Question 1

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

Accepted Answer

Upward line stretch is the act of launching a higher-priced product in an existing product line to target a higher-end market. In this case, the winery launched a brand wine priced twice as high as its other wines, indicating an upward line stretch.

Question 2

A company has just one product line: it manufactures only supercomputers. This one product line is also the company's ________.

Accepted Answer

The product mix refers to the complete range of products that a company offers or manufactures. Since this company only manufactures one product line, that product line is also their product mix.

Question 3

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

Accepted Answer

Product line contraction refers to removing or discontinuing certain products from a company's product line. In this case, Heinz stopped marketing a particular brand of frozen pizza snacks due to poor sales, indicating a contraction in their product line.

The other options are not applicable in this scenario:
A) Filling-out strategy refers to adding new products to an existing product line. 
B) Downward line stretch involves introducing a lower-priced product in an existing product line. 
D) Value stretch is the opposite of downward line stretch, involving introducing a higher-priced product in an existing product line. 
E) Cannibalization strategy involves introducing a new product that competes with an existing product from the same company.

Question 4

A company can stretch its product line either upward or downward, but not both directions.

Accepted Answer

A company can stretch its product line both upward and downward. Stretching the product line upward involves introducing more premium or high-end products, while stretching it downward involves introducing more budget-friendly or low-end products.

Question 5

A watch manufacturer added a watch to its product line that was higher priced than the models it already carried. The company used a two-way stretch strategy.

Accepted Answer

The answer of A watch manufacturer added a watch to...

Question 6

Practically every brand of soft drink ever made is available at Mom's Soda Shop; regional beverages from around the world can be purchased at the retailer's website. The retailer targets people who have developed a fondness for a particular soft drink and can no longer find it. The retailer's ________ is all types of soft drinks.

Accepted Answer

The retailer's product mix includes all types of soft drinks, which are available both in-store and on their website. The other options - branding strategy, product objective, positioning strategy, and marketing mix - may play a role in the retailer's overall strategy, but they do not specifically address the range of soft drinks offered by Mom's Soda Shop.

Question 7

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 Beverages uses a(n) ________.

Accepted Answer

Active Beverages uses a limited-line strategy by targeting only the market interested in extreme sports and making high-energy drinks for that specific market. It does not attempt to make any drinks that are not targeted towards this market.

Question 8

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

Accepted Answer

ISO 14000 is a family of standards related to environmental management that is recognized internationally, making it relevant for companies looking to compete in the European market, where environmental regulations are stringent.

Question 9

Explain cannibalization. How does a line extension strategy increase the risk of cannibalization?

Accepted Answer

The answer of Explain cannibalization. How does a line extension...

Question 10

When creating product objectives, marketers should consider the long-term implications of product decisions.

Accepted Answer

Creating product objectives involves setting goals and targets for the product in the long term. These objectives should be aligned with the overall business strategy and take into consideration the potential impact of the product decision on the company's future growth and success. Therefore, it is important for marketers to consider the long-term implications of product decisions when creating product objectives.

Question 11

A stock-keeping unit (SKU) is a unique identifier for each distinct brand.

Accepted Answer

A stock-keeping unit (SKU) is a unique identifier for each distinct product, not brand.

Question 12

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) ________.

Accepted Answer

Mercedes introduced a lower-priced model (C-Class at $30,000) without affecting the sales of its higher-priced models, which is an example of a downward line stretch.

Question 13

The poor quality of American products in comparison to Japanese products in the 1980s led to the ISO quality revolution in American industry.

Accepted Answer

The answer of The poor quality of American products in...

Question 14

A company introduced the Funday film to compete with lower-priced brands, but it found many of its regular customers bought Funday instead of its usual, higher-priced film. The company experienced ________.

Accepted Answer

The scenario describes cannibalization, which occurs when sales of a new product or service come at the expense of an existing product or service offered by the same company. In this case, the company's regular customers are switching to the lower-priced Funday film instead of buying the higher-priced film they previously purchased.

Question 15

The Six Sigma process is applied to products but not services.

Accepted Answer

The Six Sigma process can be applied to both products and services. It is a data-driven approach to improve the quality and efficiency of processes, regardless of the industry or sector.

Question 16

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

Accepted Answer

The manufacturer of Alka-Seltzer is using a full line strategy, which involves offering different variations of a product to reach as many different target markets as possible. By offering specific products for cold sufferers, upset stomachs, etc., the manufacturer is able to cater to the unique needs and preferences of each market segment.

Question 17

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

Accepted Answer

Six Sigma is a methodology designed to improve the overall quality of a product or service by reducing defects and errors to less than 3.4 per million opportunities. It focuses on statistical analysis and process improvement to minimize variation and maximize efficiency, leading to almost entirely defect-free products and services. ISO 14000 is an environmental management standard, ISO 27001 is an information security management standard, TQM (Total Quality Management) is a holistic approach to quality improvement, and ISO 22000 is a food safety management standard. While all of these standards may contribute to reducing defects, Six Sigma is specifically designed for that purpose.

Question 18

A company makes several different kinds of shampoo, but it did not have a dandruff shampoo designed for women until it added Pro-Women antidandruff shampoo. This is an example of a(n) ________.

Accepted Answer

A filling-out strategy involves adding more items within the present range of the line, such as introducing a new product variant like a dandruff shampoo for women.

Question 19

How can marketers use elements of the marketing mix to improve product quality?

Accepted Answer

The answer of How can marketers use elements of the...

Question 20

Total quality management involves all employees, regardless of their function, in continuous quality improvement efforts.

Accepted Answer

Total quality management emphasizes the involvement of all employees in the process of continuous quality improvement, including individuals in non-managerial roles. This approach aims to create a culture of quality within an organization and empower all employees to take ownership of quality improvement efforts.

Quiz 9: Product Ii: Product Strategy, Branding, and Product Management