bars, powders, shakes, and yogurt is evidence of

A) dynamic development.
B) discontinuous development.
C) product development.
D) symbiotic development.
E) simultaneous development.

Question 13

Figure 11-1

-Figure 11-1 above represents the stages of the product life cycle. What does the section of the graph labeled D represent?

A) retrenching
B) maturity
C) growth
D) failure
E) decline

Question 14

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

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

Question 15

Figure 11-1

-Figure 11-1 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 16

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 17

Figure 11-1

-Figure 11-1 above represents the stages of the product life cycle. What does the section of the graph labeled B represent?

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

Question 18

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.

Question 19

Gatorade Thirst Quencher displays the letter G front and center along with the brand's iconic bolt. This is an example of ________ benefits of its packaging.

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

Question 20

Figure 11-1

-Figure 11-1 above represents the stages of the product life cycle. What does the section of the graph labeled A represent?

A) introduction
B) launch
C) growth
D) inception
E) decline

Question 21

As more competitors launch their own products in a product class and the product progresses along its life cycle, company attention is focused on creating __________ demand, rather than just demand for the product class.

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

Question 22

Cotton Incorporated is funded by cotton growers in the United States. It developed the "Cotton: The Fabric of Our Lives" advertising campaign as part of its mission "to ensure that cotton remains the first choice among consumers in apparel and home products." Because Cotton Incorporated promotes all cotton producers, it is stimulating ________ demand.

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

Question 23

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

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

Question 24

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) stressing differentiation
B) stimulating trial
C) fostering brand loyalty
D) gaining wide distribution
E) targeting a niche

Question 25

American Ninja Warriorbegan airing in 2012 on NBC during the summer season when TV ratings are normally low and network TV viewing options consisted primarily of reruns. The marketing goals for the first season on that network included making television viewers aware of the program's existence and generating enough excitement about the show so that millions of viewers would watch the athletic competition. At the airing of the first episode that year, American Ninja Warrior was in what stage of its product life cycle?

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

Question 26

3M is a master of the ________ pricing strategy, which uses a high initial price for a new product.

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

Question 27

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 28

Primary demand is a desire for the ________ rather than for a ________; it is often the focus of marketing when there are few competitors with the same product.

A) product class; specific brand
B) problem solution; product category
C) brand name; product category
D) novelty; problem solution
E) product concept; tangible product

Question 29

During the introduction stage of the product life cycle, the place element of the marketing mix is focused on

A) increasing inventory levels at warehouses and distribution centers to meet potential demand.
B) gaining distribution, even though some channel partners will be reluctant to carry the 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 30

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) acceleration

Question 31

The preference for a specific brand is called ________ demand.

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

Question 32

Promotional expenditures at the introduction stage of the product life cycle, when few if any competitors exist, are best spent on

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

Question 33

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 34

Large marketing 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 35

Northland Juices, a division of New York-based Apple & Eve, competes with Ocean Spray in the cranberry juice category. To be successful, Northland must create ________ demand so it will be chosen over competitors.

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

Question 36

All of the following are true about a skimming pricing strategy when used during the introduction stage of the product life cycle except which?

A) It capitalizes on the price insensitivity of early buyers.
B) It typically results in high profit margins.
C) It encourages competitive entrants into the market.
D) It helps recover the R&D costs of the new offering.
E) It helps build unit volume.

Question 37

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

A) skimming pricing and penetration pricing.
B) price lining and bundle pricing.
C) markdown pricing and experience curve pricing.
D) skimming pricing and bundle pricing.
E) penetration pricing and experience curve pricing.

Question 38

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 39

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

A) a product sampling.
B) a sample buy.
C) a trial.
D) an assessment.
E) an examination period.

Question 40

The GPS SmartSole is a discreet wearable insole that fits in the shoe and provides GPS tracking of the wearer. This product is being marketed as an inexpensive solution for caregivers whose charges are prone to wandering, like those with Alzheimer's disease or autism. When the insoles were first made available to consumers, what was the marketing objective for the company at that early stage of the product life cycle?

A) stress differentiation from other saving products
B) maintain brand loyalty
C) allow users to spend time doing other things
D) create awareness and stimulate trial
E) target a whole new group of consumers

Question 41

The Tesla Motors Model S, an all-electric-powered automobile, is in which stage of its product life cycle?

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

Question 42

Xunrui Communications is an upstart maker of inexpensive smartphones for the Chinese market. Xunrui purchases the components and assembles the phones in Shenzhen, located in southern China. These smartphones retail for about $65, significantly less than the $250 to $800 for smartphones marketed by Apple or Samsung, the top providers. Xunrui Communications most likely is using which pricing strategy in this example?

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

Question 43

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

A) frequent
B) recurring
C) customary
D) habitual
E) repeat

Question 44

During the ________ stage of the product life cycle, product proliferation occurs as competitors attempt to differentiate their company's brand from others.

