Deck 8: Manage the Product

Question 1

Which of the following is the overall ability of a product to satisfy customers' expectations?

A)value proposition
B)brand equity
C)product precision
D)brand meaning
E)product quality

Answer 1

E

Question 2

Which of the following is a management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement?

A)cannibalization
B)total quality management (TQM)
C)Six Sigma
D)ISO 8000
E)ISO 14000

Answer 2

B

Question 3

Which of the following was developed as a broad set of guidelines that establishes voluntary standards for quality management?

A)Six Sigma
B)ISO 8000
C)ISO 9000
D)TQM
E)cannibalization

Answer 3

C

Question 4

Heinz stopped marketing its "Bite Me" brand of frozen pizza snacks due to disappointing sales.This is an example of a ________.

A)filling-out strategy
B)downward line stretch
C)product line contraction
D)value stretch
E)cannibalization strategy

Question 5

Whenever a product line or a product family is extended, there is a risk of ________, which occurs when sales of an existing brand decline as the firm's current customers switch to the new product.

A)product line contraction
B)disintermediation
C)cannibalization
D)brand inequity
E)a downward line stretch

Question 6

A ________ is a firm's total product offering designed to satisfy a group of target customers.

A)brand
B)product line
C)product mix
D)positioning strategy
E)marketing mix

Question 7

A firm that plans to use a(n)________ will add higher priced, higher quality items to its product line.

A)upward line stretch
B)limited-line strategy
C)undifferentiated strategy
D)marketing mix contraction
E)cannibalization strategy

Question 8

Which of the following is an accurate statement about product management?

A)It is also known as quality management.
B)It is rarely team-based.
C)It is a continual process.
D)It includes responsibility for the marketing mix tools of product and promotion, but not of price and place.
E)It involves more strategic planning than tactical planning.

Question 9

An alternative to a two-way stretch is ________, adding more items within the present range of the line.

A)cobranding
B)family branding
C)a mixing strategy
D)a filling-out strategy
E)a contracting strategy

Question 10

Procter & Gamble makes a variety of different cleaners, detergents, and polishes to appeal to a variety of target markets and boost sales potential.Procter & Gamble uses a(n)________.

A)full line strategy
B)undifferentiated strategy
C)limited-line strategy
D)contracting strategy
E)marketing mix orientation

Question 11

When marketers develop ________ strategies, they make decisions about product benefits, features, styling, branding, labeling, and packaging.

A)communication
B)product
C)equity
D)total quality management (TQM)
E)Six Sigma

Question 12

Which of the following is NOT necessary for a product-related objective to be effective?

A)It should focus on short-term implications.
B)It should be measurable.
C)It should be feasible.
D)It should indicate a specific time frame.
E)It should be clear.

Question 13

It is most accurate to say that total quality management firms believe that it is the responsibility of ________ employees to serve the needs of customers.

A)marketing
B)research and development
C)human resource
D)management
E)all

Question 14

A firm's ________ is determined by the number of separate items within the same category.

A)brand equity
B)product mix width
C)product line length
D)product quality
E)product mix

Question 15

________ involves a five-step process called DMAIC (define, measure, analyze, improve, and control) designed to improve quality.

A)Total quality management (TQM)
B)Cannibalization
C)ISO 8000
D)ISO 14000
E)Six Sigma

Question 16

Which of the following is NOT an option for extending a product line?

A)cannibalization
B)downward line stretch
C)upward line stretch
D)two-way stretch
E)filling-out strategy

Question 17

When Kraft Canada introduces "100 calorie Thinsations" versions of its popular Oreo and Chips Ahoy,it followed___________ to expand its product line?

A)a product mix strategy
B)a filling-out strategy
C)societal marketing
D)internal marketing
E)line mixing

Question 18

Which of the following helps an organization focus on minimizing any harmful effects it may have on the environment?

A)Six Sigma
B)ISO 8000
C)ISO 14000
D)total quality management (TQM)
E)cannibalization

Question 19

When a company begins marketing a new product line in addition to its existing product lines, it has done which of the following?

A)expanded the length of the product line
B)expanded the width of the product mix
C)expanded the depth of the product mix
D)expanded the width of the marketing mix
E)used a filling-out strategy

Question 20

A firm's ________ is its entire range of products.

A)product line
B)product mix
C)marketing mix
D)promotional mix
E)positioning strategy

Question 21

The sales peak typically occurs during which stage of the product life cycle?

A)introduction
B)youth
C)development
D)maturity
E)leveling

Question 22

Which of the following is designed to help a firm almost entirely reduce product and service defects?

