Question 1

Reducing price is one way to rejuvenate a product.

Accepted Answer

By reducing the price of a product, it may become more appealing to customers who were hesitant to purchase it at the original price. This can lead to increased sales and potentially attract new customers.

Question 2

Trialability is the ease with which a consumer can try or use a new product.

Accepted Answer

Trialability is indeed the ease with which a consumer can try or use a new product. It is one of the factors that can influence the adoption of new products by consumers.

Question 3

Perceived risk usually increases the diffusion rate of new products.

Accepted Answer

Perceived risk creates a barrier to the adoption of new products and usually decreases the diffusion rate.

Question 4

Commodities don't follow the product life cycle.

Accepted Answer

Commodities, like any product, can follow a product life cycle, experiencing stages of introduction, growth, maturity, and decline, although the cycle might look different due to factors like market demand, availability, and technological advancements.

Question 5

Brand meaning depends on the strength and nature of the image of the brand in terms of objective quality and performance.

Accepted Answer

The meaning of a brand is largely determined by the objective quality and performance of the brand, which in turn contributes to the strength and nature of its image. Therefore, the statement is true.

Question 6

Brand name is often a product's most important attribute.

Accepted Answer

Brand name is important as it helps to establish product recognition, differentiation from competitors, and build brand loyalty among consumers.

Question 7

The S-shaped diffusion curve tends to produce a U-shaped life cycle curve.

Accepted Answer

The S-shaped diffusion curve represents the adoption rate of innovations over time, typically resulting in a bell-shaped life cycle curve, not a U-shaped one.

Question 8

The maturity stage of the product life cycle involves heavy promotion and advertising.

Accepted Answer

During the maturity stage, promotion and advertising efforts are typically reduced or maintained at a consistent level, as the focus shifts to differentiating the product, defending market share, and maximizing profit rather than building awareness.

Question 9

Brand identify refers to the feelings and emotions consumers have about your brand.

Accepted Answer

The answer of Brand identify refers to the feelings and...

Question 10

During the introduction stage of the product life cycle, managers should focus on reducing production and marketing costs.

Accepted Answer

During the introduction stage, the focus should be on building brand awareness and establishing a market presence, which often requires investing in marketing and promotional activities. While cost-efficiency is important, reducing production and marketing costs may hinder efforts to create customer demand and adoption for the new product.

Question 11

The introduction stage of a product usually generates high profits.

Accepted Answer

The introduction stage of a product usually incurs high costs and requires significant marketing and research expenses to establish product awareness and gain market share. Therefore, profits are usually low during this stage.

Question 12

Trialability of a new product tends to be lower for inexpensive products than for expensive products.

Accepted Answer

Trialability tends to be higher for inexpensive products because consumers are more willing to try new things when the financial risk is lower. Expensive products often require a greater commitment, making trialability lower.

Question 13

Adding a brand name can sometimes rejuvenate generic products.

Accepted Answer

Adding a well-known and respected brand name to a generic product can increase its perceived value and appeal to consumers. This is known as brand licensing or branding strategy. Famous examples include the Martha Stewart brand lending its name to everything from home goods to wine, and the Michelin tire company licensing their brand for use on restaurant ratings.

Question 14

Most products score high on both differentiation and relevance.

Accepted Answer

It is rare for products to score high on both differentiation and relevance. Usually, a product will focus more on one aspect over the other. For example, a luxury car may score high on differentiation but may not be as relevant to a budget-conscious consumer. Similarly, a generic brand of shampoo may be relevant to a wide range of consumers but may not be differentiated from other similar products.

Question 15

Each product goes through rejuvenation during the decline stage.

Accepted Answer

Not every product goes through rejuvenation during the decline stage; some products may simply be phased out or discontinued without efforts to rejuvenate them.

Question 16

Incremental innovations usually diffuse more quickly than totally new products.

Accepted Answer

Incremental innovations usually build upon existing products and technologies, making them easier to adopt and understand for consumers. As a result, they tend to diffuse more quickly than completely new products that require significant changes in consumer behavior or adoption of new technology.

Question 17

Establishing a strong brand name and reputation typically costs less than ten thousand dollars.

Accepted Answer

Establishing a strong brand name and reputation typically requires significant investment in marketing, advertising, and public relations efforts, and can cost hundreds of thousands or even millions of dollars.

Question 18

The "decline" stage is the last stage of the product life cycle.

Accepted Answer

The decline stage is the last stage in the product life cycle where the product becomes less popular and sales start to decrease.

Question 19

Diffusion of innovation is the rate at which a new product spreads or is adopted across the marketplace.

Accepted Answer

This statement correctly defines diffusion of innovation.

Question 20

The adoption rate of a new product usually is highest during the growth stage of the product life cycle.

Accepted Answer

During the growth stage, the product gains acceptance among early users and early majority, leading to a rapid increase in adoption rate.

Quiz 16: Consumer Behavior and Branding Strategy