A) introduction
B) growth
C) maturity
D) stability
E) development

Question 45

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

A) Advertising emphasis switches to primary demand.
B) The proportion of repeat purchasers to initial purchasers grows.
C) The number of distribution outlets shrinks due to growing inefficiencies.
D) Profit margins increase as sales increase.
E) Product features remain consistent to maximize profits.

Question 46

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 47

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

A) repeat
B) routine
C) cyclical
D) established
E) habitual

Question 48

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 49

The appearance of competitors often signals the beginning of the ________ stage of the product life cycle.

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

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

LED (light-emitting diode) lightbulbs, such as the Cree LED bulb, have been available for only a few years in low lighting levels (lumens). They are designed to replace incandescent and compact fluorescent lightbulbs, in part because of a federal law that phases out incandescent lightbulbs in favor of more energy-efficient ones. LED bulbs are more expensive but 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 52

Apple launched its iPad in 2010 and it, along with its companions iPad Pro and iPad mini, have become the world's best-selling 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, Amazon Fire, and Lenovo Tab, all vying for market share. In which stage of the product life cycle are the iPad and other tablets?

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

Question 53

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 54

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 five 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 55

Electric automobiles like the Chevrolet Spark made by General Motors are in the introductory stage of the product life cycle. By comparison, 3D printers such as the LulzBot Mini are in the ________ of the product life cycle.

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

Question 56

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

A) Advertising emphasis switches to primary demand.
B) The proportion of initial purchasers to repeat purchasers grows.
C) New or modified product features are added.
D) Profit margins increase as sales increase.
E) There are a limited number of retail outlets for greater quality control.

Question 57

Sony sells a 75" XBR-X940D television with 4K resolution, HDR support, Android TV interface with a multitude of apps, and a premium direct LED lighting system. This Sony TV is in which stage of its product life cycle?

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

Question 58

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

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

Question 59

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 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, overall industry profits often are negative.

Question 60

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 61

Your product has been suffering from steadily eroding sales. 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 marketing costs.
C) Stimulate primary demand.
D) Stimulate selective demand.
E) Rebrand the product.

Question 62

Apple introduced the iPhone and iPad with multitouch screens, as well as the Magic Trackpad, also a multitouch device. These devices require consumers to use gestures (touch, swipe, tap, etc.) to perform various functions. This could make the mouse, a device Apple invented in 1977 for its Apple II, obsolete. With the emergence of multitouch technologies, the mouse most likely is now in the ________ stage of its product life cycle.

A) deletion
B) cancellation
C) decline
D) maturity
E) harvesting

Question 63

Desktop PCs are in which stage of their product life cycle according to the text?

A) accelerated downturn
B) cancellation
C) decline
D) maturity
E) devaluation

Question 64

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

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

Question 65

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

A) pocket video cameras
B) driverless vehicles
C) 3D HDTVs
D) carbonated soft drinks
E) fitness trackers

Question 66

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 67

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 68

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

A) Sales drop.
B) Flanking product lines are added.
C) The product becomes less vulnerable to changes in the marketing environment.
D) Promotional support is increased.
E) Competition becomes intense as more competitors enter the market.

Question 69

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

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

Question 70

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

A) led to a significant number of improvements in fax machine technology 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 spam.
D) only a moderate impact since the two technologies do not directly compete with each other.
E) caused most fax machine manufacturers to incorporate new Internet technology to send, receive, and print e-mails through a wireless connection to a personal computer.

Question 71

Sales exhibit a downward trend throughout which stage of the product life cycle?

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

Question 72

At the maturity stage of the product life cycle, marketing emphasis

A) is directed toward generating more consumer awareness.
B) switches to finding more channel intermediaries to carry the product.
C) focuses on stimulating primary demand for the product.
D) aims to hold market share through further product differentiation and finding new buyers and uses.
E) is redirected, with salespeople allocating less time to selling the product.

Question 73

In the late 1950s and 1960s, television Westerns were extremely popular and included Gunsmoke, Bonanza, Wagon Train, and The Big Valley. When ratings declined as viewers' tastes changed, production of them waned. The television Western was a product category that had entered the ________ stage of its product life cycle.

A) deletion
B) cancellation
C) decline
D) maturity
E) harvesting

Question 74

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) deceleration

Question 75

At what stage of the product life cycle does it first become true that most consumers who would buy a product are either repeat purchasers of the item or have tried and abandoned it?

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

Question 76

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

Question 77

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

A) Somewhat paradoxically, in the decline stage, sales decline even though profits increase.
B) A product always enters the decline stage as the result of a major product flaw or marketing misstep.
C) A major reason that a firm's product enters the decline stage is as a result of changes in the environment.
D) The only real step that can be taken to avoid the decline stage and ultimately extinction is to increase marketing expenditures as soon as the product enters its maturity stage.
E) Service industries are exempt from the decline stage because of their intangible nature.

Question 78

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 79

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

A) analog TVs
B) smartphones
C) 3D printers
D) health insurance
E) tablet devices

Question 80

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 slower 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.