A)ISO 14000
B)ISO 18000
C)Six Sigma
D)TQM
E)PLC

Question 23

A good brand name should do all of the following EXCEPT fit ________.

A)the target market
B)the competition
C)the customer's culture
D)the product's benefits
E)legal requirements

Question 24

The product life cycle concept can be applied by marketers as a useful framework for describing how ________.

A)to forecast product performance
B)to develop marketing strategies
C)a market responds to a product over time
D)product ideas are developed
E)a brand gains a dominant position in the market

Question 25

A(n)________ is a name, term, symbol, or other unique element of a product that identifies one firm's products and sets it apart from the competition.

A)patent
B)brand
C)license
D)position
E)value proposition

Question 26

A manufacturer with a product in the decline stage of the product life cycle would most likely decide to ________ if there is reason to believe that there will be a residual demand for the product.

A)maintain the product without change
B)let existing stocks of the product run out
C)drop the product immediately
D)search for replacements
E)increase sales promotion efforts

Question 27

In which stage of the product life cycle would a firm most likely use price reductions and reminder advertising to encourage customers to replace worn-out items?

A)growth
B)youth
C)maturity
D)adoption
E)leveling

Question 28

In which stage of the product life cycle will promotional expenditures be especially high in an attempt to create consumer awareness?

A)product development
B)introduction
C)decline
D)maturity
E)youth

Question 29

A manufacturer of a product in the decline stage of its product life cycle would be LEAST likely to do which of the following?

A)continue producing the product for loyal users
B)reduce the advertising budget for the product
C)phase out production of the product
D)advertise heavily without changing the product or its target market
E)withdraw most marketing support for the product and rely on e-commerce

Question 30

Which of the following is NOT a desirable quality for a brand name?

A)It should suggest something about the product's benefits.
B)It should be easy to pronounce and remember.
C)It should almost always be a long word to get attention.
D)It needs to fit legal requirements.
E)It should make sense in the customer's culture.

Question 31

________ is the product life cycle period when sales fall off and profits drop.

A)Maturity
B)Decline
C)Development
D)Divestment
E)Leveling

Question 32

A ________ is the legal term for a brand name, brand mark, or trade character.

A)trademark
B)patent
C)copyright
D)logo
E)corporate mark

Question 33

The triangular red Nabisco logo and the Jolly Green Giant are both examples of ________.

A)logos
B)brand marks
C)trade characters
D)brands
E)cobrands

Question 34

Which stage in the product life cycle is characterized by rapidly increasing sales and increasing profits?

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

Question 35

Which stage in the product life cycle normally lasts longest?

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

Question 36

The marketing goal for a product in the growth stage of its product life cycle is to ________.

A)stabilize profit margins
B)encourage brand loyalty
C)reach peak sales levels
D)compete on the basis of price
E)maintain market share

Question 37

All of the following are stages in the product life cycle EXCEPT which one?

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

Question 38

According to your text, which of the following is probably the most used and most recognized form of branding?

A)brand name
B)trade character
C)patent
D)logo
E)copyright

Question 39

An American company wanting to be competitive in the environmentally sensitive European market would be most likely to seek which type of certification?

A)ISO 14000
B)DMAIC
C)total quality management (TQM)
D)Six Sigma
E)PLC

Question 40

The final stage in the product life cycle is ________.

A)maturity
B)decline
C)phasing out
D)harvesting
E)divestment

Question 41

Which of the following types of brand equity metrics would most likely be based on information gathered through consumer surveys?

A)revenue premium metric
B)financial market metric
C)brand venture metric
D)equity-identity metric
E)customer mind-set metric

Question 42

The concept of ________ encompasses the beliefs and associations that a consumer has about a brand.

A)brand meaning
B)brand storytelling
C)brand equity
D)product quality
E)total quality

Question 43

________ is an agreement between two brands to work together in marketing a new product.

A)Manufacturer branding
B)Cobranding
C)Franchising
D)Family branding
E)Aggregated branding

Question 44

Which of the following is true about generic brands?

A)They are more popular today than ever before.
B)They were first developed during the last period of economic prosperity in the United States.
C)They were designed to appeal to the price-conscious consumer.
D)They attract approximately 25 percent of all dollars spent in U.S.supermarkets.
E)They are manufacturer brands.

Question 45

Another name for a store brand is a ________.

A)national brand
B)private-label brand
C)generic brand
D)manufacturer brand
E)licensed brand

Question 46

Which of the following statements about brand equity is NOT true?

A)Brand equity means a brand has customer loyalty.
B)Brand equity refers to the brand's value to an organization.
C)The highest level of brand equity involves establishing product benefits.
D)Brand equity gives a firm the power to capture and hold onto a larger share of the market and to sell at prices with higher profit margins.
E)Brand equity can provide a competitive advantage.

Question 47

Breyers and Reese's have worked together to create Breyers Ice Cream with Reese's Peanut Butter Cups.This is an example of ________.

A)family branding
B)ingredient branding
C)private-label branding
D)individual branding
E)generic branding

Question 48

What is the most logical explanation for why retailers carry private-label brands?

A)to eliminate the need for competitive advantages
B)to encourage transaction marketing
C)to support trade promotions
D)to earn more profit
E)to prevent sales cannibalization

Question 49

In ________, branded materials become component parts of other branded products.

A)family branding
B)aggregated branding
C)umbrella branding
D)manufacturer branding
E)ingredient branding

Question 50

In a competition between ________ and ________ brands, retailers have the advantages of controlling what products will be stocked, where products will be stocked, what prices will be charged, and which products will be featured in local print promotions.

A)national; manufacturer
B)national; private-label
C)store; private-label
D)national; licensed
E)manufacturer; licensed

Question 51

Toronto-based Loblaw supermarket chain developed President's Choice brand products to sell exclusively in its stores.President's Choice is an example of a ________.

A)manufacturer brand
B)national brand
C)cobrand
D)generic brand
E)private-label brand

Question 52

________ involves designing and producing the container or cover for a product.

A)Labeling
B)Licensing
C)Packaging
D)Retailing
E)Service

Question 53

Which approach to measuring brand equity focuses on the ability of a brand to charge a higher price than the price charged by an unbranded equivalent?

A)revenue premium metric
B)financial market metric
C)product-market outcomes metric
D)equity-identity metric
E)customer mind-set metric

Question 54

Which of the following most accurately describes a brand extension?

A)a new product that combines the power of two or more brand names
B)a new product sold under an established brand name
C)a new product added to the lower end of a product mix
D)a new product added to the higher end of a product mix
E)a new product line added to a product mix

Question 55

Product packaging can do all of the following EXCEPT which one?

A)protect the product
B)provide service
C)communicate brand personality
D)make the product easier to store
E)create a competitive advantage

Question 56

Which of the following is NOT true of the Universal Product Code (UPC)?

A)It is printed on the side or bottom of all non-perishable items sold in grocery stores and other mass-merchandising outlets.
B)It supplies information about the type of item.
C)It identifies the manufacturer of the product.
D)It is read by an electronic scanner.
E)Retailers use information from UPC bars to track sales and control inventory.

Question 57

Procter & Gamble makes Tide, Cheer, Ivory Snow, and Bold detergents as well as PertPlus, Rejoice, and Vidal Sassoon shampoos.Through its use of a separate and unique brand name for each of these products, Procter & Gamble is using a(n)________ strategy.

A)umbrella brand
B)family brand
C)individual brand
D)private-label brand
E)cobranding

Question 58

Oreos and Coke are both examples of ________.

A)store brands
B)cobrands
C)private-label brands
D)national brands
E)ingredient brands

Question 59

A family brand strategy is also called a(n)________ strategy.

A)cobranding
B)licensing
C)umbrella brand
D)store brand
E)national brand

Question 60

Which of the following is true of the Universal Product Code (UPC)?

A)It is a five-digit number used to control inventory.
B)It is a package communication element.
C)It is legally required for products with dual distribution channels.
D)It is used only by companies that have more than one retail outlet.
E)It prevents product cannibalization.

Question 61

Creative people with entrepreneurial skills are the best match for which of the following?

A)sales management
B)a role on a venture team
C)market management
D)product management
E)information management

Question 62

In small firms, the marketing function is usually handled by a ________ who is responsible for new-product planning, advertising, working with the company's sales representatives, and marketing research.

A)single marketing manager
B)brand manager
C)product category manager
D)market manager
E)venture team manager

Question 63

John Deere, Inc.introduced a lower-priced line of lawn-tractors called Senber while still selling its more expensive tractors under the John Deere, Inc.brand.This is an example of ________.

A)a filling-out strategy
B)a downward line stretch
C)an upward line stretch
D)a two-way stretch
E)a contraction strategy

Question 64

When large companies undertake new-product development, they typically enlist specialists in different areas to create a ________ within the organization.

A)focus group
B)product category team
C)sales team
D)venture team
E)cross-functional brand team

Question 65

A winery introduced a brand wine that it priced twice as high as its other wine.This is an example of product extension by a(n)________.

A)downward line stretch
B)product mix
C)cannibalization strategy
D)upward line stretch
E)prestige stretch

Question 66

Which of the following is NOT required by the Food and Drug Regulatins on the labels of most foods sold in Canada?

A)amount of saturated fat in the product
B)sources of all ingredients in the product
C)amount of cholesterol in the product
D)number of calories in the product
E)amount of protein in the product

Question 67

Venture teams focus exclusively on which of the following?

A)products in the maturity stage of the product life cycle
B)products in the growth stage of the product life cycle
C)relationships with large, important customers
D)the development of a new product
E)the promotional plan for a new product

Question 68

Mercedes was able to successfully introduce its C-Class car at $30,000 without injuring its ability to sell other Mercedes cars for $100,000 or more.Mercedes implemented a(n)________.

A)downward line stretch
B)product line contraction
C)cannibalization strategy
D)upward line stretch
E)value stretch

Question 69

In addition to regular Alka-Seltzer, there is an Alka Seltzer product for each of the followingcold sufferers, people with upset stomachs, people who can't sleep, people with allergies, and people who have a severe headache.The manufacturer of Alka- Seltzer is using a(n) ________ to reach as many different target markets as possible.

A)full line strategy
B)downward line stretch
C)cannibalization strategy
D)undifferentiated strategy
E)upward line stretch

Question 70

A firm's skunk works department would most likely be located ________.

A)in a central part of the firm's main office building
B)in the most productive section of the company
C)away from the firm's traditional offices
D)at the headquarters of the firm's largest customer
E)as close as possible to the firm's communication specialists

Question 71

Which of the following is true about a brand manager and a product category manager?

A)They are two titles for the same job.
B)They have the same functional responsibilities.
C)They probably work for large firms.
D)They are mainly responsible for financial decisions.
E)They do not consider new product lines.

Question 72

Which of the following is a disadvantage of the brand management system?

A)a tendency to avoid price differentiation
B)too much focus on the supplementary and complementary roles of all product lines
C)a tendency to overemphasize short-term gains in sales
D)an interdependent structure that can undermine personal responsibility
E)too much focus on establishing brand equity

Question 73

Which of the following is most useful when a firm offers a variety of products that serve the needs of a wide range of customers?

A)the single marketing manager structure
B)the independent brand manager structure
C)the sales manager structure
D)the product category manager structure
E)the market manager structure

Question 74

Firms interested in using socially responsible packaging that is less harmful to the environment are developing ________.

A)aesthetic packaging
B)green packaging
C)ingredient packaging
D)venture packaging
E)Kansei engineering

Question 75

Which of the following accurately describes a product category manager?

A)A product category manager works for a company that relies solely on individual branding.
B)A product category manager is responsible for moving a company's product mix from generic to branded.
C)A product category manager coordinates the development of brand equity for a specific brand name.
D)A product category manager is also called a sales manager.
E)A product category manager coordinates the mix of product lines within a general product category and is responsible for the addition of new product lines.

Question 76

________ are responsible for the positioning of a brand and developing its brand equity.They are likely to team with sales, finance, and logistics staff members as part of customer business teams who work with major retail accounts.

A)Product category managers
B)Brand managers
C)Venture team managers
D)Market managers
E)Sales managers

Question 77

The term skunk works is associated with which of the following?

A)total quality management (TQM)
B)Six Sigma
C)product category teams
D)cross-functional teams
E)venture teams

Question 78

Which of the following controls package communications and labeling in Canada?

A)the Food and Drug Administration (FDA)
B)The Consumer Packaging and Labeling Act
C)the Nutrition Facts Panel
D)the Federal Fair Packaging and Labeling Act
E)the Consumer Bill of Rights

Question 79

Active Beverages targets the same people who watch the Gravity Games and enjoy skateboarding, in-line skating, mountain biking, and other extreme sports.It makes high-energy drinks for this target market.It does not attempt to make any drinks that are not targeted to this market.Active uses a(n) ________.

A)undifferentiated marketing strategy
B)filling-out strategy
C)cannibalization strategy
D)limited-line strategy
E)brand extension strategy

Question 80

Within the market manager structure, managers focus on ________.

A)specific customer groups rather than specific products
B)specific products rather than specific customer groups
C)one or two specific brands
D)all company brands and all company customers
E)new product development and marketing